The EU's highest court said today it lacked jurisdiction to rule on whether GlaxoSmithKline (GSK) was allowed restrict supplies of its medicines to traders reselling them abroad.
The Greek competition authority had asked the European Court of Justice for legal advice after Greek wholesalers complained that GSK had restricted supplies of three drugs in 2000 to stop them being exported to more expensive markets.
Greek drug prices are among the lowest in Europe.
The move leaves in limbo the legality of attempts by drug firms to block so-called parallel trade, where medicines are shipped around Europe to exploit national price differences.
A spokesman for GSK said Europe's biggest drugmaker would continue with current supply arrangements in Greece, under which drugs are sent direct to hospitals and pharmacies, with wholesalers getting only limited quantities.
Lawyers for the wholesalers said this behaviour defied an interim ruling in 2001 from the Greek authority, requiring GSK to provide unlimited supplies of Imigran for migraine, Lamictal for epilepsy and asthma treatment Serevent.
Parallel trade has long been a thorn in the side of the pharmaceutical industry, which says it undermines incentives for innovation and saves little money for patients or payers.