Despite the presence of generic alternatives, Filipinos still prefer branded medicines, giving rise to the high cost of out-of-pocket medical expenses.
In his reaction message to the Power Innovation Report of the Pharmaceutical and Healthcare Association of the Philippines during the launch last November 22, Michael Aguinaldo, Philippine Competition Commission chair, said access to options is also contributing to the high expenses for medicines.
Citing the report, Aguinaldo said the average Filipino’s share in out-of-pocket expenses to total health expenses of households is at 56 percent –one of the highest rates in the Asean region.
The report noted the average price of drugs in the Philippines is exponentially higher than in other developing countries.
Aguinaldo said logistical hurdles also prevent Filipinos from fully appreciating the benefits of the Generics Law.
“Patients and doctors continue to have their choices constrained by limited options–with some hospitals only offering two to three brands, and some areas with pharmacies only carrying one to two brands,” Aguinaldo said.
He said these issues can be addressed by competition.
Aguinaldo said increased competition will encourage innovation which in turn will naturally give rise to more products which will save more lives
Aguinaldo said the Philippines’ Generics Law is designed to be pro-competition.
“After being reasonably compensated for innovating, it should be understood that pharmaceutical companies should no longer hold exclusive rights to a particular market drug formulation. The disappearance of this barrier after a certain amount of time should result in lower prices for everyone,” Aguinaldo said.
He cited recent local studies which showed an increase in the number of generic drugs reduces the price of all types of prescription drugs.
Aguinaldo said PCC is conducting a study on the presence of evergreening and pay-for-delays, which restrict the entry of generics.
He said the study will confirm that existing measures, such as the Universally Accessible Cheaper and Quality Medicines Act and intellectual property (IP) rules — provide sufficient safeguards against unreasonable extension of exclusive IP rights. – Irma Isip
