By MARYA SALAMAT
Bulatlat
MANILA — A law that was supposed to provide cheaper and quality medicines to Filipinos has failed to deliver on its promise — a promise that was hamstrung by the law’s own defects and the seeming inability of the government to muster the political will to go against transnational drug companies, according to health and consumer advocates.
Called “The Universally Accessible Cheaper and Quality Medicines Act of 2008,” or Republic Act 9502, the law sought to correct what many called a scandalous anomaly in a poor country like the Philippines, where medicines and drugs are among the most expensive in Asia.
The law “proved to be irrelevant and useless,” said Dr. Gene Nisperos, vice-chairman of the Health Alliance for Democracy (HEAD) in a conference last week. “In hospitals, whether private or public, prices of medicine have not changed with this law,” he said.
Because of its many flaws, RA 9502 has failed to bring down the “inhumane” prices of drugs and medicines, said the Consumers’ Action for Empowerment (CAE) .
Amid the usual finger-pointing and bickering, the CAE said that the Department of Health (DOH) isn’t the only party accountable for the failure. “Although we’re in agreement that the Senate and other government fora should take the DOH to task for its failure in implementing the law, we’ve been saying that the law itself has inherent flaws,” Nisperos said.
TNC Control
The consumer group traces the uselessness of the law largely to its failure to break “the control of transnational corporations on all aspects of the [drug] industry.” Estimates put the share of transnational companies in sales alone of medicines and pharmaceuticals in the Philippines from 68 to 72 percent. Last year, pharmaceutical sales in the country amounted to P116 billion.
According to the group, RA 9502, signed by President Arroyo on June 6, 2008, also failed because, although between 80 and 90 percent of essential drugs being sold in the Philippines are no longer patented, the law did not provide for the development of a sound local drug industry that could have taken advantage of the fact that previously patented medicines can now be developed by local manufacturers.
CAE criticized the policy of dependence being fostered by RA 9502, which gives particular focus on drug importation, including parallel importation.
While it would seem that consumers can benefit from parallel importation, it actually discourages the development of the local drug industry. In fact, RA 9502 has not shown any support to local manufacturers, said Eleanor Nolasco of Health Action Information Network (HAIN). Eventually, it will kill the Philippine pharmaceutical industry, she said.
Moreover, the law failed to make sure that parallel importation, such as it is, will redound to the benefit of poor Filipinos.
Parallel Importation
Under parallel importation, the same drug that is manufactured and priced high in the Philippines can be imported – with or without the consent of the patent owner — from another country and sold here for prices that are several times lower than the ones produced locally. This is a method that transnational drug companies like Pfizer oppose because it obviously cuts their profits in countries where drugs are expensive, like the Philippines.
At first glance, parallel importation seems beneficial to consumers. But, according to the health-advocacy group KilosBayan Para sa Kalusugan, this is not necessarily true.
According to the Philippine International Trading Corporation (PITC), the trading and importing arm of the government, drugs that can be imported from India or Pakistan can be sold at half the price in local pharmacies.
But KilosBayan, in a primer, said these imported drugs can be sold at a much lower price. It cited Ponstan (mefenamic acid), which can be bought in India for the equivalent of P2.58 and in Pakistan P1.29. And yet, the same pain killer is sold for P11.25 in the 10,000 or so Botika ng Barangay outlets set up by the Arroyo administration, which promised half-priced medicines. Ponstan is sold for P25 pesos in commercial pharmacies.
“Why set the reduction of prices at just half of commercial prices when this could be lowered even more?” KilosBayan asked in its primer, citing the prices in India and Pakistan.
RELATED CONTENTNews in Pictures: Groups denounce failure of Cheaper Medicines Law
Consumers group finds Cheaper Medicines Law no better than a placebo
UP, artists reiterate call for release of Ericson Acosta (Photos by Ronalyn V. Olea and Fred E. Dabu)
Subscribe (RSS or Email) About Us Donate Contact Us Archive Advertise with Bulatlat
Slideshow: Art does bring in money, ask the Boracay boys 
Yearender: Victories of the Filipino People
June 11th, 2009 at 2:41 am
CHEAPER-MEDICINE LAW A FAILURE?
THE PEOPLE HERE IN ZAMBOANGA DEL NORTE SEEMS NOT TO AGREE IN SUCH ALLEGATIONS. THIS LAW IS A TREMENDOUS SUCCESS IN OUR REGION. MOST OF THE PRIVATE BOTIKAS IN OUR PLACE LOWERED THEIR PRICES TO COMPETE THE BnBs'S. THE PEOPLE BEHIND THIS LAW DESERVE OUR APPRECIATION AND SNAPPIEST SALUTE. 68% TO 72% INCREASED IN SALES BY PHARMA COMPANIES IS NOT PRETTY IMPRESSIVE. IT MAY GONE TO 100% WITHOUT THE CHEAPER-MEDICINE LAW.
June 11th, 2009 at 7:07 am
The problem with the law is that it is just that, a law. True it might have loopholes that can be exploited by transnational drug firms but the fact is Gloria Arroyo is doing nothing to implement it.
Why? Because Gloria is not the least concerned with the people's welfare. Budget for health remains low, estimates range from .25 to 30 cents per capita according to Ibon and Bulatlat.
Gloria wants to keep us so she and her minions can continue stealing and fooling us.
June 29th, 2009 at 6:14 am
Why can't we be like other countries where preventable diseases are gone like Tuberculosis?
Why can't we make our own industry of drugs, be independent?
July 6th, 2009 at 7:45 pm
1. Yes, RA 9502 brings down the prices of medicines, making it more affordable. However, MAJORITY OF THE FILIPINOS (which comprise the lower income brackets) CAN'T EVEN AFFORD A CENTAVO FOR MEDICINES. This means that the law wont help the poor that even reducing drug prices by 99% will do nothing as long as they cant even buy their own food and basic necessities. Therefore, the law only helps classes A and B.
2. Putting price cuts to medicines needs to be discussed thoroughly by consumers, pharma firms and the government. Yes, the government can force to bring drug prices down, but this will cause a lot of pharma businesses to close down or worse, a lot of fake medicines will be produced. A lot of people are talking about India and Pakistan, but never did they thought that these countries are facing a lot of problems regarding LOW QUALITY MEDICINES.
3. A lot of people are blaming pharma industries but dont forget that the chain of profit involves not only the manufacturers but the RETAIL DRUGSTORES as well. HOW COME BIG CHAINS OF DRUGSTORES CAN ABSORB HUGE CONSUMER DISCOUNTS OF THEIR PATRONS?
4. Another problem is that the generic law was not fully implemented. The RA 9502 even state that DOCTORS CAN STILL PRESCRIBE BRAND NAMES AND NOT JUST SOLELY GENERICS because physicians fear that a lot of low quality and counterfeit generics still exist. However, this of course, is a huge loophole to the law, because everyone knows that the tradition of giving incentives among health providers will ensue that junkets, free gifts, will add to the cost of medicines.
My suggestion:
a. Just take note: Pfizer has signed a partnership with GSIS, pushing a whopping 50% discount to all members. But why isnt many happy? IMO, studies should be made on drug prices independently before recommending the right price for MRP.
b. The government should absorb some expenses on medicines too. All Filipinos have right to health, rich or poor. If poor people cant have access to essential medicines financially, the state, should provide. Philhealth can help by broadening its coverage for the poor and putting medicines as part of its incentives. In this way, the pharma can sell medicines at a very low price, but since its in bulk, because more will have access to it, they wont lose that much.
c. BFAD should upgrade its facilities and be vigilant on low quality medicines and counterfeits. In this way, Filipinos will be confident in buying generic drugs, which is way cheaper than those being sold in the market. Secondly, NO PHYSICIAN WILL EVER SAY THAT GENERICS CAN HAMPER CURE AGAIN. Generics ensures competition, which in turn, bring down prices of medicines.
d. India and Pakistan has created a lot of cheap drugs because they lifted all patents. I think the country needs to focus on that too. With this, the local industries can create our own version of the same drugs which is much cheaper.
I hope this will clear things among readers. Its nice to be vigilant but the topic needs to be discussed by all and all sides should be taken accounted for.
July 29th, 2009 at 8:49 pm
Doctors must prescribe medicines with their recommended brands but they should also write the generic name so that the patients will have their option to choose a cheaper one.
Most of the doctors are enjoying the commissions and gifts offered by giant pharma companies and this is the reason why the medicines are very expensive.
June 3rd, 2011 at 10:54 am
[...] years ago when RA 9502 or Cheaper Medicines Law was enacted, the CAE had immediately seen its major failings which they predicted would ultimately [...]
June 3rd, 2011 at 12:17 pm
[...] on these failings, they foresaw its tragic failure in meeting its avowed goal of bringing down prices of medicines in the [...]