The entry of more pharmaceutical players that are putting up hubs in the Philippines boosts the country’s research, digital health and manufacturing hub goals, a report said Friday.

The plan for a first Pharma Innovation Hub, along with the existing operations of Merck Business Solutions and Royale Life Pharma in Philippines Economic Zone Authority (PEZA)-accredited zones, “underscores the Philippines' established position as a key pharmaceutical manufacturer in the Southeast Asia region,” BMI, which is under market analyst Fitch Solutions Company, said in a commentary.

In the medium term, the BMI said it expects the Philippines to continue maintaining its position as the largest pharmaceutical market in Southeast Asia.

“We forecast pharmaceutical market to rise to P438 billion ($7.5 billion) by 2029 from P352 billion ($6.1 billion) in 2024, growing at a five-year CAGR (compound annual growth rate) of 4.5 percent in local currency terms and 4.1 percent in US dollar terms by 2029,” the report said.

Earlier this week, the Department of Trade and Industry reported about the PEZA and AstraZeneca Pharmaceuticals (Philippines) tie-up for the establishment of the Pharma Innovation Hub, initially for an oncology innovation center similar to the company’s center in the United Kingdom.

It is planned to utilize artificial intelligence for early cancer detection, expand patient-support systems, build healthcare workforce capacity, and promote evidence-based policy development.

The report, however, cited as risks to growth the “considerable gap in both financial resources and skilled human capital necessary for advanced pharmaceutical research” and the regulatory landscape.