27 SEPTEMBER 2006

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CHEAP OR not, one problem with generics is that “quality is a little bit more difficult to control,” admits avid generics supporter Romualdez. “But,” he adds quickly, “it can be done with BFAD equipped with the proper people and technology.”

Table 4: Top 20 Ethical/Prescription Drugs

Source: May 2006 IMS Drugstore and Hospital Sales

*off-patent
**local company
RANK
DRUG NAME
SALES
(January-May 2006, in +000 PhP)
MANUFACTURER/DISTRIBUTOR
1
Ventolin*
1,401,196
GlaxoSmithKline
2
Norvasc
1,190,016
Pfizer
3
Augmentin
801,850
GlaxoSmithKline
4
Plavix
731,852
Sanofi-Aventis
5
Plendiler*
672,874
Astra Zeneca
6
Zinnat
558,730
GlaxoSmithKline
7
Lipitor
554,618
Pfizer
8
Cherifer*
508,480
Intermed Marketing**
9
Neobloc*
504,607
GX International**
10
Diamicron*
460,620
Servier Phils.
11
Seretide
438,928
GlaxoSmithKline
12
Tazocin*
431,953
Wyeth
13
Unasyn*
426,979
Pfizer
14
Ponstan*
410,962
Pfizer
15
Nexium
404,711
Astra Zeneca
16
Ciprobay*
403,607
Bayer Pharmaceuticals
17
Zegen*
366,882
United Laboratories**
18
Imdur
360,214
Astra Zeneca
19
Vastarel
355,959
Servier Phils
20
Zithromax
353,549
Pfizer

BFAD, however, is severely undermanned. Compared to the 44,333 licensed establishments it regulates, the agency has only 220 food and drug regulation officers (FDROs) nationwide. Of 48,416 registered products, the central office has only 32 evaluators, or a ratio of one evaluator for every 1,513 products.

The good news is that BFAD expects its request for an additional 400-plus staff approved soon. “We should be following the optimum ratio between the number of employees and the products and establishments we regulate,” says Ramos, “so that we maintain the credibility of the seal or certificate that we award to them.”

“The government should ensure that generic drug competitors are credible and viable,” insists Banzon. Once that happens, doctors and their patients may stop looking at brands and price tags, as in the case of Neobloc, a generic equivalent of the high-blood pressure medicine Betaloc (Astra Zeneca brand for metoprolol tartrate).

Neobloc, which is manufactured by GX, has been able to capture a healthy share of the market, says Banzon. “If there is credible competition,” he says, “people will definitely go for the cheaper product.”

In the meantime, the government has been trying to offset the imbalance in generics distribution with its “Gamot na Mabisa at Abot-Kaya (Effective and Affordable Medicine)” program. Aimed at halving the 2001 price of selected drugs by 2010, the program has included parallel drug importations by the Philippine International Trading Corporation (PITC) benefiting 72 DOH hospitals and three local government units.

Botika ng Bayan and Botika ng Barangay outlets nationwide to ensure accessibility and availability of low-priced quality medicines have also been set up. As of last July, Botika ng Bayan branches — full-blown pharmacies located in cities and municipalities — have reached 1,135. Botika ng Barangay outlets, which are limited to generic over-the-counter drugs and a few selected prescription drugs, now number 7,004.

The PCIJ tried but failed to interview the Pharmaceutical and Healthcare Association of the Philippines (PHAP), which has multinational drug companies among its members, in time for this article. PHAP, however, has been quoted in other media reports as saying that forcing its members to lower prices “would discourage innovation in an industry where innovation is key to discovering new cures for new diseases.”

"Losses that will be incurred by the pharmaceutical industry,” it said, “which may translate to profit for the generic drugs industry, would, in the end, prejudice consumers in the form of less investments and research and development of better medicines."

Interestingly, PHAP has also said that the way to reduce medicine prices in the country is through strict implementation of the generics law, not through parallel importations. It did not, however, elaborate any further on that.

UPDATE

THIS ARTICLE had already been published when PHAP replied to PCIJ's written queries. Here are some of its answers, as provided by Leo Wassmer Jr., CEO and executive vice president of the association:

PCIJ: PHAP has said that to reduce medicine prices, the government has to strictly implement the generics law. What exactly do you mean by this?

PHAP: Cheap medicines are already available locally. In compliance with the Philippine National Drug Policy, the Department of Health developed the "Essential Drugs List" which contains medicines "that satisfy the priority health care needs of the population."

The Essential Drugs List shows that in each therapeutic category there is a wide range of products a consumer could choose from according to affordability.

Also, almost daily in many broad sheets and practically hourly on many radio programs are advertisements of cheap locally manufactured essential medicines.

Despite the availability of cheap essential medicines, there are still some who claim that medicines are expensive because of the absence of a public information campaign as required by Sections 5 and 11 of the Generics Act of 1988. Section 6 (d) of the same law also requires drug stores to post a list of generic products with corresponding prices as reference for buyers. Not all drugstores comply with this requirement. This is one of the reasons why consumers do not ask for generic equivalents.

PCIJ: The drug industry's marketing practice supposedly has continued to influence doctor's prescription habits, even with an ethics review you've initiated. Is this a fair assessment?

PHAP: Physicians are well-trained, highly discriminating professionals who will prescribe only medicines that they consider the most appropriate for a diagnosed illness. They are also guided by the concept of "rational drug use" in their choice of medicines.

Promotional activities are done to provide physicians quality and detailed adequate technical information about a product. PHAP member companies are compelled to follow strict promotional guidelines.

PCIJ: Can the pharmaceutical companies themselves not address the issue of their exorbitantly priced drugs?

PHAP: Prices of medicines in the Philippines are not exorbitant. We must be aware that prices of all products in the market are influenced by several factors, and the weights or effects of these factors vary from one country to another. These factors include: economies of scale, production cost, level of demand, among others.


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