Local drug makers want to raise share in government procurement

MANILA, Philippines — Local pharmaceutical manufacturers want to increase their share in medicines procured by the government to 50 percent in the next six to 10 years.

Speaking at a briefing on the government’s initiatives on medical drug and device manufacturers, Philippine Pharmaceutical Manufacturers Association (PPMA) president Higinio Porte Jr. said the group wants to increase its share in government procurement to 50 percent in the next six to 10 years from around less than five percent at present.

He said the total pharmaceutical market was valued at around P270 billion last year.  “So five percent of that is what we are getting,” he said.

He told reporters that the group sees opportunity in increasing its share in government procurement as the Department of Health (DOH) plans to implement the outpatient drug benefit in line with the implementation of the Universal Healthcare Program next year.

At present, he said government procurement only covers in-patient medicines.

“We want to take that opportunity for local manufacturers to bid for the government requirement and supply to the drugstores that will be accredited later on by the DOH for the outpatient drug benefit,” he said.

Porte said most of the medicines procured by the government are imported because these are cheaper.

“How do we address that? By leveling the playing field in terms of regulation,” he said.

Porte said this can be done by strengthening regulations to ensure the quality of medicines being imported by the country.

Among the initiatives being pushed by the PPMA is the implementation of the Pharmaceutical Inspection Cooperation Scheme, which aims to harmonize inspection procedures by developing common standards on good manufacturing practices of medicines among its participating regulatory authorities.

Also being pushed by the group is pooled procurement.

Porte said this would make local manufacturers more competitive with the greater quantities to be required.

Among the government initiatives to encourage investments in the pharmaceutical industry in the country is to establish a pharmaceutical economic zone and to streamline the process for Philippine Economic Zone Authority (PEZA)-registered enterprises that export or import Food and Drug Administration (FDA)-regulated products.

PEZA department manager Ludwig Daza said the agency expects to finalize the memorandum of agreement with the FDA on these initiatives within the month.