DOH warns drugstores, pharmas vs violating drug price cap

February 18, 2020

The Department of Health (DOH) warned drug manufacturers and pharmacies against non-compliance to the newly-signed Executive Order (EO) on the Maximum Drug Retail Price (MDRP). 

In a press conference Tuesday, Health Secretary Francisco Duque III said possible jail terms and stiff fines await those who will not comply with  maximum wholesale and retail prices under Executive Order No. 104.

“We will immediately issue an Administrative Order to ensure the effective implementation of the EO on MDRP and disseminate the implementing guidelines to stakeholders," said Duque. 

"Violations of the price caps will be dealt with in accordance with the Cheaper Medicines Act and other relevant laws together with the DTI (Department of Trade and Industry) and the FDA ( Food and Drug Administration),” he said. 

Duque said the products covered by the MDRP is still subject to special discounts to senior citizens and persons with disability (PWD). 

Republic Act No. 9502 (Cheaper Medicines Act) provides that any person or entity, who commits any act of illegal price manipulation of any drug and medicine subject to price regulation, shall suffer the penalty of imprisonment for a period of 5 to 15 years, or shall be imposed a fine of P100,000 to P10 million, and the suspension or revocation of its license to operate (LTO), professional, or business license.

DOH Pharmaceutical Division head Melissa Guerrero said they will be requiring all drugstores and pharmacies to post the list of medicines covered by the EO in their establishments. 

"We will require them to post the list in conspicuous areas for the public to be able to see what medicines are included in the list," said Guerrero. 

DOH Assistant Secretary Charade Mercado-Grande asked the public to report violations of the drug price cap to the government. 

"We ask the consumers to report violations to us at the Department of Health or the Department of Trade and Industry," said Mercado-Grande. 

On Monday, President Rodrigo Duterte signed EO 104, which sets maximum retail and maximum wholesale prices of selected medicines.

This is in response to the DOH recommendation to the Office of the President to expand the scope of medicines subject to MDRP, by including 122 medicines. 

The EO sets the maximum retail price (MRP) and maximum wholesale price (MWP) for 87 drug molecules (with 133 drug preparations), whose prices will be reduced by up to 58 percent. 

"The EO will take effect 90 days from the date of signing," said Duque. 

Guerrero said the DOH, with the DTI and stakeholders, have been tasked to review price reduction of the other 35 drug molecules (with 72 drug preparations) included in the recommendation. 

"We will be finalizing the second tranche with the DTI within 30 days," said Guerrero. 

Among the drugs and medicines included in the first tranche are those for anti-hypertensive, anti-diabetic, anti-cancer, immunosuppressant, analgesics, anti-asthma and COPD, anticoagulant, anti-angina, agents affecting bone metabolism, anti-emetic, and psoriasis, seborrhea, and ichthyosis preparation. 

Also listed in the MDRP EO are anti-depressants, iron chelating agents, growth hormone inhibitor, antiviral, fibrinolytic, hematopoietic agent, mucolytic, parenteral nutritional product, phospate binder, and surfactant. DMS