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September 1, 2016
The pharmaceutical market in the Philippines is set to grow moderately from $3.4 billion in 2015 to $4.1 billion by 2020, according to research and consulting firm GlobalData.
The company’s latest report states that an increase in health expenditure reflects the government’s interest in supporting the growth of the healthcare sector. Indeed, it has allotted $2.8 billion to the Department of Health in 2016, 42% more than in 2015.
In terms of structure, generic drugs dominate the Philippines pharmaceutical market, accounting for 65% of its revenue in 2014, while patented drugs accounted for 35% of the market.
The reports adds that the Philippines’ open economic system offers significant investment opportunities. The country supports a Build-Operate-Transfer (BOT) investment scheme and has a liberalized economic system, which allows 100% foreign ownership in most sectors.
Additionally, the country is an emerging destination for global clinical trials. According to the US FDA, the number of clinical trials in the Philippines increased by 31% in 2009, the eighth-highest annual growth rate in the world. The $22.6 million investment in research and development in 2013 and the increase in the number of clinical trials provided a significant boost for the healthcare sector.