These treatment regime patents were recently used by Bristol-Myers Squibb to block introduction of generic versions of Taxol in the U.S. Market. Parallel Imports . Some nations permit imports of pharmaceuticals legally purchased in international markets, while other countries prevent cross border trade. There are several aspects of the issue. The limitations of cross-border trade permit drug companies to engage in price discrimination, charging higher prices in countries with less internal competition.
Pharmaceutical companies claim that cross board trade encourages imports of counterfeit drugs.
Some public health groups say that counterfeiting is a serious problem, but is caused by high domestic prices and occurs in countries without parallel imports, and can be addressed separately from the parallel import issue. This is a very important issue for countries with small domestic markets, which want to get the best world price on the international market. U.S. trade officials are actively seeking to discourage this practice in South Africa and other countries. Trademarks and Public Health. Pharmaceutical companies claim that trademark rights shield industry from efforts by governments to promote generic drugs or permit parallel imports.