DOH submits draft EO on drug price cap

MANILA, Philippines — The Department of Health (DOH) has submitted the draft executive order (EO) to the Office of the President on its proposal to set maximum drug retail prices (MDRP) despite strong opposition from pharmaceutical firms.

“The list [of medicines] is already finished. We are just waiting for the final action of the President,” said Health Undersecretary Eric Domingo.

The EO, once issued by President Rodrigo Duterte, is expected to reduce the market prices of selected drugs by as much as 56 percent.

At least 120 drugs and medicines will be subjected to price control by the government in the draft EO.

The submission of the draft EO came amid strong opposition by the pharmaceutical industry which warned of closures.

In a statement, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) stressed that price controls on medicines, while appearing beneficial on the surface, have been found to be counterproductive and eventually withdrawn in other countries.

Forced to close down

PHAP said several small- and medium-sized drugstores were forced to close down or sold to larger chains due to the drug price control, thereby affecting not only businesses but also pharmacists employed in drugstores.

It also stressed that medicines have remained unaffordable due to low purchasing capacity, brought about by low income levels and lack of medicine financing.

“Interventions should be carefully monitored as pharmaceutical policies, including price regulation, may not always lead to an overall benefit to the public and may even cause harm,” said PHAP executive director Teodoro Padilla.

“We hope we can explain our side before the government makes a decision on the proposed MDRP,” he added.

But Domingo explained that the government would not want manufacturers to lose their businesses or for them to suffer losses.

“All we are asking for are reasonable prices of medicines. We really want pricing of these drugs to be fair to Filipinos,” he said.

Among those being eyed for inclusion in the MDRP are medicines for hypertension, diabetes, cardiovascular disease, chronic lung diseases, neonatal diseases and major cancers.