Peza issues guidelines on pharmazones to lower drug prices
Graphic design by Marie Faro / 黑料社
MANILA, Philippines – The Philippine Economic Zone Authority (Peza) has issued guidelines for the establishment and registration of pharmaceutical economic zones (pharmazones) to streamline regulatory processes, reduce drug prices, and attract global pharmaceutical investors to the country.
The guidelines were approved by the Peza Board, chaired by Trade Secretary Ma. Cristina Roque, during its meeting in February.
The guidelines outline the incentives available to pharmazone developers, operators, and registered business enterprises, aiming to encourage investment in the sector.
Pharmazones will serve as hubs for firms engaged in various aspects of medical and drug manufacturing-related activities, most especially in research and development, clinical testing, and trials.
“These zones are expected to attract substantial pharma, medical, and healthcare-related investments, advance technology, and increase local production and research, creating numerous jobs and enhancing the country’s export potential, and positioning the Philippines as a competitive player in the global pharmaceutical market,” Peza Director General Tereso Panga said in a statement Sunday.
Under the newly approved guidelines, pharmazones located in the National Capital Region and other metropolitan areas must cover at least 10,000 square meters, while those in non-metropolitan regions must have a minimum land area of 50,000 square meters.
Developers and operators of these ecozones will be entitled to fiscal incentives provided under Title XII of the amended Tax Code.
Additionally, enterprises involved in supporting export activities, including ecozone developers, utilities, and facility operators dedicating at least 70 percent of their leasable or saleable areas to exporters, will be classified as “Activities in Support to Exporters.”
These entities will enjoy the same incentives as Export Enterprises, in line with Peza Memorandum Circular No. 2023-033.
“As investors come in using the Philippines as a manufacturing hub in Southeast Asia for dependable medicines and bring in their cutting-edge technologies, I am sure that higher quality of medicines and medical supplies will be developed for the whole region and ultimately increase the availability and lower the price of medicines for the Filipino people,” Panga said.
