8 drugstores probed for violating price cut order

MANILA, Philippines - The Food and Drug Administration (FDA) is now investigating eight drugstores for violating the mandatory price cut implemented last Aug. 15, Health Secretary Francisco Duque III said yesterday.

Four of these drugstores have been served their cease-and-desist order personally by Duque to force them to sell concerned products at the discounted prices.

They are Cheer-up Drugstore, Stardust Drug and Medical Supplies Corp. and Sunburst Drug Corp., all located along Rizal Ave. in Sta. Cruz, Manila, just a stone’s throw away from the Department of Health (DOH) central office, and Southstar Drug along Matalino Street in Diliman, Quezon City.

“We have to observe due process. They have 72 hours to explain why they should not be sanctioned for violating the law,” Duque told DOH reporters.

The health chief had refused to identify the four other drugstores as they have not been served their cease-and-desist order.

Last Aug. 15, the government began implementing the maximum drug retail price (MDRP) or the 50-percent mandatory price cut on medicine and the government-mediated access price (GMAP) or the voluntary price reduction of 10 to 50 percent among drugstores with automated inventory systems.

Those with manual system have until Sept. 15 to comply.

But according to Duque, drug outlets within 500 meters from hospitals should have started implementing the price discount last Aug. 15 whether their inventory system is automatic or not.

FDA records showed Stardust was found to have violated the GMAP on two drugs, while Cheer-up failed to implement the MDRP on eight products, Southstar on one, and Sunburst on two products.

Duque said that violators of GMAP face a fine of P1,000, suspension of product registration and revocation of license to operate under the Consumer’s Act.

Non-compliance with MDRP is punishable by an administrative fine of P50,000 to P5 million, suspension of product registration and revocation of license to operate under Republic Act 9502 or the Universally Accessible Cheaper Medicine Act.