The Filipino government is battling with the international pharmaceutical industry for ground in the market, which up until recently experienced a free-market policy with no price regulations in place.
The Philippines paradoxically has one of the highest drug prices in the world, especially considering the majority of the population cannot afford them. Changes brought about by the controversial Cheaper Medicine Act have impacted the Philippines pharmaceutical market in a number of areas, including IP laws, competition and drug price control mechanisms.
Under the Act, 200 drugs have seen price reductions by up to 50% since August 2009. This represents 12-15% of the total market for essential drugs. The majority of drugs involved are new products in the market, whose prices are disproportionately higher in the Philippines in comparison to the Asia-Pacific region. They also tend to be drugs which are top sellers, the most expensive, and have limited generic competition.
Further reading - A detailed report on the pharmaceutical market in the Philippines is available from Espicom: The Pharmaceutical Market: Philippines (published April 2010)
Showing posts with label Philippines. Show all posts
Showing posts with label Philippines. Show all posts
Friday, 7 May 2010
Friday, 12 February 2010
Cost-containment measures restricting pharmaceutical market growth
Cost-containment policies continue to affect underdeveloped, emerging and mature pharmaceutical markets. In Asia Pacific, for example, the Philippines is expected to announce a second drug-price list in mid February. This would be the second time it has happened in less than one year. Hospital drug price negotiations in Taiwan are increasing drug access but, as a result, some problems have arisen in the pharmaceutical supply chain.
Eastern European pharmaceutical markets are not immune to cost-containment policies. Drug companies in Russia have been forbidden from raising the prices of essential medicines. There are concerns whether this move could make the production of some medicines loss-making. Meanwhile, pharmaceutical producers have delayed their rebates in Romania, a small but growing pharmaceutical market.
In the more mature Western European pharmaceutical markets, pricing & reimbursement policies are generalised, with recent cuts seen in Ireland and Germany. Hospital drug debt levels, particularly common in more Southern European pharmaceutical markets, can also impact pharmaceutical producers. Following the pledge by the European Union to support Greece economically, it remains to be seen how Greek authorities plan to pay off their outstanding hospital drug debts.
Further reading - In-depth reports on the pharmaceutical markets in these countries, including detailed information on pricing & reimbursement, are available from Espicom: Philippines, Taiwan, Russia, Romania, Ireland, Germany and Greece.
Eastern European pharmaceutical markets are not immune to cost-containment policies. Drug companies in Russia have been forbidden from raising the prices of essential medicines. There are concerns whether this move could make the production of some medicines loss-making. Meanwhile, pharmaceutical producers have delayed their rebates in Romania, a small but growing pharmaceutical market.
In the more mature Western European pharmaceutical markets, pricing & reimbursement policies are generalised, with recent cuts seen in Ireland and Germany. Hospital drug debt levels, particularly common in more Southern European pharmaceutical markets, can also impact pharmaceutical producers. Following the pledge by the European Union to support Greece economically, it remains to be seen how Greek authorities plan to pay off their outstanding hospital drug debts.
Further reading - In-depth reports on the pharmaceutical markets in these countries, including detailed information on pricing & reimbursement, are available from Espicom: Philippines, Taiwan, Russia, Romania, Ireland, Germany and Greece.
Monday, 3 August 2009
Philippines - Drug Price Cuts, Pfizer a Prized Scalp in this New Order?
Despite desperate manoeuvring - which included allegations of Pfizer attempting to bribe the Department of Health (DoH) as a delay tactic - the government in July 2009 imposed price controls on pharmaceuticals for the first time since the 1970s.
As it stands, the multinationals, who have long controlled much of the Philippines market, have been dealt a severe blow, and look set to lose more ground, as the government has expressed its intention to cut even more prices in the future.
Philippines president Gloria Arroyo, on 27th July 2009, signed an executive order to slash the prices of five essential medicines by 50% effective 15th August 2009. The prices of other medicines, part of the 22 essential medicines by the government, were voluntarily cut before the deadline by manufacturers.
Pharmaceutical companies were given the opportunity to voluntarily reduce prices for the said drugs prior to that and most did reduce their prices. With the deadline looming, Pfizer instead tried to offer the Health Secretary Francisco Duque five million “discount cards” reportedly worth around P100 million (US$2 million) to delay the enforcement of the Cheaper Medicines Law.
The Department of Health perceived this as a bribe, although Pfizer have denied any wrongdoing, saying it was part of the company’s “continuing commitment to expand access to its high quality, safe medicines nationwide”. In a country with a population around 95 million, mainly poor people, the effectiveness of five million, one-off discount cards was questioned by Senate president Juan Ponce Enrile.
The Cheaper Medicines Law, or the Universally Accessible Cheaper and Quality Medicines Act of 2008, was approved in June 2008, but this is the first time that it has been enforced by the president. Allegations of corruption in the Philippines political landscape is not something new, but Pfizer probably miscalculated in trying to offer the discount cards to Health Secretary Francisco Duque, one of the stronger advocates of the Cheaper Medicines Law.
President Arroyo’s time in office has not been without controversy, notwithstanding allegations of corruption and election rigging, and her popularity has suffered especially with the poor majority of the population. The enforcement of reducing prices of drugs by 50% was part of her early promise to voters, and is only now being implemented. Populist politics some might say, but industry players are gearing up for the challenges and opportunities that lie in this largely untapped market.
Further reading - An in-depth analysis of the pharmaceutical market in the Philippines, including some background information on pricing, is available from Espicom: The Pharmaceutical Market: Philippines (published June 2009)
As it stands, the multinationals, who have long controlled much of the Philippines market, have been dealt a severe blow, and look set to lose more ground, as the government has expressed its intention to cut even more prices in the future.
Philippines president Gloria Arroyo, on 27th July 2009, signed an executive order to slash the prices of five essential medicines by 50% effective 15th August 2009. The prices of other medicines, part of the 22 essential medicines by the government, were voluntarily cut before the deadline by manufacturers.
Pharmaceutical companies were given the opportunity to voluntarily reduce prices for the said drugs prior to that and most did reduce their prices. With the deadline looming, Pfizer instead tried to offer the Health Secretary Francisco Duque five million “discount cards” reportedly worth around P100 million (US$2 million) to delay the enforcement of the Cheaper Medicines Law.
The Department of Health perceived this as a bribe, although Pfizer have denied any wrongdoing, saying it was part of the company’s “continuing commitment to expand access to its high quality, safe medicines nationwide”. In a country with a population around 95 million, mainly poor people, the effectiveness of five million, one-off discount cards was questioned by Senate president Juan Ponce Enrile.
The Cheaper Medicines Law, or the Universally Accessible Cheaper and Quality Medicines Act of 2008, was approved in June 2008, but this is the first time that it has been enforced by the president. Allegations of corruption in the Philippines political landscape is not something new, but Pfizer probably miscalculated in trying to offer the discount cards to Health Secretary Francisco Duque, one of the stronger advocates of the Cheaper Medicines Law.
President Arroyo’s time in office has not been without controversy, notwithstanding allegations of corruption and election rigging, and her popularity has suffered especially with the poor majority of the population. The enforcement of reducing prices of drugs by 50% was part of her early promise to voters, and is only now being implemented. Populist politics some might say, but industry players are gearing up for the challenges and opportunities that lie in this largely untapped market.
Further reading - An in-depth analysis of the pharmaceutical market in the Philippines, including some background information on pricing, is available from Espicom: The Pharmaceutical Market: Philippines (published June 2009)
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