India to get boost from Philippines' growing generic drug market: report

Indian generic drugs accounted for 12% of the country’s imports in fiscal year 2018-2019.

Along with the expansion of Philippines’ universal healthcare scheme in February 2019, the government has already made it mandatory for public hospitals to prescribe generic versions of medicines, boosting the market share of generic drugs in the country, according to a report by Fitch Solutions.

Generic drug sales in the Philippines totalled $1.58b (PHP82.3b) in 2019, representing 63.08% of prescription sales and 46.1% of the total market.

Fitch forecasts that uptake in generic drug sales is likely to continue, with total sales projected to hit $2.1b (PHP110.1b) by 2024, making way for export generic drugs, such as India’s already established market in the Philippines to further thrive.

According to the Embassy of India in Manila, India's pharmaceutical exports to the Philippines increased from $197.32m in fiscal year 2017-2018 to $220.98m in fiscal year 2018-2019, accounting for 12% percent of total Philippine drug imports and about 90% of those purchased by the government.

Moreover, the Philippines’ trade and industry department has been putting out efforts to boost relations with Indian drug makers. During the Philippines-India trade consultations in October 2019, Philippine trade secretary Ramon Lopez invited Indian drug manufacturers to set up manufacturing plants in the country to produce generic medicines.

The Philippines’ growing generic drug market at the same time bodes well for multinational pharmaceutical firms that have a focus on low-cost medicines, noted the report. Generic drug makers are expanding their presence and product portfolio in the Philippine market, with the aim of launching more products in the country.