Cheaper drugs bill approaches final version in bicameral talks

MANILA, Philippines - On top of ceding ground on the "generics only" provision, the panel of the House of Representatives to bicameral conference committee deliberating the proposed Cheaper Medicines Act agreed to scrap still another of that chamber’s key provisions — the one mandating the creation of price regulatory board. In a telephone interview, Iloilo Representative Ferjenel G. Biron (4th District), said that in the final committee report being circulated yesterday for signature among members of the bicameral conference committee, the price regulatory board provision was replaced by a provision giving the Secretary of the Department of Health (DoH) the "power to regulate the maximum retail prices of all medicines listed in the Philippine National Drug Formulary." Malacañang, however, has the final say on the Health secretary’s recommended prices. While the Health secretary retains the same recommendatory functions in this regard from the version last week, the difference lies in the power of the President over this recommendation. Specifically, while the version last week stated that the President had the power to declare that there is no crisis — in effect, rejecting DoH’s price recommendation, the version this week states that while she can still reject the department’s price recommendation, another set of prices will have to recommended for her consideration. "Price regulation can only happen when the President declared that there is a crisis," Mr. Biron said of the version last week. Mr. Biron, who is the principal author of the House’s original version of the bill (HB 2844), said that though the regulatory board provision was deleted, what is important is that a price regulation mechanism will remain. "Price regulation is the most important part of the bill. Even if the final version of the bill did away with the Drug Price Regulatory Board and, instead transferred the regulation powers to the Secretary of Health, what is important is that the price regulation mechanism remains intact. It is now up to the Secretary of Health to implement the drug price regulation after it is approved by the President," he said. "Price regulation is the ’blood’ of the bill. We have seen how free market failed. The only way to bring cheaper medicines for Filipinos is to regulate the prices [of medicines] in the market," he stressed. Mr. Biron said, "the House panel is now willing to compromise with the Senate." "The bill is on its way for ratification," he said. Earlier, Mr. Biron, who is also a doctor, warned that the passage of the Cheaper Medicines bill without the drug price regulation board provision would weaken the bill. HB 2844 originally vested the power to regulate the prices of medicines in a board composed of the Health and the Trade secretaries, as well as representatives from the Bureau of Food and Drugs, consumer groups and the academe. In a statement issued yesterday, House Speaker Prospero C. Nograles said that while he still holds some reservations because of the removal of the "generics only" provision in the proposed Cheaper Medicines Act, he will respect the "full" autonomy of the House contingent chaired by Palawan Rep. Antonio Alvarez (1st District). "I was told that conditions have been set in place, upon the insistence of our House contingent. I think the strength of the law is still intact as far as the issue on the removal of the regulatory board is concerned. They [House contingent] now have full autonomy to agree to go or not to go. I trust our bicam completely," Mr. Nograles said. In a separate interview, Senate panel chairman Manuel A. Roxas II said that there was a "misunderstanding" on the part of some congressmen that the price regulation was deleted. "I am not in favor of the [price regulatory] board since there would be no transparency," said Mr. Roxas, chairman of the Senate committee on trade and commerce, adding that the bill became "stronger" because accountability in fixing the price now rests in the Health Secretary, upon the approval of the President. - BusinessWorld