Palace confirms Duterte inked EO regulating prices of drugs, medicines

February 17, 2020

Malacanang on Monday confirmed that President Rodrigo Duterte signed an executive order that would regulate retail prices of drugs and medicines.

“The Palace confirms that President Rodrigo Roa Duterte signed today, February 17, Executive Order No. 104, entitled, ‘Improving Access to Healthcare Through the Regulation of Prices in the Retail of Drugs and Medicines’,” Presidential Spokesperson Salvador Panelo said in a statement.

“This landmark measure would impose price regulation through a Maximum Retail Price, Maximum Wholesale Price or both on certain drugs and medicines,” he added.

Panelo said access to affordable and quality drugs and medicines is now a reality under the Duterte Administration.

“This measure is part of the real and lasting reform which President Rodrigo Roa Duterte has instituted in order that all Filipinos can live decent and comfortable lives that they deserve,” he said.

The EO will imposed Maximum Retail Price (MRP) and Maximum Wholesale Price (MWP) on “select drugs and medicines totaling to 86 drug molecules or 133 drug formulas”.

This is in accordance with the provisions of Republic Act (RA) No. 9502 or the Cheaper Medicines Act of 2008, which grants the President of the Philippines the power to impose maximum retail prices over drugs and medicines sold in the country, upon the recommendation of the DOH Secretary.

In selecting which drugs and medicines to impose MRP and MWP on, the President, in the EO, stated the following criteria:

a. Drugs that address the health priorities of the general public especially those that account for the leading causes of morbidity and mortality;

b. Drugs that have high price differentials/arbitrage compared to international prices;

c. Drugs that have limited competition in terms of lack of generic counterparts or lack of market access to these products; and

d. Drugs where the innovator product is the most expensive yet most prescribed and/or dispensed in the market.

“Within 30 days from the issuance of this Order, a technical working group composed of representatives from the Department of Health (DOH) and the Department of Trade and Industry (DTI) shall convene and review, in consultation with stakeholders, the prices of the remaining 36 drug molecules or 72 drug formulas previously proposed to be included in the MRP and MWP list,” it said.

The EO further states that the MRP will be imposed on all public and private retail outlets, including drugstores, hospitals and hospital pharmacies, health maintenance organizations, convenience stores and supermarkets and the like.

MWP, meanwhile, will be imposed on all manufacturers, wholesalers, traders, distributors and the like.

The drugs and medicines included in the MRP and MWP list will be subject to review by the DOH, in consultation with the DTI, within six months from the effectivity of the order and every six months thereafter.

Violations of EO No. 104 will be dealt with in accordance with RA 9502 and other related laws. Ella Dionisio/DMS