Assuming Parallel Import Licences (PILs) Are Renewed after Each 5-year Period, the UK May Now Account for Over 17,200 valid PILs Affecting over 71 Research-Based Multinationals.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c40337) has announced the addition of the new Spectra Intelligence report "Pharmaceutical Parallel Trade in the United Kingdom, 2000-2006: Market Insights and Trends in a Primary Import Destination" to their offering.

The United Kingdom (UK) is the top destination for parallel imported drugs. Approximately 20% of all National Health Service (NHS) dispensed drugs are parallel imports and the market is estimated to be valued at over GBP 1 billion (US$1.8 billion). Although the net benefits to the UK economy are controversial, experts have proposed that consumers save around GBP 300 million or more (US$540+ million) per year due to bulk purchase of lower priced parallel traded drugs. Furthermore, researchers have calculated that parallel importers profit over GBP 700 million (US$1.2 billion) per annum in Europe from parallel drug distribution, creating a boom market.

Importing drugs into the UK is highly attractive for several reasons: the relatively high prices of domestically supplied drugs compared with European counterparts makes parallel trade a viable and profitable enterprise; government incentives encourage pharmacists to source and dispense parallel-traded drugs through the clawback scheme; and the legal and regulatory framework to import and redistribute drugs within the EU is centralized in the UK.

Although historical Court rulings tended to favour parallel importers, recent court cases have been shown to favour the pharmaceutical industry particularly in relation to allegations of supply restriction. Despite this increasingly balanced litigious outcome, the UK parallel import market has evolved into a highly lucrative enterprise.

Spectra's analysis of the UK parallel trade market reveals that between 2000 and 2006 over 12,200 parallel import licenses were granted. Prior to 2000, figures show that there were just 2,726 valid parallel import licenses approved in 1998 representing an 18% increase over the previous year at that time; imports have now increased approximately 350% between 2000 and 2006. Assuming Parallel Import Licences (PILs) are renewed after each 5-year period, the UK may now account for over 17,200 valid PILs affecting over 71 research-based multinationals.

Parallel importers are a diverse group of traders who range from small-to-medium sized firms to larger multinational corporations. They operate in an extensive and complex network to cater for the high demand for drugs but with tightening supply. For this reason parallel trade is increasingly competitive for the parallel importers who are constantly fighting for market share. There are currently more than 70 parallel importers in the UK who continue to source new opportunities in the parallel drug distribution market.

In this report briefing, Pharmaceutical Parallel Trade in the United Kingdom, 2000-2006: Market Insights and Trends in a Primary Import Destination, the reader will be introduced to the scope of parallel trade in the UK based on therapy area analysis of PILs granted through a 7-year period; and assessments of parallel import activities that impact on the domestic market.

Chapter 1 provides an up-to-date account of parallel trade in the UK and Europe and highlights the key factors driving growth, the major barriers to the industry, the key stakeholders, and also reveals the main strategies employed by pharmaceutical companies to combat the trade. This chapter enables the reader to understand the core mechanisms which underscore parallel drug distribution and shows why parallel importation is a controversial market sector of the global pharmaceutical industry.

Chapter 2 examines the scope of parallel importation in the UK through therapy-area analyses of authorized PILs between 2000 and 2006. This section provides detailed coverage of 19 therapy channels revealing which actives are highly attractive to parallel importers. The chapter also provides an overview of imports by drug class between 2000 and 2006.

Chapter 3 details the market issues related to parallel importation in the UK and attempts to quantify the market value for imported drugs based on importer revenues. The chapter also reveals the top 30 multinational pharmaceutical companies portfolios targeted for parallel importation.

Objectives of the Report

The objectives of this report briefing are to provide a detailed and insightful analysis of the parallel trade market in the UK. Included in this study are evaluations of key therapy areas for parallel importation, assessments of market value, and listings of companies operating in the field. It is hoped that the reader will benefit from market analysis, evaluations of trends, and from pooled knowledge of recent activities in the area.

Research Methodology

The contents of this report are derived from Spectra's surveys of the parallel trade industry

and proprietary database tools. Source material may also comprise the following:

--Company information

--Personal communication

--Trade press articles

--News releases

--Internet-based research

--Library research

--Scientific periodicals

--Product information

--Market analyst data

--Public information datasets

--Conference proceedings

--Medical/pharma associations

Report Brief: Highlights & Key Findings

- Outlines the extent and impact of parallel importation in the UK

- In-depth analysis of import licence trends across 19 therapy areas

- Reviews factors driving growth of parallel trade in Europe and UK

- Analysis of over 12,000 parallel import licence approvals from 2000 to June 2006

- Provides insight into the actives most commonly targeted for importation

- Reveals multinational company portfolios most targeted for parallel importation

- Describes the advantages and disadvantages of parallel trade in Europe

- Provides an update on parallel importation trends in the UK over a 7-year period

- Shows difficulties in assessing true market value of the parallel trade sector

- Highlights the leading parallel importers in the UK

- Provides competitive intelligence on stakeholders in the parallel trade market

- Discusses the future of parallel trade in the UK

- Provides background data for customized market research and analysis in the UK parallel import market

WHAT CAN I LEARN FROM THIS REPORT?

--How parallel trade in Europe and the UK has evolved over the past decade?

--Acquire insights into the therapy areas mainly targeted by parallel importers

--What impact parallel trade has on stakeholders in the UK?

--Which parallel traders are the main threats to research-based pharmaceutical companies?

--Which strategies are employed by pharmaceutical companies to combat parallel trade?

--Whose portfolios are mainly affected by parallel import in the UK?

--Which systems and actives are highly attractive to the parallel importer?

--How import product areas are changing and why the product lines are expanding

--Benchmark potential import-based portfolio losses or gains against competitors

--Evaluate the potential for new opportunities in parallel trade, hence stay one-step ahead of the game?

--Identify market trends and use information for further critical and strategic analysis

--Update knowledge on parallel importers in the UK, new and old

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Companies Mentioned Include:

- 3m Health Care - Abbott Laboratories - Alcon - Allergan - Alliance - Alpharma - Altana - Amdipharm/Waymade - Astellas - Astrazeneca - Bayer - Boehringer Ingelheim - Bolton - Bristol-Myers Squibb - Britannia - Cephalon - Chemidex - Chiron - Clinimed - Crookes - Leo - Lilly - Lundbeck - Meda - Menarini - Merck- Novartis - Novo Nordisk - Organon - Orion - Pfizer - Seven Seas - Shire - Solvay - Stiefel - Takeda - Trinity-Chiesi - Ucb - Valeant - Viatris - Wockhardt - Wyeth - Zeneus

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