Question & AnswerQ&A (EXECUTIVE ORDER NO. 821)
The primary objective is to prescribe the Maximum Drug Retail Prices (MDRP) for select drugs and medicines that address diseases which account for the leading causes of morbidity and mortality, thereby ensuring access to affordable medicines for Filipinos.
The President’s power to impose maximum retail prices is granted under Republic Act No. 9502, also known as the Universally Accessible Cheaper and Quality Medicines Act of 2008.
The criteria include addressing public health priorities, drugs with high price differentials compared to international prices, drugs with limited competition or lack of generics, drugs where the innovator product is the most expensive yet most prescribed, and other conditions stated in Section 19(2) of RA 9502.
All retail outlets including drugstores, hospitals and hospital pharmacies, HMOs, convenience stores, supermarkets, and all government agencies procuring, acquiring or reimbursing drugs and medicines covered under the Order must comply.
Yes, the MDRP serves as the ceiling for the procurement and retail price of drugs in all government hospitals, including those managed by the Department of Health, Department of National Defense, Philippine National Police, and others.
Any price differentials resulting from the MDRP shall be shouldered by the corresponding manufacturer, trader, or importer.
No, no public or private entity or person is allowed to sell, reimburse, or demand payment higher than the prescribed MDRP.
BFAD must act promptly on applications for registration of drugs listed under the Order, responding within 15 days of filing and releasing approvals or disapprovals within 90 days.
Actions that circumvent or violate the intent of the Order are subject to appropriate legal action as determined by relevant authorities.
The list and MDRPs shall be subject to review 3 to 6 months after the effectivity of the Order and as often as necessary thereafter as determined by the Secretary of Health.