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Threats: What Trends Could Harm You? What Threats Do Your Weaknesses Expose You To?

The document discusses threats and opportunities for pharmaceutical companies operating in the Philippines. Some key threats include: 1) Competition from larger pharmaceutical companies, and 2) Strict government regulations on drug pricing and product registration requirements that could affect pricing strategies or discourage foreign firms. Meanwhile, opportunities include: 1) Developing cost-effective drug manufacturing for the emerging Philippine market, 2) Tapping into the country's strong financial market and high demand for medicines, and 3) Pursuing innovation as the pharmaceutical industry is projected to grow significantly in the coming years.

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Rufino Gerard Moreno
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698 views

Threats: What Trends Could Harm You? What Threats Do Your Weaknesses Expose You To?

The document discusses threats and opportunities for pharmaceutical companies operating in the Philippines. Some key threats include: 1) Competition from larger pharmaceutical companies, and 2) Strict government regulations on drug pricing and product registration requirements that could affect pricing strategies or discourage foreign firms. Meanwhile, opportunities include: 1) Developing cost-effective drug manufacturing for the emerging Philippine market, 2) Tapping into the country's strong financial market and high demand for medicines, and 3) Pursuing innovation as the pharmaceutical industry is projected to grow significantly in the coming years.

Uploaded by

Rufino Gerard Moreno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Threats

What trends could harm you?


What threats do your weaknesses expose you to?

1. Competition with bigger and more-known pharmaceutical companies

2. Government imposes strict regulations on pharmaceutical industry


The Philippines passed a law in 2008 known as The Universally Accessible and Quality
Medicines Act of 2008 and more popularly called the Cheaper Medicines Act of 2008. This
law empowered the government to regulate drug prices in order to achieve full effective
competition in drug supply and demand, thus ensuring access to affordable quality drugs to its
constituents. There is a pending House Bill, H.B. 1386, which aims to further regulate drug
prices in the Philippines. If the Congress pass this law, this could affect pharmaceutical
companies on their pricing strategies.
Also, the Department of Health (DOH) and the Bureau of Food and Drugs (DOH) issues
regulations on medicines and could ban products that the company is selling.
For pharmaceutical product registration with the Philippine FDA, the following information must
be submitted:
-License to Operate of the importer, distributor and/or manufacturer
-Certificates of Agreement between the Filipino importer and/or distributor and the manufacturer
-Certificates of Analysis and Specifications for each raw material used in the manufacture of the
drug
-Information on the drugs dosage and product formulation
-Labeling materials
-Stability studies
-Specifications of the manufacturing process, including production procedures, production
-equipment, packaging procedures and in-process controls
-Product samples which should include English-language labels with the brand and generic
names, name of the product license holder, product registration number, dosage, precautions,
indications for use, date of expiration and batch number
These requirements might discourage foreign firms in placing their products in the Philippines.
3. Emergence of cheaper generic drugs
Over the years, generics drugstores have been sprouting like mushrooms all over the
country. According to the Department of Health, five to six out of 10 Filipinos now take generic
medicine. Despite the efforts of multinational companies to undermine generics drug

companies, the latter has been gaining popularity. Theres almost a generic version of every
branded medicine out there. The main reason for Filipinos choice of generic products is the
price as generic medicines are now significantly cheaper by more than 50 percent compared to
its branded counterparts.

Opportunities

What good opportunities are open to you?


What trends could you take advantage of?
How can you turn your strengths into opportunities?

1. Development of cost-effective ways to manufacture drugs to improve business in an


emerging market
2. Financial market is strong; demand for medicines is high
A report entitled Partnering for Nation Building: The Contributions of the Philippine
Pharmaceutical Industry to Health and Economy, prepared by IMS Consulting for the
Pharmaceutical Healthcare Association of the Philippines (PHAP), said the projected that The
countrys pharmaceutical industry is projected to grow by 4.5 percent annually over the next five
years reaching P164 billion in 2018 from P146 billion in 2014. The projected amount represents
the value output or production of industry, including research based pharmaceutical companies
and generic companies.

3. Opportunity for innovation is high

except those that are newly made by the branded medicines company. These still
are patented and so generics laboratories cant make generic versions of them.

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