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Section 1
Price Regulation in the Retail of Drugs and Medicines
Section 1.
Price Regulation in the Retail of Drugs and Medicines.
—Price regulation through a Maximum Retail Price (MRP) and/or Maximum Wholesale Price (MWP) is hereby imposed on certain drugs and medicines, selected based on the following criteria:
a. Drugs that address the health priorities of the general public especially those that account for the leading causes of morbidity and mortality;
b. Drugs that have high price differentials/arbitrage compared to international prices;
c. Drugs that have limited competition in terms of lack of generic counterparts or lack of market access to these products; and
d. Drugs where the innovator product is the most expensive yet most prescribed and/or dispensed in the market.
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After considering the factors provided in Section 19(A)(2) of RA No. 9502, as amended, among others, an MRP and/or MWP were determined and are now imposed on select drugs and medicines totalling to 86 drug molecules or 133 drug formulas annexed to this Order.
Within thirty (30) days from the issuance of this Order, a technical working group composed of representatives from the DOH and Department of Trade and industry (DTI) shall convene and review, in consultation with stakeholders, the prices of the remaining 36 drug molecules or 72 drug formulas previously proposed to be subject of the MRP and/or MWP.
Section 2
Applicability
Section 2.
Applicability.
—The MRP and MWP shall apply to all medicines specifically referred to under Section 1 : which are currently registered with the Food and Drug Administration and available in the market.
The MRP of all drugs and medicines specifically referred to under Section 1 shall be imposed on all public and private retail outlets, including drugstores, hospitals and hospital pharmacies, health maintenance organizations, convenience stores and supermarkets, and the like.
The MWP of all drugs and medicines shall be imposed on all manufacturers, wholesalers, traders, distributors, and the like.
No public or private entity shall be allowed to sell, reimburse or demand from the public or patients payment in an amount higher than the MRP or MWP, as the case may be.
Section 3
Review
Section 3.
Review.
—The list of drugs subject of MRPs and/or MWPs shall be subject to review by the DOH, in consultation with the DTI, within six (6) months from the effectivity of this Order and every six (6) months thereafter.
Section 4
Measures to improve Access to Medicines
Section 4.
Measures to improve Access to Medicines.
—The DOH, in consultation with relevant government agencies, including the DTI and the Philippine Competition Commission, is hereby directed to study and propose measures, including, but not limited to pooled procurement, price negotiation and other mechanisms, which will influence the supply, demand and expenditure on drugs and medicines, in accordance with RA No. 9502, and other relevant laws and regulations.
Section 5
Implementing Guidelines
Section 5.
Implementing Guidelines.
—As may be necessary, the DOHshall formulate guidelines for the effective implementation of this Order.
Section 6
Agency Support
Section 6.
Agency Support.
—The Presidential Communications Operations Office is hereby directed to provide the necessary support and assistance to the DOH for the dissemination of information relative to this Order.
All other government agencies and instrumentalities including government-owned or -controlled corporations, government financial institutions, and state colleges and universities, are hereby directed to provide the necessary support to the DOH in the information dissemination, enforcement and implementation of this Order.
Section 7
Violations
Section 7.
Violations.
—Any violation of this Order shall be dealt with in accordance with RA No. 9502. and other related laws.
Section—8.
Transition.
—Within a non-extendable period of ninety (90) days from the effectivity of this Order, existing inventory stock shall be allowed to be disposed of at prevailing prices. Thereafter regardless of the status of existing inventory stock, MRP and/or MWP under this Order shall be strictly implemented.
Section 9
Separability
Section 9.
Separability.
—If any part or provision of this Order shall be held unconstitutional or invalid, other parts not affected thereby shall continue to be in full force and effect.
Section 10
Repeal
Section 10.
Repeal.
—All executive issuances, orders : rules and regulations or parts thereof inconsistent with this Order are hereby revoked or modified accordingly.
Section 11
Effectivity
Section 11.
Effectivity.
—This Order shall take effect upon its complete publication in a newspaper of general circulation or the Official Gazette.
DONE,
—in the City of Manila, this 17 th day of February in the Year of Our Lord, Two Thousand and Twenty.
(SGD.)—
RODRIGO ROA DUTERTE
By the President:
(SGD.)—
SALVADOR C. MEDIALDEA
Executive Secretary