UK acts to stop exports causing drug shortages

The British government plans a new system of inspections for drugmakers and wholesalers to tackle shortages in supplies of medicines caused by speculators exporting drugs overseas where they make more profit.

Junior health minister Mike O’Brien said on Thursday there would be penalties for those failing to ensure adequate supply. Officials will also implement tougher standards for the issue of licences to medical wholesalers.

The weak pound has created a widening price gap on medicine prices in Britain compared to those elsewhere in Europe, fuelling the arbitrage export trade and leading to a shortage of some drugs in the country.

Pharmacies across Britain have reported problems in securing supplies of dozens of prescription medicines because of the lucrative export trade.

“It is unacceptable that some people have already had to wait longer than they should have to get their medication. Patients must come before profits,” O’Brien said in a statement.

The new inspection system means that manufacturers and wholesalers will risk losing their licences and face prosecution if they breach legal duties on supply of medicines.

The so-called parallel trade is legal under European Union law but has long been condemned by drugmakers. In the past, British drugmakers have complained about cheap parallel imports flooding into the country.

The new measures to tackle the problem follow a summit meeting involving manufacturers, wholesalers, pharmacies and regulators.

Richard Barker, director general of the Association of British Pharmaceutical Industry, said he welcomed the moves.

LONDON (Reuters) -