For the complete report, get in touch with us at : info@netscribes.com Abstract: Netscribes’ latest market research report titled Pharmacy Retail Market in Philippines 2013 identifies the healthcare scenario, more specifically, the pharmacy retail scenario in Philippines. The sector is dotted with varied drug distributors, wholesalers, retailers and manufacturers and has also witnessed a spurt in the number of both domestic and foreign concerns in the recent past. The country has been in the wake of a revolution in the likes of decentralization of health system with precise concentration on local health provision and ramified coverage. The sector can be defined in terms of organized and unorganized market with unorganized constituting a major share. Although a developing country, the Philippines is already being hailed as a prospective market for entry of pharmaceutical companies, which is evident in the growing number of pharmaceutical majors establishing manufacturing facilities within the nation. Moreover, this sector is termed as being profitable owing to the fact that there is marginal price elasticity associated with price increases. The market is characterized with the presence of few large players who hold majority of the market share and boast of having a considerable footprint across the nation. Table of Contents: Introduction Slide 1: Philippines – Demographics (2012) Pharmaceutical Market Overview Slide 2: Pharmaceutical Market in Philippines – Overview, Market Size & Growth (2008-2013e), Segmentation (2012) Regulations to Open Private Pharmacies Slide 3-9: Regulations Slide 10-11: FDA Regulations & Basic Checklist Slide 12-14: Prerequisites for the Practice of Pharmacy Slide 15-16: Foreign Investment Scenario Distribution of Public v/s Private Sector Pharmacies Slide 17: Classification Slide 18: Philippines Private Pharmacy Retail Outlets Slide 19-20: Philippines Public-Private Partnership Pharmacy Retail Outlets Slide 21: Philippines Public Pharmacy Retail Outlets Slide 22: Distribution of Public vs Private Sector Pharmacies Performance Review of Private Pharmacies Slide 23: SWOT Analysis – Private Chain Pharmacy Slide 24-44: Company Profiles Slide 45: Chain Pharmacies – Comparative Analysis Slide 46: Private Standalone Pharmacies in Philippines

1. Insert Cover Image using Slide Master View
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Pharmacy Retail Market – Philippines
Pharmacy Retail Market Philippines
October 2013

2. •
•
•
•
•
Introduction
Pharmaceutical Market Overview
Regulations to Open Private Pharmacies
Distribution of Public vs Private Sector Pharmacies
Performance Review of Private Pharmacies
SWOT
Company Profiles
•
•
•
•
•
•
•
Supply Chain Analysis
pp y
y
Importation Policy
Mark‐ups on Medicine Price – Distribution Channel‐wise
Insurance Penetration
Insurance Penetration
Salary Structure
Conclusion
Appendix
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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3. Philippines – Overview
Philippines – Statistics
• Point 1
• Point 2
• Point 3
• Point 4
Head
Figure
Population (2013 estimate)
x1
Population density (people per sq.
km) (2012)
x2
Rural population (% of total
population) (2010)
x3
Urban Population (% of total
population) (2010)
x4
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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4. Pharmaceutical Market in Philippines – Overview
Philippines – Pharmaceuticals Market
Philippines – Pharmaceuticals Market
Php bn
200
150
• Point 1
a2
20‐‐
20‐‐
a4
50
• Point 3
a1
a3
a6
a5
100
• Point 2
+z%
0
20‐‐
20‐‐
20‐‐
20‐‐e
• Point 4
• Point 5
Pharmaceuticals Sales – Segmentation (20‐‐)
• Point 6
• Point 7
Segment 1
6.0%
Segment 2
g
Segment 3
24.0%
• Point 8
70.0%
70 0%
4

5. Regulations to set up a Private Pharmacy in Philippines
Business Requirements for Opening a Pharmacy in Philippines
• Point 1
• Point 2
• Point 3
Different registrations needed to be accounted for
Business Name (BN) Registration
Mayor’s Permit
Tax Identification Number (TIN)
d ifi i
b ( )
Social Security System (SSS) Certificate
License to Operate (LTO)
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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6. Business Name Registration
Single Proprietorship
Partnership
• Point 1
• Point 1
• Point 2
• Point 2
• Point 3
• Point 3
Requirements
Requirements
• Point 1
• Point 1
• Point 2
• Point 2
• Point 3
• Point 3
• Point 4
• Point 4
• Point 5
• Point 5
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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7. License to Operate
Franchise Agreement Details
• Point 1
• Point 2
• Point 3
• Point 4
• Point 5
• Point 6
• Point 7
• Point 8
• Point 9
SAMPLE
Certain other materials that are required to be available upon inspection are enumerated as follows
C t i th
t i l th t
i dt b
il bl
i
ti
t d f ll
• Point 1
• Point 2
• Point 3
Point 3
• Point 4
• Point 5
• Point 6
• Point 7
• Point 8
Point 8
• Point 9
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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8. FDA Regulations and Basic Checklist (1/2)
Application to FDA
• Point 1
• Point 2
• Point 3
• Point 4
• Point 5
• Point 6
• Point 7
SAMPLE
Basic Checklist on How to open a drugstore in Philippines (1/2)
• Point 1
• Point 2
• Point 3
• Point 4
Point 4
• Point 5
• Point 6
• Point 7
• Point 8
•P i 9
Point 9
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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9. Executive Order 98 promulgating 9th Regular Foreign
Investment Negative List (29th Oct, 2012) (1/2)
Foreign Negative List that forbids FDI in certain domains
SAMPLE
• Point 1
• Point 2
• Point 3
Section 1: Ninth Regular Foreign Investment
Negative List
Section 2: Amendments
•
•
• Point 1
• Point 2
Section 3: Repeal
•
•
Point 1
Point 2
Point 1
Point 2
i 2
Section 4: Separability
•
•
Point 1
Point 2
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
Section 5: Effectivity
•
•
Point 1
Point 2
9

10. Executive Order 98 promulgating 9th Regular Foreign
Investment Negative List (29th Oct, 2012) (2/2)
Annex A – List A : Foreign ownership is limited by mandate of the Constitution and specific laws
No Foreign Equity : Practice of all professions (Art XII, Sec 14 of the Constitution, Sec 1 of RA 5181) Medicine
No Foreign Equity : Practice of all professions (Art XII, Sec 14 of the Constitution, Sec 1 of RA 5181) – Medicine
& Allied Professions
B
A
C
L
K
E
F
J
G
I
H
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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11. Philippines Pharmacy Retail Outlets – Classification
At present, there are ~y pharmacy retail outlets in Philippines
• Point 1
SAMPLE
• Point 2
• Point 3
•P i t 4
Point 4
Community Pharmacy
Private Pharmacy
Hospital Pharmacy
Public‐Private
Partnership (PPP)
Pharmacy
Chain Pharmacy
Botika ng Bayan
Standalone Pharmacy
Private Pharmacy
Botika ng Barangay
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
Public Pharmacy
The total hospital pharmacy business
contributes about x% of the total
pharmaceutical retail business
h
ti l t il b i
11

12. Philippines Private Pharmacy Retail Outlets
Private Pharmacy – Scenario
Total No. of Private
Pharmacy
Community Private
Pharmacy
Hospital Private
Pharmacy
Organized Pharmacy
Unorganized Pharmacy
Share
Share
x1
x2
x3
Y1%
Y2%
• Point 1
• Point 2
• Point 3
• Point 4
• Point 5
• Point 6
•P i t 7
Point 7
• Point 8
• Point 9
• Point 10
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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13. Philippines Public‐Private Partnership Pharmacy Retail
Outlets (1/2)
Public‐Private Partnership (PPP) Pharmacy – Scenario (1/2)
Botika ng Bayan Outlets
Year
20‐‐
x2
20‐‐
x3
20‐‐
x4
20‐‐
• Point 2
x1
20‐‐
• Point 1
Cumulative
Number
x5
• Point 3
• Point 4
• Point 5
• Point 6
• Point 7
• Point 8
Point 8
• Point 9
• Point 10
Compounded Annual Growth Rate
during 2006‐10: y%
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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14. Philippines Public Pharmacy Retail Outlets
Public Pharmacy – Scenario
• Point 1
• Point 2
• Point 3
• Point 4
SAMPLE
• Point 5
Designation
10‐15
Staffing Pattern in a Hospital Pharmacy
No. of Beds
50
100
25
Tertiary Hospital
Tertiary Hospital
200
200
300
Regular Medical Centre
Regular Medical Centre
Chief Pharmacist
Supervising Pharmacist
Senior Pharmacist (s)
Pharmacist (s)
Lab. Aide (s)
Clerk (s)
Storekeeper
Utility Worker
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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15. SWOT Analysis – Private Chain Pharmacy
• Strength 1
• Weakness 1
• Strength 2
Strength 2
• Weakness 2
Weakness 2
• Strength 3
• Weakness 3
g
• Strength 4
• Weakness 4
W
O
• Opportunity 1
S
T
• Threat 1
pp
y
• Opportunity 2
• Threat 2
• Opportunity 3
• Threat 3
• Opportunity 4
• Threat 4
15

16. Private Chain Pharmacy: Company A
Company Information
Corporate Address
Address 1
Tel No.
+xx‐yy‐‐wwwww
Fax No.
‐
Email
‐
Website
www.xxx.com
Year Founded
Year Founded
20‐‐
Business Description (1/3)
Description
p
News
Brief History
• Point 1
• Point 2
Business Overview
Business Overview
• Point 1
• Point 2
No. of Stores
• Point 1
• Point 2
Product Mix
•P i 1
Point 1
• Point 2
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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17. Private Chain Pharmacy: Company A
Business Description (3/3)
Description
News
Store Formats
Store Formats
• Point 1
• Point 2
Financial Performance
• Point 1
• Point 2
SAMPLE
Region Name
No. of Stores
Region 1
x1
Region 2
Region 2
x2
Region 3
x3
Region 4
x4
Total No. of Stores
x
There are b Watsons stores located in Metro Manila, which represents z% of the total no. of stores and comprises the highest share
compared to the other regions
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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18. Pharmaceutical Supply Chain Network in Philippines (1/7)
Supply Chain Analysis (1/2)
•P i t 1
Point 1
• Point 1
• Point 2
•P i 3
Point 3
• Point 4
• Point 2
• Point 3
• Point 4
• Point 5
• Point 5
• Point 6
Segment 1
• Point 7
• Point 8
Segment 2
35.0%
• Point 9
65.0%
• Point 10
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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19. Pharmaceutical Supply Chain Network in Philippines (3/7)
Supply Chain of an MNC Drug Trader
Importation
Manufacturing
A
B
C
E
Distribution
• Point 1
• Point 2
• Point 3
D
SAMPLE
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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20. Parallel Drug Importation (2/3)
Retailing of Parallel Drug Imports in the Philippines (1/2)
D
A
B
E
J
F
C
I
K
G
L
H
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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21. Pharmaceutical Distribution Chanel in Philippines
Pharmaceutical Distribution Channel – Cost Additions Stage‐wise
xx
yy
a
or
Stage 1
a
b
c
Stage 2
b
f
Stage 3
d
c
g
e
i
h
j
l
k
Retail
m
or
n
0
Dispensed Cost
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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22. Analysis of Mark ups on Medicine Price (Originator Brand
and Generics)
Medicine
O g ato a d (O )
Originator Brand (OB)
Ge e cs
Generics
• Point 1
• Point 1
• Point 2
• Point 2
• Point 3
• Point 4
Medicine
Dosage form
Strength
OB brand
name
• Point 1
• Point 2
• Point 3
i
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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23. Analysis of Mark ups on Medicine Price (Originator Brand
and Generics) – Stage 1
Manufacturer’s Selling Price (MSP)
• Point 1
Point 1
• Point 2
• Point 3
SAMPLE
Share of Mark‐ups for Locally Produced Generic Medicine
Segment 1
Segment 2
• Point 1
Segment 3
33%
Segment 4
• Point 2
57%
3%
7%
• Point 3
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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24. Analysis of Mark ups on Medicine Price (Originator Brand
and Generics) – Stage 3
Wholesaler (1/2)
Originator Brands
• Point 1
•P i t 2
Point 2
• Point 3
• Point 4
SAMPLE
Generics (1/2)
Generic Medicine
Distributor Mark‐ups
• Point 1
• Point 2
• Point 3
Point 3
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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25. Analysis of Mark ups on Medicine Price (Originator Brand
and Generics) – Stage 4
Retailer (1/2)
• Point 1
 Point 2
Originator Brands
Type of Retailer
Retailer Mark‐ups on OB
Private standalone pharmacy
Private chain pharmacy
Private chain pharmacy
Public hospital pharmacy
• Point 1
• Point 2
• Point 3
Point 3
• Point 4
SAMPLE
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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26. Health Insurance Scenario in Philippines
Health Insurance – Philippines
• Point 1
Point 1
• Point 2
• Point 3
• Point 4
• Point 5
• Point 6
• Point 7
Different types of health insurance plans that are prevalent in the Philippines are as follows
PhilHealth
PhilH lth
Private Health
Insurance
Health
Maintenance
M i
Organization
International
International
Health Insurance
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
Expatriate Health
p
Insurance
26

27. Salary Structure in Philippines for Pharmacists
Compensation
• Point 1
Point 1
• Point 2
Grade
Step 1
p
Step 2
p
Step 3
p
Step 4
p
Step 5
p
Step 6
p
Step 7
p
Step 8
p
• Point 1
• Point 2
• Point 3
• Point 4
SAMPLE
• Point 5
Finding 1
PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT
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28. Thank you for the attention
Pharmacy Retail Market – Philippines report is part of Netscribes’ Healthcare Industry Series.
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