President Rodrigo Duterte signed Executive Order no.104 on the Maximum Drug Retail Price (MDRP) cutting the retail prices of some 87 high-cost medicines by up to 58%. The new EO also regulates the prices of 133 drug formulas. MDRP is still subject to special discounts for senior citizens and persons with disabilities.
The following criteria are the basis for the price regulation through a Maximum Retail Price(MRP) or Maximum Wholesale Price (MWP):
- Drugs that address the health priorities of the general public especially those that account for the leading causes of Mortality and Morbidity.
- Drugs that have high price differentials/arbitrage compared to international prices.
- Drugs that have limited competition in terms of lack of generic counterparts or lack of market access to these products
- Drugs where the innovator product is the most expensive yet most prescribed and/or displaced in the market.
The Maximum Retail Price(MRP) shall be imposed on all public and private retail outlets, including drugstores, hospitals, and hospital pharmacies, health maintenance organizations, convenience stores and supermarkets within 90 days.
While the Maximum Wholesale Price shall be imposed on all manufacturers, wholesalers, traders, distributors, and the like.
It is not allowed for any public or private entity to sell, reimburse or demand from the public or patients payments higher than the MRP or MWP.
The effectivity of the order shall be subject to review by the Department of Health within six months.
List: Drugs in the Maximum Drug Retail Price
Antihypertensives, antidiabetic drugs, anti-cancer drugs, analgesics, substances for chronic obstructive pulmonary disease, anticoagulant, substances for psoriasis, seborrhea and ichthyosis, growth hormone inhibitor, antidepressants, antiviral and mucolytic are included in the price caps.
Source: Official Gazette