DUQUE ASSURES 50% PRICE REDUCTION OF 16 MOST EXPENSIVE DRUG MOLECULES BY AUGUST 15

From: DOH WebPage

Health Secretary Francisco T. Duque III today announced the list of drugs that will be subjected to 50% voluntary price reduction starting August 15.

The list includes sixteen drug molecules (or 41 drug preparations) that were proposed by various multinational drug companies as an offshoot of the initial meeting and consultation with President Gloria Macapagal-Arroyo last July 8, 2009.

President Arroyo previously asked drug companies to submit their voluntary compliance to a reduction of the initial 21 drugs and medicines that were originally deemed for inclusion in the imposition of the Maximum Drug Retail Price (MDRP).

“We are very pleased with the fast and encouraging response of the industry to the appeal of government to voluntarily reduce their drug prices by 50%. In fact, we got more than what we bargained for because apart from the original list that we proposed, other drug companies offered voluntary price cuts in some of their leading products,” Duque stated.

Duque revealed that 8 pharmaceutical companies have agreed to also apply voluntary price reduction to 22 other molecules or 31 more products that were not in the MDRP list bringing the total number to 38 drug molecules (or 72 products). These medicines are indicated against hypertension, diabetes, influenza, hypercholesterolemia, cancer, arthritis, goiter, allergies and infections.

“Thus, the additional medicines also served to broaden access to more medicines against more diseases,” Duque stressed. “Today’s show of support and cooperation by a variety of stakeholders from different sectors exemplifies how public-private partnerships can be utilized to broaden access to essential medicines effectively in line with our international commitment to the 8th Millennium Development Goal for Global partnerships,” Duque added.

In a Resolution adopted and approved today by Secretary Duque together with other members of the Advisory Council for Medicine Price Regulation, it was emphasized that the reckoning date for implementing the voluntary price cuts is on August 15, 2009.

“We expect, most of the manufacturers, distributors, traders and retail outlets to comply with this deadline, especially for those with automated systems,” Duque emphasized.

Meanwhile, small and medium-sized drug outlets with manual systems will be given until September 15 to comply with voluntary price reduction to enable them to reconcile and validate their inventories and adjust to the changes in drug prices. However, those that can already implement before this must already comply. After September 15, sanctions will be imposed on non-compliant retailers.

“With this significant price reduction in leading essential products we expect that it will alleviate the burden imposed by criminally-high drug prices on our countrymen particularly the poor. But this is just one measure to widen medicines access for the public. Again we emphasize that there are already available generic drugs in the market that are equally safe and effective but which we can buy at much, much cheaper prices,“ Duque concluded.

The drugs were selected on the basis of their impact in addressing diseases which are of great public health importance in the country, their high price differentials compared to drug prices internationally, lack of market access particularly for the poor and limited competition with their generic counterparts.