Text by Jennifer Manongdo
Photos by Ehcel Hurna
The third Philippine Pharma and Healthcare Expo served as a platform for industry leaders to discuss issues affecting the sector such as complex regulatory procedures, gaps in research and development, and other systemic concerns.
At a round table discussion organized by the UP Manila Technology Transfer and Business Development Office on Jan. 29, 2026 at the SMX MOA Arena, Engr. Arnel Cabungcal, AVP of Manufacturing Operation Services & Technology at United Laboratories Inc. revealed the industry’s fragmented supply chain and limited manufacturing capacity.
“If we take a look at the list of manufacturers in FDA, there are around 400 plus but only 46 of them are actually real local manufacturers. All the rest are basically traders or repackers,” Engr. Cabungcal said.
This structural gap affects the pathway from laboratory discoveries to commercialization as this relies heavily on strong collaboration between researchers and manufacturers. He said this gap can be addressed by foreign investors, such as pharmaceutical companies from India, to establish local manufacturing operations in the Philippines.
Engr. Cabungcal also noted that the establishment of Philippine Economic Zone Authority (PEZA) zones dedicated to pharmaceuticals is a viable solution to encourage more companies to engage in medical centered research, manufacturing, and development.
The PEZA launched the first pharmaceutical economic zone at the Victoria Industrial Park (VIP) in Tarlac in 2025. Thirteen pioneering locators signed an agreement with the government to set up operations in VIP that is expected to boost local production of essential medicines and other health products. Another locally-owned pharmaceutical company established its operations in PEZA in January 2026.
The Green Lane initiative of the Food and Drugs Administration (FDA) is also being viewed as a positive step toward accelerating product registration and commercialization. This is despite the criticism FDA received from lawmakers in a recent senate hearing due to its inefficiency in stopping the sale of unregulated pharmaceutical products as well as issues on application renewals affecting local enterprises.
Puela Panthria Palomino, business development manager at Pascual Pharma Corp. hailed the important role of partnering with the right industries or entities in order to bridge the gap in research and development.
“I realized that this gap can be bridged with the right partners in the industry.
We partnered with UP Manila so that particular challenge in the product development has been solved,” she said.
Aniano Matabuena, Jr., EVP of Philippine International Manufacturing and Engineering Services praised the policy incentives offered by PEZA. The new policy allows local manufacturers to get the same income tax holiday incentives as exporters with the exception of the value added tax.
“Because of that, it triggered us to register a project that we started with a university, particularly, Technological Institute of the Philippines,” he said.
Meanwhile, Johnny Chotrani, chairman of the Philippines – India Business Council emphasized the need for stable and transparent policies to sustain investor interest. He said frequent policy changes affect investor trust, especially among multinational companies. Bureaucratic processes or red tape should also be removed to facilitate better processes in accomplishing regulatory requirements.
The panel discussion was moderated by Prof. Maria Eliza Aguilar.
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