50% price cut for 23 more essential drugs – DOH

MANILA, Philippines – The Department of Health (DOH) yesterday reported that local pharmaceutical companies are set to voluntarily reduce prices of 23 anti-cancer and other essential drugs.

Dr. Robert So, DOH-Pharmaceutical Management Unit program manager, said they are currently reviewing the list of 23 essential drugs which pharmaceutical companies submitted for 50 percent price reduction.

“The pharmaceutical companies provided an ‘add-on’ of 23 pharmaceutical products the prices of which they promised to cut by 10 to 50 percent. We are checking the list and as soon as we have finished we will submit it to Malacañang for approval,” So said in an interview.

So explained that of the 21 pharmaceutical drugs the DOH has placed under maximum drug retail price (MDRP), six will be for mandatory reduction because the pharmaceutical companies failed to comply with voluntary cut in prices.

“Of the 21 drugs, 15 were under voluntary reduction. But as I have said they also included 23 more so that’s about 38 drugs,” So disclosed.

So said that the 23 drugs include those for anti-cancer and anti-hypertension; treatment of hyperthyroidism and for lowering cholesterol; vitamins and other over-the-counter medication.

Also yesterday, So dismissed the possibility of many local pharmaceutical companies closing and retrenching workers due to the mandatory 50 percent cut in the prices of medicine.

So said it is highly unlikely for the pharmaceutical companies to close down because those placed under the MDRP list are the most marketable pharmaceutical products in the industry.

“One of the criteria in the selection of those to be placed under MDRP is that the medication is marketable despite being expensive,” So pointed out.

He added that due to the 50 percent cut in prices, more people can afford to buy the medicine and thus lead to bigger volume of medications.

Based on their studies, So said pharmaceutical companies under the MDRP earned at least P500 million to as much as P1 billion per product sold in the market.

“Even if their earnings are cut by half that’s still P250 million to P500 million in profit so why will they close down?” he said. –Mayen Jaymalin, Philippine Star