Parallel trade occurs when a product placed on the market in one country is bought by an intermediary, who then exports it to another country. This happens when price differences between countries are significant enough to create attractive profits for parallel traders. Prices for pharmaceutical products vary widely from country to country for many reasons, including differences in living standards, income, willingness to pay, volume, exchange rates, the level of competitive medical service, product prices, patent terms and expiration dates, the length of time and cost of drug marketing approval, and government-imposed reimbursement and price controls.
Major pharmaceutical companies will improve their profit margins by 15% - 20%. The optimal solution will enable the clients to also make informed decisions on Country Resourcing, Optimal Prices, Optimal Trade Flows, Optimal Demand, Optimal Supply, Production Quotas, Inventory Levels.
Parallel Trade calculations were performed on quatelry 2017 statistics
Statistics and optimal solutions available upon request
The pharmaceutical industry has utilized various independent assessments and strategic solutions to the global launch problems and parallel trade in the past even though these solutions were far from perfect. OGP helps to compete and beat parallel trade. The solution to the parallel trade problem is a complete solution that includes:
Optimal launch solutions consisting in optimal prices and optimal trade flows
A measure of parallel trade impact on corporate profits for medicines already on the market
A proprietary market model allowing clients to manage parallel trade over the life span of the drug and conduct "what if" sensitivity analysis.
Pharma companies will recover more than $2 billion with optimal solution
Global Patients will improve welfare by more than $800 million