Press Release
September 11, 2007

ROXAS: RP'S SICK AND POOR MUST NOT BE LEFT BEHIND
CITES GLOBAL MOVEMENT FOR ACCESS TO MEDICINES

Senator Mar Roxas said the Philippines could not afford to be left behind by world trends that provide citizens of other countries with quality, affordable medicines.

The Senate committee on trade & commerce, which Roxas chairs, will meet again tomorrow to continue discussing measures seeking access to quality, affordable medicines. These include measures seeking to relax the Intellectual Property Code to allow parallel importation and support the local generics industry.

"Ang mga tao sa ibang bansa ay nakakabili ng mura at de-kaledad na gamot. Bakit kailangang magdusa ang mga mamamayan natin dahil mataas ang presyo nito?" Roxas said.

"Parallel importation allows us to import not only quality, affordable medicines from India or Pakistan but also their 'competitive dynamic' into our lopsided market," he said.

The hearing on Wednesday will focus on proposals to relax patent laws and review the government's parallel importation program through the Philippine International Trading Corporation. Roxas initiated this program when he was Trade Secretary, and was even sued by pharmaceutical firms based on an outdated legal system on intellectual property.

Roxas filed Senate Bill No. 101, which seeks to address the problem of access to medicines by easing the restrictions found in the Intellectual Property Code, in line with the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS), which he, together with developing countries, negotiated for in the World Trade Organization.

But even developed countries are reforming their patent systems for the sake of their constituents. He cited the US House's recent approval of changes to their patent system, in accordance with the TRIPS.

"Not only developing countries but even nations like the United States �a bailiwick of multinational pharmaceutical firms�are making efforts in patent reform to level the playing field," Roxas said.

In last Monday's hearing by the joint Trade and Health committees, resource persons cited flaws of the Philippine patent system which enabled the multinational companies to maintain a hold of the local pharmaceutical industry, even though some existing patents have been put to question.

The Departments of Health and Trade, as well as various NGOs and other resource speakers, saw Roxas' bill to amend the Intellectual Property Code, as properly addressing the matter and in turn bringing down costs of medicine.

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Roxas and Senator Pia Cayetano, Senate Health committee chairperson, have announced that the committees will not only look into amending the Intellectual Property Code; they will prepare a comprehensive package of healthcare reform, which includes strengthening the Bureau of Food and Drug and the Generics Act.

Other proposals have been laid on the table, including the creation of a board that would dictate price ceilings on drugs. Roxas said this will be looked into very carefully, while keeping an open mind and looking into the varied experiences of other countries using this tool.

The World Health Organization (WHO), in its position paper, stated that "the TRIPS agreement should be interpreted and implemented in a manner supportive of public health, and in particular, promote access to medicines for all." The WHO, however, added that "a more strategic approach to cost-containment must be taken into consideration, rather than instituting direct price controls."

The Department of Health has taken the position that such a mechanism may be too complex and require further deliberation. "Perhaps, it would be better off as a separate piece of legislation altogether, or studied in the context of the present Price Act," said Health Usec. Alex Padilla.

The Department of Trade and Industry, in a position paper, said "We believe that the high prices of medicines are, in large part, due to the absence of healthy competition among suppliers. Only as final option should price control be contemplated." Furthermore, the DTI said the creation of such a board would be "redundant," since the Price Act had already created the National Price Coordinating Council which performs the proposed functions of the board.

Ayos na Gamot sa Abot-Kayang Presyo, in a position paper, said "We acknowledge the good intentions behind the inclusion of the provision on the price regulatory board� but we suggest that this be subject to further studies and tackled in separate legislation."

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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