Philippines To Establish Pharmaceutical-Medical Device Eco-Zones to Boost Local Industry

The Philippine government, in collaboration with the Philippine Economic Zone Authority (PEZA) and the Food and Drug Administration (FDA), is set to establish specialized pharmaceutical-medical device (pharma-dev) economic zones.

The FDA and PEZA aim to enhance the development and production of generic drugs and medical devices while ensuring accessibility and affordability.

Through the endeavor, the agencies aim to enhance the development and production of generic drugs and medical devices while ensuring accessibility and affordability.

According to PEZA Director-General Tereso Panga, potential sites for these eco-zones include Laguna, Bulacan, Tarlac, and Cebu. These zones will serve as hubs for local and foreign companies engaged in medical and drug manufacturing, research and development (R&D), and clinical testing.

This initiative, in partnership with the FDA, aims to ensure that products manufactured within these zones meet stringent quality and regulatory standards, thus facilitating the production of common generic drugs to address local demand and lower medicine prices.

Furthermore, the Pharma-Dev Eco-Zones will provide opportunities for Filipino Small and Medium Enterprises (SMEs) to participate in drug manufacturing and tolling, contributing to the growth and competitiveness of local businesses.

PEZA is prioritizing this initiative, aiming for implementation within one year, with fiscal incentives such as Income Tax Holiday (ITH), tax and duty-free importation, and zero-Value Added Tax (VAT) rating provided to companies operating within these zones.

Dr. Samuel Zacate, FDA Director General, highlighted the importance of facilitating the licensing process for pharmaceutical and medical device stakeholders, emphasizing safety compliance while supporting exportation and domestic use.

Additionally, Cecilia Matienzo, Director of FDA's Center for Device Regulation, Radiation Health, and Research, emphasized the encouragement of local production of medical devices, particularly those catering to rural areas, to improve healthcare delivery outside urban centers.

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