FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
This bill seeks to impose price regulation on drugs and medicines in the 
Philippines and amend certain provisions of R.A. 8293, otherwise known as the 
Intellectual Property Code of the Philippines, in order to bring down the presently 
anomalous costing of medicines to reasonable and affordable levels and save 
the lives of millions of Filipinos in our generation and beyond. 
There is no doubt that millions of Filipinos are grieving and literally bleeding their 
hearts out by each passing day as they unavoidably contend with the astronomic 
cost of medicines in this country. 
As outrageous and scandalous enough the prices of medicines are, what is even 
worse is that government is helpless amid, pardon the pun, the killing by our drug 
manufacturing firms and pharmaceutical importers in the uncontrolled, 
unhampered prices of their products. 
Is it not shocking that the level of prices of medicines in the Philippines is 
comparatively the highest in Asia? 
Is it not insulting to the Filipino people that some medicines that are being sold in 
the market today are five times costlier compared to other Asian countries? 
It is interesting to note that competition as we know it in the Philippine 
pharmaceutical industry does not necessarily translate to cheaper products for 
the Filipinos. There are more than 300 pharmaceutical firms in the Philippines 
that either manufacture or import some 40,000 registered drugs. Yet the level of 
prices of medicines in our country persistently remains to be one of the highest in 
the world. 
It is simply because the drug manufacturers and importers are having a field day 
jacking up their prices as much as they wanted - in the absence of government 
intervention. 
Nowadays, overpricing of medicines is the name of the game in the Philippines to 
the shock and horror of foreigners and the suppressed wrath and anger of a 
severely-abused and helpless nation. 
Hence, approval of this bill is urgently requested. 
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FOURTEENTH CONGRESS OF THE 
) 
First Regular Session 
) 
REPUBLIC OF THE PHILIPPINES ) 
-7 
PLxi -I 7 1 :r,5 
SENATE 
S. B. No. 1420 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
PROVIDING FOR CHEAPER MEDICINES AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Cheaper 
Medicines Act of 2007”. 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of 
the State to protect and promote the right to health of the people through cheaper 
medicines, and instill health consciousness among them. 
SECTION 3. 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 Trade and Industry as chairman; 
(2) Secretary of Health 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 Trade and Industry and appointed by the 
President of the Philippines: Provided, That consumers; national and 
multinational pharmaceutical companies, pharmacists; physicians; 
hospitals and drugstores shall be duly represented from among 
reputable associations nationwide: Provided, further, That the total 
membership of the Board shall not exceed ten (IO). 
SECTION 4. Powers of the Board- The Board shall have the following 
powers: 
(a) Power to Fix the Maximum Retail Prices of Formulations Included in 
the List of Requlated Dr-g& 
- 
(1) Upon application or motu propio when the public interest so 
requires, the Board shall have the power to regulate the retail 
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prices of formulations included in the List of Regulated Drugs, 
including their dosage form and packing, and, in order that they 
shall be made publicly available at affordable retail price from the 
different manufacturers, importers, 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 a formulation at a retail price exceeding the 
maximum retail price fixed by the Board; Provided that, until the 
maximum retail price of a formulation is fixed by the Board, the 
retail price thereof shall be the price which prevailed immediately 
before the effectivity of this Act and no manufacturer, importer, 
distributor, wholesaler or retailer of such formulation shall sell the 
same at a retail price exceeding the price prevailing immediately 
before the effectivity of the Act; and 
For purposes hereof, formulations include single- and multi- 
ingredient formulations included in the List of Regulated Drugs 
and sold under their generic and brand names. 
(b) 
Power to Include Formulations in the List of Requlated Drum. - Upon 
application or motu proprio when the public interest so requires and 
after proper determination, the Board may order the inclusion in the 
List of Regulated Drugs of any formulation excluded therefrom. 
SECTION 5. The List of Regulated Drugs. The List of Regulated Drugs 
shall include (1) all formulations indicated for treatment of chronic illnesses and 
life-threatening conditions such as, but not limited to, Endocrine Disorders, e.g., 
Diabetis Mellitus; Gastrointestinal Disorders, e.g., Peptic Ulcer; Urologic 
Disorders, e.g., BPH; Cardiovascular Diseases, e.g., Hypertension; Pulmonary 
Diseases, e.g., PTB, Asthma; Autoimmune Diseases, e.g., SLE; Skin Diseases, 
e.g., Psoriasis; Neuro-Psychiatric Disorders; Other Infectious Diseases, e.g., 
HIV-AIDS; and Other Conditions such as Organ Transplants and Neoplasms (2) 
formulations 
indicated 
for 
prevention 
of 
diseases, 
e.g., 
Vaccines, 
Immnunoglobulins, Anti-sera (3) formulations indicated for prevention of 
pregnancy, e.g., oral contraceptives, (4) Anesthetic Agents , and (5.) Intravenous 
Fluids. 
SECTION 6. Display of Prices Fixed by the Board for Formulations 
lncluded in the List of Regulated Drugs, - (a) Within a reasonable period as 
may be determined by the Board, and provided that it conforms to existing drug 
product labeling requirements, every manufacturer, importer, distributor, 
wholesaler or retailer of a formulation intended for sale shall display the retail 
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price of a formulation included in the List of Regulated Drugs 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 formulation 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 the 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 Board from time to time, 
every manufacturer or importer shall issue a price list to distributors, wholesalers, 
retailers and the Board, indicating the retail prices and the maximum retail price 
and such other information as may be required by the Board. 
SECTION 7. 
Display of Prices and Price List of Formulafions 
Excluded from the List of Regulated Drugs. - (a) Every manufacturer, 
importer, distributor, wholesaler or retailer of a formulation excluded from the List 
of Regulated Drugs shall display in indelible print mark on the label of the 
immediate container of the formulation and the minimum pack thereof offered for 
retail sale, the words “Not Under Price Regulation” on a green strip. 
(b) If required by the Board, every manufacturer, importer, wholesaler, 
distributor, or retailer shall issue a price list of formulations excluded from the List 
of Regulated Drugs, indicating changes from time to time. 
SECTION 8. 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 VIII-A 
“NON-PATENTABLE INVENTIONS, PARALLEL IMPORTATION, EARLY 
WORKINGPROVISIONS 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 
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. 
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"(B) 
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. 
"(ii) WHERE THE ACT CONSISTS OF MAKING OR USING 
EXCLUSIVELY FOR EXPERIMENTAL USE OF THE INVENTION 
FOR SCIENTIFIC PURPOSES OR EDUCATIONAL PURPOSES 
AND SUCH OTHER ACTIVITIES DIRECTLY RELATED TO 
SUCH SCIENTIFIC OR EDUCATIONAL EXPERIMENTAL USE. 
"(iii) 
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 (AND 
ISSUANCE OF 
APPROVALS BY GOVERNMENT REGULATORY AGENCIES) 
REQUIRED UNDER ANY LAW OF THE PHILIPPINES OR OF 
ANOTHER 
COUNTRY 
THAT 
REGULATES 
THE 
MANUFACTURE, CONSTRUCTION, USE OR SALE OF ANY 
PRODUCT: PROVIDED, THAT IN ORDER TO PROTECTTHE 
DATA SUBMITTED BY THE ORIGINAL PATENT HOLDER 
FROM UNFAIR COMMERCIAL USE PROVIDED IN ARTICLE 
39.3 OF THE TRIPS AGREEMENT, THE INTELLECTUAL 
PROPERTY 
OFFICE, 
IN 
CONSULTATION 
WITH 
THE 
APPROPRIATE GOVERNMENT AGENCIES, SHALL ISSUE THE 
APPROPRIATE RULES AND REGULATIONS NECESSARY 
THEREIN NOT LATER THAN ONE HUNDRED EIGHTY (180) 
DAYS AFTER ENACTMENT OF THIS LAW. 
"(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. 
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UNLESS OTHERWISE PROVIDED HEREIN, THE USE BY THE 
GOVERNMENT OR THIRD PERSON AUTHORIZED BY THE GOVERNMENT 
SHALL BE SUBJECT TO THE FOLLOWING PROVISIONS: 
“(i) 
IN SITUATIONS OF NATIONAL EMERGENCY OR OTHER 
CIRCUMSTANCES OF EXTREME URGENCY, THE RIGHT HOLDER 
SHALL BE NOTIFIED AS SOON AS REASONABLY PRACTICABLE; 
“(ii) IN THE CASE OF PUBLIC NON-COMMERCIAL USE, WHERE THE 
GOVERNMENT OR CONTRACTOR, WITHOUT MAKING A PATENT 
SEARCH, KNOWS OR HAS DEMONSTRABLE GROUNDSTO KNOW 
THAT A VALID PATENT IS OR WILL BE USED BY OR FOR THE 
GOVERNMENT, THE 
RIGHT HOLDER SHALL 
BE INFORMED 
PROMPTLY; 
“(iii) SUCH USE SHALL BE NON-EXCLUSIVE; 
“(iv) 
THE 
RIGHT 
HOLDER 
SHALL 
BE 
PAID 
ADEQUATE 
REMUNERATION IN THE CIRCUMSTANCES OF EACH CASE, TAKING 
INTO ACCOUNT THE ECONOMIC VALUE OF THE AUTHORIZATION. 
“THE USE OREXPLOITATION BY THE PRESIDENT OR THIRD 
PERSON AUTHORIZED BY THE PRESIDENT OR DRUGS OR 
MEDICINES UNDER THIS SECTION SHALL BE SUBJECT TO THE 
EXCLUSIVE DETERMINATION OF THE PRESIDENT OF THE REPUBLIC 
OF THE PHILIPPINES AND SHALL BE IMMEDIATELY EXECUTORY: 
PROVlDED THAT NO COURT, EXCEPT THE SUPREME COURT OF THE 
PHILIPPINES, SHALL ISSUE ANY TEMPORARY RESTRAINING ORDER 
OR 
PRELIMINARY INJUNCTION OR 
( 
OTHER 
PROVISIONAL 
REMEDIES I PRELIMINARY MANDATORY INJUNCTION) THAT WILL 
PREVENT ITS IMMEDIATE EXECUTION. 
THE OFFICE OF THE 
PRESIDENT, 
IN 
CONSULTATION 
WITH 
THE 
APPROPRIATE 
IMPLEMENTING RULES AND REGULATIONS FOR THE EXERCISE OF 
THIS AUTHORITY WITHIN ONE HUNDRED TWENTY (120) DAYS AFTER 
ENACTMENT OF THIS LAW. 
ALL CASES ARISING FROM THE 
IMPLEMENTATION OF THIS PROVISION SHALL BE COGNIZABLE BY 
COURTS WITH APPROPRIATE JURISDICTION PROVIDED BY LAW. 
I‘ (D) THERE SHALL BE NO INFRINGEMENT OF TRADEMARKS OR 
TRADENAMESOF SOLD, PATENT OR OFF-PATENT DRUGS OR MEDICINES 
ALLOWED UNDER SECTION B OF CHAPTER VlllA OF THIS ACT: 
PROVIDED THAT SAID DRUGS OR MEDICINES BEAR THE REGISTERED 
MARKS THAT HAVE NOT BEEN TAMPERED, MODIFIED OR INFRINGED 
UPON AS DEFINED UNDER SECTION 155 OF THIS CODE.” 
SECTION 9. Section 147 of Republic Act No. 8293 is hereby amended to 
as follows: 
“SEC. 147. 
Righfs Conferred. - 147.1. EXCEPT IN CASES OF 
IMPORTATION OF DRUGS OR MEDICINES ALLOWED UNDER 
CHAPTER VIII-A AND OF OFF-PATENT DRUGS OR MEDICINES, [TIThe 
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 
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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 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)" 
SECTION 10. 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 (Php100,000.00) but not more than Five hundred thousand 
pesos (Php500,000.00) at the discretion of the court. 
For the succeeding 
offense, the penalty shall not be less than Five hundred thousand pesos 
(Php500,000.00) 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. 
SECTION 1 1, 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 
SECTION 12. 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. 
provisions of this Act. 
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SECTION 13. 
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. 
SECTION 14. 
Separability 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. 
SECTION 15. Repealing Clause. - All laws, decrees, executive orders, 
proclamations and administrative regulations or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly. 
Effectivity Clause. - This Act shall take effect fifteen 
(15) days after its publication in at least two national newspapers of general 
circulation. 
SECTION 16. 
Approved, 
I