Direct Sale of Drugs and Medicines by Pharmaceutical Manufacturers/Importers to Hospitals and Clinics
Letter of Instructions No. 213, issued on September 5, 1974, mandates that pharmaceutical manufacturers and importers sell drugs and medicines directly to hospitals and medical clinics at the prices previously charged to distributors and wholesalers. This directive responds to public complaints regarding rising drug prices, particularly in hospitals, largely due to intermediary markups. However, manufacturers and importers must first obtain a certificate from the Price Control Council to ensure the prices are reasonable before proceeding with direct sales. This measure aims to alleviate financial burdens on the consuming public by controlling drug pricing.
September 5, 1974
LETTER OF INSTRUCTIONS NO. 213
| TO | : | The Secretary of Trade |
| The Chairman, Price Control Council |
In view of innumerable complaints that the prices of drugs and medicines not covered by price ceilings of the Price Control Council have risen and become intolerable to the consuming public, and after finding that these price increases, particularly in the case of hospitals, are brought about substantially by the trading of these vital commodities through intermediary distributors/wholesalers who necessarily have to make their commissions, you are hereby directed to immediately implement my earlier verbal instructions that the sale of drugs and medicines by pharmaceutical manufacturers/importers be made direct to hospitals and medical clinics at manufacturers/importers' prices heretofore charged to distributors/wholesalers.
No pharmaceutical manufacturers or importers, however, shall directly sell to hospitals and medical clinics any drug or medicine without first securing from the Price Control Council a certificate attesting to the reasonableness of the prices of the drugs and medicines being offered for sale.
DONE in the City of Manila, this 5th day of September, in the year of our Lord, Nineteen Hundred and Seventy-Four. casia