Local pharmaceutical firms have called on the Department of Health to increase its purchase from domestic sources by ten times, from the current 5% to 50%, by 2030 at the earliest.
The Philippine Pharmaceutical Manufacturers Association (PPMA) president, Higinio Porte Jr., expressed confidence the Universal Healthcare Program would allow the DOH to increase local pharmaceutical manufacturers' participation in government procurement.
"The total value of the pharma market in 2023 is P270 billion. So, five percent of that is what we are getting. But the opportunity is huge in the next ten years because the government will pour in a bigger budget for the procurement of medicines," Porte said on the sidelines of a joint briefing of the DOH, Anti-Red Tape Authority, Philippine Economic Zone Authority, and Food and Drug Administration in Quezon City on Monday.
He said the DOH currently procures just 6 percent of the total pharmaceutical market, which covers in-patient medicines only.
Porte said this presents a significant challenge for local manufacturers as most medicines procured by the government are imported because of their cheaper prices.
For instance, imported paracetamol can cost as little as 50 centavos, while local production costs 90 centavos.
He added that the DOH's plan to expand procurement to outpatient medicines next year will allow patients consulting at health centers or government hospitals to receive vouchers to purchase medicines at accredited drugstores.
The PPMA also sees this as an opportunity to improve access to medications for Filipinos and increase the share of government procurement dedicated to local manufacturers.
Porte said a key government initiative is the establishment of the Philippine Pharmaceutical Procurement, led by the DOH, to centralize procurement and create larger batch sizes for local manufacturers, making them more competitive.
The DOH is also developing stricter regulations to ensure the quality of imported medicines, including implementing the Pharmaceutical Inspection Cooperation Scheme.
Porte said local manufacturers will be better positioned to compete and contribute to the government's goal of improving healthcare access for all by centralizing procurement and ensuring quality standards.
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