Monopolies, tariff keep drug prices prohibitive
Romie A. Evangelista
Manila Times
Prices of branded medicine in the Philippines are much higher than those in countries such as India and Pakistan, the Department of Health told the House of Representatives yesterday.
High import tariff is keeping drug prices prohibitive, according to a health department presentation.
Near-monopolies in various segments of the lucrative drug industry come as an aggravating factor, it said.
Health officials also revealed that multinational companies dominate the Philippines’ P100 billion-a-year industry with combined sales of P63.2 billion worth of branded medicine in 2002. Unbranded drugs or generics sold only P2.4 billion that same year.
“Seventy percent of sales are by multinational companies, 60 percent of retail sales by one drug-store chain, 80 percent of wholesale distribution done by one company, and 80 percent of toll manufacturing by one company,” Dr. Robert Louie So said in a presentation.
Health officials batted for amendments to the Generic Acts during a hearing on the proposed Cheaper Medicines bill conducted by the House trade and industry headed by Palawan Rep. Antonio Alvarez.
“Many still prefer branded drugs but this is not to say that Filipinos do not want generic drugs because a SWS survey has shown that almost six in 10 Filipinos say they’re buying generic drugs. The issue is access,” he said.
Alvarez said that while it is not listed as such, “the fact is that the high price of medicine can be considered a leading cause of death in the country.”
“If medicine are cheaper in other countries then it becomes the moral duty of the government to carry out parallel importation,” he said. “But the durable solution is the creation of a legal and economic infrastructure that would lead to the production of cheaper quality medicine here.”
During the hearing, the department said one medicine, the anti-asthma Ventolin, which retails for P315 per canister in the local drug market, is five times cheaper in Pakistan where it sells for only P62.10
Popular pain killer Ponstan is sold here for P21.82 per 500 milligram tablet, the same can be bought in India for P2.61; the P15.55 per 80 mg tablet price of Bactrim can be bough in India for 69 centavos each.
The department said Diamicron, an anti-diabetes drug, which sells for P11.46 per 80 mg tablet here but is available for P4.71 in India, is a “good argument for the removal of the trade curtains that prevent the entry of the affordable version of that essential drug here.”
The department, represented by Undersecretary Alexander Padilla, batted for a three-pronged legislative agenda to bring down the cost of medicine.
The department called for a review of the Intellectual Property Code and for the country to invoke Trade Related Intellectual Property Rights flexibilities so patent lock on essential drugs can be lifted and make the medicine more affordable.
Alvarez said the department recommendations will be incorporated into the bill that will consolidate the 23 bills on cheaper medicine now being discussed by the House.
No Comments, Comment or Ping
Reply to “Monopolies, tariff keep drug prices prohibitive”