Pharmaceuticals
Philippines
Overview
(In $ Millions)
2004 2005 2006
Total Market Size 678 773 849
Total Local Production 327 371 408
Total Exports 28 27 31
Total Imports 379 429 472
Imports from the U.S. 22 27 30
Trade Statistics for 2004 and 2005 are official figures. Statistics for 2006 are unofficial estimates. Data on local production is also estimated.
The pharmaceutical market in the Philippines continues to grow, driven by population growth and steady economic improvement. As illustrated above, imports of pharmaceutical products to the Philippines rose from $379 million to $429 million from 2004 to 2005. Drug companies attributed the increase to continued demand for over-the-counter (OTC) and prescription drugs for the maintenance and treatment of diseases with high incidence in the Philippines, including hypertension. For the foreseeable future, the pharmaceutical market is expected to grow by 10% per year.
Due to its status as a developing country, the Philippines will continue to battle poverty-related diseases, such as respiratory tract infections, for the foreseeable future.
Statistical data on local production is estimated. Industry experts report growing activity in local plants as a result of the GRP’s commitment to make pharmaceutical products affordable to the masses.
The leading sources of pharmaceutical products in 2005 were Switzerland (15%), Australia (11%), France (11%), and Germany (10%). U.S. market share was 6%. 85% of pharmaceutical products are sold through drug stores, while 15% are distributed to end users through hospitals and doctors’ clinics.
U.S. pharmaceuticals continue to have strong market presence, because they are well known in the market. The Philippine Bureau of Food and Drugs (BFAD) has adopted a system of drug review and approval patterned after the U.S. FDA.
Drug retailing is among the most profitable businesses in the country. As in previous years, pharmaceutical prices did not increase as fast as the consumer price index as a result of demand and competition among market players.
Pharmaceutical products must be registered with the Department of Health’s Bureau of Food and Drugs (DOH-BFAD). DOH registration requirements may be found at:
http://www.bfad.gov.ph/regulated%20products.htm
Best Prospects/Services
In addition to drugs to combat hypertension, respiratory and cardiac ailments, opportunities exist for U.S. companies in following OTC, prescription and supply categories:
· Heparin and its salts, as well as other human/animal substances prepared for the therapeutic or prophylactic uses;
· Vaccines for veterinary medicine;
· Human/animal blood for therapeutic /anti allergenic preparations, toxins, cultures of microorganisms, and similar products (excluding yeast);
· Medicaments consisting of 2 or more constituents mixed together, as well as medicaments containing adrenal cortex hormones (but not containing antibiotics).
Opportunities
Factors that continue to spur demand for pharmaceutical products are increasing rates of common ailments among Filipinos. These include hypertension, cardiac problems, respiratory ailments, and kidney problems.
Hypertension and kidney failure are results of a poor diet and the Filipinos' preference for salty foods.
Resources
Department of Health: http://www.doh.gov.ph
Bureau of Food and Drugs: http://www.bfad.gov.ph
National Statistics Office: http://www.census.gov.ph
Dey Robles, Commercial Specialist
U.S. Commercial Service Manila
Email: Dey.Robles@mail.doc.gov , Manila.Office.Box@mail.doc.gov