Parallel trade
The extent of parallel trade for a given pharmaceutical depends upon...
- The price differentials amongst countries. (Parallel traders, obviously, prefer large differentials.)
- The value sales of the pharmaceutical in question. (Parallel traders prefer to target bigger selling products.)
- The countries involved. (Some countries - like the UK - are particularly susceptible.)
- Supply constraints and distribution limitations in the exporting country.
- Etc.
The resulting levels of parallel trade between countries are relatively predictable and are described by a set of 'power laws' known as the 'parallel trade equations'.
Inpharmation provides elegant software solutions for pharma companies who need to model the impact of parallel trade - either as a stand alone program or as powerful functions that you can drop into your existing Excel spreadsheet models.
For more information on parallel trade modelling (and on international price setting in general), please fill in the form below...
