COVID-19 test machine distributor denies allegations of overpricing, monopoly

OMNIBUS Bio-Medical Systems Inc. has denied allegations that it has hoarded and sold overpriced coronavirus disease 2019 (COVID-19) testing equipment and kits to the national government.

“There is no truth to the reports that the company directly sold Sansure Polymerase Chain Reaction (PCR) machines and test kits to the Department of Budget and Management (DBM), the Central Office Bids and Awards Committee-Department of Health (DoH), and PhilHealth,” the company said in a statement.

Omnibus, the local distributor of medical equipment from China-based company Sansure Biotech Inc., said the confusion over the prices of COVID-19 testing machines happened when general statements were made.

“The allegations failed to note that the company was actually offering packages with different inclusions for clients,” the company said.

Omnibus said that when it facilitated the sale of a Sansure machine for Go Negosyo’s Project Ark, the price was $35,000 or around P1.75 million.

“This was done via a free on board or FOB arrangement. Go Negosyo was the one who paid the additional costs for air transport, destination charges, storage, and warehousing,” the company said.

Omnibus said it offered a similar machine to the DBM’s procurement service on April 23.

The ready-to-use package, priced at P4.3 million, included 25,000 NATCH consumables, which are the plastics used to carry out the ribonucleic acid (RNA) extraction.

“It also included costs such as air transport, destination charges, storage, warehousing, local delivery fees, and warranties, among others,” the company said.

Omnibus said it offered another package to the DBM on May 6.

The offer, which was a promotional letter, amounted to P4 million and included marketing materials for budgetary and reference quotations.

“It was a slightly lower price because the machine and NATCH consumables were priced separately. That was the only difference. All other additional costs were included,” the company said.

The company said it was operating within a difficult delivery scenario and was rushing to accomplish everything in a short delivery period.

Taking into account all the challenges, the company said costs added up to P4.3 million for the machine with PCR consumables, and P4 million for the machine only.

“We stand by our statement that we offered a fair price for both packages mentioned,” the company said.

Meanwhile, Omnibus also denied allegations of monopolizing PCR machines and COVID-19 testing equipment and kits.

“Anyone can easily confirm that they only distribute one of the brands available in the market. Omnibus is the exclusive distributor for the Sansure brand only,” the company said.

According to Omnibus, the Food and Drug Administration has confirmed that there are around 45 approved brands for PCR-based testing.

Even with the claimed exclusive distributorship of Sansure products, Omnibus said there are at least three other companies selling similarly branded products in the Philippines.

In addition, Omnibus said that it lost the bid for the COVID-19 test kits and does not have an existing business transaction with the DBM, DoH, and PhilHealth with regard to test kits and medical equipment.

“We value our customers and will never engage in profiteering, hoarding, or blackmailing. We stand on two decades of hard work and service commitment to our stakeholders through the selfless dedication of our employees,” the company said. — Revin Mikhael D. Ochave