Generic meds seen taking 54% of PH pharma sales by 2030
Generic medicines are projected to command more than half of the Philippines’ pharmaceutical market over the next four years, amid rising health-care costs that are expected to trigger tighter government price controls.
This is according to BMI, a unit of the Fitch Group, which forecast in a recent report that generic medicines will account for 54 percent of the Philippines’ total pharmaceutical sales by 2030, up from 51 percent in 2025.
BMI also sees the segment growing at an 8.8-percent compound annual rate through 2030, reaching P409 billion.
“The emphasis on cost-effectiveness will accelerate generic medicine adoption, intensifying competition for originator brands while creating opportunities for cost-competitive manufacturers,” it said.
BMI noted that the push to lower medicine costs has largely been government-backed.
In 2019, the Department of Health tightened public-sector procurement through the Drug Price Reference Index (DPRI), which sets mandatory price ceilings for medicines listed in the Philippine National Formulary and purchased by government agencies.
Pharma spending still high
“This government-backed shift towards affordable healthcare solutions will challenge innovative drugmakers seeking to expand in the market,” BMI said, noting that generic medicines are “gradually eroding patented medicines’ market position.”
Despite the DPRI, pharmaceutical spending continues to climb, suggesting “ongoing pricing challenges, potential implementation gaps in the public procurement system or the significant influence of the largely unregulated private market segment,” the report said.
Data from the Philippine Statistics Authority showed total health expenditure reached P1.4 trillion in 2024, up 18.6 percent year on year. Government spending accounted for 44.6 percent of the total, while out-of-pocket payments stood at 42.7 percent.
Medicines alone made up P487 billion, or 33.8 percent, of total health spending in 2024.
Local production woes
Beyond price controls, the government is pushing to expand domestic drug manufacturing to reduce reliance on imports, BMI noted.
More than 90 percent of pharmaceuticals in the Philippines are imported, exposing the country to external supply disruptions and higher costs.
Government-led initiatives include the development of pharmaceutical parks under the Philippine Economic Zone Authority and a proposed corporate tax cut for pharmaceutical firms from 25 percent to 20 percent.
However, BMI said significant structural challenges remain, including limited funding for research and development, a shortage of skilled talent and regulatory gaps.
“Poor coordination between the Intellectual Property Office and FDA (Food and Drug Administration) compounds these challenges, creating legal uncertainty around patent disputes and generic market entry,” BMI said. “These obstacles deter pharmaceutical research investment, potentially delaying clinical studies.”
BMI noted that complex specialty drugs, patented biologics and advanced oncology treatments are likely to remain import-dependent due to high capital requirements and global economies of scale.
