Benefits of Parallel Trade
The benefits of parallel trade for Ireland’s healthcare system
Making healthcare more affordable
Across Europe, healthcare systems face the challenge of rising costs, especially with an aging population. In Ireland, where we cherish our public healthcare services, finding ways to manage these costs without compromising on quality or accessibility is crucial. Parallel trade, as practiced by companies like AMI members, offers a lifeline in this respect.
By sourcing medicines from across the EU where they may be cheaper and then repackaging them for the Irish market, parallel importers can offer these essential drugs at lower prices. This results in significant savings for both public healthcare budgets and patients themselves, without reducing the range of treatments available.
How savings are generated
Parallel imports create savings in two main ways: directly and indirectly.
- Direct savings
These are the immediate financial benefits, where the cost difference between the original manufacturer’s price and the parallel imported product translates into lower expenses for healthcare providers and patients. For example, when a drug that is essential to many is brought into Ireland at a reduced price, the savings can be passed on directly to patients or reinvested into the healthcare system, enhancing the quality of care or expanding services. - Indirect savings
These arise from the competitive pressure parallel imports place on original manufacturers to lower their prices. Even the potential threat of parallel imports can lead manufacturers to reduce prices preemptively, benefiting the entire healthcare system financially.
Research across Europe, including in countries like Germany, Sweden, Denmark, and Poland, has shown that parallel trade generates hundreds of millions of euros in savings. These savings strengthen the healthcare system, making more resources available for patient care and innovation.
Beyond savings: Enhancing access and reducing shortages
Parallel trade doesn’t just save money; it also plays a crucial role in addressing medicine shortages. By efficiently moving medicines from where they are in surplus to where they are needed, parallel traders ensure that Irish patients have access to the medicines they need, when they need them.
Initiatives like the online platform created by the Bulgarian Association for Medicines Parallel Trade Development show the proactive steps being taken within the industry to respond to patient needs swiftly. Such platforms can quickly find and supply necessary medicines, demonstrating the parallel trade industry’s commitment to patient care and the alleviation of shortages.
A collaborative effort
The fight against medicine shortages and the drive to make healthcare more affordable in Ireland are bolstered by parallel trade. By bringing in competitively priced medicines and ensuring a steady supply, parallel importers and exporters directly support Irish patients and the broader healthcare system.
Our approach to parallel trade is guided by a commitment to public health, ensuring that all Irish patients have access to the treatments they need at prices that are sustainable for our healthcare system. This model not only fosters a more competitive market but also underlines the importance of innovation and responsiveness in meeting Ireland’s healthcare challenges.
Through strategic sourcing and repackaging, parallel trade is a key player in promoting a healthier, more accessible, and economically sustainable healthcare landscape in Ireland. It’s a testament to the industry’s role in supporting not just the economy, but the well-being of every patient.
