Not a member yet?
|
lovephileo's review
Investment Sector: Emerging Markets Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
about 1 year ago Tags: medicines health healthcare Pharmaceutical Drugs Add Tag |
In BMI's Q2 08 Business Environment Ranking of 14 key markets in the Asia Pacific region, the Philippines is regarded as only the tenth most attractive pharmaceutical market. While BMI expects the country to improve this position over the next five-year period as the market matures, with more people being able to afford healthcare and with 68 percent of medicines and pharmaceutical products coming from multinational companies.
Forecasts for the Philippines' pharmaceutical market, is expected to top us$4bn in 2012, up from an estimated us$2.61bn in 2007. Double-digit year-on-year (y-o-y) growth over the next five years is also a major encouragement for foreign pharmaceutical players,
It was because The cost of medicines in the Philippines is second highest in Asia next to Japan. The world Health organization has documented that medicines are sold in the Philippines at 4 to 18 times higher than international comparator prices.For example, over-the-counter pills sold in the Thailand and in India at p2 to p4 are sold in Manila at p20 to p40 each. Based on statistics, as many as eight or nine out of 10 filipinos to date have not been able to buy medicines and more and more Filipinos have died access to essential medicines.
Now, the increase in the prices of oil has a direct impact on the prices of medicines. The decrease in buying power is high due to high cost of basic commodities such as rice and gasoline. Filipinos buy the basic commodities first before medicines. They don't really get a budget for their health. They only buy when they almost need it. This time, many people put it as none priority. That is why small and medium sized retail drug stores in the country are changing their stores layout to bring in more customers and increase revenues. Drug stores were reconfiguring their stores to sell a combination of convenience and pharmaceutical products to cope with low revenues brought about by the decrease in public's purchasing power. They are forced to do that. They have to find other means to earn profit from consumer products.
Good, the anticipated cheaper medicines bill will result in lower prices, thus ioncrease consumption as those on the lowest incomes will be able to afford some pharmaceuticals. The public will have access to quality yet affordable medicines. It will also provide pressure competition for multinational corporation so that eventually they will lower prices. The new law allows small pharmaceutical companies to maximize their potential in supplying cheap medicines.
The government has been actively promoting the use of generics in recent years, as branded pharmaceuticals are expensive in a country with low GDP per capita. There is a large potential market for generics but sales have been low. The government has been criticized in the past for not doing enough to promote generics, now they are doing the work double time by pushing the controversial cheaper medicine bill which will impact the Philippines pharmaceutical market in a number of areas, including IP laws, competition and drug price control mechanisms. The market is expected to be specially volatile in the 2008-2010 period. There is only one thing that the Bureau of Food and Drugs needs to strengthen - their pursuit of counterfeit medicines. For sure, a mass influx of fake generic medicines are expected.
The Philippines is a relatively poor country where only a small majority of the country has access to adequate healthcare provisions and even fewer can afford the high drug price. Filipino patients are dying enmasse because they cannot afford the medicines they need. If we truly have the interest of the Filipino patient at heart, then we should make medicines affordable in this country.
Did you find this article useful?
11 comments ↓
WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER
WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER
Account Executive
Account Executive
Account Executive
WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER