Pharmaceuticals and Healthcare Business in the Philippines
Posted on November 26th, 2008
Ranked tenth (10th) in the BMI’s Q308 Business Environment Ranking of 14 keys markets in the Asia Pacific region, the Philippines illustrates limited opportunities and substantial risks to operate in the country despite the high prices of medicines.
The market size is relatively unremarkable in global terms, having further values threatened by the recently signed Universally Accessible Cheaper and Quality Medicines Act of 2008, formerly known as the Cheaper Medicines Bill.
The progression led BMI to upwardly amend its conjecture for the generics market, which is in 2012 is expected to top US$890mn. Nevertheless, foreign research-based companies will definitely criticize new legislation, as they will lose the right to apply for patents based on recently discovered uses of a known drug and the need to face price caps on various medicines as well as an increase in parallel imports.
Once again, featuring on the Watch List of countries having a problematic intellectual property (IP) environment, the regulation remains in need of development as judged by US drug industry association PhRMA.
Only 30% of the Philippine population enjoy unrestricted access to essential drugs, this situation is unlikely to be improved in the first half of the forecast period at least. Also, the Philippines has one of the lowest investments in health out of any country in the world that will continue to have a negative impact in the development of the pharmaceutical market.
The increasingly challenging operating environment for small and medium-sized (SME) drugstores is some of the problems that the companies are facing that are active in pharmaceutical manufacturing and retail.
One of it key problems is the increasing price of basic commodities that will eventually result in lower spending on pharmaceuticals deemed non-essential items.
A new law agreement of a 20% discount on medicine for senior citizens is another problem. However, drugstores are in agony as the government reimburses a 32% of the discount.
On the brighter side, Philippines is achieving the best results among developing countries in their treatment of childhood diseases and infant healthcare.
