Govt to drug companies: Cut prices in half or else

PRESIDENT Arroyo has given pharmaceutical firms until July 18 to cut the prices of essential drugs by 50 percent or more as dictated by the Cheaper Medicines Law, an official said yesterday.

The President would be forced to sign a draft executive order making the reduction mandatory if those companies failed to do so, Health Secretary Francisco Duque said.

“President Arroyo gave pharmaceutical companies 10 days from July 8 to submit proposals to voluntarily bring down the prices of drugs and medicines, which are commonly prescribed for the majority or [poor people],” Duque told reporters in Malacañang.

At the Senate, Senator Mar Roxas identified Roberto Romulo as the presidential adviser who allegedly lobbied President Arroyo not to sign the draft executive order, produced by the Health Department, that would reduce by half the retail prices of 22 essential drugs.

He said it was Romulo who arranged a confidential meeting between Mrs. Arroyo and top executives of the leading multinational drug firms Wednesday night, when she supposedly granted their request to postpone putting a cap on the prices of commonly used drugs.

“The problem with President Arroyo is she listens to presidential advisers with conflict of interest,” said Roxas, chairman of the Senate committee on trade and commerce.

“I have great respect for all efforts to meet the needs of the disadvantaged members of our society,” Romulo, chairman of the Zuellig Family Foundation, said in a statement. Zuellig makes medicines through its manufacturing arm Interphil.

“However, I believe that imposing price controls on a limited number of medicines is not the right approach,” Romulo said.

“Rather than helping people, it will hurt them because it sends the wrong message to the international business community regarding the commitment by our nation to a free-market economy…”

Mrs. Arroyo gave her order to cut the prices of essential drugs during a meeting with Duque, the Philippine Healthcare Association of the Philippines, Trade Secretary Peter Favila and other stakeholders on July 8.

“Based on Secretary Favila’s recommendation, the voluntary compliance must be formally submitted and signed and it has to be simple,” Duque said.

“We don’t want complexities. They need to reduce prices by 50 percent or more in the next few weeks.”

Industry data show that multinationals comprise nearly 75 percent of the drug industry, which charges the second-highest prices in Asia.

Among other things, the Cheap Medicines Law seeks to lower drug prices by allowing the importation of patented medicines from countries where those are more affordable. It also allows the government to use patented drugs when public interest demands it, and the President to approve price ceilings when necessary.

The law also requires drug outlets to carry a variety of brands to give consumers more choices.–Joyce Pangco Pañares with Fel V. Maragay, Manila Standard Today