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GlaxoSmithKline recieves positive decision in Greek parallel trade case
London, UK | Thursday, September 7, 2006, 08:00 Hrs  [IST]

GlaxoSmithKline has received a favourable decision, in the long running case involving the supply of three of GSK's medicines, Lamictal, Imigran and Serevent.

This case concerns complaints by wholesalers and pharmacy cooperatives which were filed with the Hellenic Competition Committee in December 2000, raising the question whether a refusal to supply all quantities of pharmaceutical products ordered by customers constitutes an abuse under competition rules, where this would hinder parallel trade.

The Hellenic Competition Committee referred the matter to the European Court of Justice in January 2003 for a ruling under European Competition law. Advocate-General Jacobs issued a positive Opinion in GSK's favour in October 2004 but the European Court of Justice referred the matter back to the Hellenic Competition Committee in May 2005 without deciding on the merits of the case for technical reasons.

The Hellenic Competition Committee's decision reflects the Opinion of the Advocate-General in ruling that there was no abuse by GSK in refusing to supply unlimited quantities of the drugs to wholesalers and pharmacy cooperatives in Greece, even if this hinders parallel trade.

Commenting on the decision Andrew Witty, president, Pharmaceuticals Europe, GlaxoSmithKline said: "This is a vindication of GSK's commercial policy in Europe. It is common sense to allow a group like GSK to organise its business to ensure that it meets patients' needs in each and every country across the region a legal and moral obligation GSK takes extremely seriously.

"Today's decision recognises that parallel trade in the context of the pharmaceutical industry across Europe, where prices are directly or indirectly controlled by EU Governments, benefits primarily traders who pass on none or almost none of the price differences to patients and payers."

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