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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
< 
., 
SENATE 
Senate Bill No. 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
Many of our countrymen die not because their sickness is incurable, but 
due to lack of medicine on account of poverty. The government cannot always 
remain indifferent to this reality. In this context, the bill seeks to answer the 
problem of high cost of medicine which is beyond the reach of many Filipinos. 
The proposed legislation will amend Republic Act 8293 otherwise known 
as the The Intellectual Propeiiy Code of the Philippines in order to create 
competition among drug companies which will in effect lower the prices of 
medicine for the benefit of public health. 
The constitutional provides that the State shall protect and promote the 
right of the people to health (Sec 15, Article 11, Constitution) and shall adopt an 
integrated and comprehensive approach to health development with the end view 
of making essential health services available to all the people at affordable cost, 
giving priority to the needs of the underprivileged, the sick, the elderly, the 
disabled and the women and children. 
In this light, approval of this bill is earnestly sought. 
MANNY ILLAR 
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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT PROVIDING FOR CHEAPER MEDICINES AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
SECTION 1. Short Title. - This Act shall be known as the “Cheaper 
Philippines in Congress assembled: 
Medicines Act”. 
SEC. 2. Declaration of Poky. - It is hereby declared the policy of the State 
to protect and promote the right to health of the people and instill health 
consciousness among them. Pursuant thereto, the State shall provide cheaper 
medicines to the public. 
SEC. 3. A new chapter after Chapter VIII, Part 2 of the Law on Patents of 
Republic Act No. 8293 is hereby created to read as follows: 
“Chapter VlllA 
“NON-PATENTABLE INVENTIONS, 
PARALLEL IMPORTATION, EARLY WORKING PROVISIONS 
AND GOVERNMENT USE OF DRUGS AND MEDICINES 
“(A)IN THE CASE OF DRUGS OR MEDICINES, THE MERE 
DISCOVERY OF A NEW FORM OF A KNOWN SUBSTANCE 
WHICH DOES NOT RESULT IN THE ENHANCEMENT OF THE 
KNOWN EFFICACY OF THAT SUBSTANCE OR THE MERE 
DISCOVERY OF ANY NEW PROPERTY OR NEW USE FOR A 
KNOWN SUBSTANCE OR THE MERE USE OF A KNOWN 


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PROCESS UNLESS SUCH KNOWN PROCESS RESULTS IN A 
NEW PRODUCT THAT EMPLOYS AT LEAST ONE NEW 
REACTANT SHALL NOT BE PATENTABLE. 
“IN THE CASE OF DRUGS OR MEDICINES, SALTS, ESTERS, 
ETHERS, 
POLYMORPHS, 
METABOLITES, 
PURE 
FORM, 
PARTICLE 
SIZE, 
ISOMERS, 
MIXTURES 
OF 
ISOMERS, 
COMPLEXES, COMBINATIONS AND OTHER DERIVATIVES OF A 
KNOWN SUBSTANCE SHALL BE CONSIDERED TO BE THE 
SAME SUBSTANCE, UNLESS THEY DIFFER SIGNIFICANTLY IN 
PROPERTIES WITH REGARD TO EFFICACY. 
“(6) OTHER THAN THE INSTANCES SPECIFIED IN SECTION 
72, THE OWNER OF A PATENT TO DRUGS OR MEDICINES 
SHALL LIKEWISE BE PREVENTED FROM EXERCISING HIS 
RIGHTS UNDER SECTION 71, 
UNDER THE FOLLOWING 
CIRCUMSTANCES: 
“(i) USING, OFFERING FOR SALE, SELLING OR IMPORTING 
A PATENTED PRODUCT WHEN IT HAS BEEN INTRODUCED 
ANYWHERE IN THE WORLD BY THE PATENT OWNER OR ANY 
PARTY AUTHORIZED TO USE THE INVENTION: PROVIDED, 
THAT A PATENTED PRODUCT SHALL MEAN A PATENTED 
ACTIVE PHARMACEUTICAL INGREDIENT (API), DRUGS OR 
MEDICINES: PROVIDED, FURTHER, THAT SUCH IMPORTED 
PATENTED PRODUCTS SHALL 
CLEARLY 
INDICATE ITS 
COUNTRY OF ORIGIN AND MANUFACTURE AND BE CLEARLY 
DISTINGUISHED FROM THE SAME PRODUCT MANUFACTURED 
WITH 
LICENSE 
IN 
THE 
PHILIPPINES: 
PROV/D€D, 
FURTHERMORE, THAT NOTHING HEREIN SHALL IN ANY WAY 
DIMINISH THE OTHER RIGHTS OF THE PATENT OWNER. 


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“(ii) WHERE THE ACT INCLUDES TESTING, USING, MAKING 
OR SELLING THE INVENTION INCLUDING ANY DATA RELATED 
THERETO, SOLELY FOR PURPOSES REASONABLY RELATED 
TO THE DEVELOPMENT AND SUBMISSION OF INFORMATION 
REQUIRED UNDER ANY LAW OF THE PHILIPPINES OR OF 
ANOTHER COUNTRY THAT REGULATES THE MANUFACTURE, 
CONSTRUCTION, USE OR SALE OF ANY PRODUCT. 
“(C) OTHER 
THAN 
THE 
INSTANCES MENTIONED IN 
SECTION 74, A GOVERNMENT AGENCY OR THIRD PERSON 
AUTHORIZED BY THE GOVERNMENT MAY EXPLOIT THE 
INVENTION OF A DRUG OR MEDICINE IN CASES OF NATIONAL 
EMERGENCY OR OTHER CIRCUMSTANCES OF EXTREME 
URGENCY; OR WHERE THERE IS PUBLIC NON-COMMERCIAL 
USE OF 
THE 
PATENT BY THE 
PATENTEE, 
WITHOUT 
SATISFACTORY REASON. 
“SUBJECT 
TO 
THE 
CONTROL, 
SUPERVISION AND 
DETERMINATION OF THE RESPECTIVE SECRETARIES OF THE 
DEPARTMENT OF HEALTH AND THE DEPARTMENT OF TRADE 
AND INDUSTRY, THE USE OR OTHER EXPLOITATION BY THE 
GOVERNMENT 
OR 
ANY 
OF 
ITS 
AUTHORIZED 
REPRESENTATIVES OF DRUGS OR MEDICINES TO PROTECT 
PUBLIC HEALTH SHALL BE IMMEDIATELY EXECUTORY AND 
SHALL NOT BE SUBJECT TO ANY TEMPORARY RESTRAINING 
ORDER OR PRELIMINARY INJUNCTION OR SUCH OTHER 
PROVISIONAL 
REMEDIES 
THAT 
WILL 
PREVENT 
ITS 
IMPLEMENTATION. 
ALL 
CASES 
ARISING 
FROM 
THE 
IMPLEMENTATION 
OF 
THIS 
PROVISION 
SHALL 
BE 
COGNIZABLE BY COURTS WITH APPROPRIATE JURISDICTION 
PROVIDED BY LAW.” 


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SEC. 4. Section 147 of Republic Act No. 8293 is hereby amended to read 
as follows: 
“SEC. 147. 
Rigbts Conferred. - 147.1. EXCEPT IN CASES 
OF IMPORTATION OF DRUGS OR MEDICINES ALLOWED UNDER 
CHAPTER Vlll-A AND OF OFF-PATENT DRUGS OR MEDICINES, 
mThe owner of a registered mark shall have the exclusive right to 
prevent all third parties not having the owner’s consent from using in 
the course of trade identical or similar signs or containers for goods or 
services which are identical or similar to those in respect of which the 
trademark is registered where such use would result in a likelihood of 
confusion. In case of the use of an identical sign for identical goods or 
services, a likelihood of confusion shall be presumed. 
“147.2. 
The exclusive right of the owner of a well-known mark 
defined in Subsection 123.l(e) which is registered in the Philippines, 
shall extend to goods and services which are not similar to those in 
respect of which the mark is registered: Provided, That use of that mark 
in relation to those goods or services would indicate a connection 
between those goods or services and the owner of the registered mark: 
Provided, further, That the interests of the owner of the registered mark 
are likely to be damaged by such use. (n)” 
SEC. 5. Non-Discriminatory Clause. - It shall be unlawful for any retail drug 
outlet to refuse to carry and/or offer for sale imported drugs or medicines which 
had been previously approved for distribution or sale by the Bureau of Food and 
Drugs (BFAD). For this purpose, the said products shall be displayed with equal 
prominence as all other products sold in the establishment. 
Any person who shall refuse to carry or sell drugs or medicines as provided 
herein shall be punished with a fine of not less than One hundred thousand 
pesos (Phpl00,000.00) but not more than Five hundred thousand pesos 
(Php500,OOO.OO) 
at the discretion of the court. For the succeeding offense, the 


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penalty shall not be less'than Five hundred thousand pesos (Php500,OOO.OO) but 
not more than One million pesos (Phpl ,000,000.00) at the discretion of the court 
plus the cancellation of the license to operate by the BFAD. 
SEC. 6. Oversight Committee. - For the effective implementation of this 
Act, there shall be created an Oversight Committee to be composed of five 
Members from the Senate and five Members from the House of Representatives. 
There shall be proportionate representation of both the Majority and Minority 
Members of both Houses, with the Minority being assured of membership 
thereat. 
The Oversight Committee shall oversee full implementation of the provisions 
of this Act. 
SEC. 7. Appropriations. - For the initial implementation of this Act, the 
amount of Twenty-five million pesos (Php25,000,000.00) shall be taken from the 
current General Appropriations Act. Thereafter, such sum as may be necessary 
for its continued implementation shall be included in the annual General 
Appropriations Act. 
SEC. 8. Creation and Composition of the Drug Prices Regulation Board. - 
(a) There is hereby created the Drug Prices Regulation Board, which shall be 
attached to the Department of Health and composed of the following: 
(1) Secretary of Health as chairman; 
(2) Secretary of Trade and Industry as vice chairman; and 
(3) Director, Bureau of Food and Drugs as member. 
(b) The Board shall have as many members as may be recommended by 
the Secretary of Health and appointed by the President of the Philippines: 
Provided, That consumers; pharmaceutical companies, whether national or 
multinational; pharmacists; physicians; and hospitals shall be duly represented 
from among reputable associations nationwide: Provided, further, That the total 
membership of the Board shall not exceed ten (IO). 


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(c) The Board shall have the power to regulate prices of drugs or medicines, 
including life-saving ones and those indicated for chronic illnesses, in order to 
make them affordable to the public. For this purpose, the Board may inquire into 
the profit margin of drugs or medicines and is empowered to do any and all acts 
necessary to achieve the purposes of this Act. 
SEC. 9. Rules and Regulations. - The Department of Health shall, within 
sixty (60) days from the approval of this Act, promulgate and issue the rules and 
regulations as may be necessary for the effective implementation of this Act. 
SEC. 10. 
Sepambilify Clause. - Any portion or provision of this Act 
that may be declared unconstitutional or invalid shall not have the effect of 
nullifying other portions and provisions hereof as long as such remaining portion 
or provision can still subsist and be given effect in their entirety. 
SEC. 11. 
Repealing Clause. - All laws, decrees, executive orders, 
proclamations and administrative regulations or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly. 
SEC. 12. 
Effectivity Clause. - This Act shall take effect fifteen (15) 
days after its publication in at least two national newspapers of general 
circulation. 
Approved.