2 firms face probe for failing to cut drug prices

At least two major drug stores face investigation for defying a government order to slash by half the prices of five essential medicines, the Department of Health said Saturday. Health Secretary Francisco Duque Jr. said the two erring drugstores were caught in an initial wave of nationwide inspections by DOH officials at the start of price cuts. Executive Order (EO) No. 821 signed last month by President Gloria Macapagal Arroyo mandates a 50-percent cut on the prices of five medicines considered essential and currently sold at exorbitant prices in the Philippines. These are anti-hypertensive Amlodipine, anti-cholesterol Atorvastatin; the anti-infection Azithromycin, and the anti-cancer drugs Cytarabine and Doxorubicin. The five drugs covered by EO 821 were categorized as "essential medicines" based on the following criteria: • The most expensive but most essential medicines in the market; • Medicines without generic competition or counterparts; • Medicines priced four to five times as counterparts abroad; and • Medicines that address most common conditions like hypertension, diabetes, asthma, cancer, infection and high cholesterol. Duque declined to name the two erring drugstores pending completion of the investigation, saying only that these are located in Central Luzon and the Central Visayas. Should the findings against the two drugstores be validated, Duque said, they would be made to pay a fine from P500,000 to P1 million. Their operating licenses can likewise be suspended or revoked. He urged the public to report erring drug retailers to the DOH by calling 807-0751 or 8078275. Scope of order The DOH is also checking if prices of 16 other drugs were likewise slashed, as earlier promised by drug makers. As a compromise with drug makers, the DOH agreed to let them voluntarily reduce the prices of 16 other essential medicines from10 to 50-percent. Only big drug stores, however, are covered by DOH's Saturday inspection. Small and medium-sized drug retailers were given a grace period until September 15. Duque said so far, "most" of the drug stores that regional health officers have checked were complying with the price cut. Earlier in the day, Duque and his team visited drug stores in the Ortigas area, including those inside SM Megamall. Once inside the stores, the health officials checked if they have already placed a poster carrying the list of the 21 medicines covered by the price cut. Health officials then interviewed cashiers to be sure that the drugs were indeed already being sold at lower prices. The DOH originally prepared the draft EO containing the 21 essential medicines that need to be made cheaper for the public. The order was made in accordance with the compulsory maximum retail price mechanism set by Republic Act 9502 or the Universally Accessible Cheaper and Quality Medicines Act. Learning about DOH's 21-drug list, pharmaceutical firms offered to voluntarily reduce prices of 16 of the 21 drugs. The government accepted the firms' offer but Mrs. Arroyo signed the EO anyway for the five medicines excluded from the DOH list. Slowdown The Private Hospitals Association of the Philippines (PHAP) earlier complained that the price cut could lead to a loss of revenue for hospitals. The group feared that a hospital work slowdown might be looming since lower revenue might in turn translate to salary reduction and delay for its doctors and employees. But the government allayed the group's fears by saying that pharmaceutical firms had already agreed to shoulder the price difference even before the medicines reach the hospitals. Health Undersecretary Alex Padilla earlier said they have already completed the list of the second batch of medicines that would be subject to 50-percent price reduction. In an earlier interview on GMA’s Unang Balita, Padilla said around 84 drug products have been included in the second batch. When asked what sanctions participants of a hospital holiday would face, Padilla said: "For public hospitals the action is totally prohibited." He said public doctors and hospital officials instigating and participating in such holidays could face suspension or termination. As for private hospitals, he cited Health Secretary Duque’s earlier statement saying they risk losing government accreditation, such as with PhilHealth.- GMANews.TV