2 June 2016 - Germany should allow mail-order pharmacies from neighbouring countries to undercut domestic pharmacies on the price of prescription drugs, an influential adviser to the European Court of Justice said, potentially upsetting the country's highly regulated drug retail market.

Advocate General Maciej Szpunar, whose opinions are not binding but are usually followed by the European Union's top court, said on Thursday German rules setting a retail price floor for prescription drugs were in violation of free trade in Europe's single market.

German patients covered by the country's statutory medical insurers have to pay a certain portion of drug expenses from their own pockets and Dutch-based mail order pharmacies have in the past offered to return some of that money, using their non-German domicile to circumvent minimum prices.

The purchase offer was mainly used by chronically ill patients - and fiercely attacked by Germany's powerful pharmacy lobby - until the practice was blocked by Germany's highest court in 2014 after years of legal wrangling.

The country has strict rules on prices as well as wholesale and retail margins for prescription drugs as a way to keep essential drugs available across Germany.

For more details, go to: http://www.reuters.com/article/eu-drugs-germany-idUSL8N18U2WL