PHARMA ECOZONES. A local government employee shows the Sinovac vaccine she administers at People’s Park, Davao City, on April 14, 2023. The Philippine Economic Zone Authority said on Friday (Feb. 16, 2024) it supports the creation of ecozones for the pharmaceutical industry. (PNA file photo by Robinson Niñal Jr.)
MANILA – The Philippine Economic Zone Authority (PEZA) backs the proposal of President Ferdinand R. Marcos Jr. to establish pharmaceutical economic zones in the country.
In a statement Friday, PEZA Director General Tereso Panga said he is optimistic about the rise of investments in medical and drug manufacturing through the creation of pharmaceutical ecozones across the country.
Marcos met with the Food and Drug Administration (FDA) last Feb.13 and proposed the idea of setting up pharmaceutical ecozones, aiming to streamline the drug application process and enhance efficiency.
FDA Director General Samuel Zacate said the agency hopes that locating pharmaceutical companies inside PEZA zones will expedite medicine testing and registration upon entry into the country.
“We are excited and more than encouraged to be facilitating the establishment of pharma ecozones in the Philippines which will become instrumental in the administration’s efforts to enhance accessibility to medicines and lower drug prices,” Panga said.
Pharmaceutical ecozones will involve activities in the pharmaceutical industry including medical and drug manufacturing activities, particularly in research and development (R&D) and clinical testing.
"We are collaborating with the Department of Health, FDA, DTI (Department of Trade and Industry), and PCPI (Philippine Chamber of the Pharmaceutical Industry) to craft guidelines for registering pharma zones under PEZA," the PEZA chief added.
Previously, PEZA signed an agreement with the FDA to streamline permit and license applications for businesses engaged in manufacturing pharmaceutical products, ensuring compliance with relevant laws.
Likewise, PEZA is reviving talks with leading Filipino pharmaceutical companies such as Lloyd Laboratories, Pascual Laboratories, and United Laboratories, Inc., for the establishment of a modern pharmaceutical park in the country.
Efforts to attract foreign investment in pharmaceutical manufacturing include discussions with Indian and Pakistani companies interested in establishing operations in the Philippines.
"These pharma ecozones will enhance local supply and offer business opportunities, especially for Filipino SMEs (small and medium enterprises) in drug manufacturing,” Panga added.
Under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, investments on health-related activities can enjoy tax incentives for up to 12 years when registered with investment promotion agencies like PEZA.
As of December 2023, PEZA hosts 26 pharmaceutical and medical equipment manufacturing companies, generating over PHP25.5 billion in investments and providing more than 19,000 direct jobs.
“In all these, we hope to see the pharma parks creating a platform for increased R&D, technology transfer, registration of local patents, and a complete ecosystem that will enable the country to produce its own medicines and provide access to quality, affordable medicines, medical products and healthcare for all Filipinos,” the PEZA chief said. (PNA)
