[no subject]

["Pharmaceutical and Healthcare Association of the Philippines"]

<phap7346@info.com.ph>
Subject: [e-drug] Re: Prices of essential drugs in developing countries (cont'd)
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E-drug: Re: Prices of essential drugs in developing countries (cont'd)
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Dear e-druggers:

Having come across communication on pricing of essential drugs in the 
Philippines, we feel compelled to correct some of the erroneous information 
being disseminated.

  a.. The statement that "It is notable that after the reduction in 
tariffs, there was no noticeable decrease in drug prices..."  does not take 
into account the fact that while tariff rates were reduced by 10-15%, the 
Phillippine peso has deteriorated, vis-a-vis the US dollar, by about 35% 
since 1997.
  b.. Based on financial data submitted to the Securities and Exchange 
Commission, 26 pharmaceutical companies listed among the top 1,000 
corporations in the Philippines had average after tax net income of 5.3% in 
1998 and 7.6% in 1997.  1999 data are not yet available.
  c.. The dominant distributor being alluded to charges only 6-10% 
distribution fee and not 15%.
  d.. The government no longer purchases from "middlemen/traders"; they 
deal directly with manufacturers through tenders.

Leo P. Wassmer, Jr.
Executive Vice-President & CEO
Pharmaceutical and Healthcare Association of the Philippines (PHAP)
phap7346@info.com.ph

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