Herbal drug makers urge DOH to privatize PITAHC

Local herbal medicine and cosmetics manufacturers are urging the Department of Health (DOH) to privatize the government-owned and controlled corporation Philippine Institute of Traditional and Alternative Health Care (PITAHC).

"PITAHC is unduly competing with small and medium-sized herbal-based medicine and cosmetics manufacturers and with three manufacturing plants nationwide, it has the advantage and the network that start-up manufacturers have yet to develop," said Rainer Villanueva, president of Rainiers Research and Development Institute and an active member of the Chamber of Herbal Industries of the Philippines(CHIP).

Villanueva said that the presence of PITAHC in Cagayan de Oro, South Cotabato and Tuguegarao in northern Luzon is discouraging local investors from firming up plans to maximize opportunities in the flourishing market for traditional medicinal products because of the inherent disadvantage of having to contend with similar products that are already being produced by the agency.

"We cannot expect to thrive under the current situation that’s why we are asking the DOH to just privatize PITAHC and let the agency carry out its original mandate," said Villanueva.

PITAHC was created nine years ago with the approval by Congress of the Traditional and Alternative Medicine Act of 1997.

The agency’s functions include undertaking research and development activities in the areas of traditional and alternative health care and integrate this in the national health care delivery system.

It should also verify, package and transfer economically viable technologies in the field of traditional and alternative health care and data base or policy formulation that will stimulate and sustain production.

The PITAHC is also allowed to receive and acquire whether foreign or domestic, grants, donations and contributions consisting of such properties, real or personal, including funds and valuable effects or things, as may be useful to carry out its purposes and objectives.

Moreover, it is tasked to create standards and guidelines for the manufacture, marketing and quality control of various traditional and alternative health care materials and products for approval and adoption by the Bureau of Food and Drugs.

Villanueva noted that over the years, PITAHC has been deviating from its original mandate and instead, has been manufacturing and distributing products in direct competition with the private sector producers.

"If the government is serious about the industry, then it should consider letting go of the PITAHC and let the private sector take care of developing products and marketing approved products," stressed Villanueva.

With more than 1,000 species of plants that are believed to have medicinal properties, the Philippines has the potential to become one of the world’s leading producers and exporters of herbal medicines and cosmetics. Currently, Thailand is lording it over the field.

In the global market, herbal medicine is now a $100-billion industry and is growing at a clip of 20 percent annually while the herbal cosmetics sector is estimated to be worth $50 billion with the increasing demand for non-chemical cosmetics and aromatherapy products.