The Philippine Economic Zone Authority (PEZA) is eager to promote the creation of ecozones for pharmaceutical companies and increase investments in response to President Ferdinand R. Marcos Jr.'s interest in establishing pharma-zones as one-stop shops for the industry.

“We are excited and more than encouraged to be facilitating the establishment of pharma ecozones in the Philippines which will become instrumental in the Administration’s efforts to enhance accessibility to medicines and lower drug prices,” said PEZA Director General Tereso Panga.

PEZA recorded 26 operating pharma companies spread in its various ecozones as of December last year. These include firms Terumo Philippines Corporation, Arkray Industry, Inc., Royale Life Pharma, Inc., JMS Healthcare Phl, Inc., and Philipcare Medical Manufacturing Inc.

They have already generated around P25.489 billion in investments and more than 19,000 direct jobs for the country. 
 
According to the Philippine Development Plan 2023-2028, pharma-zones will serve as hubs for medical and drug manufacturing-related activities, particularly clinical testing and trials, and research and development (R&D).

Panga said they are coordinating with the Food and Drug Administration (FDA), Department of Health (DOH), Department of Trade and Industry (DTI), and the Philippine Chamber of Pharmaceutical Industries (PCPI) to draft registration guidelines for pharma zones. 
 
FDA Director General Samuel Zacate has previously stated that pharma-zones under PEZA can enable seamless testing and registration of medicines upon entry into the country.

PEZA sealed an agreement with the FDA to streamline permit and licensing applications for registered business enterprises (RBEs) within the food, cosmetic and drug products, and medical devices sector, in compliance with the Food and Drug Act of 2009. 
 
Panga emphasized how the ecozones would boost local supply, build business, and strengthen the capacity of Filipino small and medium enterprises (SMEs) engaged in manufacturing and tolling of drugs and food supplements.

"We can contribute to the DTI’s science, technology and innovation-driven industrialization strategy through the pharma zones that will seek to strengthen partnerships between global drug manufacturing companies and the local industry players with their integration into the ecozone and global value chains," he remarked.

He also noted the added attractiveness of the Philippines as a pharmaceutical hub for foreign firms once the pharma-zones are established.

In 2017, the governments of the Philippines and India discussed potential manufacturing zones for Indian companies that wanted to reach the Southeast Asian market.

In 2021, PEZA held a briefing with the Pakistan Pharmaceutical Manufacturers Association, who have expressed interest in establishing drug manufacturing operations in the Philippines to meet the domestic demand for generic medicines.

In addition, PEZA-registered firms, or firms registered in other Investment Promotion Agencies (IPAs), operating in the drug manufacturing and medical R&D sectors are given up to 12 years of tax incentives under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) Law. 
 
With the drive to make more pharma-zones,  the agency is also in talks with Filipino pharma companies like Lloyd Laboratories, Pascual Laboratories and United Laboratories, Inc., to establish a modern pharma park in the country.

“In all these, we hope to see the pharma parks creating a platform for increased R&D, technology transfer, registration of local patents, and a complete ecosystem that will enable the country to produce its own medicines and provide access to quality, affordable medicines, medical products and healthcare for all Filipinos,” said Panga.

Back in 2021, the PEZA-registered First Bulacan Business Park (FBBP) was made for medical R&D programs to make over-the-counter and generic medicines, equipment and instruments, as well as to support the pharma cold chain.

The FBBP is near the First Bulacan Industrial City (FBIC), known as the "Pharma City of the North," which hosts eight pharma firms namely Lloyd Laboratories, Pascual Laboratories, Lumar Pharmaceutical, Cargill Phils. and Cosmetique Asia.