What is parallel importation and how does it bring down the prices of medicines?

Parallel importation (Sec. 7), as applied to the local setting, is when a patented drug is brought into the country by Government or any private third party even without the consent of the patent holder as long as any of the 2 condition is met:

a.  It has been introduced in the Philippines by the patent holder, or

b.  It has been introduced anywhere in the world by the patent owner.

It allows for an importer to “shop around” for a good price for a patented product, bring this into the country and sell it to a more competitive and affordable price than the prevailing price of the same patented product sourced locally from the innovator company.

Example:  a drug sold here at 45 pesos per tablet and sold at 8 pesos in another country, an importer may now bring the quality cheaper medicine in the country and sell it cheaper for our countrymen.