Press Release
April 25, 2008

ROXAS: STRONGER BFAD TO EMERGE DUE TO MEDICINES BILL
DELETION OF CORRUPTION-PRONE BOARD STRENGTHENS THE BILL

Senator Mar Roxas, co-chair of the bicameral conference committee on the affordable medicines bill, said the bill's passage will lead to a stronger and tougher Bureau of Food and Drugs (BFAD).

"The bicameral conference committee agreed to strengthen the Bureau of Food and Drugs to serve as a counterfoil to attempts to bring in fake or substandard medicines by allowing BFAD to retain its operating income from fees and other charges so it could upgrade its facilities and beef up its human resources," Roxas explained.

The senator said that a "beefed-up BFAD" would serve as the people's sentinel against counterfeit and substandard drugs. He stressed that the role of BFAD is crucial in ensuring that the provisions of the forthcoming law will not be taken advantage of by unscrupulous traders to bring in fake drugs.

The senator also commended the members of the bicameral committee for forging a consensus against the creation of an unwieldy and corruption-prone drug price regulatory board.

"The deletion of a corruption-prone board definitely strengthens this bill against regulatory capture by wealthy multinational drug companies," Roxas said, adding that price regulation through a board is also prone to red tape and politicking.

He cited the Energy Regulatory Board, Road Users' Tax Board and the Land Transportation and Franchise Regulatory Board as examples of how the public are left in the dark on how prices and/or policies are set by government.

"Rather than a nameless, faceless board that operates in anonymity and seclusion from the people, we in the Senate prefer granting the mandate to regulate drug prices to the Office of the President upon the recommendation of the Secretary of Health. This way, the people know the people in charge and can hold them accountable for not acting fast enough in addressing chronic public health problems," Roxas added.

He said that it was resolved by those present and active during the bicameral meetings that it would be more transparent and accountable to place the authority to impose price regulation in one person, the President, with the Secretary of Health as advisor. The House had originally proposed the price regulatory mechanism, but through a board of representatives from various government agencies and the private sector.

The measure allows for the imposition of price regulation of medicines, as an option in case the free market by itself is unable to bring down prices. An initial P25-million appropriation is also set for such implementation.

Roxas pushed for amendments to the Intellectual Property Code which seek to allow the parallel importation of locally patented drugs and to allow generic manufacturers to test, register, produce patented drugs prior to patent expiry, among others.

He urged the Department of Health to start laying the groundwork for the implementation of the affordable medicines bill once the landmark measure is enacted into law.

"We need an Affordable Medicines Summit that would bring all stakeholders together so that an effective plan for implementation can be forged," Roxas said.

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