Did the LUA Directive increase competition and decrease prices in the market for non-prescription pharmaceuticals?

Abstract

LUA Directive was introduced for first time in Norway in 2003 to provide better availability and lower prices for non-prescription pharmaceuticals. The main idea behind implementing such a directive was to increase the competition in the non-pharmaceutical market by letting other retail outlets than the pharmacies to provide non-prescription pharmaceuticals. Based on results from a price investigation by The Norwegian Medicines Agency in 2010, LUA Directive was not very successful to slow down the prices but instead the Directive led to market segmentation and product differentiation.