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European Pharmaceutical Contractor
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With the accession of the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia and Slovakia, the Community has experienced a fourth round of enlargement of unparalleled magnitude. The successful conclusion of the latest round of accession negotiations resulted in an addition of roughly 75 million new inhabitants for the Community, generating an additional GDP of approximately €785 billion. According to estimates, overall pharmaceutical sales in the 2004 enlargement countries will amount to roughly $10 billion, and Poland's total pharmaceutical sales in 2006 will be greater than Belgium's. In the same year, it is estimated that pharmaceutical sales in Hungary and the Czech Republic will roughly equal Denmark's or Finland's.
These estimates are contrasted by projections of significant parallel trade between old and new Member States in the near future. In light of different price levels for pharmaceutical products sold in old and new Member States, the Accession Treaty between the Community provides for a provision dealing with parallel trade in certain pharmaceuticals, the so-called 'Specific Mechanism'. The following analyses selected aspects of the Specific Mechanism's operation in practice.
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