Hearing of the Congressional oversight committee on the cheaper medicines law, July 13, 2009

The Congressional oversight committee on the cheaper medicines law held a hearing on Monday to probe the delayed implementation of the cheaper medicines law amid reports pharmaceutical firms are intensely lobbying against its implementation.

Senator Manuel “Mar” Roxas II earlier slammed the executive branch for purportedly accommodating the request of pharmaceutical giant Pfizer for a meeting early this month.

Executive Secretary Eduardo Ermita met Pfizer and other drug companies last July 2, while President Arroyo also had a separate meeting with industry representatives on July 8.

Augusto Villanueva, general manager of drug company Roche Philippines, confirmed that the meeting on July 2 took place. “Pfizer arranged the meeting,” he told the committee.

Roxas fumed at Villanueva’s admission and commented that Pfizer “is really moving heaven and earth” to stop the implementation of the cheaper medicines law, specifically the maximum retail prices (MRP) on 22 drugs.

Roxas has alleged that Mrs. Arroyo is dragging her feet on the implementation of the cheaper medicines law by not signing an executive order which would put price caps on drugs sold locally.

The Department of Health (DOH) recommended the signing of the executive order last June.

The directive would have pushed drug manufacturers to slash by 50 percent the maximum retail price (MRP) of 22 medicines, which include prescription drugs against hypertension and diabetes.

“If she signed the EO [Executive Order] on the MRP, Norvasc, which is taken by people with diabetes, would only be sold for P22 instead of P41,” Roxas said. “This would have translated to savings enough for a family to buy a kilo of well-milled rice and a can of sardines.”

Villanueva said they met Ermita and Department of Trade and Industry Undersecretary Thomas Aquino on July 2 to discuss other options on lowering the prices of the 22 medicines on the MRP list.

“We wanted to see if there were alternatives,” Villanueva said.

Bribery in charity?

During Monday’s hearing, Senate President Juan Ponce Enrile assailed Pfizer for offering 5 million “sulit” or discount cards to the government. The cards grant patients a 50-percent discount for medicines manufactured by Pfizer.

Enrile said Pfizer’s move was tantamount to bribery. “The purpose of that offer is to thwart the enforcement of the law,” he said.

But Pharmaceutical and Healthcare Association of the Philippines (PHAP) executive director Reiner Gloor disagreed, saying that it could also be just a business move.

“It could also be looked at as increasing the competition in the market,” he said.

He added that the offer was made before the DOH was working to implement price ceilings on drugs.

Pfizer: Not a bribe

Pfizer, which failed to send a representative to the hearing, later issued a statement denying that it tried to bribe its way out of enforcing the MPR.

"Even prior to the passage of the Cheaper Medicines Act (R.A. 9502), our Sulit Patient Care Program over the past five years has helped 1.8 million Filipino patients live longer, healthier lives in partnership with the medical community," it said.

"Pfizer fully supports the government's efforts to further improve healthcare delivery for the nation and seeks to achieve this via constructive dialogue," the multinational firm said.

But even if PHAP defended Pfizer on the discount cards during the inquiry, Gloor clarified that Pfizer had already left the industry association. “We had irreconcilable differences,” he said.

Voluntary compliance

Akbayan Rep. Ana Theresia “Risa” Hontiveros-Baraquel, meanwhile, asked Gloor if it is common practice for the industry to hold meetings with the president.

Gloor said that sitting down with heads of states “is pretty much the practice” as it gives them the opportunity to “hear all sides.” He added that Arroyo addressed PHAP’s opposition to the MRP in the meeting.

The PHAP, which has 50 members, had criticized the MRP as it would allegedly prevent them from benefiting from their patents.

Gloor earlier said in news reports that the MRP would discourage drug manufacturers from introducing new and patented medicines in the Philippine market.

In the meeting last July 8 between Arroyo and PHAP, the president gave the pharmaceutical companies 10 days to voluntarily submit their own proposals for slashing the prices of medicines.

Assistant Secretary Lourdes Baua, who represented the Department of Trade and Industry (DTI) at the hearing, said the president and the drug corporations agreed on voluntary compliance in order to give the latter the chance to ascertain what medicines they could price for 50 percent less and what drugs could be sold at even cheaper rates.

“They would, on their own, dictate the prices,” she said.