Health chief eases drug makers’ fear of prolonged losses

HEALTH Secretary Francisco Duque III has assured drug makers that increased sales volume will offset the P7-billion losses they incurred from the price cut in medicines since Sept. 15.

“By reducing the prices, we are increasing consumption and sales,” Duque said.

Now that the commonly used medicines are cheaper by 50 percent, Duque said more Filipinos can afford to buy their medication. “Maybe at first there will be a setback but when the market expands, something good will come out of all this.”

The Pharmaceutical and Healthcare Association of the Philippines, composed of 50 international and local drug makers, posted a combined loss of P7 billion since the price cut covering 21 products took effect, according to Reiner Gloor, executive director.

Industry players can only hope that this huge loss can be compensated by the market expansion, Gloor said. “If price adjustments do not result in market expansion, then these drug companies will have to study their options to remain viable,” Gloor said.

While price control may deliver some short-term benefits, its long-term negative consequences will impair not only the pharmaceutical industry but also other industries, Gloor warned.

Oscar Tinio, vice president of the Philippine Medication Association, and Edward Isaac, president of the Philippine Chamber of Pharmaceutical Industries, said in a joint statement that free market competition, and not price control, would ensure that new medicine would be introduced in the country.

With price regulation, even local makers of branded medicines will suffer, the statement said.

The generics medicine industry will be forced to lower prices to be able to compete with branded drugs which are covered by the price reduction, the statement said.

PHAP officials said they were looking forward to the promised review of prices three months after the regulation took effect. “We hope the review [shows that] the goal of the government has been achieved, that not much more intervention is required to make medicines more accessible and affordable to the general public,” Gloor said. –Macon Ramos Araneta, Manila Standard Today