PHILIPPINE PHARMA PROCUREMENT, INC.


AGENCY BACKGROUND

The Philippine Pharma Procurement, Inc. (PPPI) formerly known as PITC Pharma, Inc. (PPI), is a subsidiary of the Philippine International Trading Corporation (PITC) and an affiliate of the National Development Company (NDC). It is the only pharmaceutical government owned and controlled corporation (GOCC) tasked to provide low priced quality ensured medicines to the Filipino people and to which the pharmaceutical operation of PITC was transferred to.

In July 2016, the corporation officially changed its name to Philippine Pharma Procurement, Inc. to highlight one of its mandate provided for under the Universally Accessible Cheaper and Quality Medicines Act of 2008 otherwise known as Republic Act No. 9502 – that is to establish a common facility for pooled procurement that can be accessed by government entities and other facilities undertaking government programs. 

The corporation was under the Office of the President when it was created in 2005.  On 08 August 2007, Executive Order No. 649 was issued placing the corporation under the Department of Trade and Industry (DTI) and designating the Secretary of the Department of Health (DOH) as Ex-Officio Chairman.  This was amended on 10 April 2008 by Executive Order No. 649-A transferring the corporation to the DOH and retaining the Secretary of Health as the ex-officio Chairman.  On 06 September 2011, Executive Order No. 54 was issued placing the corporation under DTI “to improve policy and program coordination relative to the Government’s procurement and importation of drugs and medicines under RA 9502.”

PPPI is classified under the Human Development and Poverty Reduction Cluster by the Governance Commission for GOCCs (GCG). Its mandate is defined under the Implementing Rules and Regulations (IRR) of RA 9502, wherein PPI has been given the following roles:

1. Undertake direct importation for government agencies and offer the same facility to private parties

  • Chapter III, Rule 16, Section 1 of the IRR states that:
“Except for specific programs and instances allowed by the DOH, for purposes of ascertaining the best and most affordable prices and quality of drugs and medicines to be imported, all government agencies must centrally procure through PPI.”

  • Private parties may opt to avail of PPI’s facility for undertaking “procurement, sourcing and marketing of quality essential and low priced medicines.”

2.    Establish a common facility for pooled procurement

  • Chapter XI, Rule 58 of the IRR states that:
“The PPI or its equivalent agency is authorized to establish a common facility for pooled procurement in compliance with RA 9184.”

3.    Assist in the implementation of cost-containment measures i.e. support hospital pharmacies, making available low cost quality medicines and rational and complete drug treatment packs.

4.    Provide support to the DOH in the determination of the Maximum Retail Price (MRP).

On 25 June 2010, the Government Procurement and Policy Board (GPPB) confirmed that “PPI may act as a servicing agency and that government agencies may directly procure imported medicines from PPI under the alternative mode of negotiated procurement (agency-to-agency agreements).”  It further ruled that PPI may also act as a procurement agent for government entities subject to Section 53.6 of the Revised IRR of RA 9184.

 

HISTORICAL BACKGROUND

In April 2000, Former President Joseph Ejercito Estrada issued a memorandum to the DTI and the DOH Secretaries to undertake measures to reduce drug prices, including undertaking parallel drug importation.  The same year, the Presyong Tama, Gamot Pampamilya Program was launched wherein PITC was tasked to bring in parallel drug imports to serve to the different DOH retained hospitals and local government units.  On 04 July 2005, Former President Gloria Macapagal Arroyo issued Executive Order No. 442 designating PITC as the lead coordinating agency for the Half-Priced Medicines Program.

PPI was created to serve as the corporate vehicle that will implement the Half-Priced Medicines Program of the government.  PPI was initially incorporated in the Philippines on July 13, 1981 as Producers Venture Capital Corporation (PVCC).  PVCC was 60 percent owned by Prime Media Holdings, Inc. and 40 percent owned by the National Development Company (NDC).  On October 19, 2005, NDC bought out Prime Media’s 60 percent ownership, which made PVCC 100 percent owned by NDC.

On November 9, 2005, the Securities and Exchange Commission (SEC) approved the change in PVCC’s corporate name from Producers Venture Capital Corporation to PITC Pharma, Inc., and its primary purpose from that of a financing company to a pharmaceutical firm engaged in the business of research, development, production, manufacture, packaging sale and/or distribution of pharmaceutical products and/or investment and/or management of investments in pharmaceuticals and related commercial ventures.

 On September 12, 2006, the SEC approved the increase in the authorized Capital Stock of the Corporation from P10 million to P100 million divided into one million (1,000,000) common shares at a par value of P100 per share.  The infusion by Philippine International Trading Corporation (PITC) of P22.5 million in common shares, made the Corporation 60 percent owned by the lead coordinating agency to make quality medicine available, affordable, and accessible to the greater masses of Filipinos.

 In 2014, the corporation applied with the SEC for change of corporate name and an amendment to its primary purpose to highlight one its mandate under RA 9502. On November 26, 2015, the SEC approved the change in PPI’s corporate name from PITC Pharma, Inc. to Philippine Pharma Procurement, Inc. as well as the amendment to its primary purpose to include “procurement, sourcing, and marketing of medicine and vaccine requirements, among others, through its common facility for pooled procurement.”

The License to Operate as a Drug Distributor/ Importer/Wholesaler was initially granted to PPI on October 16, 2006 and is valid until 16 October 2016.

 As of December 31, 2015, PPI has a manpower complement of forty nine (49) regular and probationary employees.

 The principal office address of the Company is at 2nd floor, NDC Building, 116 Tordesillas Street, Salcedo Village, Makati City.



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