MANILA, Philippines - Philippine President Gloria Macapagal Arroyo has slashed the price of 27 essential medicines by half, after pharmaceutical manufacturers led by Pfizer Inc. ignored a government ap
peal to do so voluntarily. The hugely popular move is supposed to make anti-hypertension and anti-cholesterol drugs as well as antibiotics more affordable to the country's poor, but it also alarmed the drug industry, with Pfizer saying in a statement Tuesday it was disappointed. Arroyo on Monday signed an executive order reducing the price of the medicines effective Aug. 15, her office reported. Drug companies, including Pfizer, had offered to cut prices by 10 percent to 50 percent on 22 other drugs but not the 20-plus essential medicines recommended by the Department of Health. The Pharmaceutical and Healthcare Association of the Philippines, which includes Pfizer, said it regretted the decision "because it believes the same result could be achieved through free-market competition." "Price control may deliver short-term benefits but the long-term negative consequences not only on the pharmaceutical industry but on other industries must be considered," it said, adding that drug companies would study options to remain viable. The statement did not elaborate. Health Secretary Francisco Duque III said the government had no alternative. "Call it an iron-fisted approach but we had no choice," he said. "Other firms simply refused to bring down prices." Duque said that competition in the past "was partial at best and prices were so slow to drop, and in some cases actually went up."
peal to do so voluntarily. The hugely popular move is supposed to make anti-hypertension and anti-cholesterol drugs as well as antibiotics more affordable to the country's poor, but it also alarmed the drug industry, with Pfizer saying in a statement Tuesday it was disappointed. Arroyo on Monday signed an executive order reducing the price of the medicines effective Aug. 15, her office reported. Drug companies, including Pfizer, had offered to cut prices by 10 percent to 50 percent on 22 other drugs but not the 20-plus essential medicines recommended by the Department of Health. The Pharmaceutical and Healthcare Association of the Philippines, which includes Pfizer, said it regretted the decision "because it believes the same result could be achieved through free-market competition." "Price control may deliver short-term benefits but the long-term negative consequences not only on the pharmaceutical industry but on other industries must be considered," it said, adding that drug companies would study options to remain viable. The statement did not elaborate. Health Secretary Francisco Duque III said the government had no alternative. "Call it an iron-fisted approach but we had no choice," he said. "Other firms simply refused to bring down prices." Duque said that competition in the past "was partial at best and prices were so slow to drop, and in some cases actually went up."Source : http://www.pennlive.com/newsflash/index.ssf?/base/business-27/1248854607254170.xml&storylist=business
No comments:
Post a Comment