Glaxo Wins First Battle In Fight Against Reimportation Of Patented Drugs

Law360, New York (October 30, 2004, 12:00 AM EDT) -- In a victory for GlaxoSmithKline PLC, a legal adviser at the European Court of Justice has ruled that branded drug makers should be allowed to restrict supplies of patented drugs to counter reimportation arbitrage.

Advocate General Francis Jacobs argued that drug makers should be allowed to use quotas to stop traders from buying excess drugs in low-priced countries in the European Union and selling them in higher-priced countries.

GlaxoSmithKline’s quotas "shouldn't be considered abusive where the differences in prices of medicines between (E.U. countries) are the...
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