The Philippines: Pharmaceuticals Pharma Market in the Philippines to Reach 3.7 Billion Dollars in 2025: Global Data
Global Data has revealed that measures such as the Universal Health Care Act and regulatory tax reforms in the Philippines have opened up new opportunities for the Indian pharma industry in the island country.
UK – The introduction of the Universal Health Care (UHC) Act coupled with business and corporate tax regulatory reforms in the Philippines is likely to open up new avenues for the Indian pharma industry, says Global Data, a leading data and analytics company.
Global Data’s report, ‘Country Focus: Healthcare, Regulatory and Reimbursement Landscape – Philippines’, reveals that the pharmaceutical market in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 4.65 % to reach 3.7 billion dollars* in 2025.
The UHC Act was introduced in February 2019 in the Philippines to ensure ‘100 % population coverage’ under the National Health Insurance Program (NHIP). According to the Department of Health (DOH), Philippines, the total healthcare budget for the implementation of the UHC Law in 2019 is 5 billion dollars versus 3.3 billion dollars in 2018.
Sasmitha Sahu, Pharma Analyst at Global Data, comments: “The introduction of the UHC Act has increased the outlook on healthcare spending. While the innovator pharmaceutical space in the country is dominated by the subsidiaries of key US and EU companies, India can look to maintain its dominance in the generic pharmaceuticals space against this backdrop.”
Global Data’s research reveals that India was the top import partner of the Philippines in 2018, contributing 12.6 % of the total pharmaceutical imports into the country. In 2018, generics accounted for 76 % by volume of the total pharmaceutical market in the country.
According to the Embassy of India in Manila, India’s pharmaceutical exports to the Philippines increased from 197.32 million dollars in FY2017-18 to 220.98 million dollars in FY2018-19.
Sahu explains: “The Philippines’ pharmaceutical market is import-driven. Indian generics, which entered the Philippines after the introduction of the Generics Act of 1988, have witnessed an upward uptake trend due to their equivalent or superior efficacy at lower prices.”
Additionally, the Philippines introduced corporate tax reforms in 2019 applicable to both domestic corporations and Philippine operations of foreign companies apart from the ‘Ease of Doing Business and Efficient Government Service Delivery Act’ implemented in 2018 to improve business transactions.
Sahu continues: “As the Philippines looks to capitalise on the Indian generics expertise, its President had recently extended invitation to the Indian pharma companies to set up pharmaceutical manufacturing plants in the country. Many notable pharmaceuticals events and workshops were already conducted by the Indian Government and pharma bodies in this direction.”
According to Global Data’s Country Risk Index (GCRI), the Philippines moved up four places in the third quarter (Q3) of 2019 and there is manageable risk of doing business in the country.
Sahu concludes: “Apparently this is a mutualistic scenario. Indian generic companies can leverage the current favourable investment and economic conditions to gain greater market share by setting up local units. At the same time, the Philippines can provide uniform standard of healthcare services to the entire population at an affordable cost.”
*Historic currency exchange rate at the time of report generation.