Local pharmaceutical firms set to expand

MANILA, Philippines – Local pharmaceutical companies announced they will be growing faster than multinational firms as more patents are set to expire this year.

Pharmaceutical sales by local drug companies are expected to grow by 12 percent this year compared to the four percent growth projection of multinational drug companies.

The Pharmaceutical and Healthcare Association of the Philippines (PHAP), composed of more than 50 Filipino and multinational drug manufacturers, distributors and retailers, said that the continued resilience of the local pharmaceutical companies is due to the strong market competition following patent expiry of pharmaceutical products.

The combined growth projection for the pharmaceutical industry stood at seven percent for this year. In 2008, the total Philippine pharmaceutical industry was valued at P116 billion and posted a 10.18 percent growth.

“Market competition is evident with the strong growth of the local pharmaceutical industry. This growth is driven by the entry of more generics due to patent expiry of several products in the last two to three years,” said PHAP executive director Reiner W. Gloor.

According to Gloor, the wide availability of generic medicines have empowered the doctors and patients to choose the medicines that will be appropriate to them and such resulted in greater number of people using generic medicines.

He added that PHAP member companies maintained that the proposed maximum retail price (MRP) should be used only as reserve instrument as provided under RA 9502 otherwise known as the Universally Accessible Quality and Cheaper Medicines Act.

“Its imposition is not necessary given the existing market competition and wide availability of alternatives in the same therapeutic classes included in the initial MRP list,” said Gloor.

PHAP also noted that there will be more generic competition as several patents expire in the next few years. For 2009, market share of the local pharmaceutical companies is projected to rise to 38 percent and the upward growth trend is expected to continue until 2010 onwards.