BMI's Executive Summary

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Until the 'Cheaper Medicine Bill' is fully approved by the legislature, we will be maintaining our forecasts for the Philippines' US$2.61bn pharmaceutical market. The new law is expected to reduce the cost of many medicines, but lowering our projections is not planned. In fact, given that more people on low incomes will be able to afford quality healthcare products, we are more likely to upwardly revise our expectations for future sales. We are forecasting 5% year-on-year (y-o-y) growth through to 2012, when the market will have a valuation of US$4.02bn.

The Philippines has a nascent biotech sector, but there signs that expansion will occur soon. During Q407, local firm Servac Philippines has contracted Swedish company Pharmadule to build a state-of-the-art production facility. The US$120mn plant will make a vaccine for the prevention of rabies, which is a significant problem in the country.

A prime indicator of the buoyant generic sector is The Generics Pharmacy, an enterprise that aims expand and extend the reach of generics to those on low incomes. Despite having only a minimal involvement with patented drugs, it is expanding rapidly. There are currently 27 outlets and the target is to have a 100 by mid-2008.

As part of its strategy to penetrate high growth markets, French firm Sanofi-Aventis' generics subsidiary – Winthrop Pharmaceuticals – opened a branch in Cebu Province, the Philippines. The firm aims to provide high-quality and affordable medicines for a variety of conditions. To maximise sales, Winthrop Pharmaceuticals Philippines will liaise the government, presumably to get its products on state-assisted programmes.

According to a November 2007 poll, Filipinos are the second-happiest and most optimistic people in Asia, just behind the Indians, but ahead of the China, Thailand, Indonesia, Hong Kong, Malaysia and Singapore. This result is particularly surprising when one considers that the country has one of the lowest levels of self-purchased and company-provided medical insurance.

Contents

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Chapter 1 - Executive Summary

Philippines Pharmaceutical & Healthcare Industry SWOT

Philippines Economic SWOT

Philippines Business Environment SWOT

Chapter 2 - The Philippines: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics - Long-Term Risk

Politics - Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - The Philippines: Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Regime

Pricing & Reimbursement Issues

International Co-operation

Chapter 5 - Industry Trends & Developments

Healthcare Sector

Epidemiological Trends

Corruption

'Medical Tourism'

Pharmaceutical Sector Developments

Foreign Companies

Domestic Industry

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Philippines Drug Market Forecast Indicators

Key Growth Factors - Industry

Table: Philippines Health Expenditure Forecast Indicators

Key Growth Factors - Macroeconomic

Table: Philippines: Macroeconomic Data And Forecasts

Prescription Market Forecast

Table: Philippines Prescription Drugs Market Forecast Indicators

OTC Market Forecast

Table: Philippines OTC Drugs Market Forecast Indicators

Generics Market Forecast

Table: Philippines Generics Market Forecast Indicators

Branded Market Forecast

Table: Philippines Branded Market Forecast Indicators

Export/Import Forecast

Table: Philippine Pharmaceuticals Exports & Imports Forecasts

Other Healthcare Data Forecasts

Table: Socio-Demographic Indicators

Key Risks to CHAPTER - BMI's Forecast Scenario

Chapter 7 - Company Monitor

Profiles: Leading Multinational Manufacturers

GlaxoSmithKline Philippines

Pfizer

Novartis

Merck & Co

Sanofi-Aventis

Abbott Laboratories

Bristol-Myers Squibb

Indigenous Manufacturers

Unilab

Pascual Laboratories

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Technical Process

Pharmaceutical Industry

Chapter 9 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

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BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: