Urges 6-month medicine inventory amid Middle East crisis
The Pharmaceutical and Healthcare Association of the Philippines (PHAP) on Sunday warned that the country’s medicine supply remains vulnerable to global disruptions, recommending that a six-month national inventory buffer be adopted, among possible solutions that could be implemented immediately.
To help cushion potential supply disruptions or price increases of medicines used locally, the industry group offered 10 potential measures, including using joint demand forecasting, building a national medicines logistics command center, and prioritizing pharmaceutical shipments through “green lanes.”
The Department of Health (DOH) last week raised concerns over possible price spikes amid the ongoing conflict in the Middle East.
As global supply chains remain under strain, both government and industry stakeholders are bracing for continued volatility that could affect the availability and affordability of medicines in the Philippines and beyond.
In a statement, PHAP said the Middle East is a critical hub for shipping essential goods, including medicines and raw materials, and any disruption could have cascading effects on supply chains, including in the Philippines.
“The Philippine pharmaceutical industry remains vulnerable to global supply chain disruptions, particularly in the Middle East,” the group said, noting that it is closely monitoring developments and coordinating with member companies to assess risks and align on urgent actions.
While no immediate shortages have been detected, PHAP warned that prolonged disruptions could pose serious risks to supply availability.
“With 12- to 24-month manufacturing lead times for some life-saving medicines, current constraints could lead to future supply gaps,” the group said.
PHAP said it is working with the government and advancing supply chain resilience strategies to maintain stability and ensure continued access to essential medicines.
To mitigate potential disruptions and price increases, the group proposed a 10-point set of measures that could be implemented immediately.
These include adopting a six-month national inventory buffer to prevent stockouts, institutionalizing joint demand forecasting between government and industry, and establishing a National Medicines Logistics Command Center to enable real-time monitoring and faster response to bottlenecks.
PHAP also recommended prioritizing pharmaceutical shipments through “green lanes” at ports to reduce delays, expanding cold-chain and storage capacity for temperature-sensitive products, and ensuring fuel allocation for pharmaceutical distribution to guarantee uninterrupted delivery nationwide.
Other proposals include leveraging pooled procurement to negotiate lower prices, enhancing policy predictability and regulatory flexibility to speed up approvals and expand access to medicines, providing temporary tax credits or subsidies to offset rising logistics costs, and expanding value-added tax exemptions on medicines to reduce out-of-pocket expenses for patients.
“As we have demonstrated during the COVID-19 pandemic, PHAP underscores our commitment to help ensure the uninterrupted supply of medicines and vaccines,” the group said.
“In light of evolving global conditions, we stand ready to work closely with the government to strengthen forecasting, enhance supply planning, and support advance procurement mechanisms to secure the continued availability of life-saving medicines in the country,” it added.
The 80-year-old PHAP represents the biopharmaceutical research industry in the country.
Concerns over medicine supply and pricing are echoed globally, as pharmaceutical logistics systems come under pressure from disrupted trade routes.
In Florstadt, Germany, a major logistics hub operated by DHL is working to ensure the steady flow of medicines and medical products across Europe and other regions.
Medicines are particularly vulnerable to supply chain disruptions due to strict handling and temperature requirements. Delays in shipping or exposure to improper storage conditions can render products unusable.
The DHL health logistics campus near Frankfurt, which spans an area equivalent to 14 football fields, handles a wide range of products, from insulin and specialty drugs to chemical components used in pharmaceutical production.
“Our 600 employees are specially trained because they know that, ultimately, the patient is at the end of the supply chain and no errors are allowed,” said Katrin Hoelter, head of DHL’s logistics division in Germany and the Alpine countries.
She said the ongoing conflict has prompted some customers to increase storage volumes to secure raw materials and ensure uninterrupted production.
“We are seeing that some customers are requesting increased storage volumes here, which are essential for their production, in order to ensure the availability of raw materials,” Hoelter said.
The facility is equipped to handle a wide range of regulatory requirements, including ultra-cold storage of up to minus 80 degrees Celsius for sensitive medical products.
Despite ongoing disruptions, the pharmaceutical logistics sector continues to expand alongside the global drug industry.
Healthcare data analytics firm IQVIA projects that the global pharmaceutical market could exceed $2.6 trillion by 2030, driven by demand in developed and emerging markets.
For logistics firms such as DHL Group, growing demand for pharmaceutical transport and storage services is helping offset declines in traditional mail and broader trade disruptions.
The company plans to invest €2 billion in pharmaceutical logistics worldwide by 2030, with significant allocations for Europe and North America.
Industry officials said the trend reflects a broader shift among pharmaceutical companies to outsource logistics operations, allowing them to focus on research and production.
However, the sector remains highly sensitive to geopolitical developments, particularly disruptions in key shipping routes such as the Strait of Hormuz and the Suez Canal.
The DOH last week said it is taking proactive steps to address potential supply and pricing pressures.
Health Secretary Teodoro Herbosa said the government is closely monitoring the situation, warning that prolonged geopolitical tensions could lead to tighter supply and higher prices of essential medicines.
“Our fear is that prices of medications would go up. Hospitalization fees may go up if that happens. Our kababayan would suffer,” Herbosa said in an interview.
He said supply disruptions could delay deliveries of medicines to the Philippines, potentially resulting in shortages and price spikes similar to recent increases in fuel costs.
“If the conflict escalates, the next delivery of medicines might not reach our shores, or if they reach us, their prices might spike similar to what happened to gasoline. What we have budgeted last year (for 2026) might not be enough. We might have a shortage,” he said.
In response, the DOH has begun conducting a nationwide inventory of medical supplies and stockpiling commonly used medicines to ensure availability.
Herbosa said these measures were initiated following President Ferdinand Marcos Jr.’s declaration of a state of national energy emergency, which provides the government with broader powers to respond to potential disruptions.
The Health chief also floated the creation of a price negotiation board to help keep medicine prices under control during the emergency period.
“I will talk to the Department of Trade and Industry so that no one can take advantage of the situation. With the emergency declaration, we may have a legal basis to control the price of medicines,” he said. With AFP
