StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Parallel Trade in Pharmaceutical Products - GlaxoSmithKline Unlimited - Case Study Example

Cite this document
Summary
The author of the following paper "Parallel Trade in Pharmaceutical Products - GlaxoSmithKline Unlimited" explores a breach of European competition laws. The case observed in the paper was presented to the European Court of Justice for determination…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Parallel Trade in Pharmaceutical Products - GlaxoSmithKline Unlimited
Read Text Preview

Extract of sample "Parallel Trade in Pharmaceutical Products - GlaxoSmithKline Unlimited"

GSK had several arguments in its defense. First, it argued that it was not breaching any competition laws since national governments already controlled and restricted the pharmaceutical sector (Schultz & Killick 2006, p.2). Secondly, GSK averred that opening up the pharmaceutical sector to parallel market operations would negatively impact their revenues; hence, hampering their role in research and development. In addition, parallel market operations tended to create shortages of medicine in low-price countries as businesses were buying them from such countries and shipping them off to high-price countries within the EU in order to rake in huge profits.

Nevertheless, some arguments clearly compromised GSK’s position. To begin with, GSK could not be exempted from Article 81 of the European Union that outlaws any activity that restricts trade among member states (Covingon & Burling 2005). Limiting parallel market operations would amount to undermining competition within EU member states (Morgan Lewis 2009, p. 1). Secondly, pharmaceutical companies, especially GSK, were not contributing towards the improvement of the production and distribution of medical products. Moreover, GSK had not been party to the promotion of technical and economic growth in their countries of operation. Consequently, the giant pharmaceutical corporation lost the case.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“GSK Case Study Example | Topics and Well Written Essays - 250 words”, n.d.)
GSK Case Study Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/marketing/1643316-gsk
(GSK Case Study Example | Topics and Well Written Essays - 250 Words)
GSK Case Study Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/marketing/1643316-gsk.
“GSK Case Study Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/marketing/1643316-gsk.
  • Cited: 0 times

CHECK THESE SAMPLES OF Parallel Trade in Pharmaceutical Products - GlaxoSmithKline Unlimited

Assessment on Intellectual Property Rights and Information Technology

COMPETITION LAW: CRITICAL ASSESSMENT ON INTELLECTUAL PROPERTY RIGHTS AND/OR INFORMATION TECHNOLOGY Introduction New and innovative products are the lifeblood of business entities or organizations.... It has become a sound corporate policy or business strategy to come up with contemporary or modern products—consumer or technology—to increase their bottom-line and ultimately, to eliminate their competition if not corner a substantial segment of the market.... Research and development is heavily relied upon by business or corporate entities to create or generate new products that would entice the consumers venture away from their comfort zone and try out other products which are marketed or promoted to be of better quality but it would not break the bank so to speak....
16 Pages (4000 words) Assignment

EU Competition Law Issues

The concept of agreement, within the interpretation of this article, on the existence of the concurrence of wills, explores different possibilities of trade and sales relations between two or more parties.... This is because an agreement is capable of affecting trade between member states....
10 Pages (2500 words) Essay

The Treaty On The Functioning Of The European Union

Background information relating to competition policy Competition is necessary for any market as it is the basic mechanism of any economy encouraging businesses to offer their products and services to consumers on favorable terms.... One case is related to pharmaceutical industry while other is related to the use of the internet....
10 Pages (2500 words) Essay

Marketing Strategy of GlaxoSmithKline

The paper "Marketing Strategy of glaxosmithkline" highlights that companies like glaxosmithkline have provided medical aid and improved the quality of life of people.... glaxosmithkline provides high-quality medicines and believes that their effective medical treatment can reduce the need for surgery.... The main aim of this study is to analyze the marketing strategies adopted by glaxosmithkline Plc; a London-based pharmaceutical company (Chaffey et al....
12 Pages (3000 words) Essay

Parallel Trade in Pharmaceuticals in the UK

The paper "parallel trade in Pharmaceuticals in the UK" discusses that the prices of products in the British pharmaceutical industry are high – compared to other countries, parallel trade has been considered as the only way for controlling pharmaceutical costs.... parallel trade in the pharmaceutical industry would be effectively controlled if the rules and the mechanisms of control in the local market were updated.... The use of parallel trade in the pharmaceutical industry has been initially related to the reduced prices for patients; however, through the years, the specific activity has been also found to help towards 'the reduction of costs for the social security system of the importing countries....
16 Pages (4000 words) Dissertation

Business Policy and Analysis: Global Pharmaceuticals

Economic In developed countries, the spending on healthcare products, particularly pharmaceutical products, is as much as 16% of GDP, compared to only 6% in 1960 (Floyd, 2008).... Furthermore, there are opportunities for growth in pharmaceutical sales in emerging economies, particularly China, India, and other Asian economies (Agres, 2007).... However, parallel trade threatens to undercut the legitimate market by sourcing cheaper drugs in emerging economies and selling them in high-priced economies (Johnson, et al....
7 Pages (1750 words) Term Paper

Global Management Strategy

Conversely, eye products that include spectacles, contact lenses, and eye drops cannot be found in pharmacies in the country unless an individual visits an optician with a prescription.... oiletries and other products made to improve hygiene are also unavailable in Czech Republic pharmacies but can be purchased in stores elsewhere.... A comprehensive and critical analysis is given by one of its global marketing consultants on the viability of entering the pharmaceutical industry in the Czech Republic, which is one of the European Union countries....
13 Pages (3250 words) Essay

The Modernisation of UE Competition Law over the Past Ten Years

The integration of ever-increasing Member States of the EU has fuelled the need for the regulation of trade practice.... This paper, The Modernisation of UE Competition Law over the Past Ten Years, stresses that EU Competition Law has been an active and constantly adapting concept of the EU....
15 Pages (3750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us