Parallel trade dispute heats up

In a move to combat parallel trade of medicines within Europe's single market, GlaxoSmithKline informed the European Commission at year end that it would set sales quotas on drugs, effective Jan. 1, to limit the quantity of medicines that wholesalers in Europe can buy. According to the European Commission, Merck & Co. Inc. has notified the Commission of a similar approach.

The rationing will allow wholesalers to meet local demand, but reduce their ability to create a stock surplus. In Europe, this surplus is often generated intentionally to facilitate exports from low-price countries like France or Spain to high-price countries like the U.K...