Pharma firms’ offer to cut drug prices under evaluation

MANILA, Philippines — The Department of Health (DOH) is evaluating the offer of the Pharmaceutical Healthcare Association of the Philippines (PHAP) to voluntarily reduce prices of select drugs.        

“We appreciate the gesture (of PHAP) and we have been continuously evaluating the proposal, taking into account the intended goal of the Maximum Drug Retail Price (MDRP), which is to improve access to affordable medicines for all Filipinos,” Health Secretary Francisco Duque III said in a statement.

The PHAP on Wednesday said several of its members were willing to cut prices of some 150 medicines used to treat at least 36 diseases, in response to the government’s plan to impose a price cap on more than a hundred drugs.

Duque, however, said the PHAP could not guarantee price reduction at points of sale such as drugstores, drug retailers and private hospitals, which comprise at least 90 percent of the total pharmaceutical market.

“We know that the drug prices in these markets are significantly higher compared with government prices,” Duque pointed out. 

Duque said only 107 out of 155 drugs promised by PHAP would likely have prices cut across the pharmaceutical market. The remaining 43 will only be offered to DOH hospitals, which cover less than one percent of the market.

The health chief further noted that only 63 of the 122 drugs proposed by the DOH for price reduction were included in the list, with no price reduction for other high-cost medicines.

He said other volunteered drugs for price reduction do not necessarily address the top burden of diseases in the country, and only affect small populations of patients.

“In some cases, generic equivalents already exist for the proposed medicines which are even priced lower,” he added.

At this time, the proposed executive order on MDRP is being discussed and refined with the help of other government agencies.

The DOH also insisted on imposing price ceilings on drugs.

“The problem is they cannot control the profit if the retailers will make if there is no MDRP,” Duque said in response to the PHAP’s offer to cut the prices of at least 150 medicines by 75 percent.

Duque said the DOH is pushing for the adoption of a new MDRP because it will reduce the prices throughout the supply chain.

“What is important is for us to be able to bring down the cost of very expensive, quality drugs and medicines for the sake of our Filipino patients, especially those suffering from cancer and other conditions that require the intake of very expensive drugs and medicines because they have been proven to be effective but beyond the reach of common Filipinos,” Duque explained.

According to Duque, prices of medicines in the country are beyond the reach of poor Filipinos and even those in the middle class.

“The expensive drugs and medicines can cost up to 22 times the branded while the generics are four times more expensive so we really need MDRP to help our people cope with the high cost of treatment and care,” he added.

It has been a decade since the DOH came out with the first MDRP containing only five most common expensive reducing prices by 50 percent.

“After 10 years the list of five drugs and medicines has never grown. What we are fighting for is for the best interest of the Filipinos,” the health chief pointed out. 

The DOH has already submitted to the Office of the President a draft executive order providing for the issuance of the new MDRP containing 120 life saving drugs.

Health officials said the DOH does not want drug manufacturers to suffer losses, but only for them to sell medicines at reasonable prices.

Duque, however, said the DOH would look into the list of medicines PHAP is offering to voluntarily reduce the prevailing prices.

“We have to see the list of meds first before we comment,” he said.

PHAP said pharmaceutical firms have been selling drugs to the government that are cheaper by 50 percent.