Let us give cheaper medicines a chance

In theory, price controls have no place in a free market economy. The idea is simple: let supply and demand determine market prices, and let healthy competition do the rest.

In such an ideal world, the government would play referee, not participant. Suggested Retail Prices (SRPs), for instance, should logically be set by manufacturers or distributors—not by government agencies. And yet, as with many things, theory doesn’t always line up with reality.

In the Philippines, the concept of the Maximum Suggested Retail Price (MSRP) appears to be something of a local innovation. It’s not widely seen—or even recognized—in other countries. While the term “suggested” implies a degree of flexibility, the inclusion of “maximum” adds a controlling tone that veers uncomfortably close to a mandated ceiling. This duality conflicts with the principles of a free market economy, where private businesses ideally have the autonomy to price their products based on value, cost, and demand. This raises a fundamental question: Should the government be setting SRPs or MSRPs on products it does not sell?

My position is that it should not—unless there is a specific law allowing it. Otherwise, this would be a contradiction of free market principles. But there are exceptions. When the government assumes the role of a distributor—like in the case of Kadiwa stores or the National Food Authority (NFA)—then setting SRPs makes sense. The government is both seller and regulator in such instances, and thus within bounds to set prices to protect public welfare, as an exemption, not as a rule.

In the case of medicines, however, things become more complex. The Universally Accessible Cheaper and Quality Medicines Act of 2008 (RA 9502) gives the President, upon recommendation of the Department of Health (DOH), the authority to impose Maximum Drug Retail Prices (MDRPs). This is a legal tool meant to regulate the cost of medicines that treat diseases which are the leading causes of morbidity and mortality in the country. The goal is noble: to make life-saving treatments more affordable and accessible.

Still, even with this law, implementation seems uneven. I was surprised to see that a medicine like Xagulant (Apixaban), manufactured by Viatris, Inc., carries a clear label stating: “Retail price should not exceed PHP91.17 under drug price regulation.” That’s admirable transparency. But I can’t help but ask: Is it just me, or are there a lot of other medicines under this law that don’t carry similar notices? Where’s the uniformity?

Even more intriguing is what my doctors have told me. One admitted that, aside from generics, there are other branded alternatives to my prescribed medicines that are just as effective. Another introduced me to the concept of “branded generics”—medications that sound contradictory in name but are essentially high-quality generics manufactured by reputable firms. They may not carry the cachet of top-brand drugs, but they work just as well, often for a fraction of the cost. Here lies an opportunity. If people were better informed about these branded generics—who makes them, how they perform, and where to find them—we might finally see a meaningful drop in out-of-pocket medicine expenses.

These alternatives are already on the market. What’s missing is awareness. So why not launch an information campaign? One that makes use of social media, public health platforms, and even community outreach. If given the resources, I would gladly take part in this mission. The point is to arm the public with knowledge, so they can make informed decisions—not just depend on whatever brand their doctor or pharmacist happens to mention.

Yes, we should strive for a free market economy. But we must also recognize that health is not just a commodity—it’s a right. And when the system doesn’t deliver, responsible regulation becomes necessary. So, let us give cheaper medicines a chance. Let’s demystify “branded generics”. Let’s demand transparency in price labeling. Let’s inform, educate, and empower. After all, good health shouldn’t be a luxury. It should be an accessible choice for every Filipino.