Healthy Skepticism Library item: 17044

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Publication type: Electronic Source

Silverman E
Phillipines Push Drugmakers To Slash Prices
BMJ 2010 Jan 19
http://www.pharmalot.com/2010/01/phillipines-push-drugmakers-to-slash-prices/

Full text:

For the second time in six months, the Philippine government wants drugmakers to cut in half the prices charged for various meds, although an industry group says the action could crimp its ability to business there, according to reports. The health department is targeting up to 20 drugs in in hopes of reducing prices in a nation where meds cost two or three times more thansome other Asian countries.
A Jan. 6 letter from Health Undersecretary Alexander Padilla asked the Pharmaceutical Healthcare Association of the Philippines, which reps 51 companies, to submit a list of proposed price cuts on “top-selling and most expensive” drugs with few generic competitors, according to The Wall Street Journal. Last August, Philippine President Gloria Macapagal Arroyo imposed price controls on a number of meds, even though some manufacturers offered to cut prices voluntarily.
The Philippines’ trade says around 600 people have already lost their jobs in the industry as a result of the first round of price cuts and that generic makers could also see lower profit margins if prices are cut, which might make it harder for poorer Filipinos, many of whom live on as little as $2 a day, to get access to drugs. The generic industry in the Phillipines is relatively underdeveloped (see more in Bloomberg News).