Philippines Pharmaceuticals & Healthcare Report

Providing expert analysis, independent forecasts and competitive intelligence on the pharmaceuticals and healthcare industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Pharmaceuticals and Healthcare Risk Reward Index, Market Summary, Economic Forecasts, Company Profiles and Competitive Landscape.

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  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Philippines Pharmaceuticals & Healthcare Report
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BMI View: The Philippine pharmaceutical market is relatively small considering its large population and disease burden. Low government spending on healthcare, which falls below the WHO ' s global standards, and low-income levels limit opportunities for innovative drugmakers. The expansion of universal healthcare in the country will strengthen access to medicine s and drive sales over the long term, particularly for the generic drug sector. However, the successful expansion of healthcare is largely dependant of the country ' s economic and political stability, with the newly elected president Duterte ushering in a period of uncertainty.

Headline Expenditure Projections

  • Pharmaceuticals: PHP150.44bn (USD3.33bn) in 2015, rising to PHP156.19bn (USD3.33bn) in 2016; +3.8% in local currency terms and -0.05% in US dollar terms. Forecast in line with last quarter .

  • Healthcare: PHP656.11bn (USD14.52bn) in 2015, rising to PHP722.32bn (USD15.38bn) in 2016; +10.1% in local currency terms and +6.0% in US dollar terms. Revised upwards from last quarter.

Headline Pharmaceuticals & Healthcare Forecasts (Philippines 2014-2020)
2014 2015 2016f 2017f 2018f 2019f 2020f
f = BMI forecast. Source: WHO, National Sources, BMI
Pharmaceutical sales, USDbn 3.280 3.330 3.330 3.490 3.680 3.860 4.040
Pharmaceutical sales, % of GDP 1.15 1.11 1.06 1.01 0.96 0.90 0.86
Pharmaceutical sales, % of health expenditure 24.4 22.9 21.6 20.5 19.4 18.4 17.6
Health spending, USDbn 13.460 14.520 15.380 17.080 18.990 20.920 23.020

Risk/Reward Index

Out of the 19 pharmaceutical markets assessed in the Asia Pacific, the Philippines is ranked in 14th place (scoring 45.0 out of 100), trailing the regional average in all subsectors. In Q316, Japan remains the most attractive market in the Asia Pacific region (scoring 79.4), followed by South Korea (65.2). Compared with its peers, the Philippines' Risk/Reward Index score is dragged down by industry characteristics such as policy enforcement (policy enforcement score of 2.8 out of 7) and per capita spending (score of 2.4 out of 12). Despite scoring below the regional average in many categories, there are plenty of future opportunities and rewards. In particular, scores in two categories stand out positively because they point to future opportunity; namely, a market expenditure score of 12.0 (above the regional average score of 10.5) and a 3.5 score in population growth (compared with regional average score of 2.7). Overall, there are indications that the market is maturing further, with the progressive implementation of a universal healthcare system.

Latest Updates

  • In May 2016, the Philippine Health Secretary Janette Garin told reporters that the country had launched an action plan to combat the spread of the Zika virus, which involves surveillance, clinical management, vector control, and health promotion.

  • In May 2016, Unilab held its Experts' Convergence for Health Outcomes Summit for a second year, attended by over 1,000 Filipino medical experts learning of the latest innovative medicine and new research in the areas of cardiovascular disease, depression, diabetes and woman's health.

  • In April 2016, Eisai's subsidiary in the Philippines, HI-Eisai Pharmaceutical, received approval for a new indication for the symptomatic treatment of dementia with Lewy bodies (DLB) for anti-Alzheimer's agent Aricept (donepezil hydrochloride) in the Philippines.

  • In March 2016, the Philippine National Health Accounts showed health expenditure in the country reached over PHP526bn (USD12mn) back in 2013, with out of pocket spending accounting for over 56% of the figure.

  • After becoming the first country to approve Sanofi Pasteur's dengue vaccine, Dengvaxia, the Philippines launched a public dengue immunisation programme with the aim of vaccinating 1mn students from 6,000 public schools in 2016.

BMI Economic View

We remain sanguine on the Philippine economy, which should continue to achieve strong growth on the back of booming services and construction sectors. However, Rodrigo Duterte's victory in May 9's presidential elections represents a salient risk to the Philippines' economic outlook, and for this reason we have kept our 2016 real GDP forecast anchored at 6.0%.

BMI Political View

Rodrigo Duterte's landslide victory in the Philippines' May 9 presidential elections will usher in a period of economic and political uncertainty for the country. In consideration of Duterte's stated disregard for democratic processes, aggressive tone towards foreign powers, support for extrajudicial activities against crime suspects, overly ambitious vows to eradicate crime and corruption within three to six months, and unclear economic platform, we have downgraded the Philippines' short-term political risk score to 66.3, from 68.8 previously.

BMI Industry View
Table: Headline Pharmaceuticals & Healthcare Forecasts (Philippines 2014-2020)
Industry Forecast
Pharmaceutical Market Forecast
Table: Pharmaceutical Sales, Historical Data And Forecasts (Philippines 2012-2020)
Healthcare Market Forecast
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Philippines 2012-2020)
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Philippines 2012-2020)
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Philippines 2012-2020)
Prescription Drug Market Forecast
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Philippines 2012-2020)
Patented Drug Market Forecast
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Philippines 2012-2020)
Generic Drug Market Forecast
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Philippines 2012-2020)
OTC Drug Market Forecast
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Philippines 2012-2020)
Pharmaceutical Trade Forecast
Table: Pharmaceutical Trade Data And Forecasts (Philippines 2014-2020)
Table: Pharmaceutical Trade Data And Forecasts local currency (Philippines 2014-2020)
Industry Risk/Reward Index
Asia Pacific Risk/Reward Index - Q3 2016
Philippines Risk/Reward Index
Regulatory Review
Intellectual Property Issues
Pricing Regime
Reimbursement Regime
Market Overview
Healthcare Sector
Table: Healthcare Resources (Philippines 2010-2015)
Table: Healthcare Personnel (Philippines 2010-2015)
Table: Healthcare Activity (Philippines 2010-2015)
Health Insurance
Clinical Trials
Competitive Landscape
Research-Based Industry
Table: Multinational Market Activity
Generic Drugmakers
Pharmaceutical Distribution
Pharmaceutical Retail Sector
Table: Overview Of BnB, BNB and P100 Programme
Table: Cost Of Generic Drugs In Philippines (PHP)
Table: Number Of BnBs And BNBs In Selected Philippine Regions
Company Profile
GlaxoSmithKline Philippines
Demographic Forecast
Table: Population Headline Indicators (Philippines 1990-2025)
Table: Key Population Ratios (Philippines 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Philippines 1990-2025)
Table: Population By Age Group (Philippines 1990-2025)
Table: Population By Age Group % (Philippines 1990-2025)
Pharmaceutical Expenditure Forecast Model
Healthcare Expenditure Forecast Model
Notes On Methodology
Risk/Reward Index Methodology
Index Overview
Table: Pharmaceutical Risk/Reward Index Indicators
Indicator Weightings

The Philippines Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Philippines Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Philippines pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market forecasts for Philippines, to test other views - a key input for successful budgeting and strategic business planning in the Philippine pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Philippine pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Philippines.
  • Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.


BMI Industry View

An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.