Access to essential drugs is vital for the promotion of better health for the entire population. High prices of drugs are being used as an argument for greater government role in the drugs sector through effective regulation of the drug market. The high prices of drugs in the Philippines will serve as the background upon which the analysis of the intricacies of the drug issue will revolve. This paper provides a quick glance at the pharmaceutical sector at the global level and provide a more in-depth discussion of the pharmaceutical sector in the country. The paper explains why drug prices in the Philippines are higher compared to other neighboring countries using market failure particularly monopolistic tendencies of pharmaceutical companies to be specific. The paper draws recommendations that may help relevant stakeholders in coming up with effective decisions.