Drugstore owners in Cebu back Cheaper Medicine Act

Drugstore owners in Cebu are supporting the cheaper medicine bill amidst apprehensions that the new law may mean an eventual decline of their current earnings.

The concern of the drugstore owners surfaced in yesterday’s dialogue with Senator Manuel “Mar” Roxas, the proponent of the Republic Act 9052 or the Universally Accessible, Cheaper and Quality Medicine Act of 2008.

They contended that they have a big chance to experience net loss because a cheaper price of medicines would mean lower income vis-à-vis an unchanged amount of expenses on rental, electricity and salary for their employees.

But Roxas said this may not necessarily be the case because more people would now be able to afford the required medication for their illnesses, as compared to when the price of medicine was beyond their budget and they would only buy less than what was prescribed.

Robinson Uy, owner of La Nueva Pharmacy and member of the executive committee of the Drugstores Association of the Philippines - Cebu Chapter, said they can only hope Roxas’ analysis would materialize.

The cheaper medicine law seeks to increase competition and strengthen the local generics industry through amendments to the Intellectual Property Code through parallel importation, which allows the importation of affordable into the Philippines even if local patents exists for the drugs.

Roxas yesterday highlighted the disparity in the prices of medicine in the Philippines and India where a 150 mg. Zantac, a cure for hyperacidity, can be 40 times more expensive in the country.

Zantac is being sold at P33.02 in the Philippines but only at P0.82 in the other countries.

Another example is Ventolin, a medicine for asthma, which is being sold at P315 in the Philippines but only at P126.78 in India.

With the new law, local drugstore owners may choose to consolidate and order from the Philippine International Trading Corporation of the Department of Trade and Industry. They would then act as distributor or retailer of PITC.   

Another option would be for the local drugstore owners to consolidate and import the drugs directly.

The national government has been conducting importation of medicine from countries such as Pakistan and India, selling these at state-run pharmacies aimed at poor communities through the PITC.

But the local drugstore owners told Roxas they have had bad experiences with PITC in several instances during the corporation’s previous management.

One instance was when they were asked to pay P5,000 as franchise fee for the Botika ng Bayan project. But even after the franchise fee was suspended, the money was reportedly not returned to them.

Aside from this, the certificate of accreditation as a Botika ng Bayan franchisee has reportedly not been released.

But lawyer Alejandro Rodriguez, vice president-legal of PITC, assured that the new management is currently reviewing previous contracts.

Roxas asked that PITC be given a chance to redeem its reputation but if it would be necessary, he would facilitate the opening of a Senate investigation to thresh out previous concerns.

The new law also aims to strengthen the Bureau of Food and Drugs, as it can now retain its earnings for it to upgrade its equipment, facilities, and human resources.

Roxas said this is integral to ensuring the safety and quality of the medicine from abroad through parallel importation.

Likewise, price ceilings will be imposed on various drugs. Important drugs such as those for chronic illnesses, for prevention of diseases, and those under the Philippine National Drug Formulary Essential Drug List are covered by the price regulation provision. – Joeberth M. Ocao/LPM