Drug firms: Rebate system now in place

MANILA, Philippines - The Pharmaceutical and Healthcare Association of the Philippines (PHAP) gave assurance yesterday that an inventory system is now in place to ensure rebates to drugstores and pharmacies when the medicine price cut is implemented this Saturday.

“Distributors have established procedures with drugstores and pharmacies to identify inventory levels at the end of business day of Aug. 14 so that corresponding rebates for price differences could be issued subsequently,” said PHAP executive director Reinir Gloor.

In a statement, Gloor said PHAP’s voluntary program to support the medicine price reduction “binds” its members to implement their commitment.”

The members of the Private Hospitals Association of the Philippines recently asked the government to delay the implementation of the medicine price cut by six months to allow them to first dispose of their stocks.

Hospital owners said there was no “written” assurance that pharmaceutical companies would give them rebates or would adjust the prices of medicine bought at current prices when the executive order (EO) of President Arroyo takes effect this Saturday.

Under the EO, the prices of 43 drugs will be reduced by up to 50 percent. Small drugstores in the provinces or those that do not have a computerized inventory system have until Sept. 15 to comply.

But Dr. Robert So, head of the National Drug Program of the Department of Health (DOH), said drug outlets should not worry since pharmaceutical firms are bound to comply with the EO.

“It is there in the EO. (The issuance of rebate) is written very clear there. The EO mentioned it – the price difference as a result of the price reduction,” he told The STAR.

So said drug outlets just have to “talk with their own suppliers” on how they would go about the rebate because the DOH could not meddle since they are private entities.

He urged pharmacies to report to the DOH any drug firm that would not comply with the EO, saying any violation is punishable with revocation of license to operate and/or a fine of P1 million if the extent of the offense is categorized as profiteering.– Sheila Crisostomo