PHARMACEUTICAL firms are against limiting prices of 22 of their patented drug products as planned by the government under the maximum retail price (MRP) regimen, arguing this would violate their right to benefit from their patents.

Reiner Gloor, executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), said the law clearly says the MRP is called for only when a drug is four or five times more expensive than its Asean counterpart, if there are less than four generic counterparts, if the innovator has the top-selling product, and if it’s not for a public health concern such as the A(H1N1) virus.

He further argued this will also discourage drug manufacturers from bringing their new and patented drugs to the country. He said those with patent rights should be allowed to dictate their price to encourage them to continue their huge expenditure for research and development.

Gloor said the recommendation of the Department of Health—concurred with by the congressional oversight committee—to impose the MRP on the 22 drugs also violates RA 9502 or the Universally Accessible Quality and Cheaper Medicines Act.

“Its imposition is not necessary given the existing market competition and wide availability of alternatives in the same therapeutic classes included in the initial MRP list,” he said.

He said the generics industry in the country is continuously growing, with the local manufacturers expected to grow by 12 percent this year compared to the 4-percent growth projection for multinational drug companies for 2009.

PHAP is composed of more than 50 Filipino and multinational drug manufacturers, distributors and retailers—the leading providers of most of the patent medicines in the Philippines today.

Once President Arroyo approves the MRP recommendation, prices of the 22 drugs will be reduced by half.

As of June, combined growth projection for the pharmaceutical industry in 2009 is 7 percent. In 2008, the total Philippine pharmaceutical industry was valued at P116 billion and posted a 10.18-percent growth.

“Market competition is evident with the strong growth of the local pharmaceutical industry. This growth is driven by the entry of more generics due to patent expiry of several products in the last two to three years,” said Gloor. (With Sara Fabunan)