Parallel trade in medicinal drugs is putting the welfare of EU patients at risk

The term ‘parallel trade’ refers to instances in which a product sold for a low price in one country is bought and transported to a second country in which the same product sells for a higher price, allowing for a profit to be made. Joan Costa-i-Font writes that the EU’s single market has helped facilitate this practice in Europe with respect to the trade in medicinal drugs. He notes that one of the potential dangers of parallel trade is that shortages of certain drugs could develop in countries where prices are low due to companies buying up products and exporting them to more expensive markets.