Energize affordable drugs program

Sen. Mar Roxas told me in a phone conversation that he intends to do what he can to energize the affordable drugs program of government. I guess Mar realizes that the terribly minuscule program he started when he was DTI Secretary is hardly enough. Mar also knows what kind of pressure the big multinational drug companies put on the DTI to abandon, even this token program for the poor. Mr. Palengke may end up also being known as Mr. Botika.

I guess one way of getting the program into higher gear is to get the Trade Secretary out of the way. Despite the insistence of DTI Secretary Cesar Purisima that he will not abandon the program, he is still placed in a very difficult conflict of interest situation. We must help him out.

As Industry Secretary, he has to worry about the investment climate and keeping local and foreign business interests happy. A pro-poor program like this goes against the profit objectives of the biggies. PITC, the agency on top of the program, should have an independent Chairman and CEO even if the DTI Secretary can keep an ex-officio seat in the Board.

I was just reading a news item in the on-line edition of The New York Times that reported on massive fines being paid by the big drug companies as a result of legal action taken against them for overpricing drug sales to the US Medicare system. That should prove that even in their home country, the big American drug firms would cheat and break the law to make a profit. If they have no heart for the poor beneficiaries of the Medicare program in their home country, it is foolish to expect them to have one for us here.

Federal investigations in Philadelphia, Boston and Washington, the Times reports, have resulted in subpoenas to nearly every big drug maker, seeking information about suspected aggressive and illegal sales techniques that cost taxpayers billions of dollars. The beauty of the American justice system is that they have ways to uncover such fraudulent acts against the American taxpayers.

According to The New York Times, "many of the cases were started by whistle-blowers under a Civil War-era statute that allows citizens to file suits on behalf of the government in cases of suspected defrauding of taxpayers. If government prosecutors take up such a case, resulting in a conviction or settlement, the whistle-blower is entitled to a portion of the award. Since 2001, drug companies have agreed to pay more than $2 billion in fines to settle suits brought by whistle-blowers."

The drug giant Schering-Plough, according to the Times story, has agreed to pay $350 million in fines to settle charges that it cheated the federal Medicaid program. The settlement stems from a six-year investigation prompted by three whistle-blowers who accused Schering-Plough of selling its products to private health care providers for far less than it sold them to Medicaid. Federal law requires drug makers to offer their lowest prices to Medicaid, the federal and state health program for the poor.

According to the Times, last year, Bayer paid $257 million and GlaxoSmithKline paid $86.7 million to settle similar allegations. Of those fines, tens of millions were paid directly to the whistleblowers. The Times recalled that in one recent case, "Pfizer agreed in May to pay $430 million to settle allegations that a subsidiary marketed a pain drug improperly. Of that settlement, $27 million went to a former executive who brought the original claim against the company."

Back here in the Philippines, the big drug companies have blocked every effort to make drug prices affordable by the poor. That DTI-PITC program has not advanced beyond government hospitals and even now, is only worth P100 million in parallel importations. Yet, Big Drug is opposing this token program with all its might.

Funny, but even the Pinoy drug multinational, United Drug, seems half hearted in its generic drug program called Rite Med, which was launched by Ate Glo herself. I have often tried but failed to buy Rite Med’s generic version of Ambroxol, a drug that takes care of phlegm when I have a cough, at both Mercury and Watson. It is always out of stock. They are never out of stock of the branded versions from two multinationals, priced much more.

One e-mail writer, reacting to a previous column on the topic, refuses to buy the explanation of Secretary Purisima that he was only worried about fake drugs imported from India. I guess the e-mail writer is saying it is wrong to condemn the whole Indian drug industry as counterfeiters. "Some names that standout on generic world quality is the Nasdaq-listed Ranbaxy Lab & Dr. Reddy of India, which even the Philippine’s largest – United Lab, can’t compare as peer."

The e-mail writer observed "the so called WHO report about wide proliferations of Indian counterfeit generics is intended as a ‘general’ warning for the consuming public and it should include footnotes on a list of respected medical GMP manufacturers as well, as what it usually does when a world body such as WHO releases a report. Would PTIC and the DoH be so naive as to import generics without doing a credit check on its would-be suppliers?"

Maybe, it is possible for PITC to coordinate with its Indian counterpart to get reliable Indian drug manufacturers to participate in our program. This is a case of one developing country helping another. We should make it happen.

Malampaya

PNOC-EC’s Boomie Bomasang wrote to explain that the sale of about half of its interest in the Malampaya natural gas project "is a commitment that PNOC made to the government when it secured a sovereign guarantee for the loan it obtained to finance its Malampaya participation." Boomie, however, admits that the sale is in support of "one of the government’s key macro-economic objectives to reduce its foreign borrowings."

Boomie confirmed (as we pointed out) that PNOC-EC’s actual financial participation in the project "allows the national oil company access and insight into the project’s technical and business data which would not otherwise be possible if we were not a partner to the undertaking." He also confirmed "PNOC-EC has also begun realizing substantial returns from its investment which would help it finance its oil and gas exploration efforts."

In other words, that investment is a performing one, from which government can expect an income stream. I still say, we have to be desperate to want to sell such a treasure. Boomie also assured that our remaining 5.1 percent participation is still enough to be treated as a partner with full rights to information. Hopefully.

rue Bravery

T This time, it’s Dr. "J" who sent this one.

True bravery is arriving home late after a guy’s night out, being assaulted by your wife with a broom, and still having the guts to ask "Are you still cleaning or are you flying somewhere?"

Boo Chanco’s e-mail address is [email protected]