PHA-Exch> “Generics-only provision playing into the hands of big pharmas” Philippines

[Claudio Schuftan]

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*Media Release **Health **Alliance** for Democracy (HEAD), **Philippines**.
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*Email: headphil at gmail.com***

*25 March 2008***

*"Generics-only provision playing into the hands of big pharmas" - HEAD *

The contentious "generics-only prescribing" provision of the Cheaper
Medicine Bill plays right into the hands of big pharmaceutical companies.

The group Health Alliance for Democracy (HEAD) warned that this provision
serves only to distract legislators and stakeholders, divert attention from
the flaws that need to be addressed, and prevent a thorough discussion of
the more salient features of the bill.

According to Dr. Gene Alzona Nisperos, HEAD secretary-general, "While
generics-only prescribing is an ideal that all health activists aspire for,
it is not the decisive issue at this juncture. Unfortunately, the obstinate
insistence on this provision is being exploited by big pharmas and their
cohorts so that the more important features of the bill will be glossed
over."

Central features of the bill that need meticulous deliberations include
provisions on the national drug policy, parallel importation, compulsory
licensing, and drug price regulation. HEAD believes that these are the vital
issues that big pharmas have undermined in the bill, and that legislators
are being pushed into a position of compromising an exhaustive scrutiny of
the bill in order to expedite its passage.

HEAD, the 3,000-member national organization of doctors and allied health
professionals, is calling on legislators to "keep their eye on the ball", to
focus on the problem rather than be lured by provisions that will not
effectively mitigate the stranglehold of big transnational companies (TNCs)
on the drug industry.

"Big pharmaceuticals are not worried about the generics-only prescribing at
this point as this will neither directly nor immediately impact on their
profiteering." according to Dr. Nisperos. "They may even exploit this to
further their influence on the prescribing habits of doctors."

"But big pharmaceuticals are deadly afraid of mechanisms that threaten to
alter the status quo, especially provisions providing for stronger
regulation and fostering increased competition. Enforcing regulation, such
as drug price regulation, promoting competition that leads to the
development of a self-reliant national drug industry, and implementing a
comprehensive National Drug Policy that is linked with the entire Philippine
health care delivery system - these are the steps that will dismantle
existing monopolies. And these are the steps that big pharmas want to stop."

Hence, the language and formulation of the bill on these provisions will
require careful and repeated examination to prevent flaws or "riders" that
will render them powerless. Parts that have been "consolidated" by the
congressional bicameral committee should be made available to all
stakeholders so that these can be examined further.

Among the things that HEAD is pushing for is drug price regulation that will
immediately reduce the prices of a broad range of essential, life-saving,
and maintenance drugs. HEAD also wants the drug price regulatory board to be
independent, with multi-stakeholder representation, and with direct
accountability to an oversight committee of Congress.



*Media Release*

*01 April 2008***

*"Who's Afraid of Drug Price Regulation?" - HEAD *

Who is afraid of drug price regulation?

Certainly not the patients, who stand to gain much if prices of much-needed
medicine are immediately reduced to low, very inexpensive prices. Definitely
not the doctors, who will finally see their patients able to comply and
adhere to their medical treatment. And absolutely not the general public,
who may yet enjoy a better life when even the most essential and life-saving
drugs become affordable.

 Who, then, is afraid of drug price regulation? The big pharmaceutical
companies and their proxy representatives, who continue to raise the specter
of "abuse", "over-regulation", "regulatory capture", and other "complex
problems" supposedly posed by price controls.

Health Alliance for Democracy (HEAD) today reiterated its calls for a strong
drug price control and a greater regulation of the entire drug industry in
the country. The 3,000-strong national organization of doctors and allied
health professionals is one of very few stakeholders strongly pushing for
regulation, even as the Bicameral Committee of Congress continues to hammer
out the Cheaper Medicine Bill.

"Given the highly monopolized character of the industry, no genuine
competition will prosper and thrive. It is the inherent nature of monopolies
to suppress, to stunt competition, as can be seen from our experience with
the Generics Law. This makes regulation at this juncture both a moral and
political imperative." said Dr. Gene Alzona Nisperos, HEAD
secretary-general.

Because of the stifling stranglehold of big pharmas, the number of local
Filipino drug manufacturers has been greatly reduced, from around 300 in the
1980s to only 27 today, 8 of which are up for sale. Many of these companies
are manufacturing only specific drug lines and cannot yet provide genuine
competition to big trans-national corporations (TNCs) or provide a backbone
to a strong generics industry here.

More than 70% of total drug sales are accounted for by pharmaceutical TNCs,
earning some 58.5 billion pesos for the top 10 drug TNCs (excluding United
Laboratories) in 2006. By July 2006, the pharmaceutical market grew by
7.4%in value but declined by 3% in volume, reflecting growth that is
mainly
driven by price.

"All talk about the so-called market forces coming into play is deceptive.
These so-called market forces have been around in the last 20 years and have
not affected any real change, which is why we are still faced with
exorbitantly priced medicine."

Added Dr. Nisperos, "The industry players, the big pharmaceuticals, have
shown that they are unwilling to regulate themselves. Instead, they push
their weight around without fear of reproach or reprimand, as what a big
pharmaceutical did when it filed a court case against the Philippine
International Trading Center (PITC)."

HEAD believes that the current *status quo* is unacceptable, especially when
government line agencies like the Department of Health and the Bureau of
Food and Drugs remain incapable of controlling the unscrupulous profiteering
by big pharmaceutical companies.

"Filipino patients are dying or being maimed *en masse* because they cannot
afford the medicine they need. If we truly have the interest of the Filipino
patient at heart, then regulation is a requisite, not an option, to making
medicine affordable in this country." concluded Dr. Nisperos, "Anything less
is a return to the *status quo* and an absolute betrayal of this interest."
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