Title
Order for Flu Vaccine Compulsory Licensing
Law
Op Administrative Order No. 268
Decision Date
Jul 20, 2009
To combat profiteering and ensure sufficient vaccine supply during the Influenza A(H1N1) pandemic, Administrative Order No. 268 promotes low-cost competition, explores local vaccine production, prosecutes excessive mark-ups, and mandates the Department of Health to purchase the majority of vaccine deliveries for high-risk groups.

Law Summary

Encouragement of Vaccine Production and Study

  • The DOH must engage with both local and foreign manufacturers to explore vaccine production possibilities.
  • These manufacturers should be enabled to study the vaccines comprehensively for the purpose of replication.

Prevention and Prosecution of Profiteering

  • The DOH is tasked with monitoring the market for evidence of profiteering characterized by excessive mark-ups on vaccine prices.
  • Legal action must be taken against entities that impose unreasonably high prices on vaccines originally obtained at reasonable costs.

Government Purchase and Distribution Strategy

  • The DOH, alone or through authorized agencies, shall procure the majority of the Influenza A(H1N1) vaccine deliveries.
  • This strategy aims to secure adequate vaccine supply particularly for high-risk populations.

Legal Basis and Framework

  • The order is grounded on Sections 10-13 of Republic Act No. 9502 (Universally Accessible Cheaper and Quality Medicines Act of 2008).
  • These provisions mandate granting license to exploit and waive the requirement for compulsory licensing during national emergencies or extreme urgency.

Policy on Price Controls

  • The government refrains from imposing price controls initially to prevent wealthier individuals from monopolizing vaccine supplies.
  • The order signals potential competition through local production and importation to deter profiteering and supply restriction by existing suppliers.

Effective Date

  • The entire order took effect immediately upon issuance on July 20, 2009.

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