THE PHILIPPINES PLANS TO CUT GENERIC DRUG COSTS

The government of the Philippines has entered into an agreement with Interphil Laboratories, a local subsidiary of the Zuellig Group, for the manufacture and distribution of low-cost generic drugs.

Up until now, locally produced generics have been sold at a price too high for most Filipinos to afford, according to the government's Philippine International Trading Corp. This new deal will cut generic drug costs by approximately 50 percent, according to a government announcement. The agreement, which was given a three-year implementation period, covers roughly 20 generic drugs.

The deal is part of the government's new healthcare development agenda, which includes expanding the number of products available, expanding the distribution network and launching an advocacy and information campaign. The program's main objective is to reduce the prices of commonly used drugs to half of their the current cost by 2010.

The Zuellig Group's pharmaceuticals arm, based in Hong Kong, is the leading distributor of healthcare and pharmaceutical products in Asia, according to the company's website.