DTI: Outbreak not reason to increase medicine prices

The Department of Trade has issued warnings against overpricing not only of surgical masks but of drugs and medicines, in general, as the government confirmed Sunday first death caused by the novel coronavirus outside of China.

The department called on medicine importers to consolidate purchases in bulk orders to make prices more affordable.

Trade secretary Ramon Lopez issued another request to drug companies to come together to bring down the cost of medicines and prevent situations of overpricing.

He said prices of medicines in other countries were lower than in the Philippines because of government subsidies, but the Duterte administration cannot afford to offer such measure.

He estimated the Philippines would need over P4 trillion to keep up with the subsidies offered by other nations.

“That’s our entire budget. That’s what it will entail if we want to lower prices to where we want them to be via subsidies,” Lopez said. 

He floated the idea that a government body could collate the requirements of hospitals and drug stores and purchase on their behalf in bulk.

“The beauty of this system is the government will know exactly how much the medicines would cost, and can then guide the retail price,” he said.

The technical working group on drugs created by the Department of Health was open to the suggestion and even to proposals to impose suggested retail prices.

The Philippines’ per capital consumption of medicine was at P60,000 compared to P211,000 in other countries in the region.

The price difference is the subsidy other governments provide as assistance to their constituents.