Philippines To Set National R&D Priorities, But Regulations May Hamper Foreign Industry Support
This article was originally published in PharmAsia News
Executive Summary
SHANGHAI - The Philippines government is formulating research priorities for the next five years, including health and biotechnology projects, to boost the country's research and development capabilities. But some industry observers warn that the country's desire to maintain drug prices through the use of steep price cuts will discourage foreign companies from participating in the country's life sciences development
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SHANGHAI - The Philippines government is formulating research priorities for the next five years, including health and biotechnology projects, to boost the country's research and development capabilities. But some industry observers warn that the country's desire to maintain drug prices through the use of steep price cuts will discourage foreign companies from participating in the country's life sciences development. The Department of Science and Technology (DOST) established the National R&D Priorities Plan 2010-2016 in mid-October. It is the first attempt of the national government to bring together the R&D activities of government departments, non-government research organizations, academia and industry. The government's medical health R&D activities will be concentrated on diagnostic tests and point-of-care technologies for infectious tropical diseases - dengue, influenza, multidrug-resistant tuberculosis - and lifestyle diseases, including cardiovascular diseases, diabetes and cancer. Biotechnology R&D priorities for the government include tissue culture, fermentation technology, enzyme technology and recombinant DNA technology. Five-year Plan Refocuses Attention On R&D Projects "The immediate implication of the five-year plan is a renewed attention for unmet medical needs in the Philippines and a focus of both international and local research organizations on how to diagnose, prevent and find effective treatment for diseases that are endemic in the Philippines," IMS Health's Jan-Willem Eleveld, vice president Consulting & Services Asia Pacific, told PharmAsia News. In the National R&D Priorities Delphi Assembly last month, DOST Secretary Mario G. Montejo explained that the main aim is to harmonize all R&D efforts of various government and non-government agencies to determine the proper use of R&D funds to avoid research duplication and wastage of funds, according to a DOST press release. The research forum was created by the Presidential Coordinating Council for Research and Development, which is tasked to coordinate and harmonize research projects for all Philippines government agencies. Government Investment A Boost For MNCs Increased government investment for biotech capacity-building, along with the country's growing economy, is a clear benefit for multinational companies, according to IMS. "The increasing GDP in the Philippines will help accelerate access to modern medicines for Philippino patients. The pharmaceutical companies would certainly like to continue to serve these patients with their latest products," Eleveld said. "Doing scientific research in the Philippines can mean access to naïve patients, who have not been treated before, which is often important in clinical trials. At the same time, it means that the country should have adequate facilities and trained personnel to carry out such trials." But these opportunities are also tempered by recent government price cuts of pharmaceuticals. In order to make drugs both accessible and affordable, the Philippines government has taken strong measures likely to create a challenging environment for foreign companies. In mid-2009, the government imposed 50 percent price cuts on 21 essential drugs, and cut the prices of an additional 16 drugs in February this year (Also see "Philippine Drug Price Controls Pinch Brands And Generics" - Scrip, 25 Jun, 2010.). The price cuts were established under the Cheap Medicine Act that also includes a parallel drug importation program, which some multinational companies say has driven the growth of counterfeit drugs in the country. Some industry observers estimate counterfeit drugs amount to 10 percent of the country's entire drug market (Also see "Coalition Blames Slow Judicial Process and Parallel Drug Importation Program For Fake Drugs In Philippines" - Scrip, 10 Aug, 2010.). Branded pharmaceutical companies will find the Philippines to be more challenging given the shift towards a more generics-based market. "In the long run, price cuts may also hamper foreign investment," Maura Musciacco, a pharma industry analyst with Datamonitor Group in London, told PharmAsia News in a previous interview. "Pharmaceutical companies could benefit from simpler regulations and more government support to do research on diseases that are relevant and important to the Philippino population," Eleveld said. - Ying Huang ([email protected]) |