The Philippine Pharmaceutical Manufacturers Association (PPMA) wants to increase local manufacturers’ share in government procurement from the current less than 5 percent to 50 percent by 2030 at the earliest.

PPMA president Higinio Porte Jr. said he is optimistic about the Department of Health’s (DOH) upcoming initiatives to increase local pharmaceutical manufacturers’ participation in government procurement, in line with the Universal Healthcare Program.

“The total value of pharma market in 2023, PHP270 billion. So, five percent of that is what we are getting. But the opportunity is huge in the next 10 years, because the government will pour in 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 being 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 with the DOH’s plan to expand procurement to out-patient medicines next year, this 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 initiative of the government 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 working on stricter regulations to ensure the quality of imported medicines, including the implementation of the Pharmaceutical Inspection Cooperation Scheme.

By centralizing procurement and ensuring quality standards, Porte said local manufacturers will be better positioned to compete and contribute to the government’s goal of improving healthcare access for all. (PNA)