[Parallel import of drug preparations. A study of price development of parallel import preparations versus original...

Price developments for the first parallel imported preparations and the corresponding original preparations have been followed over the period 1st January 1992 to 1st June 1992 with the aim of registering any possible effects of the parallel import on price levels. Altogether 174 parallel imported preparations--including different strengths and administration forms--received marketing permission in the period, and by 1st June 1992 74 parallel imported preparations had come on the market. The main part of the parallel imported preparations are marketed at a lower price than the original preparations. At the end of the investigation period, 56% of the marketed parallel imported preparations were being sold at a price that was on average 5-10% below that of the corresponding original preparation; 24% were being sold at a price 0-4% below the original and 20% were being sold at more than 10% below the original preparations. The effect on the prices of the original preparations has been variable. In the beginning of the study period we saw four examples of large reductions in the price of original preparations (up to 45%) after the parallel imports began to be marketed, but at the end of the study period the marketing of the cheaper preparations seemed to have no effect on the prices of the original preparations, which remained unchanged.