Parallel Imports in Pharmaceuticals and Social Welfare

This paper makes the empirical study on parallel imports in pharmaceuticals and social welfare. It shows that the regime of international exhaustion of IPRs and parallel imports of medicines can facilitate the optimal utilization of global resources and benefit more people in the world. Parallel imports can drive competition and make consumers obtain the pharmaceuticals at lower prices. It can bring health care savings for consumers and health insurance organizations. And no evidence shows that manufacturers' and IPRs holders' profits may be hurt. It can also speed up regional trade integration by improving resources allocation between member states and provide a new approach for developing countries to eliminate significant infectious diseases.