DOH OFFICIAL STATEMENT ON CHEAPER MEDICINE BILL

25 January 2008

There is no need to have a generics-only provision in the Cheap Medicine Bill based on evidence
that more and more Filipinos are buying generic drugs.

• Recent SWS survey said that Filipinos buying generic drugs increased from 47% in 2003 to
54% in 2006.
• 45% of Filipinos now say that medicine prices have gone cheaper compared to the 7% who
said the same in 2001.
• 6 out of 10 Filipinos in the D and E classes have bought or access to generic drugs.

In short, more Filipinos are now better informed and are exercising their right to choose the
medicines that worked for them and which they can afford. More Filipinos now perceived that
generic drugs are just as safe and effective and are perfect substitute for branded ones.

There are other regulatory mechanisms that we can use such as the present reimbursement
policy of Philippine Health Insurance Corporation wherein only prescription written in generics is
reimbursed.

The thrust of the Department of Health (DOH) is for all Filipinos to have access to safe and quality
medicines whether generic or branded as long as they are affordable. By employing intellectual
property flexibilities, what we aim is a market where generic and branded drugs prices converge
at an affordable level for all Filipinos.

In passing the bill, the DOH urges our lawmakers to give equal priority to the BFAD Strengthening
Bill, which will further strengthen it as an institution that can ensure the safety of drugs whether
they are generics or branded at all times.

During the 20th year of the Generics Law, the DOH will intensify promotional campaigns to
increase consumer acceptance of generics, to encourage more generic-prescribing doctors and to
allow generic substitution in our pharmacies.

We now urge our doctors, pharmacists and other health workers to fully support the cheaper
medicine bill and the principles that it stands for. We all have one dream for our people and that is
they have access to safe, effective, quality and affordable medicines.

http://www.doh.gov.ph/node/1819

With Cheaper Medicine Bill, Still No Access to Low-Cost Essential Medicine

With Cheaper Medicine Bill, Still No Access to Low-Cost Essential Medicine

BY KILOSBAYAN PARA SA KALUSUGAN

DEMOCRATIC SPACE
Posted by Bulatlat
Vol. VII, No. 45, December 16-22, 2007

The 14th Congress is wrapping up legislative measures on CHEAPER MEDICINE with the Senate
finishing ahead as it approved on third hearing Senate Bill 1658. The lower house is still to
approve House Bill 2844, a consolidation of 23 house bills. Both houses of Congress promised to
“bring prices of essential medicines” within the reach of the people through the legislation of the
bill on cheaper medicines.
But can the Cheaper Medicine Bill really lower the prices of medicine?

While the legislation of the Cheaper Medicine Act is a positive development, we at the KilosBayan
para sa Kalusugan (KBK) are not very optimistic that the people will really have access to low-cost
essential medicines through the much-boast about Bill. However, while our senators and
congressmen take pride of the bills they passed and are still deliberating on in the lower house,
we believe that both versions of the bill failed to significantly address and solve why prices of
medicines in the country are very expensive and how their prices may be significantly lowered.

In the comprehensive and strategic sense, the Cheaper Medicine Act does not make any single
mention about the need to develop our own national drug industry.

Scientific research, development and manufacture of local essential drugs could not flourish given
the present restrictions on trade and lack of government support.

One of the most decisive steps in really lowering the prices of medicine is to develop our own
national drug industry just like what India and Pakistan have done in the last 10 years.

The KBK is disappointed that the Cheaper Medicine Bill did not tackle the problem.

The house bill sponsored by party list representatives of Bayan Muna proposes provisions on
supporting the local drug manufacturers by giving them tax incentives but this, we fear, will not
even pass inclusion to the final version of the house bill.

The Cheaper Medicine Act is silent about the control of multi-national corporations in the
marketing, distribution and pricing of medicine.

Sadly, we at the KBK feel that the proposed amendments to some sections of the IPC are still to a
large degree protective of the interests of the transnational drug firms. We are disappointed that
the Cheaper Medicine Act did not stand for the people on crucial TRIPS-WTO issues such
compulsory licensing and selective parallel importation of essential medicines after extensive
government testing for safety and efficacy.

The creation of a Drug Price Regulatory Board could be one crucial step in lowering the prices of
medicine.

The creation of a Drug Price Regulatory Board is one of the concrete short-term solutions
proposed by KBK in regard lowering (read: controlling TNC-dictated high prices) of essential
medicines.

KBK fears that with the aggressive lobbying of drug TNCs the House Bill will surely encounter
rough sailing. We therefore challenge the members of the House of Representatives to resist the
TNC pressure and stand for the interest of the people.

However, KilosBayan para sa Kalusugan believes that on the whole, the Cheaper Medicine Act that
is now in the final process of being enacted into a law WILL NOT deliver on its promise of really
providing cheaper medicines for the people.
Once again, KilosBayan para sa Kalusugan reiterates the following recommendations:

Strategically, access to essential medicines can only be ensured by formulating a comprehensive

pro-people national policies and programs that will:

· Develop a self-reliant national drug industry that is responsive to the medical and health needs
of the people.
· Develop the technology to refine and extract raw materials and chemicals.
· Tap the medicinal potential of indigenous and herbal plants in the Philippines through
government-sponsored research and development.
· Develop a self-reliant industry to provide the essential medicines needed by the people.

While working towards the long term solutions stated above, it is also important to undertake
immediately do-able measures to make medicines low-cost, safe, and effective, such as:

· Regulate prices based on the production cost and reasonable profit.

· Selective parallel importation of essential medicines after extensive government testing for
safety and efficacy.
· Assert compulsory licensing.
· Implement National Drugs Policy and Generic Law.
· Provide incentive to local drug manufacturers to ensure production of medicines (i.e. tax
holiday, tax exemption, reduction of VAT, etc.).
· Create a transitory drug price regulatory board with the following characteristics:
o Life span of 3-5 years
o Represented by stakeholders (i.e. academe, consumers, health professionals, etc.)
o With independent selection process

http://www.bulatlat.com/2007/12/cheaper-medicine-bill-still-no-access-low-cost-
essential-medicine

KilosBayan para sa Kalusugan/posted by Bulatlat