Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 4110

Introduced by: Rep. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
PROVIDING FOR THE STOCKPILING OF STRATEGIC AND CRITICAL DRUGS
AND MEDICINES, VACCINES, DEVICES, AND MATERIALS FOR PUBLIC
HEALTH EMERGENCIES, CREATING FOR THE PURPOSE THE HEALTH
PROCUREMENT AND STOCKPILING BUREAU UNDER THE DEPARTMENT OF
HEALTH, AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

The 2019 report by the Global Preparedness Monitoring Board (GPMB), an
independent monitoring and advocacy body that aims to assess the world’s ability
to protect itself from health emergencies and identify critical gaps to preparedness
across multiple perspectives, warns that humankind is stumbling toward the 21st-
century equivalent of the 1918 influenza pandemic, which affected one-third of the
world’s population and killed approximately 50 million people.

Based on the report, only one third of countries have the capacities required
under the International Health Regulations (IHR) and that the great majority of
national health systems would be unable to handle a large influx of patients
infected with a respiratory pathogen capable of easy transmissibility and high
mortality.

The Joint External Evaluation (JEE) of IHR Core Capacities of the Republic of
the Philippines reveals that “While the Philippines has developed capabilities in
various programme areas for public health emergency preparedness and
response, there are still challenges in achieving a harmonized approach for
implementation of the IHR. Several identified challenges are not only relevant to
IHR implementation but are common across the health sector and include the
implementation of policies and regulations; effective coordination between
national and local levels and among sectors, and investments in institutional
capacities.”


Accordingly, to capitalize on the momentum generated by the JEE in the
Philippines, one of the overarching priority recommendations of the JEE team is to
foster the institutional capacity of the health sector to lead the prevention,
detection and response to public health events and emergencies.

The 2024 GPMB report underscores that pandemics are no longer rare
shocks but enduring global threats driven by increased mobility, urbanization,
climate change, and human encroachment on ecosystems. The report identifies
fifteen (15) key pandemic risk drivers across five domains—social, technological,
environmental, economic, and political—using a “STEEP” framework. These
drivers, such as social inequity, digital misinformation, urban crowding,
environmental degradation, and weak governance, interact over time and amplify
vulnerabilities. Current outbreaks, including HSN1 and mpox, illustrate that
without early intervention and comprehensive mitigation, localized health crises
can rapidly escalate into pandemics.

The report emphasizes that preparedness must evolve beyond lessons from
COVID-19. The future of pandemic threats will differ significantly and demand
adaptive planning, region-specific risk assessments, and integrated, flexible health
systems. A key tenet is that anticipatory planning and real-time response
capacities are essential, not optional.

This bill, which was approved by the House and transmitted to the Senate
during the 18th Congress, aims to protect public health by addressing the problem
of access to critical drugs and medicines, vaccines, devices, and materials in times
of public health emergencies by mandating the procurement and stockpiling of
critical and strategic pharmaceuticals and medical devices as well as the supply of
raw materials.

It is hoped that through this proposal, problems on the lack of access to
strategic and critical drugs and medicines, vaccines, devices, and materials in

times of national need may now be adequately addressed.

Hence, immediate passage of this bill is earnestly being sought.

7,

Keith Micah “Atty. Mike” D.L. Tan
4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. _4119

Introduced by: Rep. Keith Micah “Atty. Mike” D.L. Tan

AN ACT
PROVIDING FOR THE STOCKPILING OF STRATEGIC AND CRITICAL DRUGS
AND MEDICINES, VACCINES, DEVICES, AND MATERIALS FOR PUBLIC
HEALTH EMERGENCIES, CREATING FOR THE PURPOSE THE HEALTH
PROCUREMENT AND STOCKPILING BUREAU UNDER THE DEPARTMENT OF
HEALTH, AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title.
Procurement and Stockpiling Act”.

This Act shall be known as the “Health

SEC. 2. Declaration of Policy. - It is the policy of the State to protect and
promote the right to health of the people and instill health consciousness among
them. The State also mandates the adoption of an integrated and comprehensive
approach to health development.

Towards this end, it shall protect public health and safety by preventing and
controlling the spread of diseases and other health hazards through the
stockpiling of essential and critical drugs and medicines, vaccines, devices, and
materials to effectively and swiftly address the devastating consequences of public
health emergencies.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Countertrade refers to a supplemental trade tool in connection with
transactions involving the importation or procurement of foreign capital
equipment, machinery, products, goods and services and amounting to at least One
million dollars (US$1M) and above or its foreign currency equivalent. It shall also
cover any of the following arrangements:

(1) Counterpurchase - also known as counter exports, this refers to parallel
transactions or reciprocal trade, whereby the foreign supplier reciprocally


commits to purchase Philippine goods or services, to be exported to the supplier's
country or a third country;

(2) Product Buy Back - whereby the foreign supplier of the equipment or
machinery is paid for with the resultant product(s) or good(s) made or
manufactured by such equipment or machinery;

(3) Offset - whereby the foreign supplier commits to introduce investments
or technology transfer in the Philippines, or assist in establishing new industries
or improving existing industries to generate or save foreign exchange or create
increased employment, which may or may not be related to the machinery,
equipment, products or goods so imported or services procured;

(4) Trade-for-Debt Swap - whereby a loan or credit accommodation
obtained by a government agency or government-owned or -controlled
corporation from a foreign government or creditor which has remained
outstanding and unpaid is arranged to be settled in full or partially by way of sales
of products, goods or services to be provided by a third party rather than by
payment in foreign currency; or

(5) Any form of combination or variation of the above arrangements that
results in the inflow to the country of foreign exchange, or savings thereof,
investments, training and technology transfer, grants for educational, scientific,
technological, environmental and related research programs or projects, which
will enhance Philippine industrial or export competitiveness or contribute to the
creation of new competitive industries, enhance existing industries or utilization
of Philippine services or expertise by foreign clients, or result in the reduction of
public debt;

(b) Device refers to instruments, apparatus, or contrivances, including their
components, parts, and accessories that are authorized by the Food and Drug
Administration (FDA), intended (1) for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease in man; or (2) to affect the structure or any
function of the human body;

(c) Drugs and medicines refer to any chemical compound or biological
substance, other than food, that are authorized by the FDA, intended for use in the
treatment, prevention or

(1) Any article recognized in the official United States Pharmacopoeia-
National Formulary, official Homeopathic Pharmacopoeia of the United States,
Philippine Pharmacopoeia, Philippine diagnosis of disease in humans or animals,
including: National Drug Formulary, British Pharmacopoeia, European
Pharmacopoeia, Japanese Pharmacopoeia, Indian Pharmacopoeia, any national
compendium or supplement to any of them;


(2) Any article intended for use in the diagnosis, cure, mitigation, treatment,
or prevention of disease in humans or animals;

(3) Any article other than food intended to affect the structure or function
of the human body or animals;

(4) Any article intended for use as a component of articles specified in
clauses (1), (2), and (3) not including devices or their components, parts, or
accessories; and

(5) Herbal and/or traditional drugs which are articles of plant or animal
origin used in folk medicine which are:

(i) Recognized in the Philippine National Drug Formulary;

(ii) Intended for use in the treatment or cure or mitigation of disease
symptoms, injury or body defects in humans;

(iii) Other than food, intended to affect the structure or any function of the
human body;

(iv) In finished or ready-to-use dosage form; and

(v) Intended for use as a component of any of the articles specified in clauses
(H, (ii), (iii), and (iv);(d) Materials refer to essential medical and/or life-saving
supplies needed in times of pandemics such as face masks, body bags, personal
protective equipment, and similar supplies or equipment;

(e) Public health emergency refers to an occurrence or imminent threat of
an illness or health condition that:

(1) Is caused by any of the following:
(i) Bioterrorism;

(ii) Appearance of a novel or previously controlled or eradicated infectious
agent or biological toxin;

(iii) A natural disaster;
(iv) A chemical attack or accidental release thereof;

(v) A nuclear attack or accident; or


(vi) An attack or accidental release of radioactive materials; and
(2) Poses a high probability of any of the following:
(i) Alarge number of deaths in the affected population;

(ii) A large number of serious injuries or long-term disabilities in the
affected population;

(iii) Widespread exposure to an infectious or toxic agent that poses a
significant risk of substantial harm to a large number of people in the affected
population;

(iv) International exposure to an infectious or toxic agent that poses a
significant risk to the health of citizens of other countries; or

(v) Trade and travel restrictions; and

(f) Stockpiling refers to an inventory of health commodities and materials
or those physical reserve of definite quantities of commodities or materials that
are stored in government warehouses or on government-owned properties that
are intended for all essential health uses in times of emergencies.

SEC. 4. Creation of a Health Procurement and Stockpiling Bureau. - There
is hereby created a body under the Department of Health (DOH) to be known as
the Health Procurement and Stockpiling Bureau, hereinafter referred to as the
Bureau. It shall serve as the principal agency mandated to undertake a
transparent, fair, proactive, and innovative procurement service for the DOH and
to stockpile, conserve, and facilitate the release of adequate amounts of potentially
life-saving pharmaceuticals, vaccines, devices, and materials in times of public
health emergencies.

SEC. S. Organization. - The Bureau shall absorb the Procurement Service
and Logistics Management Division of the DOH. The Secretary of Health shall
determine the organizational structure and staffing modifications of the Bureau
subject to the approval of the Department of Budget and Management (DBM) in
accordance with the existing civil service laws, rules and regulations.

The DOH shall ensure an effective and efficient monitoring system for the
proper implementation of the procurement and stockpiling of drugs and
medicines, vaccines, devices and materials.

SEC. 6. Functions and Responsibilities, - The Bureau shall perform the
following functions and responsibilities:

(a) Formulate plans, policies, and programs on procurement management;


(b) Undertake the procurement process in accordance with the Government
Procurement Reform Act;

(c) Advise the Secretary of Health on matters pertaining to the procurement
of goods and services, infrastructure and consultancy services;

(d) Manage the Bureau's response activities during a public health
emergency;

(e) Conduct procurement monitoring visits to DOH field offices;

(f) Provide technical assistance to DOH field offices on procurement
matters;

(g) Identify, in consultation with appropriate agencies, strategic and critical
drugs and medicines, vaccines, devices, and materials needed for public health
emergencies that have the distinct capability of being stockpiled in strategic and
secure areas of the country;

(h) Maintain a buffer supply of strategic and critical drugs, medicines,
vaccines, devices, and materials to ensure the availability of these items;

(i) Facilitate the provision of potentially life-saving pharmaceuticals,
vaccines, devices, and materials in times of public health emergencies;

(j) Act as supply-chain manager to ensure the rotation and replenishment
of stocks, and a steady, available, fresh and adequate supply of drugs and
medicines, vaccines, devices, and materials, which are essential in responding to
public health emergencies;

(k) Acquire, release, and properly dispose drugs and medicines, vaccines,
devices, and materials, as directed by the Secretary of Health;

(1) Require all suppliers to monitor their stocks and production capacity and
notify possible supply disruptions at least six (6) months in advance;

(m) Conduct regular analysis and communicate any impending shortage
ahead of time;

(n) Facilitate the creation of a conducive environment to encourage
pharmaceutical and device self-sufficiency for medical supplies needed by the
country by forging public-private collaboration with institutions, sectors and the
industry, which could bolster government efforts to achieve pharmaceutical and
device self-sufficiency;

(0) Make an in-depth study on drugs and medicines, vaccines, devices, and
materials to avoid supply shortage in the country;

(p) Maintain a publicly accessible inventory database of the available
commodities and stocks of all items included in the proposed stockpile, including
the expiration dates of relevant stocks and their purchase prices;


(q) Spearhead the crafting of a multi-sector National Drug and Device
Security Program geared towards the country's self-reliance in producing drugs
and medicines, vaccines, devices, and materials; and

(r) Ensure adequate provision of the appropriate storage and containment
facilities in strategic areas of the country that properly comply with requirements
for room temperature and humidity, refrigeration and non-exposure to heat,
sunlight, rain and moisture.

SEC. 7. Sources. - Consistent with the country’s obligations under
international treaties and agreements, drugs and medicines, vaccines, devices, and
materials may be obtained from domestic or foreign sources and the procurement
thereof shall be open to all eligible suppliers, manufacturers and distributors.
However, in the interest of availability, efficiency, and timely delivery of drugs and
medicines, vaccines, devices, and materials, the Bureau shall encourage the
development of domestic sources to ensure steady, available and adequate supply
of such drugs and medicines, vaccines, devices, and materials that are essential in
responding to public health emergencies, and in such manner as may be allowed
by law, to include countertrade and industrial cooperation to augment stockpiling
and availability of critical materials by:

(a) Purchasing, or making a commitment to purchase, either directly or
through countertrade, strategic and critical drugs and medicines, vaccines,
devices, and materials of domestic origin when such are needed for the stockpile;

(b) Contracting with domestic facilities, or making a commitment to
contract with domestic facilities, for the processing or refining of strategic and
critical drugs and medicines, vaccines, devices, and materials in the stockpile when
processing or refining is necessary to convert such into a form more suitable for
storage and subsequent disposition;

(c) Identifying existing domestic facilities and domestically produced
strategic and critical drugs and medicines, vaccines, devices, and materials to meet
the requirements of public health and essential civilian industries in times of
public health emergency when existing domestic sources of supply are either
insufficient or vulnerable to single points of failure; and

(d) Contracting with domestic facilities to recycle strategic and critical
devices and materials, thereby increasing domestic supplies when such devices
and materials would otherwise be insufficient to meet public health needs.

SEC. 8. Industrial Collaboration Program. - The DOH shall implement an
Industrial Collaboration Program wherein it shall maintain and develop
institutional linkages or partnerships with government and nongovernment
institutions, including the DBM, Department of National Defense, Department of
the Interior and Local Government, Department of Social Welfare and
Development, Department of Finance, Department of Trade and Industry, National


ster Risk Reduction and Management Council, FDA, Bureau of Customs,
Philippine Council for Health Research and Development, Philippine International
Trading Corporation, Government Procurement Policy Board, the Price
Negotiation Board as provided under Section 28(b) of Republic Act No. 11223,
otherwise known as the “Universal Health Care Act”, World Health Organization,
Philippine Red Cross, and other pertinent institutions, concerning the
procurement, management, distribution, and utilization of drugs and medicines,
vaccines, devices, and materials in the stockpile.

SEC. 9, Establishment of Medical Stockpiling Fund and Tax Exemptions.
~All donations, contributions, grants, bequests, or gifts, in cash or in kind, received
from various sources, shall be placed into a fund, to be known as the Medical
Stockpiling Fund. This Fund shall be expended to support the National Drug and
Device Security Program in accordance with existing budgeting, accounting and
auditing rules and regulations.

The DOH may solicit and receive grants, bequests, endowments, donations
and contributions which shall form part of the Fund. Said grants, bequests,
endowments, donations and contributions used actually, directly and exclusively
for the purpose of the Fund shall be exempt from donor’s tax and the same
considered as allowable deduction from gross income for purposes of computing
the taxable income of the donor, in accordance with Section 34 (H)(2) (a) of the
National Internal Revenue Code of 1997, as amended, Likewise, fund raising
activities may be conducted by the DOH and the proceeds of which shall accrue to
the Fund and shall be exempt from any and all taxes.

Receipts from donations, whether in cash or in kind, shall be accounted for
by the DOH in accordance with accounting and auditing rules and regulations. The
receipts from cash donations and proceeds from the sale of donated commodities
shall be deposited with the National Treasury and recorded as a special account in
the General Fund and shall be made available to the DOH through a special budget
pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292. The cash
value of the donations shall be deemed automatically appropriated for the purpose
specified by the donor. Donations with a term not exceeding one (1) year shall be
treated as trust receipts.

The DOH shall submit the quarterly reports of all donations received,
whether in cash or in kind, and expenditures or disbursements thereon with
electronic signature to the Secretary of the DBM, through the Unified Reporting
System, and to the Speaker of the House of the Representatives, the President of
the Senate of the Philippines, the Chairpersons of the House Committee on
Appropriations and the Senate Committee on Finance, and the Chairperson of the
Commission on Audit, by posting such reports on the DOH website for a period of
three (3) years.


The Secretary of Health shall send written notice to the said offices when
reports have been posted on its website, which shall be considered the date of
submission.

SEC. 10. Report to Congress. - The DOH shall submit an annual report to
the Congress of the Philippines, through the Committee on Health of the House of
Representatives and the Committee on Health and Demography of the Senate, on
or before February 15 of each year, detailing its operations under this Act, which
shall include information regarding:

(a) Foreign and domestic purchases of stockpiled drugs and medicines,
vaccines, devices, and materials;

(b) Acquisition and disposal of stockpiled drugs and medicines, vaccines,
devices, and materials; and

(c) Such other pertinent information on the implementation of this Act.

SEC. 11. Appropriations, - The amount for the initial implementation of this
Act shall be charged against the current year's appropriation of the DOH.
Thereafter, the funding of which shall be included in the annual General
Appropriations Act.

SEC. 12. Implementing Rules and Regulations. - The Secretary of Health,
in consultation with appropriate government agencies, shall promulgate the
necessary rules and regulations for the implementation of this Act within sixty
(60) days from its effectivity.

SEC. 13. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, other parts or provisions hereof not affected thereby
shall continue to be in full force and effect.

SEC. 14. Repealing Clause. - All laws, executive orders, presidential
decrees, presidential proclamations, letters of instruction, rules and regulations or
part 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,