MANILA, Philippines - The Department of Health (DOH) has warned drug stores to comply with today’s deadline for the full implementation of the medicine price cut or face profiteering charges.
DOH Undersecretary Alex Padilla said DOH regional offices have been instructed to strictly monitor compliance since drug outlets have been given ample time to adjust to the new price rates.
“There are corresponding penalties awaiting violators. (Today) is the full implementation (of the mandatory and voluntary price cuts),” he added.
Last July, the DOH recommended to President Arroyo a total of 21 drugs to be subjected to maximum drug retail price (MDRP) or a 50-percent mandatory price cut.
But only five of them were placed under the MDRP because the rest have been volunteered for 10 to 50 percent price adjustment or government-mediated access price (GMAP).
Aside from the 21 drugs, others were offered for similar voluntary price reduction.
The price cut took effect last Aug. 15 in drug stores with computerized inventory system and in pharmacies located within 500 meters from hospitals regardless of their inventory procedure. But the full implementation of the price reduction is set today.
Under Republic Act 9502 or the Universally Accessible Cheaper and Quality Medicine Act, violators of the MDRP face an administrative fine of P50,000 to P5 million.
The offense may also be constituted as an “illegal act of price manipulation” which is punishable by imprisonment of up to 15 years or a fine of up to P10 million or revocation of license to operate.
Under the Consumer’s Act, those that violate the voluntary price cut will be slapped with a fine of P1,000, suspension of product registration and revocation of license to operate. – Sheila Crisostomo