WHY INVEST IN HEALTHCARE?
1. Global Pharmaceutical Market
The global pharmaceutical market made a grand total of around 1.5 trillion U.S. dollars in 2022. Worldwide pharmaceutical revenue had seen a steady increase every single year since 2001, when the market’s value was about two-thirds smaller. The largest submarket within this industry has been the United States in recent years. Total pharmaceutical sales in the United States amounted to over 600 billion U.S. dollars, according to estimates as of Q3 2022.
Source: Statista
Experts believe that global pharmaceutical companies are focusing on maximizing value creation across markets from global innovation. Over the next 5 years starting from 2021, the revenue for the pharmaceutical manufacturing industry is expected to increase at an annualized 5 percent to reach a $159.4 billion market share. With the growing budget for pharmaceutical products, governments are under pressure to demonstrate the most convincing model to deliver a cost-effective and efficient healthcare regimen.
Source: Biospectrumasia
2. Asian Pharmaceutical Market
According to global pharma sales projections for 2025, Southeast Asia and East Asia, excluding Japan and China, will report consolidated sales of over 260 billion U.S. dollars, putting the sub region in third place behind North America and the European Union. All major Southeast Asian pharma markets were forecast to experience medical sales growth in the next few years, with Indonesia, the region’s most populous country, growing at the fastest pace.
Source: Statista
The Asia-Pacific pharma industry is growing, largely driven by rising awareness of healthcare in the current population and accessibility to modernized treatment regimens without border restrictions. Asia-Pacific pharmaceutical market is dependent on market dynamics, pharmaceutical value chain/supply chain analysis, technological trends, investment scenarios, government regulations, and initiatives. To extract the most out of the pharmaceutical sector in Asia, it’s also essential to leverage core skilled talents and advanced technologies to accelerate production and improvise quality.
3. Philippine Pharmaceutical Market
The Philippines is the 11th most attractive pharmaceutical market in the Asia-Pacific region and the third-largest pharmaceutical market in ASEAN. The pharmaceutical market in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 4.65 % to reach US$3.7 billion in 2025.
Filipino households are investing more on their health. From 1994 to 2017, the share of out-of-pocket expenses to total health expenses went up from 47 to 54 percent.1 In fact, the Philippines has one of the highest percentages of out-of- pocket health expenditures in the region. A significant proportion of households’ health care budget (at 50.1 percent) is spent on medicines. The high importance of medicines in the budget can be observed for most households regardless of income status. On the government’s side, the passage of the universal health care bill will have a significant impact on the way the government procures medicines and other health care needs. Therefore, the adequate supply and efficient distribution of medicines are crucial in the promotion of health and the availability and accessibility of good quality, safe, and effective (QSE) medicines. In addition, the performance of the supplying pharmaceutical industry are salient areas of inquiry.
The 2015 data from the Philippine Statistics Authority show that the country’s population has reached the 100-million mark. The Philippines is now the 13th most populous country in the world and the 2nd most populated among the ASEAN member states. Such growing population amidst a rapidly developing economy offers a bright market outlook for the Philippine pharmaceutical sector.
The pharmaceutical market is currently valued at PhP176 billion ($3.25 billion) based on data from the data science company IQVIA.6 It is a fast- growing market – expanding faster than the country’s national output with its average growth rate of 8.3 percent. Seventy-two percent of the market consists of ethical drugs growing at 6.2 percent per year; the other 28 percent is composed of over-the- counter drugs, growing at a double-digit rate of 12.9 percent. Out of the total market sales of PhP173.076 billion in 2016, 87.2 percent is supplied through retail outlets (i.e. drugstores) while the remaining 12.8 percent go through hospitals.
Source: PHCC