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Need for Generic

Medicines

Made by:
Reena Blaire Gonzaga
Martin Christian Ordonez
Owen Nolan Nueva
Chapter 1

introduction
BACKGROUND OF THE
STUDY
• Over the past years, medicines become a major contribution to the improvement of health status
of the patients. Medicines are currently used to treat stroke, cancer, multiple sclerosis, diabetes, arthritis
and many other diseases. Many forms of cancer that were fatal a decade ago have become curable
nowadays. Moreover, other fatal diseases have become manageable for many sufferers. However, these
branded medicines are not affordable and still protected with patents which will be expired in the next
decade. Due to the expiration of the patent of these medicines, these can be made available again but
produced in much cheaper aspect. The production of these new medicines is now called generic
medicines. Indeed, these medicines will undergo serious clinical testing before it can be produced in the
world market.
• According to the Population Commission (POPCOM), “there are 30.6 million Filipinos or 6.12
million families who are suffering from poverty and the population which is 87 million today grows 2.05
percent annually.” Moreover, most of the population is given a very low income per month. Through this,
many people can not afford to buy branded medicines which are so expensive in the Philippines
compared with other countries like India, Afghanistan, and Thailand. The drugs in the Philippines are so
expensive because the government has never been interested in developing a truly independent and
people oriented health care policy. Senator Mar Roxas saw this problem and decided to pass a Senate
Bill No. 1658 which aims to provide quality and affordable drugs. In fact, this Bill has been approved last
October 10, 2007 but until the present time, it is not yet implemented in the Philippines. With the condition
of the Philippines’ economy, people prefer to buy cheaper medicines. Moreover, the production of generic
medicines is indeed the only solution to the problem of the said country.
• There is really a need to conduct a study regarding this subject matter. On the other hand, this
paper focuses on the differences between generic and branded medicines so through this, people will
know if generic drugs are really the alternative solution for high prices of medicines in the Philippines.
Also, this paper discusses if there is really a need for the production of generic medicines in the
Philippines.
STATEMENT OF THE
PROBLEM
• This study aims to answer the
following questions:

– What are generic medicines? Are they


effective?
– Are the medicines in the Philippines very
expensive?
– Do people prefer to buy generic
medicines?
SIGNIFICANCE OF THE STUDY
• Companies of Generic Medicines. Through knowing the country’s
economy, companies will supply more generic medicines that will be
consumed by people who can not afford to buy very expensive
medicines.
• Doctors. They will be aware that most of the people in the
Philippines can not afford to buy medicines so it is better if they will
prescribe generic drugs. Also, they will be informed that some of
generic medicines are safe and effective like branded medicines.
• Future Researchers. This study would be a great help for future
researchers in terms of new and additional information for them.
• Ordinary People in the Society. They will be able to know that
there is a possible alternative for very expensive branded
medicines.
• Scientists. This research paper would be able to make scientists
aware that there is a great need for newly developed generic
medicines to treat certain diseases. Through this, they will give their
best to find out new generic medicines for the society.
SCOPE AND DELIMINATION
• This study aims to know if there is really a need
for the production of generic medicines in the
Philippines. Generic medicines seem to become
an alternative solution for the very expensive
medicines in the Philippines. On the other hand,
respondents that will be involved in this paper are
students from De La Salle University and other
schools like UST, UP and PNU. Indeed, alternative
solution is very necessary because if there would
be no more affordable medicines, death rate
might increase. Moreover, the researchers
believed that medicines are very important to the
health status of every individual because it can
cure, prevent and manage certain kind of
diseases.
MATERIALS AND METHODS
• This research uses descriptive method since
the researchers describe the differences
between generic and branded medicines and
discusses the need of generic medicines in
the Philippines. Picciano (1996) states that
this method is a group that includes many
particular research methodologies and
procedures such as observations, surveys, and
self-reports.
• Information was gathered from various
reference materials such as journal articles
from online sources and books from the
library. In addition, a survey was conducted
from a group of people whose age ranges from
15-35 to strengthen the finding of the study.
Moreover, the lists of the prices of the
medicines were gathered in Medi-Rx, a
medicine company.
DEFINITION OF TERMS
• Branded medicine. A medicine that is so
expensive because of the expenditures of the
company which produces this kind of medicines.
• Generic Medicine. A drug which is produced
and distributed without patent protection. Also
these are being sold in a lower cost of price
compared with branded medicines.
• Medicine. A drug which is responsible in the
maintenance and restoration of human health.
• Patent. A law which protects a product.
CHAPTER 2

DISCUSSION
1.) What are generic medicines?
Are they effective?
• Generic medicines are drugs identical to branded drugs in dosage, form, safety, strength, quality,
characteristics and intended use. However, there are companies which produce illegal generic
drugs. The medicines are illegal because the Government’s standard was not able to achieve. Also,
these medicines are typically sold in a lower cost of price compared with branded medicines.
Moreover, this is the drug being produced when the patent of certain branded medicines expire.
Generic drugs are also distinguished as over the counter medicines. On the other hand, there are
only a few generic medicines that pass the Government’s standard. People believe that this is
becoming one of the cheapest drugs available to treat diseases or sickness.
• There are certain reasons why branded medicines are more expensive than generic
medicines. First, branded medicines are being produced by well known companies. Second, the said
companies have highly cost expenditure allotted for its advertisements. Third, the medicines are
being sold in monopoly basis and so without any competition, the company can sell its medicines at
any price. This shows that people are forced to buy those kinds of medicines because they have no
choice and there are no competing products. Lastly, the cost of medicines is being affected by taxes
given by the Government in certain products. All of the products in a certain country have additional
taxes to pay and this is the reason why the medicines become more expensive.
• There are several insights about generic medicines. In fact, some people said that the
quality of generic drugs is very low compared with branded drugs since these have lower cost of
price and through this price, it affects the quality of the said drugs. Others also said that it requires
a lot of product to take to be able to know if it is effective.
• Generic medicines are hailed as heroes, especially in most depressed areas, because it also
helps you in saving your money. Appropriate use of generic medicines can help to free up resources
for important new advances in medicines. Generic products account for less than 5 percent of drugs
and medicines sold in the country. And this state of affairs persists even in the face of
incontrovertible evidence that the prices of commonly used, branded medicines sold here can be as
much as 10 times higher than the same medicines sold in other Asian countries and, sometimes,
even higher than they are sold in industrial countries like the United States and Canada.
• The costs of these generic drugs are so low that many developing countries can easily afford. This
was developed especially on poor countries in order for the people to afford the price of the
medicines they needed.
2.)Are the medicines in the

Philippines very expensive?
The Philippines is, in fact, second to Japan in having the highest medicine prices in Asia. Medicines in the
Philippines are indeed expensive compared with neighboring countries like Malaysia, Thailand and Indonesia.
As a result three out of five Filipinos get sick without being able to see a doctor at all. In 2005, Filipinos
spending for medicines dropped by 2.2 percent while prices of medicines went up by 10 percent, according
to the PITC. According to the Philippine International Trading Corporation, the cost of medicine in the
country is higher by 40 percent to 180 percent than other Asian countries.

• The local price of the leading mefenamic acid product is P21.82 compared to P2.61 in India and P1.38 in
Pakistan. (Mefenamic acid under the brand name Ponstan costs P20.98 here, but only P2.80 in India and
P1.46 in Pakistan). A 5-mg anti-hypertensive pill costs P44.75 in the Philippines. In South Korea, the same
brand costs only P22.25, while in India and Thailand, the pill costs only P5.15 and P29.85, respectively. (An
anti-hypertensive pill under the brand name Norvasc costs P44.75 here, but only P6 in India). The top anti-
asthma drug sells for P406.75 while India and Thailand sells it for only P83.88 and P230.54, respectively.
While a drug against respiratory tract infection costs P17.75 while it only costs in P.51 in India and P4.63 in
Thailand. Zantac (150 mg) for hyperacidity, costs P33.02 in the Philippines and 82 centavos in India (40.3
times more expensive). Ponstan (500mg) for headache and body pain, costs P24.82 in the Philippines and
P3.22 in India (9.2 times more expensive). Plendil (5 mg) for high blood, costs P21.82 in the Philippines and
P2.69 in India (8.1 times more expensive). Norvasc (5 mg) for high blood, costs P39.07 in the Philippines and
P5.77 in India (6.8 times more expensive). Imdur (30 mg) for chest pains, P18.20 In the Philippines and
P3.72 in India (4.9 times more expensive). Ventolin (100 mcg) for asthma, costs P315 in the Philippines and
P126.78 in India (2.5 times more expensive).

• In further research, it shows that almost 72,000 Filipinos die annually because of heart disease. They die
because of lack of budget for their medicines. Pfizer sells a 10 mg. dose of Norvase for $1.50 (Pesos:
75.00) in the Philippines as against only $.18 in India. Norvase costs 700 percent more in the Philippines
than elsewhere. Pfizer has not even bothered to explain the enormous price difference between what it
sells in the Philippines and the very same product in other countries. It’s no wonder then that the
government is eager, even desperate, to import the drug. It is more expensive because it is being imported
from other countries to the Philippines. Medicines are expensive because successive governments have
never been interested in developing a truly independent and people-oriented health care policy, including
the development of a Filipino drug industry. Ownership and manufacture of drugs are controlled by
transnational oligopolies entrenching import-dependence, “their brand” mentality and sheer commodification
of a vital health and life support. Distribution is likewise cornered by a handful of Filipino businessmen.
Access to medicines has always been under the mercy of market economics dominated by foreign interests,
never in the interest of the Filipino.
Here is the price
list of branded
medicines being
sold by the
company Medi-Rx:
• Through this price list, we can 30

25
see how expensive the 20
Philippines
India

medicines in the Philippines. 15


Pakistan

Compared to other country, it


South Korea
10
Thailand

is fours times expensive. It is 5 Japan

all a sample of branded 0

medicines being sold at Medi


Rx. They are more expensive • We can see in the chart that
Philippines is second to Japan as
compared with generic having expensive medicines. Many
medicines. people are suffering in some kind of
• This chart will show you the diseases due to lack of budget for
their medicines because it was too
differences of the prices of the expensive. Many people just die
medicines in other countries because of their lack of budget for
and the Philippines: expensive medicines.
3.) Do people prefer to buy
generic medicines?
– In order to gain first hand data on the subject,
the researchers conducted a survey with
students in De La Salle University Dasmarinas
and other schools such as University of Santo
Tomas, University of the Philippines and
Philippine Normal University. This was done in
order to gather data about the preference of
people regarding medicines. Survey sheets are
written in English but the use of words is clear
enough for the respondents to give accurate
answers.
– There are 90 respondents in the survey
conducted by the researchers. As a follow-up to
the result, the following graph shows how many
people prefer to use generic or branded
medicines:
The results show that majority
of the respondents prefer to
use generic medicines. There
are 59 percent who prefer
generic medicines and 41
percent prefer branded
medicines. In fact, Celine
Charveriat, head of Oxfam’s
Make Trade Fair campaign, says
that The Philippines has taken
important steps to use public
health safeguards to reduce
the price of medicines and
respond to serious public
health problems (Oxfam Press
Release, 2006). From the
results of the survey, it
appears that generic medicines
may actually be a solution to
the problem of very expensive
medicines which are called
branded drugs.

The researchers also asked the


respondent why they prefer to
buy generic medicines and the
results of the question
relating to these are found in
the graph on the lower left
side:
• As can be seen by the graph,
most people prefer to buy generic
medicines because it is cheaper
compared with branded
medicines. There are 70 percent
from 90 respondents who said
that they buy generic drugs
because it is cheap and
affordable. Due to low income of
workers, more and more people
prefer to buy cheaper and
affordable things to sustain living.
• It is clearly shown that most
of the people believe that generic
drugs might be the solution to the
difficulties they encounter in order
to budget their limited income.
The graph is taken from a survey
with an ordinary factory worker to
show how much is allocated for
basic needs to be able to continue
living:
• It is shown that there is a
greater percentage allocated
with the food which is consider
as the greatest necessity in
life. Meaning, without it, man
can not be able to survive.
Then, there is 20 percent in
transportation, 16 percent in
house bills (water and
electricity) and 16%
miscellaneous. Clothing,
medicine and other things are
included in miscellaneous. In
this data, it shows that there
is a small percentage allocated
for medicine and this in turn
shows that there is a great
possibility that they can not
afford to buy expensive
medicine. Through this,

• Another question which is


optional that is included in the
survey was “What kind or brand
of generic medicines do you
buy?”
• The brand Paracetamol was favored by the majority.
The reason behind this is that Paracetamol has
quality. This shows that generic medicines which are
cheaper compared with branded medicines are also
effective.
• Through the datum being presented, there is really a
need for generic medicines in the Philippines to
become an alternative for very expensive branded
medicines. Since the country is in poverty, people can
not afford to buy what is in need. However, through
the availability of generic drugs, there is a great
possibility that the health condition of each and
everyone will be developed.
Chapter 3

• SUMMARY, CONCLUSION AND


RECOMMENDATION
SUMMARY
• Generic Medicines are drugs which is produced and distributed without
patent protection. Also these are being sold in a lower cost of price
compared with branded medicines. They are popular in many countries
especially the third world countries. Generic Medicines, even though they
are cheap, are also effective. It depends on the company that made it and
the type of medicine itself. The best advantage of using this is its price. Its
price is very low compared to branded medicines. The Philippines is, in fact,
second to Japan in having the highest medicine prices in Asia. It will not be
a big impact on the context of poverty. On the side of the consumers,
people say that they prefer generic medicines rather than branded
medicines. There are 59 percent who prefer generic medicines and 41
percent prefer branded medicines. The most common reason why
consumers prefer to buy generic medicines is because it is cheap. It is the
most common answer because of poverty. People just can’t afford to buy a
branded medicine that’s why people choose to buy generic medicines. It is
also stated that people have a little percentage for medicines on their
budget. These are the reasons why people prefer to choose and make
generic medicines alternatives for branded medicines.
CONCLUSION

Generic medicines are cheaper that branded medicines. They are made to become
alternatives for branded medicines. Their quality and effectiveness is also the same as
the branded medicines. Their difference is just the standards. Branded medicines have
higher standards than the generic medicines. Branded medicines are very expensive
not because of the medicine but because of the name of the company that made it.
The effectiveness and quality of generic medicines also depend on the company that
made it. It also depends sometimes on the type of medicine itself. Some medicines are
really studied and understood only by the companies that make branded medicines. In
Philippines where poverty is everywhere, generic medicines are more preferred by the
people rather than the branded medicines. People just want to use medicines that have
the same effect but cheaper than branded medicines. Generic medicines are also
effective and can do the same thing that branded medicines do. People first consider
the price. If it is cheap, it is only the time that they’ll try its effectiveness and quality.
When it is cheap, it’s better. But some people buy generic medicines because of its
effectiveness. They see generic medicines as cheap version of branded medicines. If
all medicines will be this effective, it will really be a big help for many countries
especially in our country where poverty is very popular. Another reason why Philippines
need generic medicines is because of family budget. On a survey, the budget for
medicine is one of the lowest percentages in their budget. People don’t use money for
their medicine anymore that is why cheaper medicines are really needed here. Another
thing, the medicines in the Philippines are very expensive. People cannot afford to buy
medicines anymore. Philippines really need generic medicines in its poor status today.
RECOMMENDATION
• Generic medicines should be used by Philippines,
generic medicines that are really effective and
have high quality. It will really be a big help for
the Philippines if our country will have
alternatives like this. People should also realize
that even though generic medicines are cheap, it
is not harmful to our health and there are generic
medicines that are effective. People should learn
to be practical and contented. Filipinos should
give generic medicines a chance to prove its
effectiveness and quality. If consumers will not be
satisfied on its effects, then it’s the time to go for
the popular branded medicines.
THE RESEARCHERS

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