The Market Monitor Minding the Nation's Business
The entry of more pharmaceutical players setting up hubs in the Philippines is expected to boost the country’s goal of becoming a regional center for research, digital health, and manufacturing, a new report said Friday.
Market analyst BMI, a unit of Fitch Solutions, said the planned establishment of the first Pharma Innovation Hub, alongside the existing operations of Merck Business Solutions and Royale Life Pharma in Philippine Economic Zone Authority (PEZA)-accredited zones, underscores the country’s strong position as a key pharmaceutical manufacturer in Southeast Asia.
“In the medium term, we expect the Philippines to maintain its position as the largest pharmaceutical market in the region,” the report noted.
BMI projected the local pharmaceutical market to grow from P352 billion (USD6.1 billion) in 2024 to P438 billion (USD7.5 billion) by 2029, at a five-year compound annual growth rate (CAGR) of 4.5% in peso terms and 4.1% in dollar terms.
Last week, the Department of Trade and Industry announced a partnership between PEZA and AstraZeneca Pharmaceuticals (Philippines) for the Pharma Innovation Hub. Its initial focus will be an oncology innovation center modeled after AstraZeneca’s UK facility.
The project will leverage artificial intelligence for early cancer detection, expand patient-support systems, build healthcare workforce capacity, and promote evidence-based policy development.
BMI, however, flagged possible risks to growth, including a lack of financial resources, shortage of skilled professionals for advanced pharmaceutical research, and regulatory challenges.