Pharmaceutical Executive Europe - November 2008 - (Page 8)

Parallel Traders Live to Fight Another Day The EFPIA’s campaign — led by the EC’s Günter Verheugen — to ban parallel trade repackaging has hit another wall of resistance. Reflector reports. M y prediction of an impending battle in Brussels over parallel importing has proved chillingly accurate. Contrary to all expectations — and there were many! — the EU did not propose tighter wholesaling rules on the scheduled date of October 21. European industry commissioner Günter Verheugen, the champion of the research-based industry and his allies in the European Federation of Pharmaceutical Industries and Associations (EFPIA), were comprehensively outmanoeuvred as the proposals were embarrassingly dropped at the last moment, for what were officially termed “technical adaptations.” Verheugen had promised to make the distribution chain counterfeit-free by banning the repackaging that parallel importers routinely practice. However, the reality is that the parallel importers have run rings around the mainstream drug industry in their lobbying against the proposals. They managed to persuade prominent members of the European Parliament and several of the Commission’s top officials to object. So, in a stormy meeting in Strasbourg, Verheugen found himself ambushed at the last minute by too many of his colleagues to be able to win support for the package. …importers have run rings around the mainstream drug industry in their lobbying against the proposals. The opposition was led by Commission heavyweights Neelie Kroes, the tough Dutchwoman in charge of competition, and acerbic Charlie McCreevy, the Irishman with responsibility for the EU’s internal market. Altogether 17 of the Commission’s 30-plus departments criticised the package. The result is that the proposals have been pulled back for further consultation, with a re-scheduled launch date of November 26. It is almost certain to re-emerge with less strict limitations on repackaging — to the dismay of manufacturers, who had lobbied intensively for an outright ban on the pretext of countering counterfeits, but in large measure, also as a way of clamping down on the parallel importers that eat into their profits. EFPIA loudly regretted the setback, and called on the Commission: “To work rapidly to resolve any differences to ensure these measures proceed with the minimum of delay.” Arthur J. Higgins, CEO of Bayer HealthCare and president of EFPIA, said: “We are concerned by this unexpected delay. This package of measures is an integral part of the process of ensuring and securing the supply of safe, non-counterfeit medicines.” EFPIA director general Brian Ager said: “This package has been a long time in gestation; it is disappointing to see it further delayed at this late stage.” Manufacturers — and parallel importers — know that without rapid agreement from the Commission, the legislative process for these proposals may not be completed before the new European Parliament is formed in mid2009, and perhaps, therefore, postponed indefinitely. The stakes remain high. In winning this round, the parallel importers have shown, not for the first time, that they can conduct highly-effective guerrilla actions against the more ponderous battalions of Big Pharma. ■ 9 Strategy Fundamentals Understanding Ansoff’s Matrix 11 BioFutures The state of biotech venture capitalism 13 Critical Vision Is pharma recession-proof? 15 Executive Profile Dr Jacques Servier Angelo Cavall/Getty Images

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - November 2008

Pharmaceutical Executive Europe - November 2008
Contents
From the Editor
News Round-Up
Calendar
Brussels Report
Using the Wooden Spoon
VC: Virtuous or Vampire Capital?
Is Pharma Recession-Proof?
Servier: Patience and Passion
Boost Your Brain Power
Innovation, Innovation, Innovation
Last Words

Pharmaceutical Executive Europe - November 2008