PHILIPPINE pharmaceutical exports are expected to grow further, boosted by supportive regulation that will enhance quality, Fitch Solutions unit BMI said.
“Improved regulatory standards will boost prospects for Philippine’ medicine exports, enabling expansion beyond neighboring Southeast Asian markets,” it said in a report.
BMI expects pharmaceutical exports to grow to P3.7 billion in 2028 from P2.7 billion in 2023.
The Food and Drug Administration (FDA) reformed the regulatory process for pharmaceutical and active pharmaceutical ingredient exports, in a bid to improve compliance and “rigorously assess the quality, safety and efficacy of products intended for both local and international markets.”
“The FDA decision to tighten drug exporting standards is indicative of a wider movement towards reinforcing drug safety and quality control. This elevation in standards will stimulate export growth in the medium- to long-term,” BMI said.
The report noted that the Philippines exports primarily to other Southeast Asian countries such as Indonesia, Thailand, Malaysia and Singapore.
“The outlook for export growth over the coming years is robust given its low base. Posing upside to the country’s pharmaceutical export potential is the adoption of improved regulatory standards in the coming years which will boost the potential for its pharmaceuticals in global markets,” it added.
Meanwhile, BMI expects pharmaceutical imports to grow at a slightly slower pace. Imports are expected to grow to P161 billion in 2028 from P124 billion in 2023.
“The relatively lower growth rate of imports indicates a gradual reduction in the market’s dependency on foreign pharmaceutical products as domestic production ramps up,” it added.
The government is in the process of reviving domestic manufacturing overall, BMI said.
It noted initiatives such as the FDA working with Philippines Economic Zone Authority (PEZA) to expand pharmaceutical development zones and the government’s target for the domestic pharmaceutical industry to produce 60% of registered medicines.
“We expect these initiatives to attract pharmaceutical companies into the Philippines, contributing to the growth of medicine manufacturing and R&D activity,” it said.
The Philippine pharmaceutical market is expected to grow to P414 billion by 2028 from P335 billion in 2023. — Luisa Maria Jacinta C. Jocson