Arroyo officials deny colluding with drug companies

(Updated 6:45 p.m.) MANILA, Philippines - Cabinet officials on Friday denied allegations raised by Senator Manuel Roxas II that President Gloria Macapagal Arroyo colluded with pharmaceutical firms to circumvent the law providing for cheaper and affordable medicines. Health Secretary Francisco Duque III and Trade Secretary Peter Favila said the President and her aides did meet with officials of drug companies on July 8 to hear their side, but it was not correct to give political meaning to the dialogue. "There was no collusion. We should not believe this," Duque said in a press briefing in the Palace. Roxas earlier said the bicameral Quality Affordable Medicines Oversight Committee has invited President Arroyo and her aides to shed light on reports that she met with officials of a multi-national drug company and agreed to defer the signing of a proposed executive order setting limits on the prices of 22 essential medicines. Executive Secretary Eduardo Ermita and Senior Deputy Executive Secretary Joaquin Lagonera were also invited to attend the public hearing on July 13, starting at 9 in the morning. Roxas and Rep. Antonio Alvarez (Palawan) co-chair the oversight committee. Also invited to the hearing were Albert Mateo Jr., Pfizer president and country manager; Mao Navoa, customer relations and Sulit Card director; lawyer Milette Asuncion, director for public affairs and legal services; and lawyer Tinine Bautista, corporate legal counsel. The committee also asked the Office of the President to provide a copy of the letter it received from Duque recommending the imposition of the maximum retail price, as well as a written update on the status of the same. The committee will review the implementation of the Universally Accessible Cheaper and Quality Medicines Law (Republic Act 9502) in relation to the availability and affordability of medicines and testing kits for A(H1N1) and the emergence of marketing discount schemes of multi-national pharmaceutical companies. According to Roxas, President Arroyo and her aides agreed to defer the implementation of the executive order in exchange for the promise of pharmaceutical companies to lower the prices of the medicines before the President’s State of the Nation Address (SONA) on July 27. The Executive Order setting the MRP for 22 essential medicines has been submitted by the Department of Health (DOH) to Mrs. Arroyo as early as June 16. The MRP list seeks to slash by half the prices of these drugs within reach of poor patients who are in need of life maintenance or at the brink of dying. These drugs include the anti-hypertensive drug Norvasc (to P22.50 from P44.50); anti-diabetic Diamicron (to P7.35 from P14.75); antibiotic Zithromax (to P149.37 from P298.75); and antibiotic Augmentin suspension 60 ml (to P179.50 from P359). Facilitator "I believe that this conspiracy was engineered with the facilitation of an influential presidential adviser who is also connected with one of the multinational pharmaceutical giants," the senator said. However, when asked Friday who was the presidential adviser who allegedly facilitated the meeting, Roxas' stance softened. He just said that President Arroyo should be wary of her advisers who might be pushing their personal interests. He then mentioned the name of Roberto Romulo, executive director of the Presidential Board of Advisers, but said that he cannot categorically say the latter's participation in the meeting or if he had any. Roxas said Romulo is the chairman of Zuellig Pharma Philippines and Zuellig Foundation. He said Zuellig handles 80 percent of the wholesale pharmaceutical market in the country. Phone calls by GMANews.TV to Zuellig's internal and corporate communication were yet to be returned. Favila's explanation Secretary Favila said there was nothing sinister in the President's meeting on Wednesday with the pharmaceutical executives, which he attended along with Duque and Manila Rep. Beinvenido Abante. He said the drug companies asked for the dialogue to explain their difficulties and that he and Duque explained to the firms that they have to comply with the law. The proposed executive order imposing maximum retail prices on essential drugs is in compliance with RA 9502 and its implementing rules and regulations, Favila explained. “At doon nagkaroon ng kasunduan, ako na ang humingi ng suggestion…gumawa na lang tayo ng letter of undertaking, sasabihin niyo sa akin na committed kayo na ibaba niyo yung presyo ng gamot," Favila said in a chance interview. [We had an agreement, I asked their suggestion ... I said let's come up with a letter of undertaking, you tell me that you are committed to lowering the prices of essential drugs] The companies, he said, promised to send their letter of undertaking 10 days after the meeting. “We have met the objective of lowering the price of medicine sana wag na natin lagyan ng anggulo na hindi nakakaige [let's not put a slant that won't help clarify the matter]," Favila said. Abante, who was at the Palace on Friday, dared Roxas to reveal his sources "or else he is [just] rumor mongering. I am not going to take this sitting down." Duque also said there is no need for complexities because Malacañang also wants to pull down the prices of the medicines. Assurance by the PHAP For its part, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) assured the public that it is closely coordinating with the government to reach the objective of enabling the poor have easy access to the medicines. “Industry leaders gave assurances that the industry is committed to cooperate in the implementation of measures that would create greater impact and bring more benefits to Filipino patients," PHAP said in a statement. PHAP also justified the dialogues and consultations with the government, saying it was necessary “to ensure that shared objectives of benefiting more Filipinos are achieved." Not bad Roxas said having a meeting with the President is not bad as it could be for the industry to express their concerns and complaints. "But if it is a meeting to ask the President to subvert the law, subvert the intent of the law that is an entirely different matter, so we must know," Roxas said. He added, however, that President Arroyo should call poor patients to Malacanang for a meeting "so she can see for herself how hard it is to cling to dear life without affordable quality medication." Roxas demanded "for the nth time" that the President sign the EO on the MRP "and stop consultations with the pharmaceutical firms as if they were the victims in this issue." He also demanded that Tamiflu - now priced as high as P150 per tablet - should also be included in the MRP. "Stop playing with the lives of the people and just implement the law, Mrs. President," he said. Duque said he would attend the Senate hearing on Monday to shed light on the alleged conspiracy. - Kimberly Jane Tan and Aie B. See, GMANews.TV