Price cap imposed on 133 medicines

President Rodrigo Duterte has signed an executive order setting a price ceiling on certain medicines to make quality drugs accessible to Filipinos.

Executive Order 104 sets the maximum prices for 133 drug formulas for hypertension, diabetes, heart and pulmonary diseases, major cancers, and depression.

Also covered are painkillers, medicines for psoriasis, and Immuno-suppressants or drugs used to make the body less likely to reject a transplanted organ.

The maximum retail prices of drugs listed in the order apply to all medicines in all outlets.

The price cap for wholesale prices, on the other hand, will be imposed on all manufacturers, traders and distributors.

Within 30 days of the issuance of the order, a technical working group from the Health and Trade departments will review the prices of the remaining 72 drug formulas previously proposed.

The order also stated that within a non-extendable period of 90 days from the EO’s effectivity, existing medicines in the market are allowed to be sold at the prevailing prices.

The Department of Health earlier said the prices of selected medicines in the EO were expected to have a mean reduction of 56 percent from prevailing market prices once the order takes effect.

The Pharmaceutical and Healthcare Association of the Philippines (PHAP) said it will comply with the EO, but called on the government to closely monitor its impact on the pharmaceutical industry and the general public. 

PHAP said it has consistently opposed price control because artificial measures result in market inefficiencies and lack of supply.