Philippines Pharmaceuticals and Healthcare Report Q1 2012

Business Monitor International's Philippines Pharmaceuticals and Healthcare Report provides industry professionals and strategists, corporate analysts, pharmaceutical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Philippines's pharmaceuticals and healthcare industry.

BMI View: Despite the government's commitment to providing affordable medical treatment for the population, the vast majority of people continue to have poor access to adequate healthcare. This is primarily due to the high drug prices that are further exacerbated by the population's general preference for branded drugs. BMI highlights that the lack of proper intellectual property protection and the existence of parallel trade may have led to a rise in the number of cases of counterfeiting - influencing the population's choice of medication. Over the medium term, BMI expects foreign drugs to continue to dominate, highlighting opportunities for multinational companies; however, the government's promotion of generics drugs and price control measures will generate downside risks.

Headline Expenditure Projections

Pharmaceuticals: PHP123.59bn (US$2.7bn) in 2010 to PHP130.56bn (US$3.03bn) in 2011; +5.6% in local currency terms and +10.6% in US dollar terms. Forecast up marginally from Q411 due to macroeconomic factors.

Healthcare: PHP324.90bn (US$7.21bn) in 2010 to PHP344.53bn (US$8.00bn) in 2011; +6.0% in local currency terms and +11.1% in US dollar terms. Forecast down slightly from Q411 due to macroeconomic factors.

Medical devices: PHP12.31bn (US$273mn) in 2010 to PHP12.79bn (US$297mn) in 2011; +3.9% in local currency terms and +8.8.% in US dollar terms. Forecast broadly unchanged from Q411.

Business Environment Rating: The Philippines' pharmaceutical rating in Q112 has increased to 48.7 out of 100, which is well below the average of 53.7 for the region. The country has also ascended two places to occupy 11th position, behind India, with an Industry Rewards score of 52.

Key Trends & Developments

Roche's Avastin (bevacizumab) and Tarceva (erlotinib) were approved by the Philippine Food and Drug Administration as first-line treatments for ovarian and advanced or metastatic non-small-cell lung cancer with epidermal growth factor receptor (EGFR) respectively. While the approval of these two drugs is positive news for patients, BMI believes that the majority of the population will be unable to afford the drugs due to low per-capita pharmaceutical expenditure.

The House of Representatives has approved the PHP1.82trn national budget for 2012. Under the budget, PHP49.9bn is allocated for the healthcare sector, of which 89%, or PHP44.4bn, will be given to the Department of Health for programmes aimed at achieving Millennium Development Goals. The remaining PHP 5.1bn will be used to upgrade healthcare facilities under the Health Facilities Enhancement Program. BMI Economic View: Philippine President Benigno Aquino III has announced a PHP72.1bn (US$1.7bn) stimulus package aimed at protecting jobs, as the economy failed to meet growth expectations in 2011. While the package is a positive near-term sign that the government is willing to more actively promote economic growth, its modest quantum is unlikely to boost full-year growth to the government's target range of 5.0-6.0%, and BMI continues to predict the economy grew by 4.7% in 2011, before slowing further to 4.5% in 2012.

BMI Political View: Although Philippine President Benigno Aquino III's visit to China is a welcome step forward in relations between the two countries, underlying tensions will persist. In particular, a dispute over the Spratly Islands is a point of contention and despite China's initiative to outline binding terms, this is not likely to be resolved any time soon. China's main concern is largely political, with particular concern over the archipelago's strong defense ties with the US; while the Philippines is principally concerned with economic issues. SHOW LESS READ MORE >

Executive Summary
SWOT Analysis
Philippines Pharmaceutical And Healthcare Industry SWOT
Philippines Political SWOT
Philippines Economic SWOT
Philippines Business Environment SWOT
Pharmaceutical Business Environment Ratings

Table: Asia Pacific - Regional Pharmaceutical Business Environment Rankings, Q411
Rewards
Risks
Market Summary
Regulatory Regime

Table: History Of Food and Drugs Administration (FDA)
Recent Regulatory Developments
Intellectual Property Regime
IP Shortcomings
IP Disputes
Counterfeit Drugs
Pricing Regime
Recent Pricing Developments
Medicines Subjected To The March 31 2010 Government Mediated Access Price (GMAP) In The Philippines
Reimbursement Regime
Parallel Trade
International Cooperation
Industry Trends and Developments
Epidemiology

Table: Top 10 Causes Of Mortality In The Philippines
Communicable Diseases
Healthcare Sector
Health Insurance
Healthcare Sector Financing
Corruption
Medical Tourism
Biotechnology
Recent Biotechnology Developments
Traditional Medicines
Medical Devices
Industry Forecast Scenario
Overall Market Forecast

Table: Philippines - Pharmaceutical Sales, Historical Data and Forecasts, 2007-2016
Key Growth Factors - Industry

Table: Philippines - Healthcare, Historical Data and Forecasts, 2007-2016
Key Growth Factors - Macroeconomic

Table: Philippines - Economic Activity
Prescription Drug Market Forecast

Table: Philippines -Pharmaceutical Prescription Drug Sales, Historical Data and Forecasts, 2007-2016
Patented Drug Market Forecast

Table: Philippines - Pharmaceutical Patented Drug Sales, Historical Data and Forecasts, 2007-2016
Generic Drug Market Forecast

Table: Philippines - Pharmaceutical Generic Drug Sales, Historical Data and Forecasts, 2007-2016
OTC Medicine Market Forecast

Table: Philippines - Pharmaceutical OTC Medicine Sales, Historical Data and Forecasts, 2007-2016
Medical Device Market Forecast

Table: Philippines - Medical Device Sales, Historical Data and Forecasts, 2007-2016
Pharmaceutical Trade Forecast

Table: Philippines - Pharmaceuticals, Historical Data and Forecasts, 2007-2016
Other Healthcare Data Forecasts
Key Risks to BMI's Forecast Scenario
Competitive Landscape
Pharmaceutical Industry

Table: Philippines - Pharmaceutical Industry Overview by Ownership and by Volume and Value Shares as Percentages of Total Market
Pharmaceutical Distribution and Retail
Company Monitor
Leading Local Manufacturers
Unilab
Pascual Laboratories
Pacific Pharma Generics
MediChem Pharmaceuticals
Leading Multinational Manufacturers
GlaxoSmithKline Philippines
Pfizer
Novartis
Merck & Co
Sanofi-Aventis
Abbott Laboratories
Bristol-Myers Squibb (BMS)
Wyeth
Eli Lilly
AstraZeneca
Country Snapshot: Philippines Demographic Data

Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education and Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market and Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2007-2012 (US$)
Table: Average Annual Manufacturing Wages, 2004-2006

Glossary
BMI Methodology
How We Generate Our Pharmaceutical Industry Forecasts
Risk/Reward Ratings Methodology
Ratings Overview

Table: Pharmaceutical Business Environment Indicators
Weighting

Table: Weighting Of Components

- Unilab
- Pascual Laboratories
- Pacific Pharma Generics
- MediChem Pharmaceuticals
- GlaxoSmithKline Philippines
- Pfizer
- Novartis
- Merck & Co
- Sanofi-Aventis
- Abbott Laboratories
- Bristol-Myers Squibb (BMS)
- Wyeth
- Eli Lilly
- AstraZeneca