The EU drug arb

March 15, 2012

This one comes from Chris Telmer, a great piece about how national differences in drug prices are arbitraged in the EU.  The differences in prices are the result of national healthcare policies, with some countries extracting lower prices from drug companies than others.  The possibility of arbitrage stems from the EU’s single-market principle, which allows free flow of goods across borders.  The result:  a thriving business in “parallel trade.”


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