Parallel trade

FIG. 22-55 Typical capital-cost schematic for membrane equipment showing trade-off for membrane area and mechanical equipment. Lines shown are from families for parallel hues showing hmiting costs for membrane and for ancillary equipment. Abscissa Relative membrane area installed in a typical membrane process. Minimum capital cost is at 1.0. Ordinate Relative cost. Line with positive slope is total membrane cost. Line with negative slope is total ancillary equipment cost. Curve is total capital cost. Minimum cost is at 1.0. 

Simulations may also be used to inform understanding of market dynamics and life cycle management and to aid in understanding the ways in which reference pricing and parallel trading may influence the best sequence of drug... 

Addition of parallel equipment units reduces the size of equipment for faster stages (see section 7.4.1.1). This is done at the cost of a greater number of units for processing slower stages whereby the total volume of these units remains constant. An economic trade-off between the larger number of equipment items and their smaller size will decide whether installing parallel units will improve the process. 

Whether parallel operations, larger or smaller items of equipment and intermediate storage should be used can only be judged based on economic trade-offs. However, this is still not the complete picture as far as the batch process trade-offs are concerned. So far the batch size has not been varied. Batch size can be varied as a function of cycle time. Overall, the variables are ... 

Over the last two decades, patents have played an increasingly important role in international trade and the protection they afford has been extended. Yet parallel to this, economic research on the impact of patents has been emphasizing that this is only one of the mechanisms for encouraging innovation. Furthermore, the extension of patent protection in publicly funded research is bearing fruit. 

The case of parallel imports presents a serious challenge for many governments, in that patent protection is unequal between countries, a fact that gives rise to trade between countries that fails to respect the necessary protection to... 

Price differences between countries owing to regulation and control systems create incentives for parallel trade of pharmaceutical products, whereby drugs from a country with low prices are imported into other countries with higher prices and resold there (see Chapter 5). 

The article by Darba and Rovira13 is an overview of the problem of parallel trade in the EU, extracted from the former s doctoral thesis, and with an additional section on possible future scenarios. 

Rovira, J. (1998), The pros and cons of a single euro-price for drugs and the economics of parallel trade , PharmacoEconomics, 14, 135-36. 

It should be borne in mind that European law applies a doctrine of exhaustion of rights in relation to the use of intellectual property rights. In effect, once the right has been used by its owner, for example to put a patented product on the market in a Member State, the owner may not assert that right to prevent the product moving round the Community thereafter. This principle limits the circumstances in which these rights trade in the EU for example in relation to parallel imports. 

In the 1999 PPRS negotiations, as a part of the agreement, the DoH imposed a 4.5% price reduction on sales to the NHS. This was equivalent to a loss of sales by the industry of 200 million. Because the 1999 revision of the PPRS permits companies to modulate these enforced price reductions across their product range, it could be expected that companies would do so in such a way that competition from parallel-traded products would be reduced, maximum price reductions being applied to those products that were currently being most affected by parallel trade. The 2004 PPRS enforced a 7% price cut on the pharmaceutical industry. 

The ICS that are certified to lOAS-accredited certification body standards are compelled (as of the 2002 IBS revision) to comply with chapter 8 on social justice (see Box 14.2) as well as the rest of the IBS. In addition, many ICSs are part of producer cooperatives that also have fair trade certification. As such, additional social justice and development standards are in place - the regulatory and collaboration dimensions. The learning element of ICSs is perhaps the most dynamic and interesting. Extension is an integral and essential aspect of ICSs - and is predominantly used for technical issues. Elowever, ICSs, once in place are often a framework for other kinds of development and learning (e.g. parallel systems - HIV/AIDS education in Uganda via EPOPA Projects, local community economics in Thailand). 

---