DOH checks drug-price cut proposal for ‘switching’ tricks

MANILA, Philippines - Health authorities are checking the proposed list of price cuts in selected medicines for possible “switcheroo" tactics used by “hardheaded" drug firms. Department of Health (DOH) National Drug Program Manager Robert So said they are looking into claims that some drug firms spared expensive products from price reductions, and instead offered to cut the prices of poor selling products. “May mga kumpanya ng gamot na kahit masakit sa kanila, binaba rin nila ang presyo. So huwag nating lalahatin. Lahat ng mga kumpanya, sa hinala natin, ay labis kung magpatong sa presyo. At batay dito, dapat magbaba ng presyo ang lahat. Ang ayaw at medyo matigas ang ulo ay sinusuri natin kung acceptable ang replacement nila o hindi," So said in an interview on dzBB radio. [There are companies that cut the prices of their products even at the risk of incurring losses. Let’s not judge all pharmaceutical firms. But as a rule of thumb, we presume all drug firms are overpricing, so we should be expecting price cuts. We are now looking at some hardheaded drug firms to see if their replacement products are acceptable or not.] He did not name the “hardheaded" drug firms. Drug companies presented last Saturday their alternative proposal to the DOH’s list of 21 essential medicines whose prices should be cut by 50 percent. The DOH will review the list and make its recommendations to President Arroyo, according to So. He said the process may take time, and it is up to Mrs. Arroyo to accept the DOH proposal or make some adjustment based on the Health department’s recommendations. “Bina-validate pa natin ang proposal. Lahat ng firms nagbigay ng price-cut rates sa 21 gamot na ni-recommend namin. Iba-iba ang rates nila. May iba na umabot ng 60% pero may iba na hanggang 30% lang depende sa uri ng produkto [We are still validating their proposal. The firms proposed price cuts ranging from 30 to 60 percent, depending on the product]," he said. He added that as soon as the President approves the DOH’s new proposal the department would come out with the list or medicines with their corresponding price cuts. On the other hand, So clarified that prices of drug products will go down either through voluntary compliance of the pharmaceutical firms or through an executive order to be signed by Mrs. Arroyo. The unsigned document contains a list of essential drugs and their compulsory maximum retail prices (MRP) – limits set by Republic Act 9502 (the Universally Accessible Cheaper and Quality Medicines Act), which Mrs. Arroyo signed into law on June 6 last year. “Nasa discretion yan ni Pangulo yan. Kung sa tingin niya mas maraming makikinabang sa voluntary compliance ng drug firms, i-adopt niya ito. Kung gusto niya ang EO sa price cap, nasa kanya yan [It is up to the president’s discretion. If she thinks the proposed voluntary compliance is more acceptable than the EO or vice versa, it’s up to her]," he said. - GMANews.TV