The implementation of the Universal Health Care (UHC) will boost the growth of local pharmaceutical industry which has long been dominated by imports, according to Higinio Porte, president of the Philippine Pharmaceutical Manufacturers Association.
Porte told reporters on the sidelines of the ProPak Philippines press conference in Makati City yesterday, the growth of the pharmaceutical industry should pick up to 10 percent to P300 billion this year, after a 6 to 7 percent increase in 2023.
Porte said the industry has started its collaboration with the Department of Health on how it can increase the sourcing of locally-manufactured medicines which now stand at 5 percent.
In 8 years, the share is eyed to increase to 50 percent, with local manufacturers seen providing anti-tuberculosis medicines.
Porte said the voucher system – where outpatient prescription medicines will be covered – will also be implemented, boosting the growth of the market.
“Government offers the best opportunity to grow the industry. UHC in the next five years will provide necessary health services to the 20 million for the poorest of the poor which will drive the growth of pharmaceuticals. The full implementation of UHC will double the size of the Philippine pharmaceutical market in the next 10 years,” Porte said,
In 2023, the pharmaceutical industry was valued at P257 billion, the second largest in Southeast Asia and about the same size of Vietnam.
Porte said two-thirds of the industry is dominated by multinationals as 69 percent of the market is ethical or prescription drugs.
Imports have been growing faster than locally-made drugs at 11 percent in the past five years, bringing the latter’s share down to 32 percent.
This is lamentable for the industry as 25 years ago, local producers accounted for 40 percent.
Local production is mainly for generic drugs.
Prescription medicines in 2023 grew 10.5 percent to P177 billion.
Cardiovascular medicines account for the bulk at 22 percent. Fastest growing medicines are for anti-diabetes, oncology, OCS (mental health) and anti- rheumatic.
Over-the-counter medicines stood at P79 billion, a benign growth of 0.2 percent from 2022 as the market adjusts from the hoarding of vitamins and supplements during the pandemic years.
