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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
72 SEP 12 PI :28
SENATE
S.B. No. 1305
mTEivtoav.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING THE DRUG PRICE REGULATORY BOARD TO 
REGULATE THE PRICES OF DRUGS AND MEDICINES IN THE PHILIPPINES 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9502, OTHERWISE 
KNOWN AS THE "UNIVERSALLY ACCESSIBLE CHEAPER AND QUALITY 
MEDICINES ACT OF 2008" AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the 1987 Constitution provides that the State shall 
protect and promote the right to health of the people and instill health consciousness 
among them.
Article XIII, Sections 11 and 12 of the Constitution further mandate that the 
State shall adopt an integrated and comprehensive approach to health development 
which shall endeavor to make essential goods, health and other social services available 
to all the people at affordable cost. There shall be priority for the needs of the under­
privileged, sick, elderly, disabled, women, and children. The State shall endeavor to 
provide free medical care to paupers. It Is further provided that the State shall establish 
and maintain an effective food and drug regulatory system and undertake appropriate 
health manpower development and research, responsive to the country's health needs 
and problems.
The enactment of Republic Act No. 9502, otherwise known as the Universally 
Accessible Cheaper and Quality Medicines Act of 2008 has lowered the prices of 
medicines in the country. However, the Department of Health admitted that while the 
general trend in the prices of generic essential medicines have gone down in recent 
years, the Philippines is still paying higher prices when compared internationally.


Generic drugs are still sold up to four times the international reference prices whereas 
branded innovator products are sold up to 22 times higher, especially in private 
hospitals and pharmacies.
This bill seeks to create an inter-agency Drug Price Regulatory Board (hereafter 
referred as the Board) to regulate the prices of drugs and medicines in the Philippines, 
in lieu of the Drugs and Medicines Price Monitoring and Regulation Authority of the 
Secretary of the Department of Health. The inter-agency composition of the Board 
ensures a broad spectrum of ideas, viewpoints and administrative powers in addressing 
the issue of affordability and accessibility of drugs and medicines in the country.
The bill also seeks to strengthen the procurement of cheaper drugs and 
medicines by the government through the creation of a trust fund to be utilized for 
parallel drug importation and other procurement arrangements. The Board Is 
empowered to require pharmaceutical distributors to buy or obtain under any other 
form of arrangement, reasonable quantity of drugs and medicines procured by the 
government. The Board can also mandate up to 15% of a drug or medicine 
procurement of large pharmaceutical distributors to be allotted to a particular generic 
drug and medicine, thereby ensuring affordability and accessibility of medicines for our 
countrymen.
In view of the foregoing, the passage of this bill is earnestly sought.
IMEE R. MARCOS


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1305
^^RECEIVED\ix
^“d/SEP 12 202??
N 
, * p pi
\</> TIME:
BY: /pv*» ^ i
BILLS1
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING THE DRUG PRICE REGULATORY BOARD TO 
REGULATE THE PRICES OF DRUGS AND MEDICINES IN THE PHILIPPINES 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9502, OTHERWISE 
KNOWN AS THE "UNIVERSALLY ACCESSIBLE CHEAPER AND QUALITY 
MEDICINES ACT OF 2008" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in Congress 
assembled:
SECTION 1. Chapter 3 of Republic Act No. 9502 will now be titled '‘"Drugs and 
Medicines Price Regulatory Board."
SEC. 2. Section 17 of Republic Act No. 9502 is hereby deleted and a new Section 
17 is hereby inserted to read as follows:
"SEC. 17. CREATION AND COMPOSITION OF THE DRUG 
PRICES REGULA TION BOARD,
a) THERE IS HEREBY CREATED THE DRUGS PRICES REGULATION 
BOARD, WHICH SHALL BE ATTACHED TO THE DEPARTMENT OF 
HEALTH AND COMPOSED OF SEVEN (7) MEMBERS AS FOLLOWS:
1) 
SECRETARY OF HEALTH OR HIS DULY DESIGNATED 
REPRESENTATIVE AS CHAIRPERSON;
2) 
SECRETARY OF TRADE AND INDUSTRY OR HIS DULY 
DESIGNATED REPRESENTATIVE AS VICE-CHAIRPERSON;


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3)
4)
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DIRECTOR, FOOD AND DRUGS ADMINISTRATION OR HIS 
DULY DESIGNATED REPRESENTATIVE AS MEMBER; 
CHAIRMAN, PHILIPPINE HEALTH INSURANCE 
CORPORATION AS MEMBER;
ONE (1) ECONOMIST FROM THE ACADEME AS MEMBER; AND 
TWO (2) REPRESENTATIVES FROM THE CONSUMERS' 
SECTOR AS MEMBERS
b) THE MEMBERS OF THE BOARD REPRESENTING THE ACADEME AND 
THE CONSUMERS' SECTOR SHALL BE APPOINTED BY THE 
PRESIDENT OF THE PHILIPPINES AND SHALL SERVE FOR A TERM OF 
TWO (2) YEARS: PROVIDED, THAT THE REPRESENTATIVES FROM 
THE CONSUMERS' SECTOR SHALL NOT BE ELIGIBLE FOR 
REAPPOINTMENT FOR ANOTHER TERM."
SEC. 3. Section 18 of Republic Act No. 9502 is hereby deleted and a new Section 
18 is hereby inserted to read as follows:
"SEC. 18. POWERS OF THE BOARD. -THE BOARD SHALL 
HAVE THE FOLLOWING POWERS:
a) POWER TO DETERMINE THE MAXIMUM RETAIL PRICE OF 
DRUGS OR MEDICINES SUBJECT TO PRICE REGULA TION-
(1) UPON APPLICATION OR MOTU PROPIO \N\\EH THE PUBLIC 
INTEREST SO REQUIRES, THE BOARD SHALL HAVE THE 
POWER TO REGULATE THE RETAIL PRICES OF DRUGS AND 
MEDICINES LISTED UNDER SECTION 26 HEREOF, INCLUDING 
THEIR DOSAGE FORM AND PACKING, AND, IN ORDER THAT 
THEY SHALL BE MADE AVAILABLE TO THE PUBLIC AT 
AFFORDABLE RETAIL PRICE FROM THE DIFFERENT 
MANUFACTURERS, IMPORTERS, TRADERS, DISTRIBUTORS, 
WHOLESALERS OR RETAILERS AND AFTER A PROPER 
DETERMINATION AS THE BOARD MAY DEEM FIT, FIX FROM 
TIME TO TIME, BY PUBLICATION THE MAXIMUM RETAIL 
PRICE AT WHICH SUCH FORMULATIONS SHALL BE SOLD;
(2) NO RETAILER SHALL SELL DRUGS AND MEDICINES AT A 
RETAIL PRICE EXCEEDING THE MAXIMUM RETAIL PRICE 
FIXED BY THE BOARD: PROVIDED, THAT UNTIL THE 
MAXIMUM RETAIL PRICE OF DRUGS AND MEDICINES


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SUBJECT TO PRICE REGULATION IS FIXED BY THE BOARD, 
THE RETAIL PRICE THEREOF SHALL BE THE PRICE WHICH 
PREVAILED IMMEDIATELY BEFORE THE EFFECTIVTTY OF 
THIS ACT AND NO MANUFACTURER, IMPORTER, TRADER, 
DISTRIBUTOR, WHOLESALER OR RETAILER OF SUCH DRUG 
OR MEDICINE SHALL SELL THE SAME AT A RETAIL PRICE 
EXCEEDING THE PRICE PREVAILING IMMEDIATELY BEFORE 
THE EFFECTIVITY OF THIS ACT.
FOR PURPOSES HEREOF, DRUGS AND MEDICINES SHALL 
INCLUDE BUT IS NOT LIMITED TO SINGLE- AND MULTI­
INGREDIENT MEDICINES INCLUDED IN THE PHILIPPINE 
NATIONAL DRUG FORMULARY (PNDF) ESSENTIAL DRUG LIST 
AND SOLD UNDER THEIR GENERIC AND BRAND NAMES.
b) POWER TO INCLUDE OTHER DRUGSOR MEDICINES IN THE 
LIST SUBJECT TO PRICE REGULATION - UPON APPLICATION 
OR MOTU PROPIO WHEN THE PUBLIC INTEREST SO 
REQUIRES AND AFTER PROPER DETERMINATION, THE 
BOARD MAY ORDER THE INCLUSION OF DRUGS AND 
MEDICINES TO THE LIST SUBJECT TO PRICE REGULATION 
UNDER SECTION 26 HEREOF.
C) POWER TO IMPLEMENT COST-CONTAINMENT AND OTHER 
MEASURES-
1) THE BOARD SHALL HAVE THE POWER TO DETERMINE THE 
FAIR PRICE OF DRUGS OR MEDICINES FOR PURPOSES OF 
PUBLIC HEALTH INSURANCE AND GOVERNMENT 
PROCUREMENT; AND
2) THE BOARD SHALL HAVE THE POWER TO IMPLEMENT ANY 
OTHER MEASURES THAT THE GOVERNMENT MAY AVAIL OF 
TO EFFECTIVELY REDUCE THE COST OF DRUGS OR 
MEDICINES THAT SHALL INCLUDE, BUT NOT LIMITED TO, 
COMPETITIVE BIDDING, PRICE-VOLUME NEGOTIATIONS, 
PARALLEL DRUG IMPORTATION AND OTHER 
APPROPRIATE MECHANISMS THAT INFLUENCE SUPPLY, 
DEMAND, AND EXPENDITURES ON DRUGS AND 
MEDICINES.


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3) THE BOARD SHALL HAVE THE POWER TO MANDATE UP TO 
FIFTEEN PERCENT (15%) OF A DRUG OR MEDICINE 
PROCUREMENT OF LARGE PHARMACEUTICAL 
DISTRIBUTORS TO BE ALLOTTED TO A PARTICULAR 
GENERIC DRUG AND MEDICINE AND/OR REQUIRE 
PHARMACEUTICAL DISTRIBUTORS TO BUY OR OBTAIN 
UNDER ANY OTHER FORM OF ARRANGEMENTS, 
REASONABLE QUANTITY OF DRUGS AND MEDICINES 
PROCURED BY THE PHILIPPINE PHARMA PROCUREMENT, 
INC. SUCH DRUGS AND MEDICINES SHALL BE MADE 
AVAILABLE TO ALL BRANCHES OF THE SAID DISTRIBUTOR 
WHICH SHALL INFORM ANY BUYER OF THE 
AVAILABILITY, WITH CORRESPONDING PRICES, OF 
THESE DRUGS AND MEDICINES SO THAT THE BUYER MAY 
ADEQUATELY EXERCISE HIS/HER OPTION. THE LIST OF 
THESE DRUGS AND MEDICINES SHALL BE POSTED IN A 
CONSPICUOUS PLACE IN THE SAID BRANCHES.
d) POWER TO IMPOSE ADMINISTRATIVE FINES AND 
PENALTIES.- AFTER DUE NOTICE AND HEARING, THE BOARD 
SHALL HAVE THE POWER TO SUSPEND OR REVOKE THE 
LICENSE TO OPERATE (LTO), PROFESSIONAL OR BUSINESS 
LICENSE, AS THE CASE MAY BE, OF ANY PERSON, 
MANUFACTURER, IMPORTER, TRADER, DISTRIBUTOR, 
WHOLESALER, RETAILER, OR ANY OTHER ENTITY, AND 
IMPOSE ADMINISTRATIVE FINES IN SUCH AMOUNT AS IT 
MAY DEEM REASONABLE WHICH SHALL IN NO CASE BE LESS 
THAN TWO HUNDRED THOUSAND PESOS (P200,000.00) NOR 
MORE THAN FIVE MILLION PESOS (P5,000,000.00) FOR 
VIOLATIONS OF THE MAXIMUM RETAIL PRICE FIXED 
PURSUANT TO THIS SECTION.
e) OTHER POWERS NECESSARY TO IMPLEMENT PROVISIONS OF 
THIS CHAPTER. - THE BOARD SHALL EXERCISE SUCH 
POWERS AND FUNCTIONS AS MAY BE NECESSARY TO 
IMPLEMENT AND ENFORCE THE PROVISIONS OF THIS 
CHAPTER OF THIS ACT, INCLUDING THE POWER TO REQUIRE 
THE PRODUCTION AND SUBMISSION OF RECORDS, 
DOCUMENTS, BOOKS OF ACCOUNT, BILLS OF LADING, INPUT 
DOCUMENTS, RECORDS OF PURCHASE AND SALE, FINANCIAL 
STATEMENTS, AND SUCH OTHER DOCUMENTS,


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INFORMATION AND PAPERS AS MAY BE NECESSARY TO 
ENABLE THE BOARD TO CARRY OUT ITS FUNCTIONS, DUTIES 
AND RESPONSIBILITIES. ACCORDINGLY, EVERY DECEMBER 
31st OF EVERY YEAR, EVERY MANUFACTURER, IMPORTER, 
TRADER, DISTRIBUTOR, WHOLESALER, AND RETAILER OF 
DRUG AND MEDICINE WHETHER INCLUDED IN OR EXCLUDED 
FROM THE LIST OF DRUGS AND MEDICINES THAT ARE 
SUBJECT TO PRICE REGULATION SHALL FURNISH THE BOARD 
A LIST, CONTAINING ON THE MINIMUM THE 
CORRESPONDING PRICES AND INVENTORY, OF ALL DRUGS 
AND MEDICINES IT MANUFACTURES, IMPORTS, TRADES, 
DISTRIBUTES, WHOLESALES, OR RETAILS AND ALL 
NECESSARY INFORMATION THAT THE BOARD MAY 
REQUIRE."
SEC. 4. Section 19 of Republic Act No. 9502 is hereby deleted and a new 10 
Section 19 is hereby Inserted to read as follows:
"SEC. 19. MEETINGS OF THE BOARD - THE BOARD SHALL 
HOLD REGULAR MEETING EVERY QUARTER AND SUCH SPECIAL 
MEETINGS AS MAY BE NECESSARY UPON THE REQUEST OF THE 
CHAIRMAN OR UPON THE REQUEST OF AT LEAST TWO (2) OF ITS 
MEMBERS. THE BOARD MAY INVITE CONCERNED PUBLIC AND 
PRIVATE AGENCIES OR ENUTIES TO PARTICIPATE, 
COMPLEMENT, AND ASSIST IN THE PERFORMANCE OF ITS 
FUNCTIONS."
SEC. 5. Section 20 of Republic Act No. 9502 is hereby deleted and a new Section 
20 is hereby inserted to read as follows:
"SEC. 20. CREATION OF A SECRETARIAT - THERE IS 
HEREBY CREATED A SECRETARIAT TO BE HEADED BY AN 
EXECUTIVE DIRECTOR TO SUPPORT THE BOARD IN CARRYING 
OUT ITS FUNCTIONS. THE BOARD SHALL PROVIDE FOR THE 
INSTITUTIONAL SETUP, QUALIFICATIONS, AND 
COMPENSATION OF THE EMPLOYEES COMPOSING THE 
SECRETARIAT IN ACCORDANCE WITH EXISTING CIVIL SERVICE 
AND CAREER EXECUTIVE SERVICE RULES AND REGULATIONS 
AND CONSISTENT WITH THE PROVISION OF THE SALARY


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STANDARDIZATION LAW FOR GOVERNMENT PERSONNEL, AND 
DETERMINE THE SIZE AND COMPOSITION OF THE 
SECRETARIAT."
SEC. 6. Section 21 of Republic Act No. 9502 is hereby deleted and a new 
Section 21 Is hereby inserted to read as follows:
"SEC. 21. PROCEDURES FOR INQUIRIES, STUDIES, 
HEARINGS, INVESTIGATIONS, AND PROCEEDINGS. —ALL 
INQUIRIES, STUDIES, HEARINGS, INVESTIGATIONS AND 
PROCEEDINGS CONDUCTED BY THE BOARD SHALL BE 
GOVERNED BY THE RULES ADOPTED BY THE BOARD, AND IN THE 
CONDUCT THEREOF SHALL NOT BE BOUND BY THE TECHNICAL 
RULES OF EVIDENCE."
SEC. 7. Section 22 of Republic Act No. 9502 is hereby deleted and a new Section 
22 is hereby inserted to read as follows:
"SEC. 22. EFFECIVITY AND REVIEW OF THE DECISIONS OR 
ORDERS OF THE BOARD. — ALL DECISIONS OR ORDERS OF THE 
BOARD PURSUANT TO SECTION 18 HEREOF, SHALL BE 
IMMEDIATELY OPERATIVE.
A PARTY ADVERSELY AFFECTED BY A DECISION, ORDER OR 
RULING OF THE BOARD MAY, WITHIN THIRTY (30) DAYS FROM 
NOTICE OF SUCH DECISION, ORDER OR RULING, OR IN CASE OF 
A DENIAL OF A MOTION FOR RECONSIDERATION THEREOF, 
WITHIN FIFTEEN (15) DAYS AFTER NOTICE OF SUCH DENIAL,
FILE AN APPEAL WITH THE COURT OF APPEALS, WHICH SHALL 
HAVE JURISDICTION TO REVIEW SUCH DECISION, ORDER OR 
RULING.
THE FILING OF A PETITION FOR A WRIT OF CERTIORARI 
OR OTHER SPECIAL REMEDIES IN THE SUPREME COURT SHALL 
IN NO CASE SUPERSEDE OR STAY ANY DECISION, ORDER OR 
RULING OF THE BOARD, UNLESS THE SUPREME COURT SHALL 
SO DIRECT, AND THE PETITIONER MAY BE REQUIRED BY THE


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SUPREME COURT TO GIVE BOND IN SUCH FORM AND OF SUCH 
AMOUNT AS MAY BE DEEMED PROPER."
SEC. 8. Section 26 of Republic Act No. 9502 is hereby amended to read as
follows:
"SECTION 26. Display of Maximum Retail Price Fixed [and 
approved by order of the President of the Philippines] by the 
BOARD for Drugs or Medicines Subject to Price Regulation. - (a) 
Within a reasonable period as may be determined by the [Secretary of the 
Department of Health] BOARD, and: Provided, That it conforms to existing 
drug product labeling requirements, every manufacturer, importer, 
distributor, wholesaler, trader, or retailer of a drug and medicine Intended 
for sale shall display the retail price which shall not exceed the maximum 
retail price fixed by the Board. The maximum retail price shall be printed 
on the label of the immediate container of the drug and medicine and the 
minimum pack thereof offered for retail sale with the words "RETAIL 
PRICE NOT TO EXCEED" preceding It, and "UNDER DRUG PRICE 
REGULATION" on a red strip PROVIDED THAT IN CASE OF A 
CONTAINER CONSISTING OF SMALLER SALEABLE PACKS, THE 
RETAIL PRICE OF SUCH SMALLER PACK SHALL ALSO BE 
DISPLAYED ON THE LABEL OF EACH SMALLER PACK AND SUCH 
PRICE SHALL NOT BE MORE THAN THE PRO RATA RETAIL PRICE 
OF THE MAIN PACK ROUNDED OFF TO THE NEAREST CENTAVO.
(b) Within a period as may be determined by the [Secretary of the 
Department of Health] BOARD from time to time, every manufacturer, 
importer, or trader shall issue a price list to wholesalers, distributors, 
retailers and to the [Secretary of the Department of Health] BOARD, 
indicating the retail price, the maximum retail price, and such other 
information as may be required by the [Secretary of the Department of 
Health] BOARD.
SEC. 9. A new Section 26-A is hereby inserted to read as follows:
"SECTION 26-A. Display of Price and Price List of Drugs or 
Medicines Excluded from the List Subject to Price Regulation. -
Every manufacturer. Importer, trader, distributor, wholesaler, or retailer of


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a drug or medicine excluded from the list subject to price regulation under 
Section 23 hereof shall display in indelible print mark on the label of the 
immediate container of the drug or medicine and the minimum pack 
thereof offered for retail sale, the words "NOT UNDER PRICE 
REGULATION" on green strip.
SEC. 10. Section 28 of R.A 9502 is hereby deleted and a new Section 28 is hereby 
inserted to read as follows:
"Sec. 28. Creation of a Trust Fund- A trust fund in the amount of 
Five Hundred Million Pesos (P 500,000,000.00) is hereby established to be 
administered by the Board. The fund shall serve as revolving fund to be 
utilized for parallel drug importation and other procurement arrangements 
to lower the cost of drugs and medicines through the Philippine Pharma 
Procurement, Inc."
SEC. 11. Section 30 of R.A. 9502 Is hereby amended to read as follows:
"SEC. 30. Reportorial and Public Notice Requirements. — (a) The 
[Secretary of the Department of Health] BOARD shall submit a bi-annual 
Monitoring Report of its performance on the implementation of this Act to 
the Office of the President. This report submitted to the Office of the 
President shall be published in a newspaper of general circulation within 
thirty (30) days upon submission.
XXX
(c) The order of the [President of the Philippines] BOARD imposing 
maximum retail prices on drugs and medicines, including the conditions 
implementing it, shall be published within fifteen (15) days from issuance 
in at least two (2) newspapers of general circulation. All wholesalers, 
manufacturers, distributors, importers, or traders shall have a copy of the 
order of the [President of the Philippines] BOARD and provide the same 
to their clients and customers for every transaction.
xxx"
SEC. 12. Appropriations. - The amount of Five Hundred Million Pesos 
(P500,000,000.00) as a trust fund under Section 28 hereof and the amount necessary


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to carry out the functions of the Board shall be included In the annual General 
Appropriations Act.
SEC. 13. Separability Clause. - Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of other provisions of this Act.
SEC. 14. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof Inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette ox in any two (2) newspapers of general circulation 
in the Philippines.
Approved,