Malaya – September 14, 2007

SEN. Manuel "Mar" Roxas yesterday blasted giant pharmaceutical companies for blocking initial efforts of state firm Philippine International Trading Corp. (PITC) to import cheaper drugs from abroad.

"The PITC’s woes began even back when I was still DTI secretary. We were sued by the multinational companies for initiating efforts to import quality, affordable medicines, " Roxas said following last Wednesday’s joint hearing on his pet bill, the proposed Cheaper Medicines Act.

Roxas said the PITC adopted the parallel importation program during his stint as trade chief. "May potensyal ang programa ng PITC, pero ang daming balakid. Kinasuhan kami noon at hindi pa nareresolba ang mga ito. Kaya kailangan nang baguhin ang batas para wala nang duda ang legalidad ng parallel importation program ng gobyerno," he said.

Roxas was among international leaders who pushed for the eventual grant of patent flexibilities for developing countries through the Trade Related Intellectual Property System (TRIPS). He said the "overly stringent" patent system hampers efforts to provide cheap but quality medicines to consumers.

"Ayon sa TRIPS, maaaring mag-angkat ng mga gamot na galing sa ibang bansa, para lalong tumindi ang kompetisyon. Sa ganoong paraan, bababa ang presyo," he said.

Roxas said the PITC program had been making headway and saving millions for the government in importing selected drugs until it was torpedoed by the giant pharmaceutical companies.

Among those mentioned by PITC during the Senate hearing were the anti-epileptic drug Dilantin, which costs P26 in the local market but which was sold through the Botika ng Bayan at only P12 apiece after these were imported. The PITC said at least one million capsules of Dilantin have been sold at the reduced price from January to July this year in government drug outlets, translating to savings of P14 million.

Other drugs sold to the public through the Botika ng Bayan include pain reliever Ponstan at P11.25 (local market price is P25.50 each); and topical steroid Dermovate at P105 (P246.50).  

The PITC said its importation of drugs was based on the following criteria: the drugs were in the Department of Health’s core list of essential drugs; they address leading causes of mortality and morbidity; they are responsive to market demand; they carry a wide price differential between locally sold ones and imported ones; and those that were off-patent as of the date of importation. 

Roxas said that aside from PITC, the DOH and local governments could also serve as other avenues to procure quality, affordable drugs from abroad. He said his Cheaper Medicines bill will also allow generic drug manufacturers to begin experimentation, production and registration of drugs prior to expiry of their patents; prevent patent holders from extending their patents on flimsy reasons; and leave it to government discretion the use of patents when public health is at stake while providing adequate compensation to the patent holder. – Dennis Gadil