Companies like EurimPharm work much as arbitrageurs do in the financial markets. Instead of trading stocks or bonds, the drug arbitrageurs buy prescription and over-the-counter pharmaceuticals from European countries where they cost less, such as Spain and Greece.
They repackage and resell them at a markup in more- expensive European markets, including Germany and the Netherlands.
The arbitrageurs’ profit comes from country-to-country price differences that can be hefty. A Europe-wide price survey in 2009 by a Spanish parallel trader showed price differentials that in a few cases topped 200 percent. Mohringer says such margins are unheard of in his industry.
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