PEZA reports rising global pharma interest in the Philippines

The Philippine Economic Zone Authority (PEZA) has announced a growing interest from international pharmaceutical firms looking to establish operations in the Philippines. This surge in interest is attributed to improvements in the business climate and the launch of the country's first ecozone dedicated exclusively to healthcare products.

On Wednesday, PEZA formalized a registration agreement for the Victoria Industrial Park, marking it as the Philippines' inaugural pharmaceutical ecozone. Concurrently, PEZA signed a memorandum of agreement with the Food and Drug Administration (FDA).

PEZA Director General Tereso Panga highlighted the significance of these developments during the signing ceremony in Pasay City. “These agreements represent a major step forward in creating a pharmaceutical economic zone that will make essential medicines more affordable and accessible to Filipinos,” Panga said.

This initiative aligns with President Ferdinand Marcos Jr.’s goal to lower medicine costs by cultivating an environment conducive to efficient pharmaceutical manufacturing and supply within the local market.

Panga revealed that his recent meetings with nine Indian pharmaceutical firms resulted in five expressing interest in establishing operations in the Philippines. Notable among these are USV Private Ltd., Scimplify, Nephroplus, Glenmark, and Shilpa Medicare.

Additionally, PEZA has attracted major Japanese pharmaceutical companies such as Kaneko and Takeda. Takeda plans to build a plasma extraction facility to produce drugs for rare autoimmune diseases and immune deficiencies.

The PEZA chief also mentioned discussions with the Pakistani Pharmaceutical Industry Association, leading to Royal Life Pharma setting up the country's first drug manufacturing plant for intravenous solutions and injections.

Furthermore, PEZA's investment mission in Germany has secured a project with the EMTS Group for a medical equipment calibration facility, a first for the Philippines. A leading Taiwanese supplier of hospital beds is also set to invest in the PEZA zone.

The Katinko Group, which is also developing the Victoria Industrial Park, plans to expand with two additional facilities beyond its existing Tarlac plant.

Greenstone Pharmaceutical CEO Melissa Yeung Yap noted that the Tarlac facility currently processes raw materials for Katinko products, with the planned expansion set to include new product lines.

“Slowly but surely, we are moving towards higher value addition with the forthcoming pharmaceutical ecozone in the Philippines,” Panga said.

The Victoria Industrial Park, declared a special economic zone by President Marcos on July 4, spans 30 hectares in Barangay Baculong, Victoria, Tarlac. The new ecozone will feature an FDA laboratory to streamline transactions for pharmaceutical companies.

FDA Director General Samuel Zacate shared that innovative policies are being proposed to the Department of Health, including extending the validity of licenses and product registrations. The updated policy aims to extend initial license validity from three to six years and renewals from five to twelve years.

“The proposal is pending final approval from Health Secretary Teodoro Herbosa,” Zacate confirmed.