SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
Second Regular Session 
)
S E N A T E
S.B. No. 
1582
Oftirr 
ilT ; 
•l-’ f;.’
•17 
SEP 11 
P3-.36
Intro d u ce d  by Sen. Juan M iguel F. Zubiri
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
Nine years after the enactment of Republic Act 9502 or the Universally 
Accessible Cheaper and Quality Medicines Act of 2008, achieving its primary 
objective of ensuring sustainable access to affordable essential drugs and 
medicines remains to be elusive. Not discounting the great advances made by 
the Philippine government since the implementation of this law, improvements 
are still needed to achieve the goal of ultimately lowering the prices of drugs and 
medicines and broadening the list of drugs and medicines that can be subjected 
to price regulation.
This bill aims to introduce amendments to eliminate the circuitous 
procedure of lowering the prices of essential medicines found in the current law 
by creating a Drug Price Regulatory Board, which will be tasked to, among 
others, regulate the prices of drugs and medicines in the country.
In view of the foregoing, passage of this bill is earnestly sought.
N MIGUEL F. ZU BIR I


SEVENTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
S E N A T E  
S.B. No.
' • K  
tOffirr ol U*« 
,1 'If'T
*17 
SEP 11 
P3*-36
niciiu
Introd uced by Sen. Juan M iguel F. Zubiri
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 the House o f Representatives o f the Philippines in 
Congress assembled:
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SECTION 1. Chapter 3 of Republic Act No. 9502 will now be titled, "Drugs And 
Medicines Price Regulatory Board."
SECTION 2. Section 17 to Section 22 of Republic Act No. 9502 will be amended 
to read as follows:
SECTION 17. Creation and Composition o f 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 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;
(5) 
One (1) economist from the academe as member; and
(6) 
Two (2) representatives from the consumer sector as 
members.
(b) The members of the Board representing the academe and the 
consumer 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 
consumer sector shall not be eligible for reappointment for another term.
SECTION 18. Powers o f the Board. - The Board shall have the following 
powers:


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(a) Power to Determine the Maximum Retail Price of Drugs or Medicines 
Subject to Price Regulation -
(1) Upon application or motu propio when the public interest so 
requires, the Board shall have the power to regulate the retail prices of 
drugs and medicines listed under Section 19 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 effectivity of this Act and 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.
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.
(bj Power to Include Other Drugs or 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 19 
thereof.
(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 is not limited to, competitive 
bidding, price-volume negotiations, and other appropriate mechanisms 
that influence supply, demand, and expenditures on drugs and medicines.
(dj Power to Impose Administrative Fines and Penalties -  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 Fifty Thousand pesos 
(P50,000.00) nor more than Five Million pesos (P5,000,000.00) for violations of 
the maximum retail price fixed pursuant to this section.


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SECTION 3. Delete Section 19 to Section 22 and renumber the succeeding 
sections accordingly.
SECTION 4. The renumbered Section 22 will be amended to read as follows:
SECTION 22. Display o f Price Fixed by the Board fo r Drugs or 
Medicines Subject to Price Regulation. -
(a) Within a reasonable period as may be determined by the Board, and 
Provided, That it confronts 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 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, importer, or trader shall issue a price list to wholesalers, 
distributors, retailers and to the Board, indicating the retail price, the maximum 
retail price, and such other information as may be required by the Board.
SECTION 5. Insert a new Section 23 and renumber the succeeding sections 
accordingly. The new Section 23 shall read as follows:
SECTION 23. Display o f Price List o f Drugs o r 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 19 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 a green strip.
SECTION 6. Chapter 8 on Miscellaneous Provisions will be amended to read as 
follows:
Chapter 8: Amendments to Republic Act 9994 or the Expanded Senior 
Citizens Act of 2010.
Section 42. Exemption o f drugs and medicines under price 
regulation from  the "Expanded Senior Citizens A ct o f 2 0 1 0 "- Drugs and 
medicines under price regulation as fixed by the Board will not be included in the 
grant of twenty percent (20%) discount and exemption from the value-added tax 
(VAT) to senior citizens availing the provisions of Republic Act 9994 or the 
"Expanded Senior Citizens Act of 2010."
SECTION 7. Separability Clause. -  Any portion or provision of this Act that 
may be declared unconstitutional or invalid shall not have the effect of nullifying


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Other portions and provisions hereof as long as such remaining portions or 
provisions can still subsist and be given effect in its entirety.
SECTION 8. Repealing Clause. -  All laws, decrees, executive orders, 
proclamations and administrative regulations or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly.
SECTION 9. E ffectivity Clause. — This Act shall take effect fifteen (15) days 
after its publication in at least two national newspapers of general circulation.
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Approved,
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