Legal basis and policy intent
- The order is grounded on the authority of the President under law.
- Sections 10–13 of Republic Act No. 9502 establish compulsory-licensing-related authority for situations of national emergency or other circumstances of extreme urgency.
- The order’s policy intent is to show government action against the Influenza A(H1N1) pandemic.
- The order signals vaccine makers and dealers that they face low-cost competition if they engage in profiteering and supply curtailment.
- The order directs that price controls should not be imposed for the moment, to avoid adverse effects on supply allocation.
Scope: flu vaccines and emergency posture
- The order covers Influenza A(H1N1) vaccines.
- The order is implemented through actions tied to national health emergencies and emergency-like circumstances.
- The order targets both local manufacturers and foreign manufacturers for vaccine replication-related activity.
Department of Health responsibilities
- The Department of Health must take preliminary steps toward local manufacturers and low-cost importation of flu vaccines under compulsory licensing mandated by law during national health emergencies.
- The Department of Health must begin contacting local and foreign manufacturers for possible production so firms can begin studying the vaccines for replication.
- The Department of Health must ensure that profiteering is prosecuted based on excessive mark-ups on vaccines bought from distributors and manufacturers at reasonable prices.
Procurement and allocation for high-risk groups
- The Department of Health, directly or through any authorized government agency, must buy the bulk of Influenza A(H1N1) vaccine deliveries.
- Bulk purchasing must be carried out to ensure enough supply for high-risk groups.
Operational compliance linkage to profiteering
- Profiteering is to be prosecuted using excessive mark-ups as the basis, measured against reasonable prices.
- Enforcement actions apply to mark-ups on vaccines purchased from distributors and manufacturers.