December 6, 2006
HIDDEN AGENDA By Mary Ann Ll. Reyes
The Philippine Star 12/06/2006
Okay, this column admits it underestimated giant drug-maker Pfizer’s resolve to go into a price war scheme in the anti-hypertensive treatment arena following the entry of the highly affordable Amvasc made by Filipino firm United Laboratories (Unilab).
Weeks back, we aired the view of our coffee shop colleagues that Pfizer, the maker of Norvasc, cannot compete with the price of the Unilab product. Norvasc sells at P 44.75 per five-milligram tablet. The Unilab product sells at P17.50. A clear 60- percent difference. We echoed what our media colleagues said that there was no way Pfizer can match the selling price of the Filipino product since to do so would raise a howl in the market. Patients who sacrificed a lot just to stay on Norvasc would surely question a downward price movement, they pointed out. The puzzle is, if Pfizer can afford to lower Norvasc’s cost today, why didn’t they do so a long time ago?
The Barako gang may have overlooked the fact that Pfizer may have prepared for the advent of Amvasc and had devised schemes to meet the price challenge. The Pfizer scheme, however, is rather puzzling and has triggered a lot of question in the mind of the high-blood pressure-plagued public.
The Pfizer puzzle revolves around a discount card scheme that offers 50 percent off on Norvasc purchases. The current view among coffee shop habitués is that the discount card is actually Pfizer’s disguised engagement in the drug price war.
The scheme, however, has really puzzled many. There are an estimated 7.76 million hypertensive adults in the country. But how many of them are enjoying the 50-percent discount. In fact, how many of them actually know there is a discount card? Many of our hypertensive friends swear they do not know about the discount card.
Who decides who gets the discount card, whose scheme seems complicated. Does everyone know where this precious discount card can be obtained? Who qualifies? By making the scheme highly-selective, wouldn’t the discount card source actually be playing God by deciding who gets cheaper treatment and who does not? Is the discount card dispenser obligated to give the card to whoever asks for it? Or is the doling out of this card purely discretionary, sort of like a Divine Favor only the blessed are entitled to? Wouldn’t those who failed to be in the favor of the demi-gods who dispense the discount card be consigned to a life of suffering just because they cannot afford to buy the treatment?
Wouldn’t those who failed to be in the favor of the demi-gods who dispense the discount card be consigned to a life of suffering just because they cannot afford to buy the treatment sans the discount? Wouldn’t they have been sentenced to a life of debilitating hypertension when their only crime is that they cannot afford Norvasc and were not informed about the discount?
If Pfizer had intended to help Filipinos who have long endured the pricey drug, why did it raise Norvasc’s price by an average of 21.5 percent in March this year, just a few months before Amvasc came to the market? Doesn’t the March 2006 jack up of Norvasc prices reduce the discount to a mere 28.5 percent effectively? Doesn’t the jack up reduce the Pfizer discount scheme to a mere display of marketing savvy rather than a show of mercy and compassion to ailing Filipinos?
Another puzzle: Assuming Pfizer is willing to give the 7.76 million hypertensive Filipinos access to the 50-percent discount, why does the company have to go through a complicated process? Wouldn’t it be simpler if it merely slashes the tag of this pricey drug by 50 percent? Fifth puzzle: Why is Pfizer cutting Norvasc prices only now? Plain and simple price war? Our coffee shop pals say people don’t care whether or not Pfizer’s scheme is part of a price war. People just want affordable medicine. That’s all. What Filipinos are simply smarting from is the fact that Pfizer may have opted for a complicated and highly-selective scheme that’s depriving the more needy patients with access to treatment and, consequently, a more productive life.
There’s one more thing that’s aggravating the Filipino ire. While they are yet to find out how they can access the discount, they feel Pfizer is giving them a double whammy by using its muscle to stop the government from bringing in treatment that they can afford. The issue, however, is water under the bridge. Philippine International Trading Corp. president Obet Pagdanganan says the government is no longer bent on importing the cheaper drugs from India since an affordable choice is already in the local market.
Which leads to a sixth puzzle: Why is PITC is still being vilified in media regarding that planned importation. Shouldn’t the PITC statement regarding the halt to anti-hypertensive importation put the issue to rest? Or does Pfizer merely want to position itself as the aggrieved party? Or this is the only recourse for the firm in the wake of a simmering price war? We hope Pfizer just gives the market a clean discount. Across the board. Across all market segments. This way, Filipinos are given a chance to choose fairly and intelligently.
