Law Summary
Legal Authority
- Based on Section 17, Chapter 3, Republic Act 9502 (Universally Accessible Cheaper and Quality Medicines Act of 2008).
- The President may impose maximum retail prices on drugs upon the Department of Health's recommendation.
Criteria for Determination of MDRP
- Focus on diseases with significant public health impact.
- Addresses drugs with large price differences compared to international prices.
- Targets drugs with limited generic competition or restricted market access.
- Includes innovator drugs that are expensive yet commonly prescribed or dispensed.
- Considers additional conditions under Section 19(2) of RA 9502.
Stakeholder Consultation and Voluntary Price Reductions
- Consultations involved stakeholders, academic institutions, and the Advisory Council for Medicine Price Regulation.
- Pharmaceutical companies voluntarily reduced prices by at least 50% for 16 drugs, and 10%-50% for 22 others.
- Price reductions effective from August 15 to September 15, 2009.
Imposed Maximum Drug Retail Prices
- Specifies MDRP for active ingredients in various dosage forms and strengths, notably:
- Anti-hypertensives (e.g., Amlodipine from 9.60 to 38.50 PhP)
- Anti-cholesterol drugs (e.g., Atorvastatin from 34.45 to 50.63 PhP)
- Antibiotics (e.g., Azithromycin tablets and suspensions priced accordingly)
- Anti-cancer drugs (e.g., Cytarabine and Doxorubicin with detailed vial prices)
Applicability
- Covers all registered and market-available medicines under Section 1.
- MDRPs apply in all retail points: drugstores, hospitals, health organizations, supermarkets.
- Manufacturers/traders/importers bear price differences.
- Prohibits selling, reimbursement, or payment demands beyond MDRP.
- Extends to government agencies and entities, including procurement, reimbursement, and drug consignment arrangements.
- MDRP ceilings apply for government hospitals, local government units, and agencies like PCSO and PAGCOR.
Implementation Provisions
- Department of Health responsible for implementing policies and systems.
- Bureau of Food and Drugs (BFAD) to expedite registration processes (15 days acceptance; decision within 90 days).
- Government media to support dissemination of MDRP information.
- All government agencies and entities ordered to assist in enforcement and compliance monitoring.
Violations and Circumvention
- Any act circumventing or violating MDRP provisions shall be addressed appropriately.
Review Mechanism
- MDRP list subject to review 3 to 6 months after effectivity and thereafter as necessary.
Transition Period
- Transition period from issuance until August 15, 2009, for packaging, labeling, and inventory disposition.
- Post-transition, strict enforcement regardless of inventory compliance.
Repealing Clause
- Revokes or modifies all inconsistent executive issuances, orders, and regulations.
Effectivity
- Order published in newspapers and effective on August 15, 2009.
- Signed by the President and Executive Secretary on July 27, 2009.