The European Pharmaceutical Sector

2561 Words Jan 16th, 2015 11 Pages
Introduction The European pharmaceutical sector is a EUR multi-billion industry that, not only contributes to the competitiveness of Europe in the world market, but also helps drive its economic growth. With such prominence, there is no surprise to why it is perhaps one of the most heavily regulated sectors in the European Union. The European Commission has taken extensive measures to ensure that dominating pharmaceutical companies are not abusing their dominant position of power. At the same time the Commission has to be able to promote the development of new medicinal products. This has proven to be an arduous task as pharmaceutical companies developing new medicinal drugs have to overcome pervasive and diverse regulations implemented by the European Commission at both national and EU levels, including price and distribution regulations as they get ready to launch their new product. The thesis of this paper is to look at the progress that the Commission has made at developing an environment that it believes will encourage healthy and transparent competition within the pharmaceutical sector. The Commission has successfully launched the pharmaceutical sector inquiry in 2008, which has been very successful at regulating settlement agreements between pharmaceutical companies. The Commission also successfully enforced the competition policy in the case of AstraZeneca, which was the biggest and longest pharmaceutical case the Commission has taken on thus far. Tackling…
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