JPE: Drug firm tried to derail order on lower prices

MANILA, Philippines - Senate president Juan Ponce Enrile said a giant multinational drug firm had tried to stop the signing of an executive order putting a cap on the price of essential medicine by offering an alternative program to health officials involving the giving away of five million discount cards to indigent Filipinos.

Enrile said the offer, made by Pfizer, was “tantamount to a bribe in order to obviate” the implementation of the law.

“I’m not implying any wrongdoing or any malice or any suspicion. I’m just giving the industry a chance to explain to the people of this country who probably have the same impression that this company, Pfizer, can afford to offer five million cards the value of which can be P100 million or even more,” Enrile said at the hearing yesterday.

“How can they not afford to lower the prices of medicine?” he asked.

Enrile said there was “an indication that the purpose of the offer was to thwart, stop, and impede the enforcement of the law.”

“For somebody to make an offer at that particular moment, whether before or after the fact, is already an indication that the purpose of the offer is to thwart, to stop, to impede the enforcement of the law. And I will tell you, as a lawyer, I will say that is an offer of a bribe,” he said.

It was Reiner Gloor, executive director of the Pharmaceutical and Healthcare Association of the Philippines, who confirmed a report that Pfizer initially offered to release five million discount cards for indigent individuals as an alternative to the signing of the executive order on Maximum Retail Price (MRP) for vital drugs.

Pfizer reportedly made the offer while the Department of Health (DOH) was preparing the draft of the executive order and the MRP list for essential medicine last month.

Gloor said Health Secretary Francisco Duque III rejected the offer. Gloor declined to say if the Pfizer offer was a bribe, saying it was just a recommendation to help the poor.

It was Rep. Pia Hontiveros who brought up the issue of the five million cards.

No lobbying

Augusto Villanueva, general manager of Roche Philippines, explained that the July 8 meeting with President Arroyo was meant “to discuss the proposed list of products on EO for MRP and to see if it was possible to have alternatives.”

“The meeting was also meant to give companies a chance to discuss with DOH, one-on-one and as well as the overall question about the impact that MRP would have on trade and perception of the industry and perception of the business environment in the Philippines,” Villanueva said.

Villanueva told the Senate that it was Pfizer that initiated the meetings – first on July 2 with Executive Secretary Eduardo Ermita and then on July 8 with President Arroyo.

Gloor denied that the meetings proved there was collusion between drug firms and the government.

“No, there is no collusion,” Gloor said, adding that the President merely directed them “to come out with a proposal for a 50 percent slash on the prices for products most needed by the common Filipino who cannot afford to buy high priced maintenance medicine.”

Hontiveros said the Pfizer move would boost its own marketing strategy at the expense of those who cannot afford to get the discount cards.

No show

Palace and Cabinet officials were a no-show at yesterday’s hearing of the Senate oversight committee on quality affordable medicine.

In a letter sent to the committee, Ermita said there was not sufficient time for the invitees to “adequately and properly prepare for the hearing, thus, they could not attend, neither their representative.”

Duque and Trade Secretary Peter Favila had initially confirmed their attendance but did not show up.  

“Why are they now here to report on the meeting that transpired last week? Were there any under-the-table deals discussed? Where is the principle of public accountability in all this? Public office is a public trust. Do Sec. Duque and Sec. Favila still believe in this?” Sen. Manuel Roxas II asked.

DOH Undersecretary Alexander Padilla, who was seen at the Senate before the hearing started, left without a word. Duque was reportedly already on his way to the Senate but turned back.

Palace blames Roxas

Malacañang said Roxas is to blame for the problems hounding the implementation of the Cheaper Medicine law.

Press Secretary Cerge Remonde cited the statements made by Iloilo Vice Governor Rolex Suplico and Iloilo Rep. Ferjenel Biron about Roxas being against the creation of a Drug Price Regulatory Board as a way to bring down the cost of medicine in the country.

“Maybe he is trying to cover up his obstruction of the cheaper medicine act as what his colleagues in the opposition like congressman Rolex Suplico revealed,” Remonde said in Filipino.

“So I guess in order to hijack or cover up his obstruction of the law, he is accusing the President of being the obstacle,” Remonde said.

No more drug list

After skipping the Senate hearing, Duque held a press conference to announce that they are now considering shelving plans to prepare a list of drugs to be covered by a price cap and instead allow drug companies to voluntarily reduce the prices of essential drugs.

“If pharmaceutical companies will voluntary reduce prices of essential medicine by 50 percent or more, we don’t need MDRP anymore,” Duque said.

He said Mrs. Arroyo called on pharmaceutical companies to just voluntarily reduce prices of essential medicine and gave them 10 days or until July 27 to do so.

“But we will evaluate the list and if we determine that it contains only token medicine or those which are not considered essential, we will have to shift to MDRP,” the health chief added.

He said the list should include 21 essential drugs, including those for hypertension, asthma, diabetes, and cancer.

“It takes two to three months to implement the MDRP while voluntary reduction can take effect as soon as possible which could benefit the people better,” said Dr. Robert Louie So, DOH-Pharmaceutical Management Unit (PMU) program manager.

Duque also branded the allegation of collusion between the government and the drugs firms as “just a figment of imagination.”

Meanwhile, Favila said drug firms have until July 18 to cut the prices of essential medicine by half or face cancellation of license.

“If you violate the law, the government has all the tools,” he said. – With Mayen Jaymalin, Marvin Sy, Ma. Elisa Osorio