The Fitch Group’s BMI Research projects the market will expand from P352 billion this year to P438 billion by 2029 as multinational players deepen their presence.
AstraZeneca has partnered with the Philippine Economic Zone Authority to launch the country’s first pharmaceutical innovation hub, focused on cancer care, digital health, and research collaboration.
Cheaper medicines
“This partnership with AstraZeneca and PEZA is a significant step towards President Ferdinand R. Marcos Jr.’s goal of making medicines more affordable and accessible,” according to BMI Research.
Other firms like Merck Business Solutions and Royale Life Pharma are also setting up in PEZA zones, reinforcing the Philippines’ role as a key manufacturing hub.
“In the medium term, we expect Philippines to continue maintaining its position as the largest pharmaceutical market in Southeast Asia,” BMI Research said.
Entry barriers
The government is backing the push with tax incentives, pharmaceutical parks, and reforms aimed at lowering drug costs while attracting more foreign investors.
But BMI flagged hurdles, including FDA approval timelines of up to four years, weak R&D funding, and a shortage of skilled researchers. It said addressing these risks will be critical for the Philippines to sustain its regional dominance and deliver on affordable, world-class healthcare.
—Edited by Miguel R. Camus
