[Ip-health] Arroyo signs EO halving cost of 5 vital drugs

Fri Jul 31 13:37:01 2009

Exactly. It's an interesting case of connivance between the government
and the pharma TNCs who dominate the market. Remember Arroyo's
government had to pass a "cheap medicines" law last year under public
pressure but implementing rules and regulations were inadequate,
circumventing any IPR issues.

After one year the law is perceived as ineffective. New pressure from
civil society and the broad public prompts the DOH to recommend a price
ceiling (with 50-percent price cut) on 21 essential medicines. The
president prefers to talk to the industry instead and forges a
compromise: A voluntary price cut (but without guarantees) for 16
medicines and a compulsory maximum retail price for 5 others. Moreover,
Arroyo makes use of this announcement to spruce up her State of the
Nation Address. Result? Everyone happy: the industry avoids a compulsory
ceiling on all but 5 medicines and keeps IPRs out of harm's way; Arroyo
can claim she is finally bringing down prices on this monopolized market
(of 5 medicines that is). And the people.... ?

On Wed, 2009-07-29 at 19:03 -0700, Jeffrey A. Williams wrote:
> Wim and all,
>
>   Only 5 drugs!  Precious little progress here...  Seems that the criteri=
on
> for what are and what are not Essential Drugs in the Philippines was
> influenced by the Big Pharma IP interests rather than those that are
> health afflicted.  If so, that's a shame on Arroyo and a detriment to
> the Philippine people...  I see problems for the Arroyo government
> in part as a result of this decision.  Many of our members in the
> Philippines will be holding Arroyo accountable...
>
> Intal - Wim De Ceukelaire wrote:
>
> > --
> > [ Picked text/plain from multipart/alternative ]
> > (FYI: P48 =3D 1 USD)
> >
> > http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20090729-217=
725/Arroyo-signs-EO-halving-cost-of-5-vital-drugs
> > Arroyo signs EO halving cost of 5 vital drugs
> >
> > By Dona Pazzibugan, Christian V. Esguerra
> > Philippine Daily Inquirer
> >
> > Posted date: July 29, 2009
> >
> > MANILA, Philippines=C3=A2=E2=82=AC=E2=80=9DFilipinos suffering from hig=
h-blood pressure have
> > reason to cheer because the antihypertensive drug amlodipine will be
> > sold at half its current price starting Aug. 15.
> >
> > Thanks to an executive order that President Gloria Macapagal-Arroyo has
> > signed, a 2.5-mg tablet of amlodipine will sell for a maximum of P9.60.
> >
> > A 5-mg tablet will cost no more than P22.85 and a 10-mg tablet, P38.50.
> >
> > Executive Order No. 821 also imposes a 50-percent price reduction or a
> > maximum retail price (MRP) on four other essential medicines whose
> > prices their manufacturers have refused to voluntarily bring down.
> >
> > These are the anti-cholesterol drug atorvastatin, the
> > antibiotic/antibacterial drug azith-romycin, the
> > anti-neoplastics/anticancer drugs cytarabine, and doxorubicin.
> >
> > The prices of the other pharmaceutical products=C3=A2=E2=82=AC=E2=80=9D=
many of which were
> > essential medicines=C3=A2=E2=82=AC=E2=80=9Dwere voluntarily lowered by =
their respective
> > producers following an appeal from Ms Arroyo.
> >
> > Last week, pharmaceutical companies acceded to government pressure to
> > cut in half the prices of the 16 other essential medicines which the
> > health department found to be exorbitant.
> >
> > These are medicines for hypertension, diabetes, common bacterial
> > infections, amoebiasis (a leading cause of diarrhea) and cancers (such
> > as leukemia, the top killer pediatric cancer).
> >
> > But the drug companies refused to give in to the appeal of the
> > Department of Health (DoH) for a 50-percent price cut for the five othe=
r
> > medicines on the list.
> >
> > Full implementation
> >
> > =C3=A2=E2=82=AC=C5=93The reduction of the prices of these drugs and med=
icines shall commence
> > on Aug. 15, 2009 and shall be fully implemented by Sept. 15, 2009,=C3=
=A2=E2=82=AC said
> > the order which Ms Arroyo signed on July 27 but released only Tuesday.
> >
> > The order said the list of the medicines and their corresponding prices
> > would be reviewed by the DoH three to six months after the effectivity
> > of the order or =C3=A2=E2=82=AC=C5=93as often as necessary=C3=A2=E2=82=
=AC as determined by the health
> > secretary.
> >
> > =C3=A2=E2=82=AC=C5=93The period from the issuance of this order up to A=
ug. 15, 2009 shall
> > constitute the transition period in which appropriate packaging,
> > labeling and disposition of existing inventory should be accomplished,=
=C3=A2=E2=82=AC
> > Ms Arroyo said.
> >
> > =C3=A2=E2=82=AC=C5=93Thereafter, regardless of extent of existing inven=
tory and compliance
> > with packaging and labeling requirements, strict implementation of the
> > MRP and this order shall be enforced,=C3=A2=E2=82=AC she said.
> >
> > The President said the price differentials shall be shouldered by the
> > manufacturer, trader or importer of the drug.
> >
> > Drug companies also offered to voluntarily reduce by 10 percent to 50
> > percent the prices of 22 other drugs not on the list of 21 essential
> > medicines the DoH had recommended for price ceiling.
> >
> > When competition fails
> >
> > Republic Act No. 9502, the so-called cheaper medicines law that was
> > signed in June last year, allows the President, upon the recommendation
> > of the DoH, to impose a price ceiling on medicines in case market
> > competition fails to curb exorbitant drug prices.
> > EO 821 said the DoH and the Department of Trade and Industry (DTI)
> > included in the MRP list the following medicines:
> >
> > =C3=A2=E2=82=AC=C2=A2 Those that are sold at much higher prices in the =
country compared with
> > their international prices.
> >
> > =C3=A2=E2=82=AC=C2=A2 Those that do not have healthy competition from v=
iable generic
> > counterparts.
> >
> > =C3=A2=E2=82=AC=C2=A2 Medicines whose innovator product is the most exp=
ensive yet most
> > prescribed or bought in the market.
> >
> > =C3=A2=E2=82=AC=C2=A2 Those that account for the leading causes of morb=
idity and mortality
> > in the country.
> >
> > All retail outlets
> >
> > The MRP shall be imposed in all retail outlets whether public or
> > private, including drugstores, hospitals and hospital pharmacies, healt=
h
> > maintenance organizations, convenience stores and supermarkets.
> >
> > The new prices will also serve as the ceiling for the procurement of
> > such drugs by all government hospitals and agencies, including the
> > Philippine Charity Sweepstakes Office and Philippine Amusement and
> > Gaming Corp.
> >
> > The new prices shall also serve as the ceiling for reimbursement by
> > Philippine Health Insurance Corp. (PhilHealth), Social Security System
> > (SSS) and Government Service Insurance System (GSIS).
> >
> > Industry regrets control
> >
> > The Pharmaceutical and Healthcare Association of the Philippines (PHAP)=
,
> > composed of drug companies, said it would abide by EO 821.
> >
> > =C3=A2=E2=82=AC=C5=93However, PHAP regrets that price control for certa=
in (drug) molecules
> > has been imposed since it believes that the same result could be
> > achieved through free-market competition,=C3=A2=E2=82=AC the group said=
 in a
> > statement.
> >
> > It said that =C3=A2=E2=82=AC=C5=93price control may deliver some short-=
term benefits but the
> > long-term negative consequences not only on the pharmaceutical industry
> > but on other industries must be considered. If price adjustments do not
> > result in market expansion, then affected companies will have to study
> > options to remain viable.=C3=A2=E2=82=AC
> >
> > The group insisted that the MRP =C3=A2=E2=82=AC=C5=93is not the best ap=
proach since even at
> > drastically reduced prices, most of these medicines will remain
> > inaccessible to the poor who live on an income of less than P100 a day.=
=C3=A2=E2=82=AC
> >
> > It suggested that a longer-term solution be implemented that considers
> > adequate healthcare financing through PhilHealth, infrastructure
> > building and training of healthcare providers in rural areas.
> >
> > The pharmaceutical industry is estimated to lose about P7 billion to P1=
0
> > billion ($146 million to $208 million) a year in sales, making it hard
> > for smaller drug firms that produce and market three or four products t=
o
> > survive, the PHAP spokesperson earlier said.
> >
> > MRP as last resort
> >
> > Dr. Robert So, program manager of the DoH=C3=A2=E2=82=AC=E2=84=A2s Nati=
onal Drug Policy, said
> > the executive order reflected =C3=A2=E2=82=AC=C5=93initial efforts to b=
ring down the prices
> > of medicines=C3=A2=E2=82=AC under the cheaper medicines law regime.
> >
> > =C3=A2=E2=82=AC=C5=93If the pharmaceutical companies won=C3=A2=E2=82=AC=
=E2=84=A2t work with us and won=C3=A2=E2=82=AC=E2=84=A2t impose
> > fair prices where we would not be on the losing end, we can always use
> > the MRP when needed,=C3=A2=E2=82=AC So said.
> >
> > =C3=A2=E2=82=AC=C5=93The MRP is a reserve instrument. We=C3=A2=E2=82=AC=
=E2=84=A2re not going to abuse our
> > discretion. We=C3=A2=E2=82=AC=E2=84=A2ll only use it as a last resort,=
=C3=A2=E2=82=AC he added.
> >
> > MRP for medicines
> >
> > Under the executive order, the maximum price for the following medicine=
s
> > are as follows:
> >
> > =C3=A2=E2=82=AC=C2=A2 Atorvastatin 10 mg film-coated tablet P34.45; 20 =
mg film-coated tablet
> > P39.13; 40 mg film-coated tablet P50.50; 80 mg film-coated tablet
> > P50.63.
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 5 mg + Atorvastatin calcium 1=
0 mg tablet P45.75
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 5 mg + Atorvastatin calcium 2=
0 mg tablet P66.25
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 5 mg + Atorvastatin calcium 4=
0 mg tablet P84.42
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 5 mg + Atorvastatin calcium 8=
0 mg tablet P89.99
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 10 mg + Atorvastatin calcium =
10 mg tablet P51.13
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 10 mg + Atorvastatin calcium =
20 mg tablet P73.25
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 10 mg + Atorvastatin calcium =
40 mg tablet P91.79
> >
> > =C3=A2=E2=82=AC=C2=A2 Amlodipine besilate 10 mg + Atorvastatin calcium =
80 mg tablet P91.79
> >
> > =C3=A2=E2=82=AC=C2=A2 Azithromycine 250 mg tablet P108.50; 200 mg/5 ml =
powder for suspension
> > (15 ml) P427.50; 200 mg/5 ml powder for suspension (22.50 ml) P638.00;
> > 500 mg tablet P151.43; 500 mg vial for injection P992.50; and 2 g
> > granules P468.
> >
> > =C3=A2=E2=82=AC=C2=A2 Cytarabine 100 mg/ml ampul/vial (IV/SC) P240; 100=
 mg/ml ampul/vial
> > (IV/SC) 5 ml or 500 mg vial P900; 100 mg/ml ampul/vial (IV/SC) 10ml or =
1
> > g vial P1,800; 20 mg/ml 5 ml ampul/vial for injection P1,980.
> >
> > =C3=A2=E2=82=AC=C2=A2 Doxorubicin 10 mg powder vial for injection P1,46=
5.75; 50 mg powder
> > vial for injection P2,265.74. With reports from Abigail Ho and Reuters
> >
> > --
> > Wim De Ceukelaire, coordinator of intal's international partnerships
> > wim.deceukelaire@intal.be | tel.: +32 2 209 23 55 | fax: +32 2 209 23 5=
1
> > | mobile: +32 484 119231 | skype: wimdeceuk | blog: http://intal.be/blo=
gs/wimdc
> >
> > intal =C3=A2=E2=82=AC=E2=80=9C http://www.intal.be | http://www.g3w.be =
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> > --
> >
> > _______________________________________________
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> > Ip-health@lists.essential.org
> > http://lists.essential.org/mailman/listinfo/ip-health
>
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>
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--
Wim De Ceukelaire, coordinator of intal's international partnerships
wim.deceukelaire@intal.be | tel.: +32 2 209 23 55 | fax: +32 2 209 23 51
| mobile: +32 484 119231 | skype: wimdeceuk | blog: http://intal.be/blogs/w=
imdc

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