TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S.B.
SENATE
No. 1169
Ife'f) Senate
c{ ttif i- rn rt.ii'P
25 AUG11 P3:07
RECEIVED BY:
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 declares that the State shall 
safeguard and promote the people's right to health and foster health consciousness 
among them.
Furthermore, Article XIII, Sections 11 and 12 direct the State to adopt an 
integrated and comprehensive approach to health development aimed at ensuring the 
availability of essential goods, health services, and other social services to all at 
affordable cost. Special priority shall be given to the needs of the underprivileged, the 
sick, the elderly, persons with disabilities, women, and children. The State is also tasked 
to provide free medical care to indigent patients, establish and maintain an effective 
food and drug regulatory system, and undertake health manpower development and 
research responsive to the country's health needs and problems.
The enactment of Republic Act No. 9502, or the Universally Accessible Cheaper 
and Quality Medicines Act of 2008, helped lower the prices of medicines in the country. 
However, despite the general downward trend in the cost of generic essential medicines 
in recent years, the Department of Health has acknowledged that medicine prices in 
the Philippines remain significantly higher compared to international benchmarks. 
Generic drugs are still priced up to four times higher than international reference prices, 
while branded innovator products may cost up to 22 times more, particularly in private 
hospitals and pharmacies.
This proposed measure seeks to establish an inter-agency Drug Price Regulatory 
Board (the "Board") to undertake the drug price regulation functions currently under


the Secretary of Health through the Drugs and Medicines Price Monitoring and 
Regulation Authority. The inter-agency composition of the Board will ensure a diversity 
of perspectives, expertise, and administrative capacity in addressing the pressing 
concerns of drug affordability and accessibility in the country.
The bill also aims to enhance the government's procurement of affordable 
medicines by creating a trust fund for parallel drug importation and other procurement 
arrangements. The Board shall have the authority to require pharmaceutical 
distributors to purchase or otherwise obtain reasonable quantities of government- 
procured drugs and medicines. It may likewise mandate that up to 15% of the total 
drug or medicine procurement of large pharmaceutical distributors be allocated to a 
specified generic product, thereby ensuring wider access to affordable medicines for 
the Filipino people.
In view of the forgoing, the passage of this bill is earnestly sought.
. MARCOS


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
of lllf
25 AUGU P3fl7
SENATE
S.B. No. 1 169
RECEIVED BY:
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 Philippines 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 REGULATION 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;
3) DIRECTOR, FOOD AND DRUGS ADMINISTRATION OR HIS 
DULY DESIGNATED REPRESENTATIVE AS MEMBER;
4) CHAIRMAN, PHILIPPINE HEALTH INSURANCE 
CORPORATION AS MEMBER;


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5) ONE (1) ECONOMIST FROM THE ACADEME AS MEMBER;
AND
6) 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 MOTUPROPIOVi\\El\ 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 
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


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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.
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,


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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 ADMINISTRA TIVE FINES AND PENAL TIES. 
-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 (PHP 200,000.00) NOR MORE 
THAN FIVE MILLION PESOS (PHP 5,000,000.00) 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 UNDER 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, 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,


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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 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 
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.
HEARINGS,
21. PROCEDURES FOR INQUIRIES, STUDIES, 
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."


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SEC. 7. Section 22 of Republic Act No. 9502 is hereby deleted and a new Section
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22 is hereby inserted to read as follows:
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"SEC. 22. EFFECIVITYAND 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 
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:
"SEC. 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


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THAN THE PRO RATA RETAIL PRICE OF THE 
ROUNDED OFF TO THE NEAREST CENTAVO.
MAIN PACK
(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:
"SEC. 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 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 Republic Act No. 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 (PHP 
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."
follows:
SEC. 11. Section 30 of Republic Act No. 9502 is hereby amended to read as
"SEC. 30. Reportoria! 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


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President shall be published in a newspaper of general circulation within 
thirty (30) days upon submission.
XXX
(c) The order of the [Prcsidcnt-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 (Php 
500,000,000.00) as a trust fund under Section 28 hereof and the amount necessary to 
carry out the functions of the Board shall be included in the annual General 
Appropriations Act.
SEC. 13. Separabiiity Ciause. - If any reason any part or provision of this Act 
shall be deemed unconstitutional or invalid, the other sections or provisions hereof 
shall not be affected and remain in force and effect.
SEC. 14. Repealing Clause. - All laws, executive orders, presidential decrees, 
presidential proclamations, letters of instruction, rules and regulations or parts thereof 
which are 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 or in a newspaper of general circulation.
Approved,
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