Drug firms offering new price cuts — DoH

Other commitments expected after result of EO review

DRUG COMPANIES have started to voluntarily offer lower product prices although their number has not reached a level that will allow new price cuts, the latest of which was implemented last March 31, a Health official said.

Robert Louie P. So, the Health department’s program manager for drug policy, said in an interview that 10 firms have offered to cut prices and more are expected early next month upon the release of results on the review of a mandated price cut under Executive Order (EO) 821, which was issued on July 27, 2009 and implemented on Aug. 15, and the voluntary price cut scheme under the Government Mediated Access Program (GMAP).

EO 821 implemented the Universally Accessible Cheaper and Quality Medicines Act or Republic Act (RA) 9502. It halved prices under the Maximum Drug Retail Price (MDRP). No other drugs were added to the mandatory price cut list. The law also provided for the GMAP.

Mr. So said the program’s advisory council has set a meeting on July 6 to present findings on the August implementation.

“We’re always open to any proposed price cut by the companies… There are a few proposals [from] less than 10 [drug companies]. Maybe they are waiting for the results of the review before they could submit their proposals especially those companies with products that are not saleable because the costs are too expensive,” he said on Friday.

He did not comment on whether the new price cut will be issued before President Gloria Macapagal-Arroyo steps down on June 30.

Mr. So said the review determined whether the program has achieved its goal of providing affordable medicines to the poor.

He declined to disclose details but noted that participating economists were split on the impact of the regulated drug price.

“Some economist said that it benefited [the public sector], some said the benefit was marginal,” Mr. So said.

In a text message yesterday, Reiner W. Gloor, president of the Pharmaceutical & Healthcare Association of the Philippines (PHAP), said: “We have been informed that stakeholders will be invited to look into the results once the DoH (Department of Health) finishes its review.

“We have not been made aware of any price cuts under the [GMAP] as an industry apart from what was implemented on March 31, 2010. However, there may be access initiatives or price decreases from individual companies.”

While confirming the offer of some firms to lower prices, he noted that PHAP “believes that the best way to bring down prices is through competition.”

“Likewise, PHAP is advocating for universal health care as the more sustainable solution to providing greater access to quality health care,” Mr. Gloor said.

Prior to the issuance of EO 821, the Palace has said in a statement that the DoH submitted to the President a draft executive order to implement RA 9502 after PHAP voluntarily reduced by 50% the prices of 16 essential drugs and medications to treat hypertension, diabetes, common infections and leukemia.

But it noted that five noncompliant drugs were recommended for coverage under the MDRP.

These are amlodipine (anti-hypertensive), atorvastatin (anti-cholesterol), azithromycin and all its salt form (antibiotic/antibacterial), cytarabine and doxorubicin and all its salt form (anti-neoplastics/anticancer).

Ninety-seven drugs or pharmaceutical formulations with dosage and strength were added to the GMAP list last February.

The drugs are anti-cholesterol, antihypertensive, medicines for bladder and prostate disorders, antidepressant, antipsychotic, anticancer, anti-asthma, anticoagulant, eye preparations, anti-hepatitis B, antiviral, antibiotic, antibacterial, anti-inflammatory, pain reliever, and dialysates/solutions.

Enacted in 2008, RA 9502 gives the Health secretary the authority to recommend to the President the maximum drug retail price based on rates that are subject to regulation in the Philippines and in other countries; available supply in the market; and cost to the manufacturer, importer, trader, distributor, wholesaler or retailer. — Ana Mae G. Roa, Businessworld