Mandatory Use of Philippine National Drug Formulary

The order anchors policy on the 1987 Constitution provisions protecting and promoting the right to health and making essential goods and health services available to all at affordable cost (Section 15, Article II; Section 11, Article XIII).
The order also anchors policy on an effective food and drug regulatory system and health development efforts (Section 12, Article XIII, 1987 Constitution).
The order invokes the Generics Act of 1988 policy to encourage extensive use of drugs with generic names through a rational procurement and distribution system.
The order also invokes the Generics Act of 1988 directive emphasizing the scientific basis for drug use and promoting essential-drug list considerations under that law (Section 4, Generics Act of 1988).

The order mandates use of the current PNDF (Vol. 1) as the basis for procurement of drug products by government entities concerned.
The PNDF (Volume I) is the Essential Drugs List for the Philippines.
The National Drug Committee (NDC) prepares the PNDF in consultation with experts and specialists from organized professional medical societies, the medical academe, and the pharmaceutical industry.
The PNDF is updated every year and contains two parts: Core List and Complementary List.
The Core List contains essential drugs needed by the majority of the population, which should be available at all times in appropriate dosage forms and sufficient quantities.
The Complementary List contains drugs needed for rare disorders, drugs with special pharmaceutical properties, and alternative drugs to be used when there is no response to Core List drugs or when Core List drugs cannot be administered for one reason or another.

All government entities concerned are mandated to use the current PNDF (Vol. 1) as the basis for procurement of drug products.
The procurement covered includes requisitions and purchase requests for drug products through ordinary procurement processes and under Emergency Purchase authorized under the General Appropriation Act.
The order requires conformity for procurement by any mode covered by the audit monitoring requirement.

The Therapeutic Committee/Physician-in-Charge of the Clinic or Infirmary/Procurement Officer, whichever is applicable, determines which drug products and corresponding quantity each government entity will procure.
Every requisition and issue voucher (RIV) or any request to purchase drug must be supported by a certification.
The certification must be signed by the requisitioning officer and must certify that the drug products being requisitioned or procured fall within and conform with PNDF Volume I, current edition.
Certification is required even when the request involves Emergency Purchase authorized under the General Appropriation Act.

For drug products not listed in the PNDF Vol. I, a government entity must file a written request with corresponding justification.
The written request must be addressed to the Head of the National Drug Policy Office.
The Head of the National Drug Policy Office may approve or disapprove the request.
In determining justification, the Head may refer the request to the National Drug Committee (NDC) as needed.

The Commission on Audit must instruct all unit auditors/heads of auditing unit to monitor compliance with the order.
The Commission on Audit must disallow in audit claims/disbursements covering procurement of drugs and medicines that are not within PNDF Volume I, current edition.
Disallowance applies to claims/disbursements from regular budget local and/or trust funds, and for procurement by any mode.

Any violation of OP Executive Order No. 49 is construed as conduct grossly prejudicial to the best interest of the service or grave misconduct, depending on the case.
The characterization of the violation for disciplinary consequences is tied to P.D. 807 and CSC-M No. 30, s. 1989.