EXECUTIVE ORDER NO. 442

WHEREAS, lowering the cost of quality and essential medicines and making these medicines available and accessible to the greater masses of Filipinos is a vital and indispensable pillar of the Government’s Pro-poor Agenda;

WHEREAS, in keeping with this commitment, the Government has now set as one of its main goals under the Medium Term Philippine Development Plan (MTPDP) for 2005-2010 the following specific provisions embodied in Goal 3 (Improved Accessibility and Affordability of Essential Services):

"Reduce by half the cost of medicines through increased and improved distribution, importation through PITC and local sourcing, partnership with the pharmaceutical industry, resolution of patent issues, increased use of generic products, community based initiatives."

WHEREAS, the Philippine International Trading Corporation (PITC), by virtue of E.O. 345 (s. 2004), has been placed directly under the Office of the President to ensure the effective and efficient implementation of this priority program under the President’s 10-Point Legacy;

WHEREAS, It is necessary to define the key responsibilities of concerned government agencies and offices as well as coordinate their efforts in making quality, essential and life-saving medicines available, affordable and accessible to the greater masses of Filipinos and lowering the cost of medicines by at least half of their current prices;

WHEREAS, under the Administrative Code of 1987, the President has the continuing authority to reorganize the administrative structure of the Office of the President.

NOW, THEREFORE, I GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Lead Coordinating Agency. – As the lead coordinating agency to implement this vital government program to make quality and essential medicines available, affordable and accessible to the public, the PITC, in collaboration with the department of Health (DOH), the Bureau of Food and Drugs (BFAD) and the Philippine Health Insurance Corporation (PHIC), shall:

1. Undertake the procurement, sourcing and marketing of quality, essential and low-priced generic medicines needed by the Filipino consumers through parallel drug importations and local sourcing of medicines from reputable and reliable suppliers and ensuring the widest distribution of these medicines nationwide;
2. Establish retail outlets nationwide and supply these outlets with low-priced quality medicines;
3. Develop a stronger partnership with the private sector such as non-governmental organizations, cooperatives, local drug manufacturers and suppliers to ensure a unified approach/strategy for this program; and
4. Issue joint order, guideline or related issuances as may be necessary to carry out the objective of this program.

SECTION 2. Collaborating Agencies. – The DOH and the BFAD shall extend their full support in carrying out the objectives of this program, particularly in the following areas:

1. Drawing up an expanded list of medicines prioritizing those listed in the Philippine National Drugs Formulary (PNDF) that will be sourced and supplied by PITC under this program and facilitating the registration of new products to be sourced/imported by PITC, subject to BFAD’s capacity;
2. Ensuring the quality of the medicines sourced and imported by PITC;
3. Establishing express lanes for the licensing of retail outlets subject to BFAD’s capacity; and
4. Making available PNDF drugs and medicines in DOH-accredited hospitals and the Botika ng Barangays and providing advocacy and networking for the program.

The Philippine Charity Sweepstakes Office (PCSO) shall likewise provide the necessary financial assistance and support to the PITC in the implementation of this vital government program.

SECTION 3. Participation of Other Government Agencies and Offices including Local Government Units. - Government agencies and offices including local government units are encouraged to participate and support this government program by availing of and purchasing low-priced and quality medicines obtainable from PITC for their respective social and health projects.

SECTION 4. Repealing Clause. – All executive orders, issuances, orders, rules and regulations which are inconsistent with this Executive Order are hereby superseded, revoked, amended or modified accordingly.

SECTION 5. Separability Clause. – If any provision of this Executive Order shall be held unconstitutional or invalid, the remainder thereof not otherwise affected shall remain in full force and effect.

SECTION 6. Effectivity. – This Executive Order shall take effect immediately.

Done in the City of Manila, this 4^th day of July, in the year of Our Lord, Two Thousand and Five.

(Sgd.) GLORIA MACAPAGAL – ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary

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