The government will be establishing pharmaceutical-medical device economic zones (Pharma-Dev Eco-zones) to enhance the development and production of common generic drugs and medical devices as well as make their supplies more stable and their prices more affordable.

The Philippine Economic Zone Authority (PEZA) and the Food and Drug Administration (FDA) announced this initiative at the Saturday News Forum in Quezon City.

According to PEZA Director-General Tereso Panga, Pharma-Dev Eco-zones are specialized hubs for local and foreign companies involved in medical and drug manufacturing, including research and development (R&D) and clinical testing and trials.

He said that this collaborative effort with the FDA ensures that products to be manufactured within these eco-zones meet rigorous quality and regulatory standards. This will likewise address the development and manufacture of common generic drugs that will boost local supply and bring down the prices of medicines.

Pharma-Dev Eco-zones can boost local supply as well as provide opportunities for Filipino Small, Medium Enterprises (SMEs) to engage in the manufacturing and tolling of drugs, food supplements, and other medical products, he stressed.

Panga shared that they are now in the stage of selecting the sites for the Pharma-Dev Eco-zones. “There’s Laguna, Bulacan, Tarlac, and Cebu which could be sites for these zones,” he revealed.

The PEZA chief likewise disclosed that Japanese firms handling medical devices have previously expressed intent to register with PEZA.

He stressed that PEZA is classifying this initiative as urgent. “The goal is within one year. This is urgent because a firm already filed, so we’re just awaiting the proclamation,” he emphasized.

The dedicated pharma-zones will enjoy fiscal incentives such as Income Tax Holiday (ITH). duty-free importation, zero-Value Added Tax rating, and prompt facilitation of their shipments, Panga vowed.

For his part, FDA Director General Dr. Samuel Zacate said, “We will increase prolongation of the CPR (Certificate of Product Registration) or the LTO (License to Operate), the very necessary licenses for the pharmaceutical and medical device stakeholders.”

Director Cecilia Matienzo, who heads FDA Center for Device Regulation, Radiation Health, and Research, added, “We are encouraging local production of medical devices. We also have one project encouraging the production of local devices that will cater more on the rural areas because healthcare is usually focused on the urban areas. So, this will help improve the healthcare delivery system in our rural areas.”

📷: SNF (Saturday News Forum)