TERESITA Sederiosa spends about P300 a day for five “maintenance medicines” to regulate her sugar level and heart function. Too much, the public school teacher says, to be drawn from a government paycheck.

The government’s issuance of Administrative Order 2008-001 will change that, or so the 59-year-old resident of Cebu City hopes.

“The more I think about the situation now, the more I get stressed and the more I need the medicines,” she said, half humorously.

AO 2008-001, jointly issued by the health department, the Intellectual Property Rights Office and the Bureau of Food and Drugs (Bfad) Tuesday last week, implements Republic Act 9502 or the Universally Accessible Cheaper and Quality Medicines Act of 2008.

The law authorizes the President to impose a maximum retail price (MRP) for medicines, including those used for treatment of “chronic illnesses and life-threatening conditions.”

Once the law is fully implemented, companies will be prohibited from selling their products beyond the MRP, which will be stamped on the red strip and printed as a label of the medicine container.

Pricing at the level of the manufacturer, trader, distributor and wholesaler are to be adjusted accordingly.

“Upon effectivity of the MRP, no retailer shall sell drugs and medicines at a retail price exceeding the MRP approved by the President of the Philippines,” the rules state.

Those found selling products beyond the MRP will be slapped a fine between P50,000 and P5 million.

Market competition is seen as a contributor to the full implementation of the MRP policy.

AO 2008-001 declares that the government, one of the largest purchasers of medicine, will hold its bidding strictly using “generic terminologies.”

All government physicians, including private practitioners having patients or holding clinics in government hospitals and government doctors who have been allowed part-time private practice, are barred from prescribing drugs by brand.

Private medical, dental and veterinary practitioners are encouraged to prescribe drugs using generic names, albeit still allowed to include specified brands “if so desired.”

Manufacturers have long been directed to include the generic names in the packaging of their products.

But AO 2008-001 takes it a step further.

Other than the generic names, manufacturers are now asked to add the remark: “This product has the same therapeutic efficacy as any other generic product of the same name. Signed Bfad” or “This product has the same therapeutic efficacy as the innovator product of the same generic name” in their packaging.

Every drug manufacturing company operating in the country will now be required to produce, distribute and make available unbranded generic counterparts of their branded product.

The only downside to the MRP is that it isn’t automatic.

According to its implementing rules and regulations, it will only be imposed when deemed necessary by the President and shall be in effect for so long as “the situation may warrant.” (KNR)

For Bisaya stories from Cebu. Click here.(November 12, 2008 issue)Write letter to the editor.Click here.