Philippines

The fast-growing population and the progressive

government investment in healthcare are boosting
the pharmaceutical industry in the country

Risk and reward index

48.6 42.7 14 69
Industry Rewards Industry Risk Regional Rank Global Rank

Note: Scores out of 100; higher score = lower risk. Source: Fitch Solutions’ Innovative Pharmaceuticals Risk/Reward Index

Key foreign players

1 AstraZeneca 2 GlaxoSmithKline 3 Novartis 4 Merck & Co

5 Pfizer 6 Sanofi 7 Takeda 8 Johnson & Johnson

Strengths

Government Strong local Great efforts to

committed to pharmaceutical manufacturing suppress counterfeit
expand universal market growth sector drugs
healthcare
coverage

Vast regional
Challenges
Financial
sustainability disparities in
of the healthcare
healthcare coverage and
system access

Uncertain Low levels of

pricing intellectual
regulation property
protection

Forecast ■ Pharmaceutical sales, USDbn ■ Pharmaceutical sales, % of GDP

0.73
4.5
0.79 0.76
0.87 0.83
4
0.96 0.92
3.5

2.5

1.5

0.5
3.207 3.373 3.456 3.619 3.827 3.998 4.173
0

2018 2019 2020 2021 2022 2023 2024

Source: Philippines, Pharmaceuticals & Healthcare Report Q2 2020, Fitch Solutions

Regulations
Pharmaceutical registration and regulations are overseen by the Philippines Food and Drug
Administration (FDA), under the Department of Health.

Every imported pharmaceutical must be registered with the Philippines FDA prior to market entry.

Foreign drug companies account for a substantial percentage of the Filipino pharmaceutical
market. Furthermore, with the implementation of universal healthcare, sales growth
opportunities for foreign drug companies should increase considerably.