GOV’T GIVES ULTIMATUM TO DRUG FIRMS TO LOWER PRICES

From: DOH WebPage

Press Release/10 July 2009

The Department of Health (DOH) today reported that the government, led by President Gloria Macapagal-Arroyo, met with multi-national pharmaceutical companies last Wednesday, to hasten the lowering of prices of drugs and medicines under the maximum drug retail price (MDRP) list.

Health Secretary Francisco T. Duque III said that in the meeting, the President, upon the recommendation of Trade Secretary Peter Favila, directed the companies (whether manufacturing or distributing medicines) to submit their proposals in 10 days of all the drugs and medicines whose prices they would voluntarily lower by at least 50%, including but not limited to the listed medicines under the MDRP.

The President gave such ultimatum to speed up bringing down the prices of medicines and have our people enjoy the benefits of cheaper medicines the earliest possible time. It also serves to challenge these firms to add more medicines to the list of those they are mandated to bring down.” Duque said.

“During our consultations with the different stakeholders including those from industry, the non-governmental organizations (NGOs), consumer groups, academe, and drugstore association, it was clarified that full and effective implementation of the MDRP would take around two (2) to three (3) months. This is due mostly to administrative issues on reconciling inventory, compliance to labeling requirements as accorded by Law (putting the red strip and others) and preventing possible stock-outs of the much needed products in the drugstores. Voluntary compliance for some of these companies will make our people enjoy low cost quality medicines even before the two to three month period.” Duque clarified.

Trade Secretary Peter Favila, on the other hand, emphasized that such undertaking and voluntary compliance by the companies must be formally submitted, signed and must be made in the simplest terms. “We do not want complexities or proposals that require much legal study, we just want them to submit a simple undertaking showing the medicines that they will reduce the prices to at least 50% in the next few weeks.”

The meeting, which was held during the inauguration of the Dr. Eva Macaraeg Macapagal Geriatric Hospital last July 8, was requested by Pfizer. The President was accompanied by Secretary Duque, Trade Secretary Peter Favila, Trade Assistant Secretary Ma. Lourdes Baua, Congressman Benny Abante, Congressman Junie Cua and DOH-National Drug Policy Program Manager Dr. Robert Louie So.

The multinational industry, on the other hand, was represented by top management namely Mr. Albert Mateo of Pfizer, Mr. Augusto Villanueva of Roche, Mr. Reiner Gloor of PHAP/Zuellig, Mr. Andrew Santos of Wyeth and Mr. Caloy Realuyo of Sanofi.

In the course of the meeting, the President even called for some common workers and wage earners in the meeting to stress to these companies that it is these people that we need to service.

Secretary Duque said Pfizer raised the issue of lack of consultation in putting up the MDRP list. “I would like to emphasize that there have been lots of consultations made prior to transmittal of the MDRP list for Her Excellency’s approval. At least four advisory council meetings were held where the MDRP was discussed. This advisory council was created as allowed by Section 18 of Republic Act 9502 or the Cheaper Medicine Act to give advice and recommendations on the implementation, policies and enforcement of the law. The multinational and local companies have been well represented in these meetings by Mr. Reiner Gloor, PHAP Executive Director and Mr. Ed Isaac, Philippine Chamber of Pharmaceutical Industries President. They have been informed of the list even before it was transmitted to the President.” Duque said.

“Let us remember that local drug prices for many multinational products are priced from 2 to 10 times higher than prices of the same brands abroad. With these initiatives, Amlodipine, for example should now only be Php 22 from Php 44, Metronidazole suspension should only be at least 65 pesos from 112 pesos. And there are more on the list. We want to speed up bringing down these drug prices in a way that our countrymen will benefit the soonest.” Duque stressed.