E-DRUG: Price regulation in the Philippines (2)
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It is not surprising that brand drug multinational companies in Phillipines reduced their prices of many drugs not covered in govt sponsored/ordered cuts in prices.
With competition in market from generic industry these companies cannot hold on to their high prices indefinitely provided the generic industry is able to deliver bioequivivalent drug formulations.
Here is an example in India how Drug price control being operational from 1963 was influenced by market forces.In 1970 the Indian government brought about Drug price control order , capping the prices of of about 370 drugs & their formulations.
In 1979, the DPCO (drug price control order) removed some drugs from the 1970 order and only about 347 drugs were brought under price regime, with an amendment. Again in second revision/amendment , in 1987, the number under controlled prices were brought down to 142, and lastly in 1995 revision further reduced this number only 74 drugs and their formulations.
I think the generic industry in Philipines is becoming competitive, and this should open up new avenues for further competition.
CK Aiyer, Professor,
IHMR, Jaipur, India
chandrasekar kalyanram <chandrarobert@yahoo.com.au>.