The Philippines is emerging as a potential pharmaceutical hub in Southeast Asia as new investments flow into the country’s economic zones. BMI Country Risk & Industry Research cited recent initiatives by AstraZeneca, Merck Business Solutions, and Royale Life Pharma as key drivers of this trend.
Recently, the Department of Trade and Industry confirmed that AstraZeneca Pharmaceuticals Philippines Inc. will invest more than PHP 7 billion, or about USD 119 million, to establish the country’s first pharmaceutical innovation hub. The facility will serve as a regional center for digital health technology, research and development collaboration, and patient-focused health solutions. Its initial project will be an Oncology Innovation Center modeled after AstraZeneca’s hub in the United Kingdom.
According to BMI, the Philippine government is working to enhance the pharmaceutical sector by improving regulations and promoting specialized economic zones dedicated to pharmaceutical manufacturing. The Philippine Economic Zone Authority is developing pharmaceutical parks aimed at lowering medicine costs through local production. Companies operating in these zones can benefit from incentives such as a reduced corporate tax rate of 20%.
BMI projects that the Philippines will continue to hold the largest pharmaceutical market in Southeast Asia. However, it also noted challenges. Regulatory processes remain a barrier, with the Food and Drug Authority’s 254-day target for approvals often stretching to two to four years, delaying new product entry. Structural constraints also limit the country’s ability to attract and sustain advanced pharmaceutical research and development.
(Source: Philippine Daily Inquirer)
