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Parallel trade of pharmaceuticals in Norway

Abstract

Before Norway joined the European Economic Area in 1994, parallel imports of pharmaceuticals were not permitted. In the first year of its membership Norway allowed parallel imports of non-patented drugs. Parallel imports of patented pharmaceuticals became legal in 19952. The high price level and financial incentives to the pharmacist allowed parallel importers to penetrate the market quickly and market shares hit 7.7% in 2000. Because of substantial price cuts on branded drugs which were imposed by the Norwegian government, market shares of parallel traded products eased back to 5.1% in the year 20023. In 2005 market shares of parallel traded pharmaceuticals were back at 6.9%4. Research on 25 top selling pharmaceuticals reveals that the average parallel traded pharmaceutical was priced 3% below the locally sourced drug between October 2003 and September 2004. Parallel imported drugs have cut overall drug expenditures by 0.2%. Norway is the Scandinavian country where price advantages and market shares of parallel traded drugs are the lowest.

Keywords

Market Share Pack Size European Economic Area Parallel Trader Price Advantage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Birkhäuser Verlag AG 2008

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