The Philippine Economic Zone Authority (PEZA) said its proposal to establish pharmaceutical economic zones with the Food and Drug Administration (FDA) is now set in motion for partnership with the Office of the Special Assistant to the President of Investment and Economic Affairs (OSAPIEA). 

PEZA Director General Tereso Panga and FDA Director General Dr. Samuel Zacate announced during a news forum on March 16 that they have already met with SAPIEA Secretary Frederick Go's team, represented by Assistant Secretary Kristin Joy Diaz-Teston, on March 14, regarding the potential for pharma ecozones to strengthen the domestic drug and medical device manufacturing ecosystem. 
 

In a statement over the weekend, Panga said that the creation of pharma ecozones should streamline the drug application process for stakeholders, and encourage local manufacturers and producers of drugs and medical devices to improve their research and development (R&D) and manufacturing capacities, including clinical testing and trials. In turn, this may also lower the costs of drugs for consumers.  
 

"We are thankful to the OSAPIEA and the FDA for the support that they are extending to our existing and would-be RBEs, especially those who are engaged in medical devices manufacturing and looking to set up their drug manufacturing—whether it be for human or animal—here in the Philippines,” said Panga. 
 

"With this dynamic partnership, the steering group is confident that the country will see the establishment of its first true pharmaceutical economic zone during this administration and signal to global pharmaceutical industry players that we are open to doing business with them, on top of our already-competitive fiscal incentives," he added. 
 

For her part, Teston emphasized their office's support for the development of the pharma-zone project, citing it anticipates the transformative potential of Pharmaceutical Ecozones to fuel the growth of the Philippine pharmaceutical industry.

PEZA described the pharmaceutical sector as a “strategic industry” in the country. To date, there are 26 pharmaceutical products and medical equipment manufacturing companies operating in the PEZA ecozones such as Terumo, Arkray Industry, Royale Life Pharma, JMS Healthcare, and Philipcare Medical. Cumulatively, they have been able to generate P25.5 billion in investments and employed 19,000 Filipinos. 
 

The agency also plans to revive talks with Filipino firms like Lloyd Laboratories, Pascual Laboratories, and United Laboratories, Inc., to establish a  modern pharma park in the country. PEZA is also tapping Royal Cargo Pharm Logistics as its logistic partner in the proposed pharma-zone. 
 

Under the Corporate Recovery and Tax Incentive for Enterprises (CREATE) Law, health, medical, and pharmaceutical-related businesses are able to “enjoy five to seven years of income tax holiday and 10 years Special Corporate Income Tax for export enterprises or five years Enhanced Deduction for domestic market-oriented enterprises,” cited the agency. 
 

In line with this, PEZA said they are studying the possible provision of a green lane for PEZA locators and revision of the 2014 PEZA-FDA memorandum of agreement to institutionalize faster turnaround time of  registrations for existing and future PEZA registered business enterprises (RBEs). 
 

PEZA and FDA are also cooperating in terms of the ease of doing business (EODB) for domestic and export-oriented pharmaceutical manufacturers, particularly in permitting and licensing processes. 
 

"We are committed to working in unison with the OSAPIEA and PEZA to simplify business operations in our country," stated Zacate.
 

The partnership is also aligned with the Department of Trade and Industry’s initiatives to combat the sale and production of counterfeit drugs, as well as  consumer protection and education.