PCPI urges government to strengthen local pharmaceutical manufacturing

The Philippine Chamber of Pharmaceutical Industries Inc. (PCPI), the country’s largest association of Filipino-owned pharmaceutical companies, has called on the government to adopt policies that will strengthen and support the local pharmaceutical manufacturing sector, stressing that a robust domestic industry is vital to the country’s medical security.

The call was articulated by Robert Eugenio, PCPI vice president for the manufacturing sector and head of external affairs of Unilab Inc., during a recent Joint Congressional-ARTA-FDA Forum.

Eugenio urged lawmakers to pursue legislation that will incentivize local drug manufacturing, noting that such measures are critical to ensuring a stable and reliable supply of medicines for Filipinos.

‘Recent global developments have clearly shown how vulnerable international supply chains can be,’ Eugenio said.

‘The COVID-19 pandemic and ongoing geopolitical conflicts have underscored the risks of over-reliance on imported medicines and inputs. Strengthening local manufacturing is essential to safeguarding the country’s access to essential drugs.’

PCPI has earlier called on the Food and Drug Administration (FDA) to implement Green Lane windows for local manufacturers.

This measure would complement the Facilitated Registration Pathways (FRP) for imported products and help decongest regulatory backlogs while providing much-needed operational support to domestic pharmaceutical producers.

The industry’s appeal is aligned with the government’s stated policy direction to develop strong local industries capable of competing globally, including recent measures aimed at promoting Filipino enterprises and strengthening domestic value chains such as the recently enacted Tatak Pinoy Law.

PCPI reiterated its long-standing commitment to championing the growth of the local pharmaceutical industry, noting that several ASEAN neighbors have already made significant progress toward building self-reliant, high-value and investment-ready pharmaceutical sectors.

Several ASEAN countries have adopted coordinated industrial, fiscal and regulatory policies to accelerate the development of their domestic pharmaceutical sectors.

Thailand, for example, has long offered investment incentives through its Board of Investment, including tax holidays and duty exemptions for pharmaceutical manufacturing, while pairing these with government procurement preferences for locally produced essential medicines.

Indonesia has pursued a more protectionist but strategic approach by combining manufacturing incentives with local content requirements, particularly for government-funded health programs, thereby encouraging multinational and domestic firms alike to invest in local production capacity.

Vietnam has implemented a national pharmaceutical development strategy that prioritizes technology transfer, preferential credit, streamlined regulatory pathways and public procurement support for domestically manufactured medicines, enabling its industry to move up the value chain.

‘With the right policies, the Philippines can also build a resilient pharmaceutical manufacturing base that supports public health, generates quality jobs and attracts long-term investments,’ Eugenio emphasized.

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