Professional Documents
Culture Documents
LIFE SCIENCES
REVIEW
&
PHARMACEUTICALS:
SHAKING UP THE SYSTEM
LIFESTYLE MATTERS:
PAGE 21
INTERVIEW
WITH :
CARVING
OUT A MEDICAL
RAUL
MANLAPIG,
DEVICE MARKET
PRINCIPAL MANAGING
PAGE 56
DIRECTOR, ARUP
PAGE 30
A BOOM IN BPO
PAGE 20
CONVERGENCE IN ACTION:
INTERVIEW
WITH:
FOCUS
ON DIABETES
DR. ENRIQUE
T.
PAGE ONA,
82
SECRETARY OF HEALTH
PAGE 34
MEXICO 2013
COFEPRIS Revamped
Mikel Arriola, the man who changed an institution and an industry PAGE 18
PHILHEALTH:
PHILIPPINES
2013
March 2014
Head Office
12th Floor Citibank Center 8741 Paseo de Roxas
Makati City 1226, Philippines
Website: www.pointwest.com.ph
Facebook: www.facebook.com/Pointwest.PH
Twitter:
@PointwestPH MARCH. 2014
PHILIPPINES
Contact Person:
Renato B. Quizon
Executive Director
Business Development
rene.quizon@pointwest.com.ph
Mobile: +63917 861 0345
Phone: +632 814 1102
Acknowledgements
Pharmaboardroom would like to thank
Dr. Enrique T. Ona, Secretary of Health,
Mr. Alexander Padilla, President and CEO
of PhilHealth, Mr. Kenneth Hartigan-Go,
acting Director FDA Philippines,
Teodoro B. Padilla, Executive Director and
Reiner W. Gloor, Adviser, Pharmaceutical
and Healthcare Association of the
Philippines (PHAP) and Thelma TobiasGo,
President, The Philippine Chamber of the
Pharmaceutical Industry (PCPI) for their
contributions to this report.
CONTENTS
7 CONNECTING THE DOTS
8 QUANTIFYING THE MARKET
9 HIGH STAKES FOR NEW STAKEHOLDERS
9 MATURE NEIGHBOR DOWN UNDER
10 RELEVANCE: TO BE OR NOT TO BE?
11 CORPORATE CALLING
12 LIFESTYLE MATTERS
13 MABUHAY! NAMASTE!
14 WHATS RITE IN A NAME
14 SALES 2 MANUFACTURING
16 EN PRISE!
17 THE RE-TALE: A STORY OF GENERICS
18 MORE GOVERNMENT, MORE PRIVATE
19 PIONEERING HARMONY
20 A BOOM IN BPO
INTERVIEWS
24
Interview with: Gregorio Navarro, Managing Partner & Ceo, Deloitte Philippines
Interview with: Maria Cristina G. Beng Coronel, President, Pointwest
27
Technologies
Interview with: Raul Manlapig, Principal Managing Director, Arup, Philippines
30
Interview with: Jason Carroll, General Manager, Janssen (Philippines)
32
Interview with: Dr. Enrique T. Ona, Secretary Of Health, Department Of Health
34
Interview with: Alexander A. Padilla, President & Ceo, Philhealth
36
Interview with: Dr. Kenneth Y Hartigan-Go, General Director, Fda
38
Interview with: Teodoro B. Padilla & Reiner W. Gloor, Executive Director &
40
Advisor, Phap
Interview with: Thelma Tobias-Go And Ed Ocampo, President Of Pcpi & Vp Of
41
Scheele Laboratories
Interview with: Thomas Weigold, Country President And Managing Director,
42
Novartis
Interview with: Juanito Luna, Founding President And Ceo, Prosel
44
Interview with: A.A. Santillana, Group Chairman & Ceo, Sv More, Philippines
46
This report was prepared by Pharmaboardroom.com
Project Director: Koen Liekens
Project Publishers: Julie Avena
pharmaboardroom.com
philippines report
PhiliPPines:
FOCUS REPORTS S2
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8
philippines report
rolled 83 percent of the population. The
When the new administration took
enrolment rate means that these are people
over in 2010, our mantra was to include the
that have come under the health insurance
previously overlooked poorest segment of
program at one point or another. Whether
the population, says Enrique Ona, secrethey can avail of benefits is what our covtary of health of the Philippines. Through
erage rate focuses on. Our covered rate is
our Department of Social Welfare, we had
really around 73 to 74 percent, explains
identified 5.2 million households -which
Alexander Padilla, president and CEO of
could include four to five family memPhilHealth. Our key priorities remain
bers- as part of the poor layer of society. In From left: Dr. Enrique T. Ona, secretary of
membership and benefits. In line with the
terms of people, that number comes down health; Alexander Padilla, president and
CEO of PhilHealth
to roughly 25 million, or a quarter of the
countrys population, said Ona. Now, the
challenge of the Department of Health (DOH) is to address the
next layer of society, the so-called near poor that are not yet enrolled in the PhilHealth scheme. The projected number of famiIn IMS Health vocabulary, the Philippines would
lies from this layer is 14.7 million, essentially 58.8 million Filipicount as a Frontier Market. Along with Malaysia and
nos, that should be enrolled by the end of 2014, Ona explains.
Bangladesh, these markets are expected to each
Since 2010, the Aquino administration has reached a numhave a sales increase of USD 2.7 billion by 2017.
ber of major achievements on the healthcare front. The amendFor the Philippines, this would mean an approximate
ment to the National Health Insurance Act, officially called
doubling in value. Nonetheless, the Philippines benRepublic Act 10606, was essential in the sense that it made it
efi ts from the strong momentum of the many marmandatory for all Filipinos to be covered through the national
kets in the Asia-Pacifi c region, driven in large part
insurance body PhilHealth. Officially, PhilHealth now has enby macroeconomic growth, rising healthcare spend,
and urbanization. Based on the IMS market prognosis, the CAGR of the Philippines will average around
3.8 percent to 4 percent through 2017, up from the
current three percent. Among the factors that are
expected to fuel this growth are improvements in
healthcare facilities across the country, the continued push for generic medicines and for genericsonly pharmacies, and the eventual implementation
of UHC, according to IMS Health.
2,019
45.8%
Branded Generics
Originator Generics
2,212
46.8%
1,000
500
0
Unbranded Generics
Other
2,703
2,449
2,515
2,585
47.8%
49.3%
49.9%
51.2%
43.8%
42.6%
41.2%
38.4%
37%
35.9%
2006
2007
2008
2009
2010
2011(f)
Source: IMS MIDAS Data, QTR 1 2011, forecast from Market Program 2011-2015
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31
34.50
43.4
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Presidents desire, we will have each and every Filipino registered
as part of PhilHealth. When it comes to health, the political will
is certainly there.
142
50
3.61
35.34
64.66
7.55
29.67
1.35
83.57
Every
Investment to
Website: www.servier.com
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them out of the hospitals. We have to make sure that
Healthcare Philippines, the third largest MNC in the
the impact on patients improves, Tamesis concludes.
Philippines today. The Philippines has a high unmet
medical need in many different therapeutic areas.
But looking at the most relevant ones, hypertension,
corporate calliNg
respiratory, diabetes kill many patients in the Philippines, while we have innovative and quality affordWhen AstraZenecas CEO Pascal Soriot took ofable medicines to manage and control the diseases!
fice late 2012, he set out a strategy relying heavily on
In addition several specialty solutions like transplant,
emerging markets. He now looks at the Philippines as
cancer treatments or neurological medicines are Dr. Beaver R.
a source of cautious growth. In spite of a number of
Tamesis, president
needed urgently as well, says Weigold.
headwinds, we look at the Philippines as a country of
& managing
The innovators have to ask themselves: What are director, MSD
large opportunity. There is a large population and a
we doing to play actively in a relevant space? says
high unmet medical need. And even though economic
Beaver Tamesis, president and managing director of MSD Philgrowth may have been deceiving in the past, the economy has
ippines, a company growing in high single digits despite a flat
been growing rapidly for six consecutive quarters now, says Gamarket for MNCs. MSD followed the demographic shift in disgan Singh, country president, AstraZeneca Philippines.
ease profiles from predominantly infectious diseases to non-comWe have decided to stay focused on the innovative brands in
municable diseases. Apart from diabetes, coronary heart disease
the market and are constantly seeking for new launch opportuniand hypertension, vaccines for rotavirus and HPV are high on
ties both from our HQ as well as in-licensing opportunities. We
the agenda. Even contraception has seen explosive growth of 38
have strategized ourselves in such a way that enables us to keep
to 40 percent since the controversial Reproductive Health and
the patient at the center of everything we do. At the same time,
Responsible Parenthood Act came through, explains Tamesis.
we are also looking at knowledge partnerships with physicians,
But he also finds relevance beyond portfolios. We are spending a
developing future therapy areas and market needs, as well as
lot of efforts on patient compliance programs. We have to be seen
clinical trials tailored to these market needs, Singh adds. Overas partners that are relevant in reducing patient risk and keeping
all, we are buoyant about the space we are playing in. We know
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that our future will be distinctly different
from the past, but it will be equally glorious as our past has been, he concludes.
Stephen Saad and Gus Attridge, the
executives that run South Africa-based
MNC Aspen, Africas largest pharmaceutical company, set up a subsidiary
in Metro Manila in 2011, a bold and
Lifestyle Matters
DIABETES 4.3 million Filipinos suffer from diabetes and another 6.6
million have pre-diabetes, according to the estimates of the International Diabetes Federation. The
main problem is that most people
with diabetes do not control their
blood sugar very well. Poorly controlled diabetes is the leading cause
of kidney failure and blindness and Christine Marie
D. Rosal, country
the second leading cause of ampu- manager, Novo
tations after traffic accidents. It is Nordisk
also associated with increased risk
of heart attacks, strokes, dementia and impotence in
men, explains Christine Rosal, country manager Philippines for Novo Nordisk, a diabetes focused MNC with
its headquarters in Denmark. More than 10,000 people each year in the Philippines get end-stage renal
disease and each year more than 60,000 people die
because of diabetes.
DOCTORS EYE: Increasingly, diabetes patients have
been flooding the National Kidney and Transplant Institute (NKTI), the leading transplant institute in Southeast
Asia, primarily in kidney transplants. Whether the kidney
failure primarily came from diabetes or from something
else has become harder to pinpoint. But the number one
cause of end-stage renal disease in the Philippines and
this hospital is diabetes, says Jose Dante Dator, executive director of the NKTI.
ONCOLOGY An estimated three out of every 100 Filipino women are expected to contract breast cancer before age 75, the highest incidence rate in Asia. Further
2008 data of the Philippine Cancer Society indicated
that 13 out of 100 males and 12 out of 100 females in
the Philippines would have had some form of cancer if
they would have lived up to age 75.
PharmaBoardroom asked Julie Geronimo about her
take on the changing oncology landscape, ever since
she set up a niche distribution company, focused on
oncology products, roughly two decades ago. In the
1980s, oncology as a niche area did not yet have the
exposure it has today. I started working in this area at
S7
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Mabuhay! Namaste!
At an October 2013 Summit marking the
25th anniversary of the 1988 Generics Act,
Health Undersecretary Madeleine Herrera
said that five to six out of ten Filipinos now take generic
medicine. Traditionally, the majority of these generics has
been supplied by Filipino manufacturers. The growing use of
generics in a prescription-driven market like the Philippines,
however, has brought in a number of big names from abroad.
Quite frankly, it was an open invite to the much more experienced branded generics players from the worlds generic
powerhouse next door: India.
Indirectly, the government policy has worked in favor
of the Indian companies, says Sanjay Singh, general
manager in the Philippines for Torrent, one of Indias largest pharmaceutical companies. As prices were lowered
with the MDRP, it was made clear that even though prices
would go down, quality would be maintained. The MDRP
helped to eliminate the dilution in the relationship between price and quality. Since most Indian companies
used to face the prejudice of bringing in low quality products, the perception change due to MDRP mostly benefit-
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ippine subsidiary has grown to 111 employees
and counting, and the Philippines is now referred to as the launch pad to Asia within
the Aspen Group.
We moved all of RiteMEDs medical representatives to United Laboratories and used the
savings generated in three ways: bringing prices
down further, a trimedia campaign for branding, and providing additional discounts to drugstores. Instead of pushing the drugstores or the
doctors to give our medicines to the patients, we
targeted the patients directly, explains Ochave.
Brand loyalty, as several reports of the market
research firm Nielsen indicate, is particularly
high in the Philippines and, combined with the
limited disposable incomes of the population,
means opportunities for branded generics.
The MDRP did not only leave the MNCs cornered in 2008: United Laboratories, the largest pharmaceutical company in the Philippines
and generics manufacturer, was also affected.
But desperate times call for desperate measures, and United Laboratories was forced to Romeo B. Carbonel Jr, president,
& Minerva A. Carbonel, chief of
experiment with new business models.
operations, RBC-MDC
Initially, RiteMED, one of Uniteds subSaleS 2 maNufacturiNg
sidiaries, followed the same model as any branded generics
organization, pricing its products 20 to 70 percent lower
Before the introduction of UHC, most major private hospitals
than their innovative equivalents, and marketing aggressively
in the Philippines had to rely on imported products. With the
through an extensive field force. The 2008 price cut, however,
MNCs showing only limited interest in small volumes, all too
forced the company to follow the MNCs and lower its prices
often certain products would never actually make their way to
too. The subsidiary soon started losing money. It was clear
market. It was a situation that skewed market prices upwards,
that we had to make a drastic turnaround, admits Jose Mawith several critical
ria Joey Ochave, senior vice president business development
care companies margroup for United Laboratories.
keting their products
at premium prices.
We identified a
MEETING THE GAPS IN CRITICAL CARE
gap in the products
that were not avail Premier Filipino-owned hospital products company in the
Philippines
able or approved by
Best partner in the hospital critical care area
the FDA and only occupied a small mar- From left: Ace Itchon, president and CEO,
Aspen Philippines; J. De Ruyter Toto
ket, and those that Oroceo, president and general manager,
were being exclusive- Delex Pharma International
ly marketed by large
companies, where the level of competition was low and the prices
augmented. We could bring down prices in such niche markets
and compete head on with existing large players, explains J. De
Ruyter Toto Oroceo, president and general manager of Delex
Pharma International (DPI), a Filipino hospital products company. At the end of the day, we contribute directly to the vision
of the president, the Department of Health, the FDA and our
current administration to make pharmaceutical products in the
Philippines more affordable, so that also the poor layers of society can be reached. Since its incorporation in mid-2009, DPI has
already grown to a staff of close to 100. In three to five years,
DELEX PHARMA INTERNATIONAL,
DPI will achieve PHP 1 billion (USD 22.5 million) sales revenue
INC.
LJP Suites, 189 Mindanao Avenue
and will have its own manufacturing facility, hopes Oroceo.
Barangay Bahay Toro, Quezon City,
Traditionally, pharmaceutical marketing organizations in
Philippines
Tel. No: (632) 426-0150,
the
Philippines have partnered with toll manufacturers for their
(632) 426-0270, (0632) 426-0271,
Fax No: (632) 376-2885
production needs. But many, especially those in rapidly growing
contactus@delexpharma.com,
niche areas, quietly dream of major investments such as their
www.delexpharma.com
own manufacturing plant.
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RBC-MDC Corporation:
Your partner for complete
and ecient distribuon
Compee.Cotet.
Complete.
Compee dantae. With a combined work
experience of almost 200 years in the Philippine
Pharmaceucal industry, the RBC-MDC management
team has built an ecient operaonal system that
focuses on their growing aliates and local customer
base. The company is dynamic and prides itself in its
experience and experse in all facets of the distribuon
business, which directly answers the needs of mareng
companies.
RBC-MDC Corporation
RBC Corporate Center, Don Jesus Boulevard
Alabang Hills, Muntinlupa City 1770
Tel: +632 842-25-89
Email: macarbonel@rbc-mdc.com
Website: http://www.rbc-mdc.com/
9.
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Top 20 leading philippine pharmaceutical companies based on Value
(less V06, V07, A13 & K01)* as of MAT December 2011
Rank
Company
% CAGR 4Years
Company
TOTAL PHARMA MARKET
% CAGR 4Years
3.16
3.06
UNITED LAB
5.40
UNITED LAB
PFIZER INC.
3.21
GLAXOSMITHKLINE
6.92
GLAXOSMITHKLINE
2.41
PFIZER INC
3.46
NOVARTIS
11.18
PASCUAL LABS
8.73
MSD
6.33
SANOFI-AVENTIS
0.98
SANOFI-AVENTIS
4.25
ABBOTT LAB
6.81
ASTRAZENECA
1.07
JOHNSON
1.26
BOEHRINGER INGELHEIM
2.30
INTERMED MKTG
2.53
JOHNSON
3.08
10
PASCUAL LABS
8.92
10
INTERNATIONAL PHAR
16.71
11
ROCHE PHILIPPINES
2.55
11
BOEHRINGER INGELHEIM
6.55
12
NATRAPHARM
9.58
12
GX INTERNATIONAL
6.07
13
ABBOTT LAB
6.50
13
NOVARTIS
10.10
14
BAYER PHARM
2.04
14
CNN GENERICS
15
SERVIER PHILS
1.83
15
MUNDIPHARMA GMBH
0.46
16
CATHAY DRUG CO
42.90
16
PONDS CHEMICAL
7.66
17
MERCK INC
5.72
17
AM-EUROPHARMA CORP
18
INVIDA
1.56
18
NATRAPHARM
10.17
19
GETZ PHARMA
26.87
19
RHEA
2.37
20
GX INTERNATIONAL
4.32
20
MSD
3.52
3.29
1.52
999.00
7.90
Source: IMS Health Philippines, Inc. IMSPlus Combined using Dec 2011 Database. Above excludes sales of V06 General Nutrients, V07 Other
non-therapeutics, K01 Intravenous solutions, A13 Tonics
eN priSe!
In chess, a piece is considered en prise if it is unprotected and
can be captured. In the Philippines, just like in chess, it is impossible to understand the moves of the game in a single snapshot.
To really understand what is shaking, and where the growth sits,
one needs to become part of the game.
The IMS Health figures show around three to four percent
growth in the marketplace, but we are now at a point in time
where the business models in this market are changing. The rise
of generics and increasing government intervention through price
controls have introduced a certain level of complexity. Below this
complexity, however, there are many positive signs, remarks
Raymund Azurin, chief executive of Zuellig Pharma Philippines.
Distributors can be considered centerpieces on the chessboard.
But how many centerpieces can the market handle? The Zuellig Corporation and its subsidiary Metro Drug already occupy
more than 80 percent of the distribution market, but a number
of niche distributors successfully made inroads too.
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When you would go to a pharmacy in the Philippines ten
years ago, you would not be able to find or buy generic medicines. We recognized the opportunity to create a project of
our own that would give access to quality affordable generic
medicines to as many communities as possible. This project
would primarily be a business enterprise but it would have a
strong social side this is Generika, says Julien Bello, vice
president of the company. Generika is organized to make a
meaningful social impact on communities all over the country. Educating people and giving them access to quality affordable medicines is the primary objective, as this goes a
long way towards preserving their overall health at the lowest
cost, adds Teodoro Ferrer, president of Generika.
Today, even Mercury drug the countrys dominant retail
chain, is changing. From a traditional basket of premiumpriced branded medicines, its outlets now also carry generic
medicines. In terms of prices, the cost of medicine has gone
down tremendously in the country. Generic medicines are
already 50 to 70 percent cheaper than their branded counterparts, while prices are pushed down even more because
of the competition in the market. This, together with the
Cheaper Medicines Act (MDRP) of 2008, has been very beneficial to the patients, explains Bello.
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Pioneering Harmony
As a founding member of the AssoThe Philippines, for instance, is a very
ciation of Southeast Asian Nations
open market which is also why there
(ASEAN), the Philippines has been
is so much competition. A country like
a frontrunner in the push for greater
Indonesia, however, is very protective
regional cooperation. Though the
and works very differently than the Philconcept of ASEAN pharmaceutical
ippines. Yet, when we look at the popuharmonization was put forward by From left: Dr. Lloyd Balajadia, executive
lation levels, these markets play a very
Malaysia and agreed upon by the director, Lloyd Laboratories Inc; Zenaida
important role within Southeast Asia,
Senior Economic Officials Meeting Balajadia, chairman of the board-Lloyd
explains Lloyd Balajadia, managing di(SEOM) as early as 1999, a regional Laboratories Inc.
rector of Lloyds Laboratories, one of
pharmaceutical trade and regulatory
the leading contract manufacturers
framework has not yet been introduced. The process is
in the Philippines with a joint-venture plant in India and a
expected to be lengthy and fears exist that it will threaten
field force in Vietnam. Although all countries are evolving
the competitiveness of local Filipino manufacturers, as
towards the Pharmaceutical Inspection Convention and
they struggle to beat down the cost of labor and electricPharmaceutical Inspection Co-operation Scheme (PIC/S),
ity. Others, particularly those with operations across the
it will still take a while before we reach a certain harmony
region, are optimistic about the potential opportunities
on standardized quality levels. There is still limited conASEAN harmonization may bring.
sistency in the way manufacturing facilities are being
Harmonizing the ASEAN Common Technical Dossier
constructed in the region. At the same time, despite free
(ACTD) document is a first step. Business-wise however,
trade agreements, the commercial approaches remain to
each country has its own commercial approach to pharma.
be very different from country to country, he concludes.
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FOCUS ON:
A boom in BPO
Although outsourcing has arguably been
around since the time of the Industrial
Revolution, the concept of hiring a third
party to perform a certain amount of
activities including HR, finance, administration, customer service, and many others
has been a game changer for businesses
around the world since the late 1980s and
early 1990s. Although countries such as
India established themselves early in the
business process outsourcing (BPO) market, in recent years, there has been a shift
towards more diverse locations in recent
years, including South America, Eastern
Europe and Asia Pacific.
The Philippines has been a huge recipient
of this geographical shift, and according to
the Business Process Association of the Philippines (BPAP), one of the biggest areas of
growth has been in BPO for the healthcare
sector: healthcare information management
(HIM) services grew by 172 percent in 2011.
HIM encompasses electronic medical records,
medical claims recovery, patient education,
clinical data management, insurance processing, and other services.
Pointwest, a local Filipino BPO, provides
outsourced pharmacy benefit management
(PBM) to the US, the processing and paying
of prescription drug claims. With an army of
pharmacists, as well as registered nurses and
data analysts, Pointwest wishes to expand
further into this area, capitalizing on its IT
capabilities. We recognize that the healthcare sector is a sector of growing importance
to the BPO industry, says Marina Cristina
G. Beng Coronel, the companys president.
21
22
IPPP
CAGR:
19%
25.0
20.0
CAGR:
29%
3.2
7.1
8.9
13.4
11.0
CAGR:
22%
CAGR:
11%
CAGR:
17%
2006
2009
2010
2011
2012e
% of GDP
2.6%
4.2%
4.5%
4.9%
5.6%
6.2%
7.8%
Direct
employment
240K
423K
525K
638K
772K
900K
1.3M
Indirect
employment
600K
1.1M
1.3M
1.6M
2.0M
2.3M
3.2M
Source: BPAP
Base
Accelerated
Case 2016 Case 2016
24
INTERVIEW WITH:
the overseas remittances. The reality, however, is that the remittances increased over
the years and is still expected to continue
growing. Now, we need to find a model to
translate and mobilize this influx into more
jobs and opportunities to our people.
25
Private consumption
Govt consumption
Capital formation
Net exports
Discrepancy
GDP growth
10
Percent
-2
-4
2008
2009
2010
2011
2012
26
12
2011
2012
10
Percent
Vietnam
Malaysia
Indonesia
Thailand
Philippines
China
Source: World Bank East Asia and Pacific (EAP) Economic Update
2008
2009
2010
2011
2012
1770
1870
2060
2210
...
4.2
1.1
7.6
3.9
6.6
8.3
4.1
3.9
4.6
3.2
7.4
7.5
7.3
7.0
7.0
(0.9)
(3.7)
(3.5)
(2.0)
(2.3)
(2.5)
(22.1)
34.9
(6.3)
8.5
5.6
(24.0)
32.9
2.4
5.1
2.1
5.6
4.5
3.2
2.9
34.1
32.0
31.2
28.8
...
() = negative, ... = data not available, CPI = consumer price index, GDP = gross domestic product,
GNI = gross national income.
Source: ADB. 2013. Asian Development Outlook 2013. Manila;
ADB staff estimates; economy sources;
World Bank. 2013. World Development Indicators Online.
27
INTERVIEW WITH:
29
Arup Associates
Images
1 Ysbyty Aneurin Bevan, Blaenau Gwent, United Kingdom
2 Cairns Base Hospital, Queensland, Australia
3 Womens and Childrens Hospital in China
4 Maggies Cancer Caring Centre, Hong Kong, China
5 Laguna Honda Hospital, San Francisco, USA
6 East Asia Hospital, Ho Chi Minh City, Vietnam
7 Moorfields Eye Hospital, London, United Kingdom
Kalson Ho
30
INTERVIEW WITH:
31
FR: During a recent speech, British Ambassador to the Philippines Stephen Lillie spoke of
huge opportunities for British companies
due to an improved business environment in
the country. Health undersecretary Teodoro
Herbosa said in the same event that several
opportunities are likewise available as the
government is looking to modernize hospitals
to provide healthcare. What is your message
to the government on Arups readiness and
willingness to take on such healthcare projects?
RAUL MANLAPIG: The Philippines is grappling
with the challenges of drastically improving
the quality of healthcare and patient experience while at the same time achieving the
financial performance. Healthcare is very
expensive and at least 60 percent of our population is without proper healthcare services
and facilities. Our unique trust ownership
fosters a distinctive culture and an intellectual independence, which enable us to invest
in R&D and develop our experts to become
leaders in their fields. Our global reach gives
us the advantage of bringing in relevant
resources in dealing with the myriad of issues
those healthcare industries around the world
face. We are able to apply our learnings from
various projects to suit local challenges that
have been encountered before by other countries. Our approach to healthcare is based on
understanding and bringing together estates,
leadership, workforce and operations. We
believe that it is only through an in-depth
understanding in each of these areas, and the
links between them that truly sustainable,
32
INTERVIEW WITH:
Jason Carroll, GENERAL MANAGER, JANSSEN PHARMACEUTICAL COMPANIES OF JOHNSON & JOHNSON, A DIVISION OF JOH
PHILIPPINES MARCH. 2014
33
34
INTERVIEW WITH:
35
FR: What potential do you see to turn the Philippines into a medical tourism destination?
DR. ENRIQUE T. ONA: The Department of Tourism
is very active in making the Philippines a priority destination, and it is a program that we
too should strategically encourage. However,
we leave the implementation to the private
sector, as all our attention is currently
required to reach universal healthcare and
help the poor. We are pleased to note that we
have at least half a dozen hospitals that have
received international and ISO accreditations.
It is also worth noting that the Philippines
has partnered with the United Nations Economic Commission for Europe (UNECE) to
turn Manila, and the Philippines, into the
center for public private partnerships (PPP).
The modernization of our DOH hospital is for
instance open to PPP investments. We are
also about to start our first major PPP for the
Philippine orthopedic center, and, we have
around 25 other major government hospitals
open to this strategy.
36
INTERVIEW WITH:
37
38
INTERVIEW WITH:
39
40
INTERVIEW WITH:
Healthcare should be
more than a game of
prices alone
Teodoro B. Padilla & Reiner W. Gloor, EXECUTIVE DIRECTOR & ADVISOR, PHAP
PHILIPPINES MARCH. 2014
41
INTERVIEW WITH:
42
INTERVIEW WITH:
43
FR: A topic worth addressing is clinical trials, particularly if we look at the 100 million population of diverse ethnical backgrounds. What footprint do you want to
leave behind in the Philippines in this
regard?
THOMAS WEIGOLD: Clinical research is a very
important part of our strategy. As a company we are convinced that we need to
drive business by data. We need to be able
to tell the story behind the white pill.
After Toyota, we are the biggest MNC globally that invests into R&D. The stor y
behind the white pill has to be transparent, evidence or fact-based, and has to be
told to the right people often payers,
sometimes the government and, to a large
extent, the doctors.
We can produce a lot of data in Europe
or the US, which is a good thing in itself.
However, there are different genetic preconditions in different ethnic groups.
Therefore, even once we have a product
registered we feel that we should continue
to do research to provide more data at a
local level. This cannot be done everywhere, but in a large population of 100
million people like the Philippines, this
can be an asset. Today, we already are the
number one company engaged in research
in the Philippines. The Philippines has
many well-trained doctors, partly overseas
and partly here. The education system and
research facilities are there too, and we
have programs to work together with different universities and hospitals to establish clinical research sites. Again, the fact
that English is an official language is a
major asset now that all clinical studies
are being conducted in English.
FR: Where do you hope to see Novartis Philippines in three to five years from now?
THOMAS WEIGOLD: The pipeline of products we
can potentially launch in the next five years
in the Philippines is very big. Regardless of
any promotional muscle, which is a marketing technique from the past, it is about
matching medicines with medical needs.
Programs like PhilHealth are also likely to
provide additional avenues to achieve
greater access to health care. I think that we
can become an even bigger player in the
future.
As an industry, I hope we continue to
approach doctors in a professional manner.
We should always continue to work on the
image and reputation that we have as an
industry.
Apart from GDP growth, there are many
ongoing positive developments in the Philippines. I think that Novartis will probably
be one of the most preferred partners in the
Philippines vis vis the other stakeholders
of the sector. I am quite convinced that we
will be an even stronger player in the future.
Going forward, it will be very interesting
to observe how the implementation of the
ASEAN harmonization process will play out
in the future. In five years from now, we will
be able to gradually assess the impact of
what will happen on this front. Some of the
concerns we have raised already is quality
verification. In countries like Indonesia and
Philippines, counterfeit drugs are still a
major issue. Now how are we going to control
the illegal trafficking of counterfeit drugs if
the borders of these geographically complex
archipelagos open up? We will also need to
look at price levels between different countries, as it would perhaps become easier and
cheaper to import Novartis products from
another market. This is food for thought for
the future.
44
INTERVIEW WITH:
45
46
Interview with: A.A. Santillana, Group Chairman & CEO, SV More, Philippines
INTERVIEW WITH:
47
FR: The Philippines is a pharmaceutical market where you can find medicines of both high
quality and very poor quality. As for local
manufacturers, how do you look at quality?
A.A. SANTILLANA: First of all, we have to be
careful in choosing who we work with.
Hizon Laboratories and Lloyd Laboratories
are world-class manufacturers. If you work
with foreign manufacturers, you have to
carefully select to ensure that they work
according to quality standards. In India, for
example, there are bad manufacturers in the
region but also many very good ones. We are
prepared to take on South Korean manufacturers, which can be among the best.
FR: Why, after all these years, have you not
decided to manufacture yourself?
A.A. SANTILLANA: We are now in the process
of entering that stage of our companys lifecycle. For these first 25 years, we did not
want to take up big loans to fund such
investment, which is why we have waited
till the point where we have sufficient
resources to build our own facilities. Also,
when we constructed our buildings in Mindanao and the Visayas, we did not loan a
single cent.
Now we have reached the point where we
can afford manufacturing without external
funding. Self-sufficiency is very important
to ensure that the operating cash remains
unaffected. In three to five years, we should
have completed our first manufacturing
facility in collaboration with our Philippinebased manufacturers.
48
49
Company index
Arup ................................................. 30, 31
Aspen .............................................. 12, 14
Astrazeneca .................................... 11, 16
Cognizant ........................................ 20, 21
Delex Pharma International (DPI)...... 14
Department of Science and Technology.21
Novo Nordisk......................................... 12
Pharmaceutical And Healthcare
Association Of The
Philippines (PHAP)................... 10, 39, 40
Philippine Chamber Of The
Pharmaceutical Industry (Pcpi)...... 10, 41
Prosel .................................................... 44
Hizon ..................................................... 15
Ims ........................................................ 16
Janssen ........................................... 32, 33
Servier .................................................... 9
St. Lukes Medical Center..................... 12
Lloyd................................................. 15, 19
Merck .................................................... 18
Torrent .................................................. 13
Zuellig ................................................... 16
50