WikiLeaks: US lobbied vs cheaper medicine law in Phl

MANILA, Philippines - The online whistle-blower WikiLeaks reported that the United States had lobbied against the Cheaper Medicine Act in the Philippines after American stakeholders expressed concern about the possible changes in the country’s pharmaceutical policies.

WikiLeaks claimed that the US lobbied with former senator and now Transportation Secretary Manuel Roxas II and Quirino Rep. Junie Cua who sponsored the law, Republic Act 9502.

A press statement revealed that on Oct. 27, 2005 then US Ambassador Kristie Kenny said that US Intellectual Property (IP) Rights holders “were concerned about Roxas’ move to amend the IP Code with respect to patents and parallel imports for pharmaceuticals.”

Kenny supposedly said that Roxas’ bill was “troubling US pharmaceutical rights holders trying to retain their market share and profitability in the Philippines.”

“Roxas’ proposal would change the IP Code so that the period of patent protection begins after the product has been introduced anywhere in the world rather than just in the Philippines,” the statement quoted Kenny sa saying.

Kenny also noted the bill “will also permit pharmacies and other entities licensed to distribute pharmaceuticals to avail of parallel imports scheme.”

The legislation was intended to lower the cost of medicines in the Philippines by striking a competition among pharmaceutical firms.

The law makes it easier for producers of generic drugs to “access the proprietary data of patent holders, permit parallel imports of patented pharmaceuticals, and apply the principle of international patent to shorten the terms of some Philippine-issued patents.”   

According to reports, the US was worried about the possible entry of Indian drug companies in the local market.

The statement further showed that on a Dec. 11, 2006 cable, Kenny had claimed that Roxas and Cua have “agreed to resolve the US concerns.”

US Trade Representative for Southeast Asian and Pacific Affairs David Katz had previously met with the two lawmakers, which was followed by another visit by an unnamed economic counselor on Nov. 22, 2006 “to lobby for the removal of the two provisions of concern,” the statement reads.

But the US was not able to get its entire agenda when Roxas and Cua refused to give in on the issue of “new use patents.”

“On Dec. 8, 2006, Cua and the House Committee on Trade amended the bill partially, resolving the US concern on data exclusivity. But Kenney was not satisfied, saying it would have been better if the bill used the new language they recommended,” the statement showed.

The law was passed paving the way for the reduction in half of essential medicines despite the US opposition.

The statement showed that Kenny had said the Philippine government must tread carefully and should not ignore the multinational company’s warning that it could withdraw many drugs from the Philippine market if price controls are put into effect.