Healthy Skepticism Library item: 17305

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Publication type: news

Philippines to Lower Prices on More Medicines
Pharma Live 2010 Feb 26
http://pharmalive.com/news/index.cfm?articleID=687591

Full text:

The Philippine government announced price cuts Friday on 97 medicines that officials say will result in at least 1 billion pesos ($21.7 million) in annual savings for Filipinos.

The impoverished Philippines has Asia’s second-most expensive medicines after affluent Japan, with some drugs priced five to 45 times higher than in India or Pakistan, government officials say.

Health Secretary Esperanza Cabral said 11 pharmaceutical companies had responded to the government’s call for price cuts to allow the poor greater access to medicines.

The price cuts range from 14 to 72 percent on drugs for cancer, asthma, kidney problems and other illnesses, the Department of Health said. Most of the cuts are to take effect March 31.

“The voluntary price reductions they made are very significant,” Cabral said of the drug companies. “People who use these medicines can save 1 billion pesos ($21.7 million) and they can now spend that money for their other needs.”

She warned that drug stores that fail to lower the prices of the products accordingly will face fines.

Last year, the government announced price reductions on more than 100 other drugs.

Robert So, head of the health department’s pharmaceutical management program, said with 97 medicines included in the latest round of price cuts, prices of some 200 medicines have gone down since last year, in some cases by 50 percent.

“The more than 200 medicines make up 12 to 15 percent of the total market of essential drugs,” So added. “Many will benefit from this.”

The Pharmaceutical and Healthcare Association of the Philippines _ a group of multinational and Filipino drug companies whose members participated in the voluntary price cuts _ said it remains committed to providing greater access to medicines but believes that competition is still the best way to drive down prices.

The association also called for wider health care reform, including an improved health insurance system. It said the Philippines’ appropriated annual health expenditure is only about 3 percent of gross domestic product, which is below the minimum 5 percent recommended by the World Health Organization.