EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S.B. No. 2238
NDfeX
Introduced by SENATOR RICHARD J. GORDON
AN ACT CREATING THE PHILIPPINE VACCINE AUTHORITY FOR THE 
DEVELOPMENT OF LOCAL VACCINE MANUFACTURING CAPABILITY, TO 
SUPPORT LOCALLY MANUFACTURED VACCINES, AND PROVIDING FOR A 
VACCINE DEVELOPMENT FUND AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 15 of the Philippine Constitution provides that, "The State 
shall protect and promote the right to health of the people and instill health 
consciousness among them."
The onslaught of the novel coronavirus, or severe acute respiratory syndrome 
coronavirus (COVID-19), highlighted the unpreparedness of the country in containing 
a highly contagious virus and in effectively protecting the public from the novelty and 
danger presented by this viral disease. As of February 8, 2021, there have been 
105,805,951 confirmed cases, including 2,312,278 deaths worldwide, that had been 
reported to the World Health Organization (WHO).1 Of these, 538,995 are confirmed 
cases and 11,231 deaths were recorded in the Philippines.2
WHO confirmed that a pandemic can be successfully curbed with vaccines. For 
instance, snriallpox, which kiiied 300 million people in the 20th century alone, had been 
eradicated due to an intense global smallpox vaccination campaign joint with broader 
public health measures.3 Vaccine is therefore important in stopping the spread of 
COVID-19 and helping revive the nation as when the population is vaccinated, workers 
can go back to work, students can go back to school, and ultimately revitalizing the 
society and bringing normalcy back to every Filipino.
Given the high demand for COVID-19 vaccine, where rich countries have 
already bought 80% of the supply, 2% was bought by the COVAX facility, leaving the
1 https://covidl9.who.int
2 https://doh.aov.ph/2019-nCoV
3 https://www.who.int/news/item/13-12-2019-who-conrimemorates-the-40th-anniversarv-
of-smallpox-eradication


low to middle income countries like the Philippines at the tail end of the supply chain 
as we fight for the remaining 18% of the remaining supply.
Importation of vaccines may be cheaper and a relatively easier route in 
protecting public health. However, the long-term and more efficient policy framework, 
specially in cases when there is a pandemic, is to revitalize the country's local vaccine 
capability.
The first Philippine vaccine laboratory was established in the 19th century and 
it initially produced smallpox vaccine. The laboratory was later expanded and became 
a major contributor to the promotion of Philippine public health program during the 
American occupation. In fact, in 1939, the Philippines was even able to donate 
vaccines to China through the Philippine Red Cross. These vaccines were produced in 
the serurr and vaccine laboratory in Alabang, which was operated by the University 
of the Philippines Institute of Hygiene. The art deco building where the vaccines were 
manufactured has been repurposed today as part of Festival Mall in Aiabang.4 In the 
1950's, through the UNICEF's assistance, the biologicals and vaccines produced in 
the Philippines included BCG, Tetanus Toxoid, Human and Animal Rabies vaccines, 
PPD, and biologicals like the Plasma-Derived Snake anti-venom.
The country's vaccine manufacture slowly declined due to absence of training 
on updated vaccine production, non-replacement of outdated facilities, and ultimately 
lack of governmental support.
The right way forward to truly protect and promote the people's right to health 
is to science our way through by investing in research and development and 
technology, and increasing our expert pool, all for the purpose of institutionalizing our 
local vaccine capability.
Thus, we seek the passage of this bill.
Senator
https://cph.upm.edu.ph/node/2818


EIGHTEENTH CONGRESS 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE
S. B. No. 2238
DATE
ND'feX
Introduced by SENATOR RICHARD J. GORDON
AN ACT CREATING THE PHILIPPINE VACCINE AUTHORITY FOR THE 
DEVELOPMENT OF LOCAL VACCINE MANUFACTURING CAPABILITY, TO 
SUPPORT LOCALLY MANUFACTURED VACCINES, AND PROVIDING FOR A 
VACCINE DEVELOPMENT FUND AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
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A. GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as the Philippine Vaccine 
Development Act of 2021.
Section 2. Declaration of Poiicy. -
a. 
It is hereby deciared the policy of the State to improve the access to and 
delivery of safe, reasonably cost and effective vaccines to the Filipino people.
b. 
It shall also be the policy of the State to support the creation of a locai 
vaccine development and manufacturing ecosystem.
Section 3. Objectives. - The objectives of this Act are as follows:
a. 
to support human resource development for vaccine technology and 
related fields;
b. 
to encourage and support local research on vaccines and biologicals; 
and,
c. 
to provide incentives to companies for the local manufacture of vaccines 
and biologicais.


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B. DEFINinON OF TERMS
Section 4. Definition of Terms. - When used in this Act:
a. 
Biologics/biologicals shall refer to a substance that is produced by or 
extracted from a biological source and that needs for its characterisation and 
the determination of its quality a combination of physical-chemical-biological 
testing together with the production process and its control; also refers to 
products or preparations containing the said substance as an active ingredient;
b. 
Biosafety shall refer to containment principles, technologies, and 
practices that are implemented to prevent unintentional exposure to 
pathogens and toxins or their accidental release from a laboratory or similar 
facility.
c. 
Biosecurity shall refer to institutional and personal security measures 
designed to prevent the loss, theft, misuse, diversion, or intentional release of 
pathogens and toxins from a laboratory or similar facility.
d. 
Biotechnology shall refer to any technological application that uses 
biological systems, living organisms, or derivatives thereof, to make or modify 
products or processes for specific use.
e. 
Vaccine shall refer to a biological preparation that improves immunity to 
a particular disease that contains an agent that resembles a disease-causing 
microorganism, and is often made from weakened or killed forms of the 
microbe, its toxins, its surface proteins, or its genetic material.
f. 
Vaccine Technology shall refer to any technological application to make 
vaccines including but not limited to genetic engineering, cell & tissue culture, 
chemical engineering, and packaging & materials technology.
C. ESTABLISHMENT OF THE PHILIPPINE VACCINE AUTHORITY
Section 5. Philippine Vaccine Authority. - The Philippine Vaccine Authority is 
hereby established, hereinafter referred to as the Authority, that shall oversee an 
ecosystem conducive for the development of the Philippine Vaccine Industry. Its 
principal office shall be in Metro Manila, but it may establish other branches or offices 
elsewhere in the Philippines as may be necessary or proper for the accomplishment 
of its purposes and objectives.
Section 6. Powers and Functions. - In furtherance of its purposes and objectives, 
the Authority shall have the following powers and functions:


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a. 
to create a long term Philippine Vaccine Development Plan and update 
it accordingly;
b. 
to create a research agenda for vaccines and biologicals;
c. 
to develop and prescribe policies and standards for vaccines and 
biologicals research and manufacturing including, but not limited to, 
biosecurity and biosafety, for recommendation to appropriate government 
implementing agencies;
d. 
to coordinate and facilitate technology transfer from technology owners 
and research institutions to local institutions and manufacturers;
e. 
to enter into, make and execute contracts and agreements of any kind 
or nature related to the implementation of this Act;
f. 
to acquire or obtain from any governmental authority whether national 
or local, foreign or domestic, or from any person, corporation, partnership, 
association or other entity, such charters, franchises, licenses, rights, 
privileges, assistance, financial or othenwise, and concessions as are conducive 
to, and necessary or proper for the attainment of its purposes and objectives;
g. 
to outsource services, activities, projects, and programs, to capable third 
party providers; and,
h. 
to exercise all the powers necessary to attain the purposes of this Act.
Section 7. Board of Administrators. - The powers of the Authority shall be 
exercised, and all its activities and properties shall be controlled by a Board of 
Administrators, hereinafter referred to as the Board.
a. Composition. - The Board shall be composed of the following:
i. 
Secretary of the Department of Health as ex-officio Chairman;
ii. 
Secretaries of the Department of Science and Technology, 
Department of Trade and Industry, and Departmerit of National Defense 
as permanent members;
Hi. Private sector representatives: one (1) from the academe or 
research institution engaged in vaccine technology, virology, or related 
fields; one (1) licensed clinician providing vaccination services; and one 
(1) from the pharmaceutical industry belonging to Filipino companies as 
appointive members, to be appointed by the President of the Philippines 
for a non-extendible term of three (3) years; provided that the 
Department of Health shall promulgate the rules on the qualifications


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and process in the selection of the appointive members from the relevant 
sectors.
b. 
Meetings and quorum. - The Board shall meet regularly at least once a 
month or more often as the exigencies of the service demand. The presence 
of at least four (4) members shall constitute a quorum, and the majority vote 
of the members present, there being a quorum, shall be necessary for the 
adoption of any resolution, decision, or any other act of the Board. Virtual 
meetings may be held in lieu of face-to-face meetings.
c. 
Allowances and per diems. - The members of the Board shall receive a 
per diem for every meeting actually attended subject to the pertinent 
budgetary laws, rules and regulations on compensation, honoraria and 
allowances.
Section 8. Powers and Functions of the Board. - The Board shall exercise the following 
powers and functions:
a. 
define and approve the policies, plans, strategies, programs, procedures 
and guidelines for the Authority in accordance with its purposes and 
objectives, and to control the management, operation and administration of 
the Authority;
b. 
approve the Authority’s organizational structure, staffing pattern, 
operating and capital expenditure, and financial budgets in accordance with 
pertinent laws;
c. 
appoint, transfer, promote, suspend, remove or otherwise discipiine any 
subordinate officer or employee of the Authority, upon recommendation of the 
Director General;
d. 
create such committee or committees and appoint the members thereof, 
as may be necessary or proper for the management of the Authority or the 
attainment of its purposes and objectives;
e. 
determine the research priorities of the Authority consistent with the 
framework of its purposes and objectives and in coordination with other 
government agencies; and,
f. 
exercise such other powers and functions and perform, such other acts 
as may be necessary or proper for the attainment of the purposes and 
objectives of the Institute.
Section 9. Director General and Other Officers. - The Authority shall be headed by 
a Director General who shall be appointed by the President of the Philippines upon 
recommendation of the Secretary of Health. The Director General shall have a term of 
six (6) years, unless sooner removed by the President.


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The Director General shall be assisted by such Deputy Director General(s) and 
program managers/coordinators as the Board may determine to carry out the 
purposes and objectives of this Act.
Section 10. Powers, Functions and Duties of the Director General. - The Director 
General shall have the following powers, functions and duties:
a. 
supervise and direct the management, operation and administration of 
the Authority;
b. 
execute contracts, including the deeds that may incur obligations, 
acquire and dispose of assets and deliver documents on behalf of the 
Authority;
c. 
implement and enforce policies, decisions, orders, rules and regulations 
adopted by the Board;
d. 
recommend to the Board the Authority’s organizational structure, 
staffing pattern, operating and capital expenditure in accordance with 
pertinent laws;
e. 
submit to the Board a quarterly report of the Authority;
f. 
submit to the Board an annual budget and such supplemental budget as 
may be necessary for its consideration and approval; and,
g. 
exercise such other powers and functions and perform such other acts 
as may be necessary or proper for the attainment of the purposes and 
objectives of the Authority, or as may be delegated by the President of the 
Philippines.
Section 11. Government Agency Support and Coordination. - The Authority may, for 
the purpose of its research and development activities, obtain and secure the services 
of scholars, scientists and technical personnel of any unit of the Department of Health 
and other agencies of the Philippine Government. Such personnel may be paid 
honoraria as may be fixed and authorized by the Board following the usual government 
rules and regulations governing honoraria and aliowances.
The Authority shall also assist, cooperate and coordinate with other government 
agencies, such as but not limited to the Food and Drug Administration and the 
Research Institute for Tropical Medicine of the Department of Health, the Philippine 
Council for Health Research and Development of the Department of Science and 
Technology, the State Universities and Colleges, the National Institutes of Health, and 
the Philippine Genome Center for the implementation of the purposes and objectives 
of this Act.


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D. SUPPORT FOR THE CREATION OF A VACCINE MANUFACTURING
ECOSYSTEM
Section 12; Human Resource Development. - The Authority, in pursuit of its objectives, 
shali endeavor:
a. 
to provide for human resource development in the following fields: 
vaccine technology and related areas including but not limited to molecular 
biology, microbiology, virology, chemistry, biosecurity & biosafety, and 
biotechnology;
b. 
to provide funds for scholarships, study grants, training programs and 
short courses, both local and foreign in accordance with Republic Act No. 7687, 
or the "Science and Technology Scholarship Act of 1994", Republic Act No. 
8439, or the "Magna Carta for Scientists, Engineers, Researchers and other S 
& T Personnel in the Government", Republic Act No. 10931 or the "Universal 
Access to Quality Tertiary Education Act", and other related laws, 
governmental rules and policies;
c. 
to support annual conventions & conferences of professionals in the fieid 
of vaccine technology and related areas;
d. 
to engage Balik Scientists and foreign experts following the terms of 
reference and compensation structure of the Baiik Scientist Program pursuant 
to Republic Act No. 11035, or the "Balik Scientist Act"; and,
e. 
to provide for qualified employees of the Authority and its attached units 
the benefits of Republic Act No. 8439, “Magna Carta for Scientists, Engineers, 
Researchers and Other Science and Technology Personnel in Government" or 
the Republic Act No. 7305, ‘The Magna Carta of Public Health Workers", 
whichever is applicable.
Section 13. Vaccines & Biologicals Research and Development. - The Authority, in 
pursuit of its objectives, shail endeavor:
a. 
to provide funding for a spectrum of researches, from basic to clinical, 
towards the development of safe & effective vaccines biological products;
b. 
to support research institutions, facilities, laboratories, in the private or 
government sector in terms of funding for operations, maintenance, research, 
capacity building, acquisition of equipments, buildings and other capital 
assets; and.


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c. to support venues for publication and dissemination of research output 
in the field of vaccine technology and related areas.
Section 14. Designating Biotechnology Industrial Parks - In coordination with PEZA, 
there shall be a designated biotechnology industrial parks with applicable economic 
zone privileges and with infrastructure adequate for biosafety and biosecurity global 
standards.
Section 15. Support for Filipino Vaccine Manufacturers. -
a. 
Financial Incentives - In coordination with the DTI-Board of Investments 
and the Department of Finance, there shall be provided a tax holiday for the 
first FIVE (5) years to Filipino vaccine manufacturers covering the following:
i. 
income;
ii. 
import duties on equipment and modular units including 
bioreactors, related materials including APIs, reagents, excipients, 
preservatives, and vials, containers and other packaging materials; and,
iii. 
export sales of locally-manufactured vaccines 8i biologicals whether 
in bulk or in finished form.
b. 
Guaranteed Purchase (Filipino First) - The DOH and Local Government 
Units, together with its health facilities, offices, and hospitals, will 
preferentially purchase first from Filipino manufacturers ALL the vaccines 
required for its immunization programs. Should forecasted demand exceed the 
capacity of local production by Filipino manufacturers, the balance may be 
purchased by DoH and LGUs from foreign producers.
c. 
Multi-year Supply Agreement - The DOH and Local Government Units, 
together with its health facilities, offices, and hospitals, may procure vaccines 
through negotiated multi-year supply agreements with Filipino manufacturers.
Section 16. Vaccination Statistics Database - In coordination with the Department of 
Health, the Authority shall endeavor:
a. 
to regularly collect and publish domestic vaccination information 
including but not limited to prevalence of vaccination, volume of vaccines 
purchased and sold, volume of imported and exported vaccines;
b. 
to establish and regularly update a registry of vaccine research 
institutions, vaccine manufacturers, and biotechnology industrial parks in the 
country, including production capacity and current status; and.


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c. to establish and regularly update a registry individuals trained in vaccine 
technology and related fields including but not limited to molecuiar biology, 
microbiology, virology, chemistry, biosecurity & biosafety, and biotechnology.
Section 17. International Cooperation. The Authority may enter into a memorandum 
of agreement or memorandum of understanding with international partners, upon the 
approval of its Governing Board.
Section 18. Vaccine Deveiopment Fund - There is hereby created a Vaccine 
Development Fund to be used exclusively for the purposes of this Act, which shall be 
administered by the Authority foliowing existing government budgeting, accounting, 
and auditing rules and regulations. The Fund shall be sourced from the following:
a. 
The initial amount of Two Billion pesos (P 2,000,000,000.00) to be taken 
from the current Department of Health's fiscal year’s appropriation, in case 
the General Appropriation Act (GAA) was approved before this Act is enacted, 
otherwise the initial amount of Two Billion pesos (P 2,000,000,000.00) shall 
be accordingly appropriated for the establishment of the Authority and initial 
implementation of the objectives under this Act;
b. 
Grants, bequests, gifts, and donations consisting of such properties, real 
or personal, including funds and valuable effects or things, as may be useful, 
whether from local or foreign sources. Provided, that acceptance of grants, 
bequests, and donations from foreign governments shall be subject to the 
approval of the Office of the President upon the recommendation of the 
Secretary of the DOH.
Thereafter, such amount as may be necessary to fund the continued implementation 
of this Act shall be included in the annual GAA.
Section 19. Appointment of Board Members. - Within thirty (30) days from the date 
of effectivity of this Act, the President of the Philippines shall appoint the members of 
the Board as weli as the Director Generai and Deputy Director General(s).
Section 20. Oversight Function. - The Authority shall submit to Congress an annual 
accomplishment report which shali include the status of its priority researches and 
operation. In the exercise of its oversight functions. Congress may inquire into the 
programs of the Authority.
Section 21. Implementing Rules and Regulations. - Within thirty (30) days from the 
completion pf their appointments, the Board shall convene and, formulate the rules 
and regulations necessary for the implementation of this Act. Said rules and 
regulations shail be issued within sixty (60) days from the date of the Board’s initial 
meeting and shall take effect upon publication in a newspaper of general circulation.


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Section 22. Repealing Clause. - All laws, decrees, executive orders, and other laws 
including their implementing rules and regulations inconsistent with the provisions of 
this Act are hereby amended, repealed or modified accordingly.
Section 23. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, other provisions thereof which are not affected thereby 
shall continue in full force and effect.
Section 24. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,