🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Industry blames price gap for UK drug shortages

Published 08/25/2009, 06:49 AM
Updated 08/25/2009, 06:51 AM

* Medicine exports jump due to low prices and weak pound

* Surge in emergency deliveries to pharmacies to plug gap

LONDON, Aug 25 (Reuters) - A widening price gap, fuelled by a weak pound, is behind the current shortage of some medicines in Britain as more drugs are exported by middlemen for profit, the pharmaceutical industry said on Tuesday.

Pharmacies up and down the country have recently reported worsening problems in securing supplies of dozens of prescription medicines because of the lucrative export trade.

The problem is reflected in a surge in emergency deliveries by drugmakers to pharmacies to plug the supply gap.

There were 77,020 emergency shipments in the first five months of this year by three major manufacturers, up from just 6,134 in the same period of 2008, the Association of the British Pharmaceutical Industry (ABPI) said.

Industry figures suggest there should be more than enough supply in Britain to meet demand, but sharply lower prices are sucking medicines out of the country.

"This pricing discrepancy and the change in the exchange rate have created a financial incentive for either wholesalers, pharmacies or dispensing doctors to order extra medicines and sell them overseas for a quick profit," the ABPI said.

The trade -- known as parallel exporting -- is legal under European Union law but has long been condemned by drugmakers.

In the past, British drugmakers have complained about cheap parallel imports flooding into the country.

The ABPI said research by consultancy IMS Health showed 11 percent of Britain's 12,600 pharmacies and a tiny number of dispensing doctors were engaged in parallel trade worth an estimated 30 million pounds ($49 million) a month. (Reporting by Ben Hirschler; Editing by David Holmes) ($1=.6103 Pound)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.