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Duterte signs an executive order limiting drug and medical costs.

According to a new Executive Order (EO) signed by President Rodrigo Duterte on December 7, the pricing of pharmaceuticals and treatments used to address the country’s primary causes of morbidity will henceforth be regulated to ensure that they remain cheap.

EO 155 establishes a maximum retail price (MRP) and/or a maximum wholesale price (MWP) for 34 drug molecules or 71 drug formulas used in analgesics, anesthetics, anti-angina, antiarrhythmics, anti-asthma and chronic obstructive pulmonary disease medicines, antibiotics, anticoagulants, anticonvulsants, antidiabetic drugs, antidiuretics, and antiemetics

Drug molecules and formulas used in anti-glaucoma, anti-hypercholesterolemia, antihypertensive, anti-neoplastic/anti-cancer, antiparkinsons, anti-overactive bladders, growth hormone inhibitors, immunosuppressant drugs, iron chelating agents, and psoriasis, seborrhea, and ichthyosis medicines are also covered by the EO.

The TWG [Technical Working Group] recommended, and the DOH [Department of Health] endorsed, the imposition of MPR and MWP on the remaining drug formulas of selected drugs and medicines after conducting a price review using the methods of international reference pricing among ASEAN countries, mark-up regulation, and stakeholder consultation, according to the EO.

“There is a need to further impose MRP and MWP on other drugs and medicines commonly used for the leading causes of morbidity in the country,” it added, “consistent with the overall strategy under RA (Republic Act) No. 11223 or the “Universal Health Care Act” to improve access to affordable and quality medicines and reduce health-related out-of-pocket expenses of Filipinos.”

Manufacturers, importers, distributors, wholesalers, traders, and retailers of medications and medicines are required to label MRP drugs and medicines under Executive Order 155.

“Every manufacturer, importer, distributor, wholesaler, trader, or retailer of a drug or medicine for sale must show the retail price, which must not exceed the MRP.” The MRP must be clearly displayed on the label of the immediate container of the drug and medicine, as well as the minimum pack thereof supplied for sale, preceded by the phrases “RETAIL PRICE NOT TO EXCEED” and “UNDER DRUG PRICE REGULATION” on a red strip. The labeling must also be applied to medication formulae or medicines covered by MRP under EO No. 104,” according to the EO.

EO 104 established the TWG, which is made up of officials from the DOH and the Department of Trade and Industry (DTI), with the goal of examining the prices of various drug compounds or drug formulas in cooperation with stakeholders.

The DOH, in collaboration with the DTI, shall evaluate the list of medicines and their accompanying MRPs and/or MWPs, as well as those covered by EO No. 104, six months after the order takes effect and every six months afterwards.

In accordance with RA 9502, and other relevant laws and regulations, the DOH is directed to study and propose measures, including but not limited to pooled procurement, price negotiation, and other mechanisms, that will influence the supply, demand, and expenditure on drugs and medicines, in consultation with relevant government agencies, including the DTI and the Philippine Competition Commission.

RA 9502, also known as the “Universally Accessible Cheaper and Quality Medicines Act of 2008,” declares that it is the State’s policy to protect public health and, when the public interest or circumstances of extreme urgency so demand, to take appropriate measures to promote and ensure universal access to affordable quality drugs and medicines.

The Department of Health will develop guidelines to ensure that this Order is carried out effectively.

The Presidential Communications Operations Office has been directed to give the DOH with the necessary support and assistance in disseminating information about this Order.

All other government agencies and instrumentalities, such as government-owned or controlled enterprises, government financial institutions, and state colleges and universities, are thus directed to assist the DOH in disseminating information, enforcing the order, and implementing it.

Any disobedience of the order will be prosecuted under RA 9502, as well as other applicable legislation.

Section 19 of RA 9502 directs the Secretary of Health to investigate any alleged violations of the MRP and/or MWP under this order, impose administrative fines and penalties, and call upon and deputize government organizations for assistance needed to carry out the order’s purpose.

The Secretary of Health has the authority to impose administrative fines of not less than PHP50,000 and not more than PHP5 million under Section 19 (D) of RA 9502.

Existing inventory stock must be sold at current prices after a non-extendable term of 90 days from the order’s effective date. Following that, regardless of the status of the existing stock, the order’s MRP and/or MWP must be rigorously followed.

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