PASAY CITY – A round table discussion conducted by HSBC in partnership with PEZA explored advancements in research and development within the pharmaceutical industry, featuring insights from companies such as Abbott, AstraZeneca, GSK Philippines, I.E Medica, NephroPlus, Transmedic Healthcare, Unilab Laboratories, and Viatris.
This serves as a follow-through to the successful India roadshow last July where Philippine Economic Zone Authority (PEZA) Director General Tereso O. Panga served as one of the key resource persons in the HSBC-led exclusive dialogue with top executives at HSBC Centre last 14 October 2024.
This roundtable session for the C-suite executives of pharmaceutical/healthcare companies in the Philippines aimed at deepening dialogue amongst key industry stakeholders, covering current business landscape, drivers for growth, key challenges and more importantly, the outlook of this critical sector. This matches PEZA’s own goal of promoting pharmaceutical ecozones in the country, potentially making the Philippines the hub of pharmaceutical manufacturing in ASEAN.
During the event, participants highlighted the importance of research and development funding and projects focused on preventive measures for chronic diseases like cancer, pulmonary disorders, and kidney diseases which are amongst the top ten illnesses in the Philippines. According to the group, these efforts are crucial to reduce mortality rates and improve the quality of life for Filipinos.
DG Panga supported the emphasis on prevention and stressed the need to establish local facilities for manufacturing healthcare products and medicines to reduce the country’s import-dependence.
HSBC Philippines President Uppal remarked “The healthcare sector in the Philippines is abound with opportunities. With its young and growing population driving demand for healthcare services and products, it is of no surprise that the Philippines has the second-largest market for pharmaceuticals in Southeast Asia. As a healthy population is a fundamental pillar of economic productivity, HSBC is committed to support the government efforts to grow this sector using our global connectivity. This sustainable growth in the pharmaceutical industry requires strong collaboration across government and private sector where HSBC is delighted to play our part.”
“On the level of the value addition which can take place on import substitution, I strongly encourage investing because when you’re inside the base or ecozone, it really does help with their ease of doing business because PEZA has its own rules, which you can benefit from once you’re inside.” he added.
Leveraging PEZA’s strong focus on the pharmaceutical sector given President Ferdinand Marcos Jr.’s aim and goal to lower the cost of medicines for Filipinos, including insights from the previous India roadshow, the PEZA Chief highlighted the investment and incentive opportunities PEZA offers to drive growth in the healthcare industry.
DG Panga further underscored the growing potential for foreign direct investments (FDI) in this sector with the ratification of the CREATE MORE Bill, which offers an attractive incentive package, alongside the Tatak Pinoy Act and pending pharmaceutical bills like the proposed Pharma Act and amendments to the Universal Healthcare Act—all of which are focusing on creating forward and backward linkages and encouraging Philippine-based companies to manufacture healthcare products for both local consumption and export.
In line with this, PEZA ecozones are well-positioned to support these initiatives, with the first dedicated pharmaceutical park established in Victoria Industrial Park, Inc. last 31 July 2024 in Tarlac. Additionally, the mutual recognition arrangement with the Food and Drug Administration (FDA) enhances collaboration by streamlining the issuance and processing of permits. This synergy creates a conducive environment for pharmaceutical innovation and production, making it easier for companies to operate efficiently in the Philippines.
PEZA Director General Panga stated, “In all these advantages, we hope to see you actually operating in the first pharma park in Tarlac, where enhanced R&D, technology transfer, and local patent registration will foster a complete ecosystem, enabling the country to manufacture its own medicines and ensure access to affordable, high-quality medical products and healthcare for all Filipinos.”
PEZA currently hosts 27 companies involved in pharmaceutical and medical device manufacturing with projected exports of US$299.93 Billion, with many more expected to follow. To drive expansion, PEZA’s upcoming trade missions for the remaining months of the 2024 aim to attract global pharmaceutical firms and position the Philippines as a leading player in the advanced pharmaceutical sector within the region.