Cheaper medicines seen as gov’t inks
off-patent deal

Business World, December 5, 2006

Consumers can expect to avail of cheaper medicine starting next year as state-owned Philippine International Trading Corp. (PITC) yesterday inked a deal with Zuellig Pharma Corp.’s Interphil Laboratories, Inc. to manufacture 20 off-patent drugs.

A signing ceremony yesterday between PITC chairman and president Roberto M. Pagdanganan and Interphil president Francisco Billano was witnessed by President Gloria Macapagal Arroyo.

For the first phase of the partnership, PITC and Interphil will release seven medicines in the first quarter of 2007: the antihistamine ceterizine; cholestorol-lowering simvastatin; hypertension treatment losartan; antibiotics cifrofloxacine, claritomycin and clindamycin; and the oral antidiabetic gliclazide.

The agreement, effective for a three-year period, puts Interphil in charge of manufacturing the drugs and the PITC in charge of marketing, distribution and support services.

"This should be a big boost to the half-priced medicines program of the Arroyo administration," Mr. Pagdanganan said. "The objective of the President’s program is to have the cost of medicine decreased by half or more by 2010 on the basis of 2001 prices."

Roberto R. Romulo, chairman of Zuellig’s investment arm Interpharma Investments, Ltd. and the Asia Pacific Economic Cooperation-Business Advisory Council Philippines, said Zuellig was pleased to assist in producing selected generic drugs at the lowest possible cost.

"We have agreed to produce those generic drugs most needed by the disadvantaged members of our society. In doing this, we will deliver high-quality products, manufactured in our international-standard facility, at the most affordable prices. This is part of our effort to support the government’s healthcare development agenda," Mr. Romulo said in a statement.

The PITC has been working towards the wide use and distribution of cheaper generic drugs.

Mr. Pagdanganan has declared that medicine is expensive locally because of a "cartelized system of marketing and distribution" where some 80% of toll manufacturing for multinationals is done by just one manufacturer, about 80% of wholesale distribution is handled by Zuellig Pharma and Metro Drug, and more than 60% of retail is through Mercury Drug.

The PITC is backing Senate Bill 2263 authored by Sen. Manuel A. Roxas which proposes amendments to the Intellectual Property Code of the Philippines. The aim, its proponent said, is to make patents, trademarks and trade names more responsive to the health care needs of the public.