KilosBayan said parallel importation has not been maximized to the advantage of consumers. In fact, according to the Council for Health and Development, a health NGO, “the provisions on parallel importation bear no significant impact on the prices of medicines because even before the passage of the law, parallel importation is utilized by the government in its Botika ng Barangay program.”
Besides, the government only allots P1 billion for parallel importation — in an industry that is worth P100 billion.
Drug Cartel
Another major factor why the cheaper-medicine law failed to make a dent on the high cost of drugs and medicines is the fact that, according to data from the PITC, 80 percent of drugs being manufactured for multinational corporations is done by one company. Moreover, as much as 70 percent of wholesale distribution is handled by a sister company.
In the end, according to CHD, “more than 60 percent of the retailing of finished products is sold through Mercury Drug, which has more than 600 outlets nationwide.”
In other words, there’s an existing cartel of drug manufacturers and distributors that continue to dominate the market despite RA 9502. Indeed, one of the law’s biggest defects is it did not provide for the creation of a regulatory board for drug prices – a board that could have broken the stranglehold of this cartel — despite the strong clamor and recommendation of health-sector representatives and people’s organizations during public hearings when the law was still being crafted.
As a result, the law squandered an opportunity to promote democratic representation of consumers and other stakeholders that in turn could ensure the law’s intent is being followed. Currently, the task of monitoring medicines being sold in the country lies with the Bureau of Food and Drugs, an agency under the DOH that progressive health-sector representatives judged as weak.
The RA 9502 gives President Arroyo the power to impose price caps on retail prices of drugs and medicines but she has not exercised that power.
In fact, on the first anniversary of RA 9052, leaders of the Pharmaceutical and Healthcare Association of the Philippines (PHAP) personally thanked President Arroyo for the government’s support in ensuring that their business would remain “viable.”
PHAP executive director Reiner W. Gloor thanked President Arroyo for assuring them that “we religiously implement laws that uphold patent protection.” PHAP, an industry lobby group, is largely composed of multinational drug manufacturers and providers of most of the country’s patented medicines.
Generic Drugs
The domination of the local drug industry by TNCs also has an impact on the affordability of medicines and on the campaign to lower prices through the prescription of generic drugs. But because not all drugs and medicines have their respective generic counterpart, the situation remains dire.
According to CHD, there are about 600 drugs in the Philippines that are considered essential. But of this number, only 200 are being produced by Philippine companies. The other 400 off-patent drugs, meanwhile, do not have local generic counterparts and are also dependent on importation, the CHD said.
This partly explains why the use of generic drugs is low in the Philippines. In 2006, for instance, generic drugs account for only five percent of medicines sold locally while in other countries such as in the United states, there was a recorded 50 percent generic-drug use.
Token Legislation
Although the intent of RA 9502 is to address the problem of expensive medicines, critics said it has unfortunately become an example of token legislation because it did not support the local drug industry and it did not enable the health sector to monitor its own pharmaceutical policy. This much is clear among the young health workers.
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 [...]