Department of Health eyes price cuts on more drugs

MANILA, Philippines - The Department of Health (DOH) is planning to implement a price cut on more drugs under the new Cheaper Medicine Law.

National Drug Program chief Dr. Roberto So said they are planning to add in the list more types of medicine most prescribed, namely those for hypertension, asthma, breast cancer and insulin for diabetics.

So said the drugs have been offered for voluntary price reduction by drug manufacturers under Republic Act 9502, or the Universally Accessible Cheaper and Quality Medicine Act, but the DOH did not automatically accept the offer.

“We are still studying it. We have to validate the prevailing market prices here and the prices abroad. We want to know the (level of) competition. There are many indicators that we are looking into,” So said.

According to So, the government does not want to impose the maximum drug retail price (MDRP) or the mandatory 50-percent price cut as much as possible.

He said the government would much prefer that drug manufacturers lower the prices of their medicine.

“It is really better if they just volunteer. It’s more of a win-win situation for both parties… we know that it will help promote competition in the Philippines, and benefit the public,” So added.

The DOH earlier recommended the inclusion of 21 most prescribed medicine under the MDRP.

The pharmaceutical companies initially volunteered to lower the prices of 16 drugs, and eventually volunteered to reduce the prices of 22 drugs most commonly prescribed.

Drug companies are faced with the dilemma of lowering the prices of their medicine voluntarily or suffer penalties under the Consumers Act that could also mean the revocation of their business permits and licenses.

Under the MDRP, drug companies are faced with a bigger challenge as a violation could mean an administrative penalty of P50,000 to P5 million.

The offense can also be constituted as “illegal price manipulation” which is punishable by a jail term of up to 15 years or a fine of not less than P100,000 but not more than P10 million or revocation of license to operate.

Drug firms and stores in other parts of the country have started to comply with the requirements of MDRP.

DOH food and drugs regional supervisor Renato Padilla said their monitoring of the various chain of drugstores and hospitals in Dagupan City in Pangasinan; Laoag City, Batac and Vigan in the Ilocos provinces showed they complied with the requirements of the MDRP.

Padilla said big drugstores have reduced by 50 percent the prices of 16 generic drugs available in the region. – With Eva Visperas