Enforce Fully Generics Law

by ERNESTO T. SOLIDUM

Picture above (l to r) shows Rolly Herrera of IBC-DYRG Kapihan Host, Michael D. Maquiran, National Head, Business Development Generika, Dr. Josephine S. Montinola, Franchisee, and Manuela C. Castillo, Franchise Operator Analyst, Visayas Region. Ms. Janessa P. Balboa, Business Development Supervisor, Visayas Area is hidden at right. 

“Gamot at Serbisyo Ma-aasahan Dito”, is a tagline of 300 Generika Drugstores chain all over the Philippines. To know more about their product and services, Kapihan forum featured guests from the third largest drugstore franchising company at Carmen Hotel, NVC on August 25, 2012. Present are Mr. Michael D. Maquiran, National Head, Business Development, Ms. Manuela C. Castillo, Franchise Operator Analyst, Visayas Region, Dr. Josephine S. Montinola, Franchisee, and Ms. Janessa P. Balboa, Business Development Supervisor, Visayas Area. 

Atty. Ronquillo C. Tolentino said that Generics Act of 1998 – RA 6675 or An Act to Promote, Require and Insure the Production of an Adequate Supply, Distribution, Use and Acceptance of Drugs and Medicines Identified by their Generic Name. Under the law, generics in a drug product is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics and intended use. A generic drug must contain the same active ingredients as the original formulation. Generic products are available once the patent protection afforded to the original developer has expired. When generic products are available, the market competition often leads to substantially lower prices for both the original brand name product and the generic form. In the United States, drug patent gives 20 years of protection but they are applied before clinical trials begin so the “effective” life of a drug patent tends to be between 7-12 years, explained former Vice Gov. Tolentino.

Atty. Allen S. Quimpo said that “the availability of generic drugs will liberate our people from overdependence on expensive drugs marketed and distributed by multinational companies. We must forge a policy of self reliance and faith in our Filipino entrepreneurs to manufacture drugs that contain the same active ingredients approved by the Food and Drug Administration (FDA)”, Quimpo suggested. He cited the situation in India where antibiotics cost a fraction of what we buy in this country.

Dr. Ambrosio R. Villorente traced the author of Generics Law to former DOH Secretary and later Senator Juan Flavier. It is ironic that it took 24 years since its enactment for a Filipino entrepreneur named Teodoro L. Ferrer to be recognized first by the Drugstore Association of the Philippines and later as finalist for Entrepreneur of the Year Award by Ernst & Young.

Mr. Maquiran disclosed that their generic drugs being offered for sale all over the country bear the same price tag and cost 70 percent less compared to their branded medicine counterpart. This is because cost of research, clinical trials and advertisement of a particular generic brand like paracetamol – tylenol) are stricken off.

There is a need to wage info/education campaign among economically disadvantaged groups to break stigma that generic drugs are inherently inferior and ineffective. Generika Drugstore aims to become the leading national chain of drugstores offering quality, affordable, effective medicines using superior services. In addition, their outlets also sell branded medicine especially those not carried yet by a generic medicine, food supplements, consumer goods and galenicals averred Mr. Maquiran.

The basic reason why the Philippines lag behind economically advanced countries is that we expend one half of one percent only of the GDP to research and development (R & D). In contrast countries like Japan, South Korea, US, UK, Germany, Israel spend 3-5 percent of their GDP to R & S. The majority of these is done by private companies. It is fair to expect that if $200 million is spent by a company to discover a potent active ingredient against a particular disease, it is added to the overall cost of the product.

Generics are considered by FDA identical to dose, strength, route of administration, safety, efficiency and intended uses. Based on the above guideline, it appears government physicians and private practitioners willfully violate the provisions of the Generics Law since they are prescribing branded medicines. In several occasions, a drugstore is targeted where a particular branded medicine can be purchased. It turns out doctors get a commission fee. 

In addition “loyal” doctors are given perks and privileges by multinational companies if they prescribe their branded medicines. Physicians pride themselves to be smart, keeping abreast of latest medical research since casual disease organism tends to become drug resistant over time or produces strains that active ingredient in a leading brand is no longer effective. This is commonly observed in antibiotics. And patents have the highest trust ratings reposed in their personal physicians than priests or Pastors.

Obviously, this is the reason why only 15 percent of the P200 billion pharmaceutical industry is captured by Generika since its founding 8 years ago. Strong sales for generics could be observed in over the counter drugs where doctor prescription is not needed.

The World Health Organization estimates that poverty level rise to 25 percent as a result of high cost of medicines and health care. Evidently, it’s time to reconsider our needs and priorities particularly in choosing generics over branded ones. Philhealth is urged to adopt a policy that only generic drugs be recognized for reimbursement. Until now, nobody has been charged in court violating the Generics Law. Its time to stop this medical malpractice or prejudice since victims are indigent patients and aging folks. /MP