INDUSTRY SPOTLIGHT
Spotlight on Healthcare in the Philippines For the past 75 years, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) has been at the vanguard of improving the country’s healthcare sector. Executive Director Teodoro Padilla, examines the organisation today
Teodoro Padilla Executive Director of the Pharmaceutical and Healthcare Association of the Philippines
APAC Outlook (AO): Can you talk us through the origins of the PHAP; how it came about and its initial vision? Teodoro Padilla (TP): PHAP was established on July 3rd, 1946, as the Philippine Wholesale Druggist Association. It was founded by 10 men, each representing a leading pharmaceutical wholesaler. Just like the entire country at that time, the pharmaceutical sector was recovering from the ravages of World War II. As the Association’s original name indicates, it was an organisation consisting of wholesalers, reflecting the state of the industry. In 1950, the organisation was renamed Drug Association of the Philippines (DAP), which stuck for the next 40 years. Membership in the non-stock, no-profit association was expanded to include pharmaceutical manufacturers. By then, the Association took the cudgels in confronting issues that impacted both the industry and the Filipino patients. In 1991, the organisation was renamed as PHAP to signify a wider representation of participants in the 2 | APAC Outlook issue 51
pharmaceutical and healthcare sector. The name also implies its broader role for the Filipino people and the country. In 2003, PHAP established the PHAPCares Foundation to serve as its corporate social responsibility (CSR) arm. The PHAPCares Foundation undertakes initiatives to improve the health and wellbeing of the sick, disadvantaged and victims of disasters. From its post-war beginnings, PHAP has assumed a broader role in promoting the growth of the research-based pharmaceutical industry in the Philippines for the benefit of the people’s health, and the country’s development. AO: Since inception, how has PHAP developed and progressed in terms of its key objectives and the messages it tries to get across? TP: Since its founding as an industry engaged in the wholesale and importation of finished pharmaceutical products, the country’s pharmaceutical industry, as represented by PHAP, has evolved into one with a crucial role in the health of Filipinos and in the advancement of the economy. The growth of PHAP over the last 75 years reflects the development of the pharmaceutical industry, a sector which is a key pillar in the provision of quality healthcare for Filipinos then and now in this time of global pandemic. PHAP works with patients, government, medical professionals and non-government organisations to improve the health situation of Filipinos so they
PHARMACEUTICAL & HEALTHCARE ASSOCIATION OF THE PHILIPPINES (PHAP)
“Through its members, PHAP’s mission is to produce, enhance, market and make accessible quality and life-saving medicines and medical devices, and to partner with the government, medical professionals and non-government organisations in improving the overall healthcare situation in the Philippines” - Teodoro Padilla, Executive Director, PHAP
can be healthier and more productive. In 2017, the organisation adopted a new vision to be the leader in advancing access and adoption of innovative therapies for a healthier citizenry towards nation building. The new mission is to bring together stakeholders to advocate for policies and practices that encourage access to innovate life-saving therapies for Filipinos. The adoption of the new vision and mission came just before the World Health Organisation (WHO) declared a global pandemic which continues until today. The rapid spread of the novel coronavirus across the globe is an ongoing major public health threat for all, with profound health, social and economic impacts around the world, the Philippines included. The adoption of innovative therapies
to contribute to a healthier citizenry and a more resilient economy is taking centre stage as the world battles COVID-19. Now more than ever, there is a need for the sick to continually access innovative medicines that could potentially save their lives. The pandemic has also resulted in unprecedented collaborations, bringing together the industry and all stakeholders to work together for policies that will encourage access to innovative medicines, vaccines and diagnostics. As a science-driven industry, the research-based biopharmaceutical industry is uniquely positioned to respond rapidly to COVID-19. It has deep scientific knowledge gained from decades of experience working on developing solutions for combatting a range of infectious diseases such as MERS, SARS, APAC Outlook issue 51 | 3
Your Trusted Partner in IV Anesthesia and Critical Care Delivery Can you talk us through Philcare Pharma, its origins, and how it has developed to this day? Philcare Pharma was literally born out of the ashes of my first business venture which was also in pharmaceuticals distribution. Coming from a non-pharmaceutical background, the failure of my first business venture in pharma turned out to be a major learning experience for me. Philcare Pharma began its journey in 2013 with the implicit understanding of avoiding the pitfalls experienced in the earlier venture including an overhaul of the business model. Thus Philcare Pharma was born as a pharmaceutical marketing and distribution company focused on niche therapeutic solutions or in early-to-market injectable (IV) product solutions solely targeting hospital formularies instead of retail pharmacies as our core customer target. Some of the products we have launched in the last eight years of our operation have been introduced for the first-time by any company in the Philippines. What do you find are the most exciting and challenging aspects of working in healthcare in the Philippines? What I find motivating and rewarding in my business are primarily two things, 1) abundance of profitable growth opportunities usually overlooked by bigger local or global pharmaceutical companies and secondly, 2) introducing exciting new product solutions to help enhance the quality of medical care for Filipino patients. However, Philippines being a resource constrained economy does provide its own challenging environment where cost of providing basic medical care regularly comes into conflict with improving the quality of medical care. In addition, navigating the local regulatory framework, weak fiscal condition of the government and the hospital system can often strain most pharmaceutical business models. Have you got any projects or investments in the pipeline you wish to highlight? Yes since last year we have started diversifying and investing heavily into medical devices and equipments to supplement our strength and experience in pharmaceuticals marketing in our core competency area of anesthesia and critical care. We have been successful in identifying similar niche focused small to medium sized Asia and Europe based medical science companies with exciting product technologies (medical devices) and working closely with them to build a strong partnership for the Philippines market. Most of our new medical device solutions entail advanced technology and/or breakthroughs in medical care which we are excited to bring to our Filipino patients and the local hospitals.
PHILCARE PHARMA, INC., Santolan, Pasig City 1610, PHILIPPINES (+632) 86823466, 86460692 | info@philcarepharma.com LinkedIn: Philcare Pharma Inc
philcarepharma.com How do you see Philcare Pharma developing over the next few years? Our medium to long-term goal will be to ensure 15-20% top-line growth. Within our core competency area of anaesthesia and critical care segment, in the next 5-10 years I see our business model gradually and progressively changing into a more diversified healthcare portfolio of niche pharmaceuticals (primarily still injectable (IV) products) and unique first-to-market technologically advanced medical devices and equipments. The adaptation of our business model to a more diversified healthcare portfolio stems from the need to ensure the viability of our medium-to-long term revenue growth and also to ensure that we are able to utilize potential synergies in both the pharmaceutical and the medical devices divisions within our core targeted therapeutic franchise. We are continually evaluating the changing global healthcare landscape to explore how we can source and implement some of the relevant new-age medical solutions and technologies to the Philippine landscape to ensure that Philcare Pharma can find the growth opportunities and stay relevant as a business for as long as possible. Are you optimistic about the future of healthcare within the Philippines? We all acknowledge that healthcare is one of the most resilient sector of any economy and the Philippines healthcare is not an exception to this fact. Currently with a 100 million plus population and one of the younger population demographic, I see Philippine healthcare sector providing us abundant growth opportunities for the long term. Is there anything else you would like to include that has not been mentioned? Well I would like to take this opportunity to communicate with potential healthcare partners who are looking for a distribution partner in the Philippines for their niche products (pharma and/or in medical device solutions) to explore Philcare Pharma. We are a young and ambitious business with plenty of room to grow and we are looking for like-minded partners who would like to grow with us and build a business for their products based on mutual trust and respect for each other’s individual strengths.
APAC Outlook issue 50 | 5
INTERVIEW
INDUSTRY SPOTLIGHT
Ebola and influenza, as well as experience working with health authorities and regulators to find a fast-tracked approach to bringing safe and effective medicines to market for patients. At present, biopharmaceutical companies are committed to developing treatments, vaccines and diagnostics for COVID-19. PHAP and its members are closely monitoring the COVID-19 situation globally and in the Philippines. We stand with the government, our frontliners, and the nation in the fight against COVID-19. PHAP and its members are doing our best in three ways: the research and development of medicines, vaccines and diagnostics; helping ensure the uninterrupted supply of medicines despite major challenges like global lockdowns; and through our CSR initiatives. Prior to COVID-19, PHAP commissioned a national survey on the Filipino people’s desire for Universal Healthcare as early as 2010. Since then, we have launched various activities such as national debates, writing competitions, dialogues involving ministers, and all relevant sectors towards Universal Healthcare. In 2019, Philippine President Rodrigo Duterte signed the Universal Healthcare Law which automatically enrolls Filipino citizens to the state health insurance. In the UHC Act and the National Integrated Cancer Control Act also signed in 2019, we advocated for strategies that offer broader, more comprehensive approaches to improving health systems, including access and affordability of medicines. Both the UHC Act and the Cancer Control Act provide for pooled procurement, price negotiation, expanded medicines benefits, early access to innovative medicines, special access schemes from the private sector and Health Technology Assessment.
6 | APAC Outlook issue 51
AO: What do you find most exciting about working within the Philippines’ healthcare sector, specifically within the pharmaceutical industry? TP: It is exciting to be in an industry that is a pioneer on matters that make a difference in the lives of Filipinos and in the growth of the research-based pharmaceutical industry. Since its inception, PHAP is proud that it is the first pharmaceutical industry association in the Philippines which represents global and Filipino companies. It is the sole country member of the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) and the Global Self-Care Federation, two organisations that have official working relations with WHO.
“Through the years and until today, PHAP’s work and advocacy can be summarised by innovation, collaboration and health for all” - Teodoro Padilla, Executive Director, PHAP
The organisation is a pioneer in the implementation of industry-wide Code of Practice, and a leader in advocating ethics and integrity aligned with national, regional and international standards. We were the first to implement a training programme for members of the pharmaceutical industry through the Medical Representatives Accreditation Programme (MRAP) which was subsequently renamed as the Integrity and Proficiency Programme for the Pharmaceutical Sector (IPPS). We are also the sole pharmaceutical industry association with a CSR arm in the Philippines, the PHAPCares Foundation. Since its founding, the PHAPCares Foundation has donated PhP one billion medicines to communities disadvantaged by sickness, poverty, natural calamities and conflicts. The Foundation has received a presidential citation for its work in geographically isolated and disadvantaged areas. Our work also becomes relevant as PHAP has also
PHARMACEUTICAL & HEALTHCARE ASSOCIATION OF THE PHILIPPINES (PHAP)
We are patients ourselves and it is our hope that these advancements Donations benefit more than 1.5 million families and 155 health facilities nationwide in pharmaceutical research will be available to us and our loved ones. Driven by their commitment to corporate social responsibility, trusted medicines and vaccines Our work also requires that providers belonging to the Pharmaceutical and Healthcare Association of the Philippines (PHAP) and PHAPCares Foundation have contributed we closely collaborate with the and in-kind donations to the country's * monetary COVID-19 response. government and national and international stakeholders to shape The said donations benefitted more than policies and make innovations accessible. With this, we hold high1.5 million families and over level forums and dialogues with Beneficiaries include government and private hospitals, charitable institutions, government and stakeholders to government agencies, and nongovernmental organizations (NGOs), among others. 155 hospitals nationwide shape policy discussions; establish partnerships with international and In-kind donations of PHAP Members consist of national stakeholders; and create PPEs (coveralls, N95 masks, surgical medicines, vitamins, food packs for frontline masks, surgical gloves, face shields, venues for partnerships. We are vaccines health workers goggles, head and shoe covers) one of the conveners of the ASEAN transportation personal hygiene items, test kits ventilators assistance disinfectants for patients Confederation of Pharmaceutical *as of July 2020 Industry Associations (ACPIA) composed of pharmaceutical groups Employees of PHAP Member companies are in the region. also volunteering in community efforts to Through the years, PHAP support frontline health workers and patients has partnered with reputable Since 2003, the PHAPCares impacted by the COVID-19 Foundation has donated outbreak in the country. organisations including the University of the Philippines-Universal PHAP, its Members and the Healthcare Study Group, conducting PHAPCares Foundation will in medicine and financial assistance also be initiating future activities aimed at raising awareness pandemic-related to Filipinos disadvantaged partnerships in support of and deepening understanding about by sickness, poverty, the nation’s efforts to conflicts and disasters. contain the spread of UHC. We partnered with the UP-UHC COVID-19, and establish pharmaceutical security Study Group and the Department of resilience in preparation for any future pandemics. Health (DOH) for the conduct of the “Secretary’s Cup”, which gathered the www.phapcares.org #WeWillNotRest secretaries of health, social welfare, budget, local government, labour, been consulted in important policies affecting health employment, science and technology to discuss and the industry, as a member of the Department of a whole-of-government approach to Universal Health Pricing Advisory Council, a convenor of the Healthcare. Consensus Framework for Ethical Collaboration, a With our partners, we initiated the Health System member of the Coalition for Safe Medicines and the Shapers (HSS), which brought various sectors from National Privacy Council-Pharma Sector, and various the academe, business healthcare professionals, Technical Working Groups formed by the government. local government and the media to generate Moreover, medical science is transforming patients’ a whole-of-society commitment towards the lives and ensuring the health of the world’s economy. attainment of Universal Healthcare. We spearheaded The pharmaceutical industry is at the forefront of R&D the UHC media roundtable with senatorial into medicines, vaccines and diagnostics that enable candidates to examine the lawmakers’ position people to live people healthier, more productive and on Universal Healthcare. Nationwide health film longer lives. Filipinos are living longer partly due to festivals, essay competitions, and in-depth seminars these pharmaceutical innovations that allow us to and reporting for journalists, complemented these prevent and treat once fatal diseases. At present, we high-level discussions. are in the front row of medicines and vaccines that are We proceeded to engage policymakers, groups in the pipeline for COVID-19. Beyond the pandemic, and individuals who have the commitment towards there are also 8,000 medicines in development that our “health for all” aspiration. In 2016, PHAP became bring hope to Filipino patients and their families. the main convener of the annual forum “Health
PHAP Members donate P120M for COVID-19 response
INTERVIEW
P 1 BILLION
APAC Outlook issue 51 | 7
INDUSTRY SPOTLIGHT
for Juan and Juana: Moving Forward with the Philippine Health Agenda” which until now gathers the country’s thought leaders and experts in the field of healthcare to discuss and put into action recommendations to achieve UHC.
PHAP: COVID-19 CHALLENGES
INTERVIEW
Community quarantine measures have created challenges in the manufacturing, importation, and distribution of essential medicines and diagnostics across the country. Supply chain disruptions including the establishment of checkpoints with varying local ordinances across local government units, air and sea travel restrictions including port closures, and the closure of public transport that hindered the mobility of critical staff. With the varying implementation of quarantine measures across the world, PHAP members had to implement alternative measures to minimise supply chain disruptions. The COVID-19 pandemic pushed the Philippines’ economy into recession. As a result, patients have delayed their hospital or doctor visits. The double-digit contraction of the pharmaceutical market, reaching up to –18 percent, is evidence of the industry’s struggles. “We call for support from the government to make the environment conducive to making innovative medicines accessible. Prepandemic, the Philippines needed to enhance its access to innovative medicines. Out of the 166 innovative medicines registered in the US and EU in 2019, only nine made it to the Philippines. “Relative to the pandemic, of all the R&D companies involved in the development of COVID-19 treatment and vaccines, we have a handful that have local offices in the country. Imagine the impact to medicine and vaccine access if we have more research-based companies present in the Philippines. Making the Philippines a centre of pharmaceutical research is our vision.” - Teodoro Padilla, Executive Director, PHAP
8 | APAC Outlook issue 51
We could not have achieved this without the strategic direction of the PHAP Board and Trustees. The immense support of the PHAP membership has also been important in achieving these milestones. Finally, the PHAP partners from government, academe, healthcare community, patient organisations and the media are key in forging collaborations that would create high impact on the society. AO: What trends are currently transforming healthcare developments within the researchbased pharmaceutical sector in the Philippines and how are you responding to them? TP: The COVID-19 pandemic has transformed healthcare globally. There is now recognition on the value of a robust pharmaceutical industry to ensure pharmaceutical security for Filipinos. PHAP is working with the government in crafting and enabling policies leading to supply security in response to COVID-19 and future pandemics. There is also recognition of the complexity of pharmaceutical R&D and the value of innovation. We are at the forefront of discussions on the R&D process and patient safety, especially with COVID-19 vaccines. We are working closely with the government and stakeholders to enable an accelerated review process for regulatory and HTA especially in light of the pandemic. Our members are also conducting local clinical trials for COVID vaccines and treatments.
PHARMACEUTICAL & HEALTHCARE ASSOCIATION OF THE PHILIPPINES (PHAP)
AO: Have you got any projects in the pipeline you wish to highlight? TP: Aligned with our vision and mission, PHAP is conducting a series of multi-stakeholder dialogues on 1) pooled procurement and access to innovative medicines, 2) on improving access to COVID therapies in the Philippines and 3) on promoting Health Technology Assessment in the Philippines. The exercises will include an analysis of the current challenges in accessing innovative medicines, including COVID therapies, and identifying joint action points for the public and the private sector. In partnership with patient organisations, PHAP is also holding a series of cancer forums. The first of the series, “Cancer Conversations: Navigating Cancer with Patients,” centered on discussions on the plight of cancer patients and their families during the pandemic, whilst highlighting the importance of the full implementation of the National Integrated Cancer Control Act (NICCA) in providing quality, affordable, and accessible healthcare to all cancer patients. Two further forums followed, including, “Cancer Conversations: From Policy to Meaningful Action”, and “Conquering Cancer”. The fourth and final installment will be in August, on the theme “Intensifying the fight against cancer”. PHAP is also partnering with the medical community in building vaccination confidence through a series of media roundtables which seek to communicate the science behind the vaccines and dispel myths. It is true that a healthier citizenry is the backbone of a strong economy. Pharmaceutical innovations contribute to the people’s health, their productivity and the nation’s economy. With this, we
AO: How do you see PHAP developing over the next five years? TP: PHAP will continue to advocate for reforms geared towards pandemic security, universal healthcare, and the improvement of access to medicines. PHAP will be a major partner of the government in fostering better health and economy where Filipinos will have access to innovative treatments, vaccines and diagnostics regardless of economic status through the implementation of Universal Healthcare. If the roadmap achieves its intended targets, we are hopeful that there would be more R&D companies that will be coming over to invest in health and the economy. Consistent with its vision and mission, PHAP will be a leader in advancing access and adoption of innovative therapies for a healthier citizenry towards nation building and bringing together industry and other stakeholders to advocate for policies and practices that encourage access to innovative and life-saving therapies for Filipinos.
INTERVIEW
The pandemic is also pushing digitalisation in healthcare. Physician and industry interactions have also become virtual and so, we aligned our Code of Practice to reflect online engagements.
encourage the people to get vaccinated so that they will be protected from SARS-COV2. When people are fully vaccinated, there will be confidence to reopen tourism, businesses, and the economy. Meanwhile, PHAP is partnering with members of the pharmaceutical sector to produce the Philippine Pharma Roadmap which sets the collective mission and goal of the Philippine Pharma Industry. Its aims to tackle various issues and concerns of the industry as well as lay down recommendations across a three, five and 10-year timeframe. Finally, PHAP is a convener of the Consensus Framework for Ethical Collaboration with the Philippine Medical Association, Philippine Nurses Association, Philippine Alliance of Patient Organisations, Philippine Pharmacists Association among other organisations. We have helped develop the Philippine Consensus Framework which supports principles that put patients at the centre of what we do.
Tel: +632 88655600 phap7346@phap.org.ph www.phap.org.ph
APAC Outlook issue 51 | 9
PHARMACEUTICAL & HEALTHCARE ASSOCIATION OF THE PHILIPPINES (PHAP) Unit 502 One Corporation Plaza, 845 Amaiz Avenue, Makati City, Philippines Tel: +632 88655600 phap7346@phap.org.ph www.phap.org.ph
PRODUCED BY APAC OUTLOOK MAGAZINE