Republic of the Philippines
HOUSE OF REPRESENTA’
Quezon City
SEVENTEENTH CONGRESS
Second Regular Session

6332

Introduced by: Hon. lina “Helen” D.L. Tan, M.D.

HOUSE BILL NO.

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 9502,
OTHERWISE KNOWN AS THE “UNIVERSALLY ACCESSIBLE CHEAPER AND
QUALITY MEDICINES ACT OF 2008”

EXPLANATORY NOTE

Republic Act No. 9502, otherwise known as the “Universally Accessible Cheaper and
Quality Medicines Act of 2008,” was passed into law in June 2008, This landmark law seeks to
make quality medicines affordable and accessible to all Filipinos.

While RA 9502 amended provisions of RA 8293 (Intellectual Property Code), RA 6675
(Generics Act of 1988) and RA 5921 (Pharmacy Law), it, however, did not meet its purpose since
prices of medicines remain high, particularly the innovator drugs.

An impact evaluation was commissioned by the DOH in 2014 (Sarol, et.al.) which
revealed that the law failed to address issues on drug affordability and access especially for the
poor.

Among the salient findings that were cited in the study include the following: the
significant reduction of prices was felt only on the drugs subjected to Maximum Retail Price
(MRP) and Government Mediated Access Price (GMAP); a number of drugs under GMAP did
not become readily available in hospitals; there was lack of trust of consumers on generic
medicines; and only the upper and middle class benefited from the law while majority of
Filipinos especially the poor are still struggling with accessibility issues,

To squarely address the issue of drug affordability and accessibility, especially for the
underprivileged, this measure seeks to create an independent Drug Price Regulation Board
(DPRB), which will be empowered among others to determine the maximum retail price of
drugs or medicines, include other drugs or medicines in the list subject to price regulation,
pea cost-containment, and investigate and adjudicate on illegal acts of price
manipulation.

As such, the authority of the President of the Philippines to regulate the price of drugs or
medicines will be assumed by the DPRB, which shall also undertake the present authority of the
Secretary of Health to monitor and regulate the price of drugs and medicines in the country.

More importantly, the bill mandates all medical, dental and veterinary practitioners,
whether public or private, to prescribe generic drugs or medicines only as a mechanism to
increase the utilization of more affordable generic medicines in the country.

In view of the foregoing, approval of this bill is earnestly sought.

ANGELINA und ly TAN, M.D.

4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Second Regular Sessi
6332

HOUSE BILL NO.

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 9502,
OTHERWISE KNOWN AS THE “UNIVERSALLY ACCESSIBLE CHEAPER AND
QUALITY MEDICINES ACT OF 2008”

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1, Section 17 of Republic Act No. 9502, otherwise known as the “Universally
Accessible Cheaper and Quality Medicines Act of 2008,” is hereby amended to read as follows:

“SEC. 17. CREATION OF THE DRUG PRICE REGULATION BOARD, - THERE IS
HEREBY CREATED THE DRUG PRICE REGULATION BOARD, HEREINAFTER REFERRED
TO AS THE “BOARD".

THE BOARD SHALL BE INDEPENDENT AND AUTONOMOUS AND SHALL HAVE
THE SAME STATUS AS THAT OF A NATIONAL GOVERNMENT AGENCY ATTACHED TO
‘THE OFFICE OF THE PRESIDENT,

‘SEC. 2. Section 18 of RA 9502 is hereby amended to read as follows:

“SEC. 18. COMPOSITION OF THE BOARD. - THE BOARD SHALL BE COMPOSED OF
SEVEN (7) VOTING MEMBERS, NAMELY:

(1) A PUBLIC HEALTH EXPERT;

(2) A TRADE SPECIALIST;

(3) A PHARMACIST;

(4) A FINANCE EXPERT OR ECONOMIST;

(5) A LAWYER; AND

(6) TWO PERMANENT REPRESENTATIVES FROM THE CONSUMERS’ SECTOR.

THE PRESIDENT SHALL APPOINT A CHAIRMAN OF THE BOARD AND SIX (6)
MEMBERS FOR A TERM OF FOUR (4) YEARS, WITHOUT PREJUDICE TO ONE
REAPPOINTMENT. THE TERMS OF THE INITIAL APPOINTEES SHALL BE ON A
STAGGERED BASIS: THE CHAIRMAN SHALL HOLD OFFICE FOR A TERM OF FOUR (4)
YEARS, THE NEXT THREE (3) MEMBERS FOR THREE (3) YEARS, AND THE LAST THREE
(3) MEMBERS FOR TWO (2) YEARS,

THE CHAIRMAN SHALL HAVE THE RANK AND PRIVILEGES OF A DEPARTMENT
UNDERSECRETARY, AND THE MEMBERS SHALL HAVE THE RANK AND PRIVILEGES OF
ASSISTANT SECRETARIES OF A DEPARTMENT.

THE MEMBERS OF THE BOARD MUST BE CITIZENS AND RESIDENTS OF THE
PHILIPPINES, OF GOOD MORAL CHARACTER, OF RECOGNIZED PROBITY AND
INDEPENDENCE AND MUST HAVE DISTINGUISHED THEMSELVES PROFESSIONALLY IN
PUBLIC, CIVIC OR ACADEMIC SERVICE. EXCEPT FOR THE MEMBERS REPRESENTING
‘THE CONSUMERS’ SECTOR, THE MEMBERS OF THE BOARD MUST HAVE BEEN IN THE
ACTIVE PRACTICE OF THEIR PROFESSIONS FOR AT LEAST TEN (10) YEARS, AND MUST
NOT HAVE BEEN CANDIDATES FOR ANY ELECTIVE NATIONAL OR LOCAL OFFICE IN
‘THE IMMEDIATELY PRECEDING ELECTIONS, WHETHER REGULAR OR SPECIAL.


THEY SHALL HOLD OFFICE UNTIL THEIR SUCCESSORS SHALL HAVE BEEN
APPOINTED AND QUALIFIED. SHOULD A MEMBER OF THE BOARD FAIL TO COMPLETE
HIS TERM, HIS SUCCESSOR SHALL BE APPOINTED BY THE PRESIDENT OF THE
PHILIPPINES BUT ONLY FOR THE UNEXPIRED PORTION OF THE TERM.

ANY MEMBER OF THE BOARD MAY BE REMOVED BY THE PRESIDENT OF THE
PHILIPPINES FOR NEGLECT OR DERELICTION OF DUTY, INCOMPETENCE,
MALPRACTICE, AND UNPROFESSIONAL, UNETHICAL, IMMORAL OR DISHONORABLE
CONDUCT: PROVIDED, THAT IN THE COURSE OF INVESTIGATION, THE PRESIDENT OF
THE PHILIPPINES SHALL HAVE THE POWER TO SUSPEND SUCH MEMBER UNDER
INVESTIGATION AND DESIGNATE A TEMPORARY MEMBER IN HIS PLACE.

VACANCIES IN THE BOARD SHALL BE FILLED FOR THE PERIOD OF THE
UNEXPIRED TERM ONLY.

IN NO CASE SHALL ANY AND ALL OF THE MEMBERS OF THE BOARD APPOINT
REPRESENTATIVES TO ACT ON THEIR BEHALF.

THE BOARD SHALL ORGANIZE A SECRETARIAT WHICH SHALL BE HEADED BY
AN EXECUTIVE OFFICER, SUBJECT TO THE NATIONAL COMPENSATION AND POSITION
CLASSIFICATION PLAN, IT SHALL FIX THE SECRETARIAT'S STAFFING PATTERN,
DETERMINE THE DUTIES, QUALIFICATIONS, RESPONSIBILITIES AND FUNCTIONS, AS
WELL AS THE COMPENSATION SCHEME FOR THE POSITIONS TO BE CREATED UPON
‘THE RECOMMENDATION OF THE EXECUTIVE OFFICER. IT SHALL ALSO PREPARE AND
APPROVE ITS BUDGET.

THE BOARD SHALL APPOINT THE MEMBERS OF THE STAFF UPON THE
RECOMMENDATION OF THE EXECUTIVE OFFICER.

A MEMBER OF THE BOARD SHALL AVOID CONFLICTS OF INTEREST AT ALL
‘TIMES. WHEN A CONFLICT OF INTEREST ARISES, HE SHALL RESIGN FROM HIS
POSITION IN ANY PRIVATE BUSINESS ENTERPRISE WITHIN THIRTY (30) DAYS FROM
HIS ASSUMPTION OF OFFICE AND/OR DIVEST HIMSELF OF HIS SHAREHOLDINGS OR
INTEREST WITHIN SIXTY (60) DAYS FROM SUCH ASSUMPTION.

THE SAME RULE SHALL APPLY WHERE A MEMBER OF THE BOARD IS A
PARTNER IN A PARTNERSHIP.

SEC, 3. Section 19 of RA 9502 is hereby amended to read as follows:

“SEC. 19. 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 REGULATION - (1) UPON APPLICATION OR MOTU
PROPRIO WHEN THE PUBLIC INTEREST SO REQUIRES, THE BOARD SHALL HAVE THE
POWER TO REGULATE THE RETAIL PRICE OF DRUGS OR MEDICINES LISTED UNDER
SECTION 23 HEREOF, AND AS THE BOARD MAY DEEM FIT, FIX FROM TIME TO TIME
‘THE MAXIMUM RETAIL PRICE AT WHICH SUCH DRUGS OR MEDICINES SHALL BE SOLD
BY PUBLICATION.

(2) IN DETERMINING THE MAXIMUM RETAIL PRICE, THE BOARD SHALL
CONSIDER THE FOLLOWING FACTORS:

(a) RETAIL PRICES OF THE SAME OR SIMILAR DRUGS AND MEDICINES IN
OTHER COUNTRIES;

(b) THE AVAILABLE SUPPLY IN THE MARKET;

(c) THE COST TO THE MANUFACTURER, IMPORTER, TRADER, DISTRIBUTOR,
WHOLESALER OR RETAILER OF THE FOLLOWING BUT NOT LIMITED TO:

(i) THE EXCHANGE RATE OF THE PESO TO THE FOREIGN CURRENCY WITH
WHICH THE DRUG OR MEDICINE OR ANY COMPONENT, INGREDIENT OR RAW
MATERIAL THEREOF WAS PAID FOR;


(di) ANY CHANGES IN THE AMORTIZATION COST OF MACHINERY BROUGHT
ABOUT BY ANY CHANGE IN THE EXCHANGE RATE OF THE PESO TO THE FOREIGN
CURRENCY WITH WHICH THE MACHINERY WAS BOUGHT THROUGH CREDIT
FACILITIES;

(iii) ANY CHANGES IN THE COST OF LABOR BROUGHT ABOUT BY A CHANGE IN
‘THE MINIMUM WAGE; OR

(iv) ANY CHANGES IN THE COST OF TRANSPORTING OR DISTRIBUTING THE
DRUGS OR MEDICINES TO THE AREA OF DESTINATION;

(vy) SUCH OTHER FACTORS OR CONDITIONS, WHICH WILL AID IN ARRIVING AT A
JUST AND REASONABLE MAXIMUM PRICE.

(3) NO RETAILER SHALL SELL DRUGS OR MEDICINES AT A RETAIL PRICE
EXCEEDING THE MAXIMUM RETAIL PRICE FIXED BY THE BOARD: PROVIDED, THAT,
UNTIL THE MAXIMUM RETAIL PRICE OF DRUGS OR MEDICINES SUBJECT TO PRICE
REGULATION IS FIXED BY THE BOARD, 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: PROVIDED, FURTHER, ear
IMMEDIATELY AFTER THE DRUG PRICE REGULATION BOARD IS CONSTITUTED,
BOARD SHALL UNDERTAKE A STUDY ON THE PREVAILING PRICES OF DRUGS Om
MEDICINES SUBJECT TO PRICE REGULATION AND IMMEDIATELY AFTER THE
EFFECTIVITY OF ITS POWERS, PROVIDE AN INITIAL LIST OF DRUGS OR MEDICINES
‘THE NEW MAXIMUM RETAIL PRICES OF WHICH SHALL BE FIXED BY THE BOARD.

(B) POWER TO INCLUDE OTHER DRUGS OR MEDICINES IN THE LIST SUBJECT TO
PRICE REGULATION. - UPON APPLICATION OR MOTU PROPRIO WHEN THE PUBLIC
INTEREST SO REQUIRES AND AFTER PROPER DETERMINATION, THE BOARD MAY
ORDER THE INCLUSION OF DRUGS OR MEDICINES TO THE LIST SUBJECT TO PRICE
REGULATION UNDER SECTION 23 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 BE LIMITED TO,
COMPETITIVE BIDDING, PRICE-VOLUME NEGOTIATIONS, AND OTHER APPROPRIATE
MECHANISMS THAT INFLUENCE SUPPLY, DEMAND, AND EXPENDITURES ON DRUGS
OR MEDICINES.

(D) POWER TO INVESTIGATE AND ADJUDICATE ON ILLEGAL ACTS OF PRICE
MANIPULATION. - THE BOARD SHALL HAVE A QUASI-JUDICIAL POWER TO
INVESTIGATE AND ADJUDICATE ON ILLEGAL ACTS OF PRICE MANIPULATION SUCH AS
HOARDING, PROFITEERING, OR ILLEGAL COMBINATION OR FORMING CARTEL, AS
DEFINED UNDER SECTION 5 OF REPUBLIC ACT NO. 7581, OTHERWISE KNOWN AS THE
PRICE ACT, AND ALL ACTS COMMITTED IN RESTRAINT OF TRADE.

THE BOARD WILL COMMENCE AN INVESTIGATION INTO THE PRICE OF A DRUG
PRODUCT WHEN ANY OF THE FOLLOWING CRITERIA ARE MET:

(1) THE NATIONAL AVERAGE TRANSACTION PRICE OR ANY MARKET-SPECIFIC
AVERAGE TRANSACTION PRICE OF A NEW DRUG PRODUCT EXCEEDS THE MAXIMUM
AVERAGE POTENTIAL PRICE DURING THE INTRODUCTORY PERIOD BY MORE THAN
FIVE PERCENT (5%).

(2) _ EXCESS REVENUES FOR A NEW OR EXISTING DRUG PRODUCT ARE TWO.
MILLION PESOS (PHP2,000,000.00) OR MORE.

(3) THE BOARD RECEIVES A COMPLAINT.
(E) POWER TO IMPOSE ADMINISTRATIVE FINES AND PENALTIES. — AFTER DUE


NOTICE AND HEARING, THE BOARD SHALL HAVE THE POWER TO IMPOSE
ADMINISTRATIVE FINES UP TO ONE HUNDRED MILLION PESOS (PHP100,000,000.00)
FOR THE FIRST OFFENSE AND NOT LESS THAN ONE HUNDRED MILLION PESOS
(PHP100,000,000.00) BUT NOT MORE THAN TWO HUNDRED FIFTY MILLION PESOS
(PHP250,000,000.00) FOR THE SECOND OFFENSE AGAINST ANY PERSON,
MANUFACTURER, IMPORTER, TRADER, DISTRIBUTOR, WHOLESALER, RETAILER OR
ANY OTHER ENTITY FOR VIOLATIONS OF THE MAXIMUM RETAIL PRICE FIXED
PURSUANT TO THIS ACT

(F) POWER TO DEPUTIZE GOVERNMENT ENTITIES. - THE BOARD SHALL HAVE
THE POWER TO CALL UPON AND DEPUTIZE ANY OFFICIAL, AGENT, EMPLOYEE,
AGENCY, OR INSTRUMENTALITY OF THE NATIONAL OR LOCAL GOVERNMENT FOR
ANY ASSISTANCE THAT IT MAY DEEM NECESSARY TO CARRY OUT THE PURPOSES OF
‘THIS ACT.

(G) OTHER POWERS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS ACT.
- THE BOARD SHALL EXERCISE SUCH POWERS AND FUNCTIONS AS MAY BE
NECESSARY TO IMPLEMENT AND ENFORCE THE PROVISIONS OF THIS CHAPTER OF
THE ACT SUCH AS, BUT NOT LIMITED TO, THE POWER TO ISSUE SUBPOENA DUCES
TECUM AND SUBPOENA AD TESTIFICANDUM, AND 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, INFORMATION AND PAPERS AS MAY BE NECESSARY
TO ENABLE THE BOARD TO CARRY OUT ITS FUNCTIONS, DUTIES AND
RESPONSIBILITIES.”

SEC. 4. Section 20 of RA 9502 is hereby amended to read as follows:

“SEC. 20, BOARD PROCEDURES. - 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
‘THE BOARD SHALL NOT BE BOUND BY THE TECHNICAL RULES OF EVIDENCE.

IN ACCORDANCE WITH ITS POWER TO INVESTIGATE ANY MATTER BEFORE IT,
‘THE BOARD SHALL HAVE THE POWER TO DEPOSE WITNESSES RESIDING WITHIN OR
OUTSIDE THE PHILIPPINES ACCORDING TO ITS RULES AND REGULATIONS.”

‘SEC. 5, Section 21 of RA 9502 is hereby amended to read as follows:

“SEC. 21. EFFECTIVITY OF THE BOARD'S DECISIONS OR ORDERS. - ALL
DECISIONS OR ORDERS OF THE BOARD PURSUANT TO SECTION 19 OF THIS ACT SHALL
BE IMMEDIATELY OPERATIVE, UNLESS OTHERWISE PROVIDED BY THE BOARD.”

SEC. 6, Section 22 of RA 9502 is hereby amended to read as follows:

“SEC. 22. REVIEW OF THE BOARD'S DECISIONS OR ORDERS. - 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 AND TO MODIFY OR SET ASIDE THE SAME WHEN IT CLEARLY
APPEARS THAT THERE WAS NO EVIDENCE BEFORE THE BOARD TO SUPPORT
REASONABLY SUCH DECISION, ORDER OR RULING, OR THAT THE SAME IS CONTRARY
‘TO THE LAW, OR THAT IT WAS WITHOUT THE JURISDICTION OF THE BOARD. THE
EVIDENCE PRESENTED TO THE BOARD, TOGETHER WITH THE RECORD OF THE
PROCEEDINGS BEFORE THE BOARD, SHALL BE CERTIFIED BY THE BOARD TO THE
COURT OF APPEALS. SAID APPEAL SHALL BE PLACED ON FILE IN THE OFFICE OF THE
CLERK OF THE COURT OF APPEALS WHO SHALL FURNISH COPIES THEREOF TO THE
BOARD AND OTHER PARTIES INTERESTED.

ANY DECISION, ORDER OR RULING OF THE BOARD MAY LIKEWISE BE
REVIEWED BY THE SUPREME COURT UPON A WRIT OF CERTIORARI IN APPROPRIATE
CASES. THE PROCEDURE FOR REVIEW, EXCEPT AS HEREIN PROVIDED, SHALL BE IN
ACCORDANCE WITH THE RULES PRESCRIBED BY THE SUPREME COURT. 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 SUPREME COURT TO GIVE BOND IN SUCH
FORM AND OF SUCH AMOUNT AS MAY BE DEEMED PROPER.”

SEC. 7. Section 38 of RA 9502 is hereby amended to read as follows:

“SEC, 3B. Section 6 of Republic Act No. 6675, otherwise known as the Generis Act of
1988, is hereby amended to read as follows:

“SEC. 6, Who Shall Use Generic Terminology. - (a) All government health agencies and
tame in all tapsctons telatd to purchase, prseng, dispensing and looming of
names in all transactions to ing, prescribit ing in of

: prescrit istering

"(b) All medical, dental and veterinary practitioners, including private practitioners,

shall we prescriptions using the generic name ONLY [The brand name may be included if so

XXX

Appropriations. ~ The funds needed to implement the provisions of this Act
shall be included ete sonal Genera ‘Appropriations Act.

9. Separability Clause. — If any provision of this Act is declared invalid, the
pessoa tatoo tor leche by oath decieton BM ota total es tad atc.

SEC. 10. Repeating Clause. — All laws, executive orders, or administrative orders, rules
and or parts thereof which are inconsistent with this Act are hereby amended,
repealed or modified accordingly.

SEC. 11. Effectivity Clause, — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,