Firms’ cooperation in cutting drug prices a breakthrough - DOH exec

The drug companies’ cooperation with the government in slashing the prices of medicines can be considered a breakthrough, according to an official of the Department of Health (DOH). Dr. Robert Louie P. So, program manager of the DOH’s National Drug Policy unit, said that before the enactment of Republic Act 9502 or the Universally Accessible Cheaper Medicines Act of 2008, the government found it hard to get full cooperation from drug firms in lowering the prices of their products. “We tried to approach them before, but we failed. We didn’t get much information on the production cost of their medicines. Ayaw nilang magbigay (They didn’t want to give it to us). We needed the data to determine up to how much the prices of medicines could be reduced," So told GMANews.TV in an interview Thursday night.

But with the enactment of R.A. 9502, So said it became easier for the government to get information from the companies and push through with lowering the prices of essential medicines. Prices of drug products mostly manufactured by multinational companies for the Philippines are among the highest in Asia. In 2007, results of a World Bank Study survey showed that the prices of drugs being sold in the Philippines were 34 to 184 times higher than international reference prices. Next month, prices for 99 medicines covering 43 drugs are expected to be cut substantially after the companies agreed to voluntarily reduce the prices of their products. However, not all prices of said products will be compulsorily cut by half. So said the price cuts for 31 of the 99 branded products would be from 10 to 50 percent, while the slash for the 68 others will be 50 percent. The drugs that will be subject to price cuts are for hypertension, diabetes, common infection, amoebiasis, cancer, allergies, cholesterol buildup, and thrombosis. Compulsorily cutting the prices of 21 essential medicines by 50 percent was the original recommendation of the DOH to President Gloria Macapagal Arroyo. However, the drug firms opposed the mandatory cut and sought a dialog with Mrs. Arroyo in Malacañang for her to reconsider the recommendation of the DOH. Mrs. Arroyo gave the firms 10 days or until July 18 to come up with a proposal voluntarily reducing the prices of their medicines. But according to the DOH, the companies only proposed 50 percent voluntary price cuts for 16 of the 21 medicines, thereby leaving no other choice for the government but to subject the five other essential medicines to the 50-percent mandatory price cap. The firms’ proposal also contained 31 other drugs whose prices they offered to cut by 10 to 50 percent. Mrs. Arroyo is expected to sign an executive order lowering the prices of medicines before she leaves for Washington next week. By August 15, drug stores are expected to sell these drugs at reduced prices, according to So. He said drug stores that would fail to offer lower prices would only be given up to September 15 to comply before the government penalizes violators of R.A. 9502. - ARCS, GMANews.TV