OPINION
Advocates Philippines
The Generics Act Of 1988: A Promise Unfulfilled?
FILE
In 1988, Republic Act No. 6675, better known as the Generics Act, was signed into law. On paper, it was a landmark piece of legislation and a beacon of hope for millions of Filipinos struggling under the weight of exorbitant healthcare costs.

The law was envisioned as a two-pronged solution to a deeply entrenched problem. First, it was meant to be a milestone for affordable healthcare. Second, it was designed to shatter the stranglehold of monopoly pricing by large pharmaceutical companies, fostering a competitive market that would benefit the ordinary citizen.

Decades later, as we navigate a healthcare landscape still rife with challenges, it's worth revisiting the spirit of this law and asking a difficult question: What happened to the promise?

A Milestone for Affordable Healthcare

The core premise of the Generics Act was simple yet revolutionary: promote, require, and ensure the production, adequate supply, distribution, use, and acceptance of drugs and medicines identified by their generic names.
The logic was sound. By promoting generic drugs, which are therapeutically equivalent to their branded counterparts but sold at a fraction of the cost, the law aimed to make essential medicines accessible to all Filipinos, regardless of their economic status.

For the first time, there was a legal framework empowering patients and consumers. The law mandated that all medical prescriptions include the generic name of the drug. This was a critical step toward demystifying medicine. It gave patients the power of choice, allowing them to opt for a more affordable, equally effective alternative to the expensive branded drugs they were accustomed to. In theory, this should have drastically lowered the financial burden of healthcare, transforming it from a luxury into a basic, attainable right. The hope was that no Filipino would have to choose between buying medicine and putting food on the table.

Breaking the Chains of Monopoly

Beyond individual savings, the Generics Act had a grander, systemic ambition: to introduce genuine competition into the pharmaceutical industry. For years, the market had been dominated by a few powerful multinational corporations that dictated prices, leaving consumers with little to no alternative. Branded medicines were priced not based on the cost of production, but on the perceived value created by massive marketing and advertising budgets.

The Act was supposed to be the great equalizer. By creating a parallel market for generic drugs, it would force a price war based on value and efficiency, not on brand recognition. The influx of affordable, quality-assured generics was expected to compel originator brands to lower their prices to remain competitive. This market disruption was meant to be the dawn of a new era, one where the Filipino consumer, not the pharmaceutical giant, held the power. The expectation was a vibrant, multi-layered market where competition would naturally drive prices down across the board, making the entire healthcare ecosystem more equitable.

The Lingering Question

Yet, today, the high cost of medicine remains a primary concern for the average Filipino family. While generic drugs are widely available, the promise of a truly competitive and affordable market has not been fully realized. The dominance of branded medicine, supported by aggressive marketing to both doctors and consumers, continues to influence prescribing and purchasing habits. The hope that competition would break the back of monopoly pricing has been met with the harsh reality of a complex and resilient industry.

The Generics Act of 1988 laid the perfect foundation. It was a testament to a government that recognized a fundamental injustice in its healthcare system and had the political will to address it.

However, the journey from legislation to tangible, widespread impact is a long and arduous one. The law was the first, crucial step, but the path to truly affordable healthcare for all remains a road we are still traveling.
Sep 18, 2025
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