PHILAB provides a specialized portfolio in the Investable Philippine Healthcare space and cuts across a diverse range of sectors. The primary verticals it operates in are:
The Philippine Healthcare Category
The overall spending in healthcare in 2015 is estimated by BMI to be ₱ 623.0 bn and to grow 10% year on year to reach ₱ 913.9 bn by 2019. The share of government healthcare spending is anticipated to increase slightly over time; the lion’s share of expenditures (between 66 – 68%) will still come from private sources.
Philippine Healthcare Expenditures (2011-2019f)
The In Vitro Diagnostics (IVD) Market as estimated by Frost & Sullivan includes instruments, reagents and services that analyze human body fluids to evaluate diseases and other medical conditions under various stages. Applications they include are Central Lab (Clinical chemistry, Immunoassay, Hematology, Coagulation, Microbiology), Molecular Diagnostics, and Point-of-care testing (POCT).
The Philippines has been categorized as being a growing market with high potential for growth in the replacement market and new product introductions. In 2009, Frost & Sullivan estimated the Philippine IVD market to be ₱ 2.1 billion. At a projected CAGR of 8%, the current market size should be between ₱ 3.36 to ₱ 3.62 billion.
Leveraging the country’s strategic competitive advantage in Knowledge & Business Process outsourcing, partnerships with local medical facilities with regional presence and exclusive rights to certain applications, there is also an opportunity to capture a share of regional market spending in the arena of IVD.
Allied Market Research states in its 2014 report, In Vitro Diagnostics, that “…the IVD market revenue is expected to reach US$74.65 billion by 2020, from the market value of US$53.32 billion in 2013, at a CAGR of 5.34% during 2014-2020” and “… geographically, Asia Pacific is the fastest growing region and very opportune market that would generate highest revenue by 2020.”
A significant portion of the value of new contracts is from supplying equipment to schools through the Department of Education. The Company sees opportunities with new contracts for public secondary schools, private education institutions, higher educational institutions and the resupply contracts with the already contracted public elementary schools
Popularly known as the K-12 law, Republic Act No.10533 or the Enhanced Basic Education Act (EBEA) was signed into law by President Benigno Aquino III in 2013. Among the key thrusts of the law is the development of a STEM (Science, Technology, Engineering and Mathematics) track for secondary school students which translates to a corresponding need for science laboratories and the corresponding teaching supplies and science equipment in public and private schools. According to Giovanni Tapang, PhD of the Manila Times, data released by DepEd in 2012 indicated that only 13% of the public elementary and secondary schools had a science laboratory.
There are 46,602 public elementary & secondary schools in the Philippines and has grown at a Compounded Annual Growth Rate (CAGR) of 1.6% from 2009 to 2014. With the change towards the K-12 system, and the addition of two more years of schooling, secondary schools have had a CAGR of 8.1%. While the government has already added 85,000 classrooms since 2010 it is estimated that the country will need an additional 95,000 to meet the demand. These estimates may not include the 3,171 schools that were seriously damaged during the 2013 Haiyan typhoon.
Philippine Public Schools
At the end of the Academic Year ending in 2013, DepEd recorded 12,875 private elementary & secondary schools. Private schools grew at a CAGR of 2.2% from 2009-2013. This may have been higher except a clamp down by DepEd on unaccredited private schools in 2012 effectively reduced the number of private secondary schools.
Philippine Private Schools
There are a total of 2,388 higher education institutes registered with the Commission on Higher Education (CHED). The majority (71.5%) of which are private institutions. Out a college-level student population of over 3.8 million, only 18.75% are enrolled in STEM courses.
Higher Educational Institutions