Press Release
September 13, 2007

GOV'T HAMPERED BY PRESENT PATENT LAWS
ROXAS SEEKS STRENGTHENING OF DRUG IMPORTATION PROGRAM

Efforts to provide citizens with quality, affordable medicines have been hampered by the overly stringent patent system in the country, which makes for a less competitive environment.

This was established in Wednesday's joint hearings of the Senate committees on Trade and Health, with state firm Philippine International Trading Corp. (PITC) still facing law suits from big pharmaceutical companies in its program for the importation of more affordable medicines abroad. Equally established was the success of the PITC's parallel importation program in bringing to the country safe, quality, affordable medicines resulting in savings from consumers who buy from the government's Botika sa Barangay outlets.

"The PITC's woes began even back when I was still DTI Secretary. We were sued by the multinational companies for initiating efforts to import quality, affordable medicines," Roxas, trade committee chairman, said.

"May potensyal ang programa ng PITC, pero ang daming balakid. Kinasuhan kami noon at hindi pa rineresolba ang mga ito. Kaya kailangan nang baguhin ang batas para wala nang duda ang legalidad ng parallel importation program ng gobyerno," he added.

Roxas, as DTI Secretary, was among the international leaders who had pushed for the eventual granting of patent flexibilities for developing countries, through the Trade Related Intellectual Property System (TRIPS).

"Ayon sa TRIPS, maaaring mag-angkat ng mga gamot na galing sa ibang bansa, para lalong tumindi ang kompetisyon. Sa ganoong paraan, bababa ang presyo," Roxas said.

Despite the present limitations, the PITC has succeeded in providing select drugs to Filipinos. In its presentation to the Senate joint committee on Trade and Health last Wednesday, the PITC showed the savings brought about by their program.

The current market price of pain reliever Ponstan, for instance, is P25.50, while Botika ng Bayan sells this at P11.25, or P14.25 in savings. Topical steroid Dermovate, meanwhile, has a current market price of P246.50, but is sold at the Botika ng Bayan for P105, or P141.50 in savings.

The PITC, in its presentation, also presented its program on a larger scale, with the one million capsules sold of anti-epileptic Dilantin from January to July of this year. With a market price of P26, the same drug is bought for P12 at Botika ng Bayan, providing P14 in savings per unit, or a total of P14 million.

The savings for Ponstan of P14.25 at the Botika ng Bayan is more evident when considering the one million capsules sold, also from January to July, for total savings of P14.25 million.

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The PITC said these drugs are selected by the following criteria: those included in the core list of essential drugs determined by the Department of Health; those that address leading causes of mortality and morbidity; those responsive to market demand; those with a wide price differential between prices in the Botika ng Bayan and in major drugstore chains; and those off-patent as of date of importation. The limitation of importing only off-patent drugs, Roxas noted, has significantly lessened the reach of the government program.

"You can just imagine the massive savings this provides Filipinos. What more without the limitations as found in our Intellectual Property Code," Roxas said.

He said aside from PITC, there were other avenues to procure quality, affordable drugs from abroad, such as through the DoH and local governments. "There are so many ways to provide Juan de la Cruz with access to the medicines he needs. Let's make this happen, let's make this a reality," he said.

Aside from parallel importation, Roxas' SB 101 also allows generic drug manufacturers to begin experimentation, production and registration of drugs prior to expiry of patents. The bill also prevents patent holders from extending their patents on flimsy reasons such as the discovery of a new use of the patented drug.

Lastly, the bill grants the government discretion in use of patents when public health is at stake, and provides a framework for adequate compensation to the patent holder. The bill is virtually the same as which the President had certified as urgent, and which had been passed by the Senate, during the 13th Congress.

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