(RPG-003) “BRANDED GENERICS”
“RATED PG” Thursday, 20 September 2007
By Ike Señeres
(RPG-003) “BRANDED GENERICS”
How can a local government unit (LGU) save on its expenses for medical supplies? As I understand it, Thailand has a world class showcase of good governance in the procurement of their medical supplies. They consolidate all the present and future requirements of their government and military, and they buy all their needs in one lot, taking advantage of volume discounts and advanced payment discounts.
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Perhaps they could do it in Thailand where corruption is relatively not as rampant, but could we do the same thing in the Philippines? I think it is possible, but the first challenge to overcome is to know which supplies to buy, given the multitude of choices among the branded and generic options.
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Sans the problem of corruption here, it would be reasonable to assume that all things being equal, the government should buy generic products if only the procurement officials could tell which generic products are of good quality and which ones are not, based on a set of acceptable standards.
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As it is now, the certificate of product registration (CPR) issued by the Bureau of Food and Drugs (BFAD) appears to be the only standard that is being followed. BFAD also issues a license to operate (LTO), a system that controls who could wholesale and retail.
**
Generally speaking, the only difference between branded and generic medicines is the brand itself, an asset that big companies spend on to generate awareness for their products. Apparently, the common denominator between them is the truth about their product qualities, truth that is often unknown to the general public.
**
Although it sounds like an oxymoron, there is such a thing as “branded generics”, which are actually generic products that have gained good reputations over the years. This is the solution, for the government to build a database of these good products, and to buy these products as a matter of policy. Imagine how many millions could be saved if they have this system.
**
For more information about public governance, email iseneres@yahoo.com
By Ike Señeres
(RPG-003) “BRANDED GENERICS”
How can a local government unit (LGU) save on its expenses for medical supplies? As I understand it, Thailand has a world class showcase of good governance in the procurement of their medical supplies. They consolidate all the present and future requirements of their government and military, and they buy all their needs in one lot, taking advantage of volume discounts and advanced payment discounts.
**
Perhaps they could do it in Thailand where corruption is relatively not as rampant, but could we do the same thing in the Philippines? I think it is possible, but the first challenge to overcome is to know which supplies to buy, given the multitude of choices among the branded and generic options.
**
Sans the problem of corruption here, it would be reasonable to assume that all things being equal, the government should buy generic products if only the procurement officials could tell which generic products are of good quality and which ones are not, based on a set of acceptable standards.
**
As it is now, the certificate of product registration (CPR) issued by the Bureau of Food and Drugs (BFAD) appears to be the only standard that is being followed. BFAD also issues a license to operate (LTO), a system that controls who could wholesale and retail.
**
Generally speaking, the only difference between branded and generic medicines is the brand itself, an asset that big companies spend on to generate awareness for their products. Apparently, the common denominator between them is the truth about their product qualities, truth that is often unknown to the general public.
**
Although it sounds like an oxymoron, there is such a thing as “branded generics”, which are actually generic products that have gained good reputations over the years. This is the solution, for the government to build a database of these good products, and to buy these products as a matter of policy. Imagine how many millions could be saved if they have this system.
**
For more information about public governance, email iseneres@yahoo.com
posted by Ike Señeres at 6:13 AM
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