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Philippine

Pharmaceutical
Industry

Factbook .

th
7 Edition July 2008
Philippine Pharmaceutical Industry

Factbook

7th Edition 2008 Edition


Table of Contents

Message from the PHAP President

Foreword : The Philippine Healthcare Situation


Professor Emmanuel Leyco, Asian Institute of Management

I. The Pharmaceutical Healthcare Association of the Philippines

A. Profile

B. Mission and Vision

C. Roles in Healthcare Delivery for the Filipinos

1. Discover, develop and make available innovative medicines to


continuously improve on current management of disease
2. Protect the integrity of the pharmaceutical supply chain to ensure
the safety of pharmaceutical products
3. Support the cascade of information on the proper use of
healthcare products to the medical community and the public
a. The Medical Representatives Accreditation Program
b. The PHAP Code of Ethics
4. Help improve access to quality healthcare
a. PHAPCares Foundation
b. Corporate Social Responsibility of PHAP Members

II. Industry Statistics

A. The Global Pharmaceutical Industry

B. The Pharmaceutical Industry in Asia

C. The Philippine Pharmaceutical Industry


1. Companies
2. Therapeutic Categories
3. Brands
4. Distribution Channels

III. Directory of Members


FOREWORD
Professor Emmanuel Leyco
Senior international health policy and health care financing specialist
Professor of Public Finance
Former Director, Healthcare Policy Program, Asian Institute of Management

The Philippine Healthcare Situation

Government healthcare policy and financial support

Policy objectives: Enhanced health outcomes through empowered communities


As a signatory to the 2000 UN Millennium Declaration, the Philippines is committed to
reduce infant mortality rates and improve maternal health and demonstrate significant
results by year 2015.

The earlier decentralization reforms in governance devolved the delivery of health care
services to local governments but kept the national government responsible for the
overall health objectives. This new health delivery scenario proves to be a major
challenge for both the national and local governments who now must act in concert to
achieve a common goal.

Policy Implementation Framework: FOURmula ONE


To pursue the objectives for the country’s Health Sector Reform Agenda (HSRA), the
Department of Health has adopted the FOURmula ONE for Health as its implementing
framework for the remaining period leading to 2010.

The HSRA was formulated in response to a landmark legislation that transferred the
responsibility of the delivery of health care services from the national government to the
local government units.

The move was intended to address the prevailing imbalance in the distribution of the
country’s resources which was observed to favor the urban centers and the national
capital region and to empower the local governments in pursuing their own development
objectives.

Health care trends: Improved health and longer lives for Filipinos

Advances in medicine, improved nutrition, and timely public health interventions have
brought better health and longer lives to Filipinos in this new millennium.
Latest projections show that Filipinos gained eight more years in life expectancy years
since 1980 while infant and maternal mortality rates have declined.

Reduced infant mortality rates


Recent statistics show an impressive decline in under-five mortality rate from 80.0% in
1990 to 32.0% in 2006. Overall reduction in infant mortality rate during the same period
also showed an improvement from 57.0% to 24.0%

Based on the recently released Philippine Midterm Progress Report, the country carries a
high probability that goals related to reduce child mortality will most likely be achieved
by 2015 as indicated in the following table:

Actual
Required
Baseline Target Average
Goal / Indicator Latest Source of Data Annual Probability
(1990) (2015) Annual
Rate
Rate

Goal 4: Reduce child mortality

Under-five mortality rate 80.0 32.0 NSCB TWG on 26.7 -0.038 -0.028 High
(%) (2006) Mortality Statistics
& NSO

Infant mortality rate (%) 57.0 24.0 NSCB TWG on 19.0 -0.036 -0.028 High
(2006) Mortality Statistics
& NSO

Proportion of 1 year-old 77.9 83.7 DOH 100.0 0.017 0.040 Low


children immunized (2005)
against measles (%)

Goal 5: Improve maternal health

Maternal mortality ratio 209.0 162.0 NSCB TWG 52.3 -0.014 -0.031 Low
(%) (2006) Mortality Statistics
& NSO

Proportion of births 58.8 63.7 DOH 100.0 0.008 0.040 Low


attended by skilled health (2005)
personnel (%)

Table 1: Midterm report on MDG Goals


Source: National Statistical Coordination Board

Challenges remain:
Poor maternal health
Due to the lack of prenatal consultation, poor nutrition and exodus of health care workers,
maternal health indicators do not portend a similar positive trend where maternal
mortality rate per 100,000 remains high at 162, a distant figure from the targeted
reduction to 52:100,000.
Government reports indicate that most maternal deaths are caused by “postpartum
hemorrhage, hypertension and its complications, sepsis, obstructed labor and
complications from abortions. Most of these can be prevented through quality maternal
care.1

Inequities in health outcomes remain


Inequities in health outcomes across regions reflect that serious imbalance in national
development remains, a condition that the governance reforms in the 1990s were
supposed to address.

According to recent maternal mortality rates, pregnant women in regions III, IVA and the
National Capital Region have better chances of surviving delivery than the rest of the
country.
The chart below illustrates the disturbing inequities:

Figure 1 Infant/Fetal/ Maternal mortality rates,


Philippines and Regions
Source: DOH, FSHIS Report, 2006

The national government reports that infant mortality rates are significantly higher in the
National Capital Region and Region XI.

Regions V, XI and the ARMM are areas where the maternal mortality rates are
disproportionately higher compared to the national average and neighboring regions.

1
http://doh.gov.ph/hsra/survey/Health_filipino.pdf
Statistics from Region XI (Davao Region: Compostela Valley, Daval del Norte, del Sur,
Oriental) are very disturbing as it recorded the highest fetal deaths, second highest infant
mortality rate and the third highest maternal deaths.
HEALTHCARE EXPENDITURE AND TRENDS

Figure 2: Health Spending trends


Source: National Statistical Control Board

The World Health Organization (WHO) recommends that countries spend 5% of their
gross national product for health care, a figure that is considered to represent sufficient
resources to meet a country’s health care goals.

The Philippines, however, has instead experienced reduced health spending which now
hovers around slightly higher than 3% but has gone even lower than the prescribed 5%
GNP spending compared to the levels a decade ago. See figure 3.

Figure 3 Comparative health spending by Asean countries


Among countries in the ASEAN region, the Philippines ranks lowest in spending for
health and a significant health financing burden borne by the private sector.

Figure 4 Trends in LGU share in national budget


Source: Department of Budget and Management i

As part of the devolution of health care services the responsibility of financing health
services shifted to the local governments as fiscal resources were transferred through the
internal revenue allotments (IRA) which represent their share in the total national budget.
The LGU share is determined by three factors: land area (25%), population size (50%)
and equal sharing (25%). Despite more resources to the local governments, health
spending remained weak, even declined over last few years to just about 11% share of
their total budget. See figure 4.

In 1995, the Philippine Congress passed the National Health Insurance act and mandated
the Philippine Health Insurance Corporation (PhilHealth) as its financing arm. Although
PhilHealth has actively expanded its coverage to about 64% of the 85 million population
in 2005, its total financing support towards the overall national health expenditures has
remained below 10% while leaving the private sector carry over 50% of the total health
care spending as shown in figures 5 and 6.
Figure 5 National Health Insurance Financing Support

Figure 6 PhilHealth Spending v. Collections


HEALTH MANPOWER

The Philippines is a major source country responding to the global shortage of medical
professionals, estimated by the WHO at more than four million. Although the on-going
exodus has not resulted in a critical shortage, nursing schools have proliferated around
the country while the passing rate of examinees remained low at just around 50% as
indicated in the chart below.

Figure 7 Nursing Schools Performance Trendsii


Source: Professional Regulatory Commission

As with many other Filipino professionals, many health care workers are attracted to
work in the National Capital Region and other urban centers causing a disproportionate
distribution of health care workers nationwide.

Figure 8 Government health care workers


HEALTH INFRASTRUCTURE

The country’s health infrastructure mirrors the disproportionate distribution of health


workers in the country. Both the public and private sector are historically inclined to
establish facilities in the national capital region which perhaps also serve as reason why
health workers congregate in the region.

Figure 9 Distribution of government hospital beds, By Region, Year 2005


Source: DOH

5% Western Visayas Region


Central Visayas Region
1%
Eastern Visayas Region
1%
2% Zamboanga Peninsula
0% Northern Mindanao Region
10%
5% Southern Mindanao Region
13%
Central Mindanao Region
7% 1% A RMM
57% 4% CA RA GA
6%
CAR
2% 27% Ilocos Region
2% Cagayan Valley Region
8% Central Luzon Region
5% CALABARZON
MIMAROPA
Bicol Region
National Capital Region

Figure 10 Distribution of private hospital beds by Region, Year 2005


Source: DOH
CAUSES OF MORBIDITY AND MORTALITY

Top 10 causes of mortality


2004

Cause Number Rate Percent

1. Heart Diseases 70,861 84.8 17.6


2. Vascular System Diseases 51,680 61.8 12.8
3. Malignant Neoplasm 40,524 48.5 10.1
4. Accidents 34,483 41.3 8.6
5. Pneumonia 32,098 38.4 8.0
6. Tuberculosis, all forms 25,870 31.0 6.4
7. Ill-defined and unknown causes of
mortality 21,278 25.5 5.3

8. Chronic lower respiratory diseases 18,975 22.7 4.7


9. Diabetes Mellitus 16,552 19.8 4.1
10. Certain conditions originating in the
perinatal period 13,180 15.8 3.3
Table 2 Source: Philippine Health Statistics, 2004
Diseases of the heart and the vascular system lead the top 10 most common causes of
deaths among Filipinos. Together, they represent about 30% of the total deaths. Cancer
deaths have alarmingly increased, now ranking third, while pneumonia, TB and diarrheal
diseases consistently remain on the 10 list of leading causes of deaths.
TEN LEADING CAUSES OF MORBIDITY
No. & Rate/100,000 Population
2004

CAUSE Number Rate


1. Acute Lower RTI and
Pneumonia 776,562 929.4
2. Bronchitis/Bronchiolitis 719,982 861.6
3. Acute watery diarrhea 577,118 690.7
4. Influenza 379,910 454.7
5. Hypertension 342,284 409.6
6. TB Respiratory 103,214 123.5
7. Chickenpox 46,779 56.0
8. Diseases of the heart 37,092 44.4
9. Malaria 19,894 23.8
10. Dengue 15,838 19.0
Table 3 Top Ten Leading Causes of Morbidity
Source: Philippine Health Statistics, 2004

Communicable diseases lead the top ten causes of morbidity in the country. According to
the DOH, these include diarrhea, pneumonia, bronchitis, influenza, tuberculosis, malaria
and varicella.
a. Commentary

Filipinos are living longer and healthier due to advances in medicine and responsive public health
interventions by the government. However, major issues persist that stem from the country’s
uneven development and characterized by wide disparities in access to health care goods and
services.

The encompassing governance reform in the 1990’s which devolved the delivery of health care
services to the local governments continue to present a major challenge in furthering the
Philippine success in improving the people’s health care outcomes. Constituents in poorer
regions of the country are sicker, die earlier and have less access to health care goods and
services, compared with their richer counterparts in the national capital region and urban centers.

The on-going exodus of health care workers, while still not causing a critical shortage, presents a
difficult problem as more of them troop to the cities in the national capital region or more doctors
leaving to work overseas as nurses further exacerbating the lack of doctors in some areas.
Concerns are already raised that this phenomenon has caused fast worker turnover while leaving
little time to train those who were recruited to fill in the slack.

Affordability of health care goods and services is a major concern raised by various stakeholders
in the country. But should the government’s policy response result in artificially tweaking the
pricing mechanism of the country’s open market economy and removing the incentives for health
care investors and inventors? Experience in other countries and critical industries have resulted
in wide scale economic disruption as litigants for the investors and inventors sought and were
awarded huge amounts as compensation for their economic losses.

Or, should the government instead further enhance the ability of consumers to afford health care
through a more proactive social health insurance system that will ensure access by patients to the
basic health care goods and services?
The Philippine Pharmaceutical Industry

Working for Better Healthcare Delivery to Filipinos

OUR PROFILE
The Pharmaceutical and Healthcare Association of the Philippines (PHAP)
was first established on July 3, 1946 as the Philippine Wholesale Druggist
Association. The fledgling Association was founded by 10 men, each
representing a leading pharmaceutical wholesaler. At the time, the
pharmaceutical sector, like the rest of the country, faced the hard task of
recovering from the ravages of World War II.

The Association’s founders were John Magda of the Philippine American


Drug Company (Boie), who had invited nine colleagues to meet at his office
in San Vicente, Manila; Elias Picker of Oceanic Commercial; Ciriaco A.
Santiago of Hermoso Drug Store; Armando L. Vellila of Marsman and
Company; Horacio Guanzon of Farmacia Oro; Leon Dolor of Dolor’s
Pharmacy; Yu Siu Tek of Yucuanseh Drug Company; Jose Teehankee, Jr. of
Farmacia Central; William Ty of Farmacia Oriental; and Manuel Galatas of
Metro Drug Corporation.

As the Association’s original name indicates, it was an organization


consisting of wholesalers, reflecting the state of the industry then. During
that period, it is said that an entrepreneur like Mariano Que, who went on to
build the country’s leading pharmaceutical retail chain, started out selling
medicines from a pushcart in Bambang, Manila.

On July 27, 1950, during a meeting at the Squibb Building then located in
Intramuros, the organization was renamed the Drug Association of the
Philippines (DAP), by which it was to be known for the next 40 years.
Membership in the non-stock, non-profit association was expanded to
include pharmaceutical manufacturers.

The DAP took up the cudgels for the industry in confronting a host of
challenges that included pricing and affordability issues which continue into
the present, foreign exchange crises, attempts to nationalize trade, diminish
intellectual property protection, and promote generics at the expense of
research-based branded products.

Early in 1991, the organization’s name was changed to the Pharmaceutical


and Healthcare Association of the Philippines (PHAP) to signify a wider
representation of participants in the pharmaceutical and healthcare sector.

Today, the PHAP and its 56 member companies represent the research-based
pharmaceutical and healthcare industry, a key sector in the never-ending
fight for improved health through the continuous development of new,
better, more efficacious and cost-effective drug therapies.

In the 20th and the 21st centuries, the world has seen remarkable medical
advances, including cures for some of the most feared diseases. Many of
these advances – such as defeating polio, smallpox and measles, and
significant progress in the treatment of hypertension, high cholesterol,
diabetes and other conditions – have been due to the discoveries of new
therapies. These are therapies that have been and continue to be introduced
in the country by PHAP Member Companies. Such new therapies include
revolutionary, life-saving discoveries that define the cutting edge of medical
science, and bring economic and social benefits to populations in both
developed and developing countries. Innovative medicines and treatments
save lives, give new hope for the future, and give patients and doctors more
options in healthcare. These therapies can help control overall health
spending by helping patients stay healthier and avoid costly hospitalizations
that may involve surgery.

The PHAP membership represents the sector of industry that invests in


research and development (R & D) resulting in new therapies. In the United
States, research-based pharmaceutical companies spent US$ 39.4 Billion for
R & D in 2005 alone. Only one of every 10,000 potential new drugs
investigated by America’s research-based pharmaceutical companies makes
it through the research and development pipeline and is approved for patient
use by the U.S. Food and Drug Administration. On average, obtaining
regulatory approval for a new drug takes 15 years of R & D and costs over
US$800 million.

PHAP Members Companies provide new and better medicines offering


value that derives not only from the improved treatment of disease, but also
from a reduction in other health care costs, increased productivity and better
quality of life. Member Companies provide the bulk of the country’s
pharmaceuticals, nutritionals, large-volume parenterals and medical devices.
As of last count, the PHAP membership accounted for 65 percent of the total
market share.

Competition in the pharmaceutical and healthcare industry – indeed among


PHAP Member Companies – is vigorous, since there are various drugs
available in every therapeutic class. Apart from competing with generic
drugs, new medicines also compete against each other. The competition has
increased, with the period of time in which a new medicine is on the market
decreasing, before another competing medicine in the same therapeutic class
is introduced. The competition is beneficial to patients, since not every
patient responds to every drug in the same way. The availability of different
drugs in every therapeutic class, especially new medicines, provides better
treatment choices for individual patients, lowers risks of complications,
improves patient compliance with treatment, and develops greater
competition.

As a key industry association, the PHAP is committed to working in


partnership with both the public and the private sectors to improve access to
quality healthcare, particularly medicines, for all Filipinos. Pharmaceutical
access is defined as the timely availability, subject to economic and physical
conditions, of quality medicines to those patients who need them. A most of
interrelated factors determine the level of access to quality medicines, such
as the availability of financial resources, government policies, infrastructure
conditions, private and public sector insurance programs, appropriate use,
supply management and manufacturing capacity.

Experience worldwide has shown that multi-stakeholder initiatives have


proven to be the most efficient and effective way of improving health status
with regard to the problem of access to quality medicines, particularly where
there is significant poverty incidence. The costs of healthcare are a priority
concern to policy makers, the pharmaceutical and healthcare industry,
healthcare professionals and providers, and not the least, consumers.

The PHAP and its Member Companies welcome multi-sectoral cooperation


in addressing such healthcare issues. Only through rational analysis based on
facts taken in proper context, as well as healthy and open debate, can
workable solutions be developed to benefit Filipinos.
In 2003, PHAP established the PHAPCares Foundation whose overall goal
is the promotion of public health and welfare in the country, particularly the
poorest of the poor. Comprising PHAPCares are member companies of
PHAP who are mandated to contribute both cash and in kind like product
donations in support of the Foundation’s health-related programs.
Specifically, PHAPCares is mandated to contribute to the overall efforts of
government to enable poor Filipinos to have greater access to quality
essential and life-saving medicines.

Moreover, individual member companies have their own corporate social


responsibility programs that also aim to uplift the overall health condition of
Filipinos. Aside from health-related CSR programs, PHAP member
companies have also initiated activities on environmental protection,
education, building homes and disaster donations among others.

From its post-war beginnings as a sector engaged in wholesale and


importation of finished products, the country’s pharmaceutical industry as
represented by the PHAP has evolved into one with an important role in the
economy, in society and in the healthcare community in particular. The
growth of the PHAP over sixty years has reflected the development of the
pharmaceutical industry in the Philippines, a sector which is a pillar of
quality healthcare provision for Filipinos.
PHAP MISSION AND VISION
Discovery, development and access to innovative
medicines to continuously improve on current
management of disease
Research-based pharmaceutical companies have common missions of applying
innovative scientific research to create diagnostic and therapeutic solutions for detecting,
slowing, curing and preventing disease. The core of their business lies in their ability to
discover, develop, provide evidence, obtain regulatory approval for, and bring to the
market devices, medicines and delivery systems to target specific illnesses. Since their
success hinges on their products’ ability to generate positive outcomes in life and health,
every step of the discovery, development and delivery process is subjected to rigorous
and continuous evaluation to ensure that the products are effective and safe for humans.

As more diseases emerge and as the population ages and becomes more vulnerable to
them, the industry’s role becomes even more important, and their ability to deliver on
their mission to make the most effective drugs available to fight disease takes on
increasing urgency. New pharmaceuticals have contributed significantly to an improved
quality of life and helped increase human life span. In the U.S., for example, life span
increased from an average of 47 years in 1850 to 78 years today. Advances in drug have
diminished or eliminated health scourges once prevalent around the world.

Pharmaceutical companies must be able to keep up with higher burdens of disease and
more complex treatment scenarios by continuously introducing more effective, better-
targeted, safer, and more convenient medicines for a widening array of patient profiles.
This objective is almost always a difficult one to achieve, given the nature of the drug
development process.

Pharmaceutical R&D (drug


development) consists of several long
and meticulously-executed stages.

It begins with drug discovery where the


right molecule is derived from natural
elements or is synthesized from artificial
compounds. Discovery involves
studying the behavior of these
compounds and their role in human
physiology and disease. A target disease
process is selected, and the compounds’
attribute is matched to the mechanism of
the disease to test its ability to modify,
inhibit or suppress the causative entity.
This stage is the focus of the work of
scientists in the basic science
laboratories of pharmaceutical companies. Once proof of concept is achieved, the
chemical then goes into the long phase of preclinical trials.

Preclinical drug development is the stage when thousands of these candidate chemicals
are screened for their therapeutic and toxic properties. It is the stage with the highest
attrition rate, with an estimated 98% of compounds never making it to the next stage due
to lack of efficacy or high levels of toxicity in animal subjects. An average of only five in
10,000 compounds across laboratories will ever be brought to the next phase.

If a compound passes the preclinical drug development


stage, it then goes on to the very long and arduous
process of clinical trials to prove its effectiveness and
discover its adverse effects in humans.

The entire drug development process typically takes


nearly 15 years. The largest share of that time is devoted
to the three stages of clinical trials- each more rigorous
than the preceding — called phase I, phase II, and phase
III.

In phase I, the safety of the candidate drug is tested on about 100 healthy human
volunteers over a course of about a year to know
the safest dose. When the drug passes this safety
screening, it is then tested a group of patients who
have the target disease. Phase II trials are held to
establish the outcomes for the quantitative
measurement of the effectiveness of the drug, in
preparation for the next phase. The expected drug
effect must be proven to be present in a group of
test subjects versus a group of control subjects.
Typically, this stage is done in about 100 to 500
patients and may last about two years.

In phase III, the focus is on obtaining definite measurements of the effectiveness of the
drug, based on the outcomes determined in the phase II trials, and on monitoring for any
important side effects. The scenarios in this phase closely mimic how the drug will be
used if it is already in the market. The ideal phase III trials are rigorously-designed to
avoid bias, comparing the drug with a placebo or an existing comparator drug. The
scientists, doctors, evaluators and patients in the group ideally do not know if the drugs
received by the patient are placebo or test drug in order to avoid any bias, until the
unmasking at the end. Because of the accuracy required of the data, and the repetitions
needed to prove significant effect, this phase is usually the longest, running from three to
five years. It is also the costliest, requiring anywhere from several hundred, to tens of
thousands of participants, most times in several clinical trial centers throughout the
world.
If the results of the phase III trials provided a definitive proof of the drug’s effectiveness
and that any side effects can be managed and tolerated by patients, it is submitted to the
Food and Drug Administration of the source country and other target markets for
approval to launch. The local FDA may require additional phase III trials. If approval was
granted, the product may be launched. However, studies on the drug do not stop at this
point. Post-marketing surveillance is carried out to monitor the new drug for any
additional side effects that may not have appeared during the pre-approval clinical trials.

Although there is no absolute figure for the cost of research and development for a single
drug, estimates have run as high as US$500 million for the entire cost of seeing a seeing a
single drug through discovery to post-marketing, including costs incurred in the study of
all the candidate compounds in the preclinical phase. The major share of all these costs,
however is for the four phases of clinical trials.
References
1 Rowberg, Richard. Pharmaceutical Research and Development : A description and analysis of the process. Congressional
Research Service Report for Congress. April 2001
Protection of the Integrity of the Pharmaceutical Supply Chain
to Ensure the Safety of Pharmaceutical Products
One of the major roles of the industry is to ensure that the pharmaceutical supply chain is
protected and that any possible breach that put patients’ safety at risk is proactively
addressed.

The Pharmaceutical Distribution System

Distributing pharmaceutical products throughout various geographic areas can be


challenging. Medicines, unlike other consumer goods, are imposed with strict transport,
storage, and disposal regulations to ensure product quality, integrity and efficacy. This
includes life-saving vaccines and other injectable products which must be temperature -
controlled and made readily accessible and available in emergency situations.

In the Philippines, more than 3,500 pharmaceutical brands are sold by several local and
multinational companies. These brands are distributed and made available to over 10,000
pharmacies across the country including drugstores, hospitals, and private and
government institutions. The flow of goods through the supply chain can involve several
distributors, third party forwarders, wholesalers and smaller sub-distributors. Goods are
generally moved from either local or overseas sourced manufacturing plants to a central
warehouse, then to regional transport and storage facilities or cross docks, and then to the
end pharmacy.

Moving pharmaceutical products efficiently and cost-effectively in a geographically


challenging market requires infrastructure, technology and information systems which
assure adequate stock supplies reach the pharmacies in a timely manner whilst
maintaining product quality and integrity.

Quality warehouse infrastructure is designed to maintain the temperature and storage


requirements necessary to safeguard product integrity and to prevent product
contamination. Automated warehouse management systems are generally used to control
the movement and storage of materials. In large scale distribution operations, automated
systems sort packages which are labelled with barcodes for delivery according to delivery
routes.

Information systems are critical in managing the order processing, credit management,
invoicing and other financial monitoring and inventory control processes.

Scale and volume is necessary for distributors to establish a quality supply chain
infrastructure, operate automated warehouse systems, execute inventory and order
fulfillment, achieve efficiencies and provide cost effective distribution services to the
manufacturers and pharmacies.
Zuellig Pharma

Zuellig Pharma is the leading distributor of pharmaceutical and healthcare products in the
Philippines. Zuellig Pharma has been operating since the early 1900s, and provides
national distribution for pharmaceutical and healthcare products to pharmacies and other
trade channels. Zuellig Pharma utilizes an integrated branch network located in Metro
Manila, Luzon, the Visayas and Mindanao. This national distribution network ensures
fast, timely and responsive customer service.

Each of Zuellig Pharma’s warehouses provides sufficient cold chain capability to ensure
security and integrity of product quality throughout the distribution network. The cold
chain infrastructure includes back-up chiller capacity, and back-up power generators.

Zuellig Pharma’s distribution operations and back office functions are ISO 9001:2000
accredited and compliant with International standards for GMP and GSP. Zuellig
Pharma has developed a comprehensive Business Continuity Plan and its IT systems
provide redundant telecommunications network and an independent data center which
can be enabled in the unlikely event of a disaster in the main data center.

More than 550 sales force personnel provide wide numeric account coverage, high call
plan frequency and consistent call plan execution. All sales force personnel are equipped
with handheld PDA units operating proprietary software to automate call plan execution,
the electronic transmission of sales orders via GPS, and to monitor collections.
Customers can can also order anytime (24 x 7) using Zuellig Pharma’s proprietary
internet ordering system (ASIARX) or Zuellig Pharma’s PC dial up system (ZEOS).

In addition to distribution services, Zuellig Pharma provides other value added services
including clinical trial logistics, the distribution of POS and product samples to medical
representatives, re-labelling and re-packing of imported finished goods, and product
destruction services which comply with environmental regulations.

Metro Drug

MDI envisions itself as the premier provider of healthcare distribution services,


innovative in delivering highly successful business solutions.
As the preferred business partner of our principals, our mission is to drive value into their
supply chain and increase their market share with dynamic and ethical professionals
using innovative business intelligence tools and systems.
For our trade customers, our mission is to continuously surpass their expectations as a
genuine business partner through our strong customer-oriented team of professionals,
advanced automated systems and accurate and timely service.
MDI’s sales teams provide maximum geographical coverage and a strong presence in all
major markets.
• Nationwide coverage
• Young, marketing-oriented sales force rated No. 1 on salesman professionalism by
PSRC’s International Trade Satisfaction Survey
• Focus on pharmaceutical channels

LEADING IN LOGISTICS
MDI maintains a single stocking point. The central hub concept reduces inventory in the
pipeline; regardless of whether the principal’s stock is on consignment or direct purchase.
This system results in minimal stock-outs, better implementation of First Expiry First Out
inventory management, more accurate inventory data, and minimal inventory losses.
Our distribution facility is situated in Bicutan, south of Metro Manila. This location
places us well within reach of the primary pharmaceutical markets and enables us to
respond quickly on short notice.
MDI’s warehousing and delivery processes comply with ISO 9001:2000 standards and
Good Storage and Distribution Practices (GSDP). Quality audits are performed regularly
by internal and external auditors for continuous improvement.

Warehouse
• 11,600 square meter warehouse with 6,600 pallet capacity
• 350 square meters of Cold Storage maintaining 2-8° C for perishable products
• Air-conditioned storage space for products requiring temperature of < 25°C
• Fully-Racked Bulk area
• Automated warehouse management system.
• Radio-Frequency put-away and picking. Picker is forced to pick the correct
lot/expiry/item from the correct location ensuring picking accuracy.
• CCTV, fire alarm system, and security procedures for safeguarding inventory
• Separate storage for samples, near expiry items, and trade returns.

Delivery
Metro Drug forged long-term relationships with Air 2100, which is the Philippine
affiliate of FedEx; and Fastpak, which is part of the Fast Group of companies. These
forwarders have nationwide capability and affiliation with major airline and shipping
companies. Mode of transfer is by land, air, and sea.
Forwarders undergo regular training and annual performance audits to ensure
conformance to operational and quality standards.
MDI has devised a highly efficient order-processing pattern that leads to the delivery of
products within a shorter period of time. With the implementation of scheduled
deliveries, order-to-delivery lead-times become more predictable.
Cold Chain Capabilities
All cold storage (with temperature within 2-8° C) are equipped with probes connected to
an instrument that allows continuous (24 hours / 7 days a week) recording of temperature.
Thermometers are calibrated annually for accurate readings. There are 4 separate cold
rooms equipped with back-up compressors. There are 3 stand-by generator sets in case of
power outages.

The system is linked to an alarm system that will trigger an audible and visual alarm in
case of temperature drop or increase beyond the set temperature control limits.
Cold chain integrity is maintained throughout the delivery. Pre-conditioning is done on
cold chain packaging to ensure that products remain under the required 2-8° C degrees up
to 24 hours from dispatch. Delivery procedures are subjected to strict validation studies.

INFORMATION TECHNOLOGY
MDI’s Information Technology provides a strong backbone for our organization. MDI’s
mainframe computer system, SDS 7.0 that runs our production and financial systems,
resides on an IBM AS400. We maintain an Equant-supported network connection to
regional servers providing support of our Asia-Rx and ZIPOnline web–based
applications. To ensure continuity of our business in case of natural disasters or other
disruptions, we maintain a fully supported contingency program with IBM.

CUSTOMER SERVICE HOTLINE (1-800-1-888-1-MDI)


Committed to our promise of providing excellent customer service, MDI developed a
reliable call center composed of well trained Customer Service staff that can readily
address effectively and efficiently handle order encoding, queries, and concerns of
customers, including reporting of adverse medical reactions.

QUALITY SYSTEM AND CERTIFICATION


MDI’s effort in focusing its operations on efficiency and quality was recognized when
MDI was awarded the ISO 9001:2000 certification in January of 2002. The scope of this
documented quality management system includes all divisions of MDI covering the sale
and distribution of pharmaceutical and healthcare products.
MDI has been audited by SGS to comply with Good Storage and Distribution Practice
(GSDP). These are specific standards formulated by our Regional Quality Group for
holding, storage and distribution of pharmaceutical and healthcare products, developed to
meet and exceed the requirements of international organizations (European Union GDP
94/C 63/03, United States FDA 21 CFR 210+211, World Health Organization (WHO)
Good Storage Practice)
GSDP covers the following areas of operation:
• Distribution
• General Quality Management Principles
• Cold Chain Management
• Personnel
• Buildings and Facilities
• Vehicles, Equipment, and Infrastructure

Storage
• Product traceability and Product Recalls
• Documentation and records
• Contract Services
• Pest Prevention
• Cleaning Systems
• Handling of sensitive products (regulated, cytotoxics)

MDI complies with the regulatory requirements set by the Bureau of Food and Drugs
(BFAD) and other local government agencies.

Mercury Drug
From its humble beginnings, Mercury Drug has gone beyond expectations. Shortly after
the liberation of Manila from Japanese occupation, Mariano Que, realizing the need of
the people for medicines, bought with his hard earned savings of P100 a bottle of 1000
tablets of Sulfathiazole and sold it “patingi-tingi” for P1.00 per tablet in the sidewalks of
Bambang, Manila. Sulfathiazole is a wonder drug that cures all during that time.

From pushcart – peddling and with his previous working experience in a drugstore
before the war, he eventually opened his first small drugstore in Bambang Street.
Mercury Drug has today grown into a vast network of close to 700 company-owned and
franchised stores nationwide. Mercury Drug believes that it owes its success to the
millions of customers who have trusted and patronized the drugstore chain all throughout
these years. Its feat could also not have been possible without its pool of professional
and dedicated staff numbering close to 9,000 today.

As a way of giving back to the people, Mercury Drug vows to bring quality, safe and
affordable health-enhancing and life-saving medicines closer to the public. In the first
place, it is what the name Mercury Drug stands for. In Roman mythology, Mercury is
known as the god of commerce and manual skill. Being the messenger of gods, Mercury
needed a winged feet for his swift flights. Mercury Drug remains committed to its name
as seen on its corporate philosophy of total and speedy customer service: “To serve you,
to have what you want, when you want it.”

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Aside from bringing its chain of stores closer to the homes of the people, Mercury Drug
has constantly endeavored to reach the hearts of the customers. To achieve this, Mercury
Drug has taken pride in the introduction of many firsts in the drug retailing business ---all
in an effort to satisfy, please and further serve the people.

In 1945, it opened a drugstore and one of its innovations is to sell “tingi-tingi” or piece by
piece to those who could not afford to buy a whole bottle of medicine. Realizing that not
everyone could go to the drugstore, Mercury Drug introduced the first motorized
customer delivery service in 1948. Four years later, it commenced the 17-hour, 7 days a
week drugstore service; in 1963, the country’s first self-service drugstore; in 1965, the
24-hour, 7 days a week service; in 1967, the first computerized temperature-controlled
central warehouse; in 1969, the first drugstore chain to use biological refrigerators to
preserve life-saving medicines and in 1976, the first drugstore chain to expand
throughout Luzon, Visayas and Mindanao.

Mercury Drug believes that quality and life-saving medicines made affordable and
accessible are as important today as it was then. Now more than ever, it is committed to
introducing enhanced services to better serve the customers farther and wider, whoever
and wherever they may be. For instance, Mercury Drug makes certain the availability of
less common but life-saving medical products such as serum, blood plasma, albumin
and the like that are stored in a Bio-refrigerator. This would require Mercury Drug to
invest on modern technology and to continuously upgrade its facilities in its head office,
stores and distribution centers. Aside from pharmaceutical products, it now carries basic
household necessities such as food, health and personal care products and others for the
buying convenience of its customers. It has also incorporated value added facilities and
services in many of its drugstores. More and more branches are open on a 24-hour
service all days of the week. Aside from consistently complying with the 20% discounts
to senior citizens, Mercury Drug has also launched its ”Suki” card, a customer program
as a way of expressing gratitude to its loyal customers.

As a drugstore with a heart, Mercury Drug has been conducting “Operation Bigay Lunas”
every March 1, on their anniversary day together with its business associates. For the
past decade, this annual and all-day free clinic catering to the less-privileged provides
medical consultations and free medicines to indigent patients in selected cities and
municipalities nationwide. This year alone, it served more than 130,000 beneficiaries in
around 63 cities and municipalities.

In 2002, Mercury Drug, in partnership with the Philippine Business for Social Progress
(PBSP), has launched a program that has been helping rural and urban marginalized
communities nationwide to have access to potable water system within their communities
through the Artesian Well Project. The installation of this potable water system helped
improved the quality of life of the beneficiaries by promoting better health and sanitation
practices.

In the years to come, Mercury Drug will keep on looking for opportunities to further
enable customers to have more access to quality, safe and life-saving medicines, thus

30
enabling them to have more meaningful, healthier and longer lives. It will always pursue
its commitment to better and further serve its customers whose trust and loyal patronage
has allowed Mercury Drug to be of continued service to the nation.

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THE MEDICAL REPRESENTATIVES ACCREDITATION
PROGRAM (MRAP)

The MRAP or Medical Representatives Accreditation Program is a minimum standard


reference and training tool that the Pharmaceutical and Healthcare Association of the
Philippines (PHAP) developed. Together with Ancilla Enterprise Development
Consulting -a full service training and consulting company, and respected professionals
in the fields of medicine and allied services, the PHAP developed a program to enable
representatives to be accredited professionally and to establish a minimum standard for
developing a medical representative’s professional growth.

Partner stakeholders in the MRAP are associations within the industry such as the
Marketing Executives of the Pharmaceutical Industry (MEPI), Association of
Pharmaceutical Trainers (APT), Philippine College of Pharmaceutical Medicine (PCPM),
and Philippine Association of Pharmacists in the Pharmaceutical Industry (PAPPI).

The MRAP’s general objective is to provide basic knowledge and skills for the medical
representatives that will enable them to meet the minimum standards for accreditation.
This will ensure that the medical representatives will provide quality and adequate
scientific information according to legal and ethical requirements.

Its specific objectives are to:

• enable the representatives to meet the minimum standards for accreditation;


• provide representatives with basic knowledge in science and medicine;
• develop the representatives’ basic mechanisms of disease; and
• equip representatives with knowledge on ethical business practices provided by
the Industry, PHAP and Government.

The MRAP has a unique curriculum that includes four (4) foundation modules which
address identified areas of basic competence in healthcare science and medicine. The
foundation modules include:

I. Introduction to the Pharmaceutical Industry in the Philippines


• Ethical business practices, code, duties, government laws,
regulations and guidelines
• Philippine health care system and programs

II. Anatomy and Physiology


• Basic body functions and systems

III. Basic Mechanisms of Disease

IV. Pharmacology
• Sources, classification and routes of administration of drugs

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• Properties of drugs
• Pharmacokinetics and Pharmacodynamics

The MRAP accreditation distinguishes the medical representative as a competent detailer


who understands scientific concepts and doctors’ and patients’ information needs for
pharmaceutical products. Doctors will find that representatives who have the aptitude for
discussing therapeutic needs and solutions are worth their time and effort.

The MRAP aims to provide a better understanding of basic medical knowledge in


anatomy, physiology and pathophysiology, which assures the doctor that his interaction
with the medical representative, will be productive and relevant to their practice.

The MRAP aims to provide a better understanding of pharmacology and product


information that assures the doctor of accurate and unbiased data on a given product for
rational drug use. This will help him to decide if the therapeutic regimen being
discussed by the representative can solve his problems.

The MRAP is a program patterned after several accreditation programs from Australia,
Canada and the United States. What makes MRAP unique is that the program was
customized specifically for the Philippine market and is the first basic course that will
facilitate accreditation and standardize training of representatives in the industry.

33
THE PHAP CODE OF ETHICS

34
THE PHAPCARES FOUNDATION
PHAPCares Foundation Inc. (“PHAPCares”) is the primary vehicle of PHAP in
implementing its social responsibility initiatives. Launched in mid-2003, PHAPCares
was registered with the Securities and Exchange Commission (SEC) as a non-profit, non-
stock private organization whose overall goal is the promotion of public health and
welfare in the country, particularly the underprivileged and poor Filipinos. Comprising
PHAPCares are member companies of PHAP in good standing who are mandated to
contribute both cash and in kind (i.e. product donations) in support of the Foundation’s
health-related programs.

Specifically. PHAPCares is mandated to contribute to the overall efforts of government


to enable poor Filipinos to have greater access to quality essential and life-saving
medicines. This organizational mission is being concretized through a syndicated
medicine donation program in partnership with government hospitals and welfare-
oriented agencies, as well as reputable NGOs and similar organizations.

PHAPCares is an accredited “donee institution” by the Bureau of Internal Revenue and


the Philippine Council for NGO Certification (PCNC) in accordance with the provisions
of BIR Regulation No. 13-98 dated January 1, 1999. Thus, all donations to PHAPCares,
whether cash or in kind, shall entitle the donors to full or limited deduction pursuant to
Section 34(H) (1) or (2), and exemption from donor’s tax pursuant to Section 101 (a)(3)
of the National Internal Revenue Code of 1997.

Governing the affairs of PHAPCares is a 13-man Board of Trustees elected annually


from among representatives of its member companies.

Partnership with DOH and Government Hospitals

PHAPCares signed a memorandum of agreement with then Health Secretary Manuel


Dayrit to formalize a program partnership dubbed “Medicine for Indigents”. Under the

35
program, PHAPCares shall donate P100 million worth of quality, essential medicines
yearly to the Department of Health (DOH) for distribution to indigent patients, free of
charge, in 72 DOH-retained hospitals. Identified product donations include antibiotics,
cough & cold preparations, pain relievers and multi-vitamins, to name a few.

To date, the program has assisted thousands of indigent patients in 35 DOH-retained and
other LGU-managed public hospitals in eight regions, reaching as far as Tawi-Tawi and
Basilan in the south. With scarce budget to purchase medicines for indigent patients,
these government hospitals welcome quality medicine donations from PHAPCares to
augment their stocks. To date, total product donations from PHAPCares to these health
institutions are valued at approximately P200 Million.

Partnership with the Office of Civil Defense – National Disaster Coordinating Council
(OCD-NDCC)

Likewise, PHAPCares signed a memorandum of agreement with the Office of Civil


Defense- National Disater Coordinating Council (OCD-NDCC) in September 2005 to
launch a joint initiative called “Gamot - Agad” (Quick Medicine), a vital component of
the government’s disaster mitigation strategy. Under this program, PHAPCares shall
donate essential and life-saving medicines to OCD-NDCC worth P20 Million yearly for
distribution to communities affected by natural and man-made disasters.

Medicine donations from PHAPCares are dispatched quickly to disaster areas by the
OCD-NDCC using military choppers and boats to reach coastal and mountainous areas.
This was the case during the massive flooding and landslide in Guinsaugon, Leyte in
2006 - where donated medicines from PHAPCares under the “Gamot-Agad” program
were among the earliest batch of donations to arrive in the area. During lean months, the
OCD-NDCC affiliated doctors and nurses conduct medical missions in far-flung areas
hardly reached by medical services.

For instance, the OCD-NDCC conducted a surgical-medical and dental mission in the
province of Tawi-Tawi in 2006 in partnership with the US Navy’s “Mercy Mission” .
PHAPCares donated medicines valued at P5M which benefited some 1,000 indigent

36
Muslim patients. To date, over P15 million worth of medicines have been donated by
PHAPCares under the “Gamot-Agad” program.

Moreover, PHAPCares has recently provided medicine and relief donations for victims of
typhoon Frank in the Visayas. The donations included P10 million worth of essential
medicines, vitamins and nutritional products for typhoon victims in the provinces of
Iloilo and Aklan. Vital relief items such as blankets, mosquito nets, baby diapers, mats
and other items were also sent to the victims through the DSWD. In partnership with the
Armed Forces of the Philippines Reserve Command, a medical mission was also
conducted in two of typhoon Frank’s worst hit municipalities in Iloilo. During the
medical mission, PHAPCares served more than 5,000 individuals in the municipalities of
Barotac Viejo and Janiuay.

Partnership with other Government Agencies and NGOs


Another important partner is the Department of Social Welfare and Development
(DSWD) which oversees the government’s social welfare and poverty alleviation
programs for the “poorest of the poor”. PHAPCares regularly donates essential
medicines to DSWD-managed residential facilities for the elderly, sexually abused
women and abandoned/ mentally-retarded children, among other needy sectors.

PHAPCares likewise assists reputable NGOs and service-oriented groups such as the
Prison Ministry of the Catholic Bishops Conference of the Philippines, Virlanie
Foundation, Alay Kapwa Communites, Humanitarian and Legal Foundation of the
Philippines and CARITAS Manila, to name a few. To date, over P10 Million worth of
medicine donations have been donated to these institutions serving the “poorest of the
poor” Filipinos. (For more information about PHAPCares, please log on to
www.phapcares.com)

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PHAP MEMBERS BUILDING HEALTHIER
AND
BETTER SOCIETIES

AstraZeneca Philippines

In AstraZeneca Philippines, our Corporate Social Responsibility (CSR) falls under our
“AZ Cares” campaign, which is geared towards increasing disease awareness among
doctors and patients.

We have launched several initiatives to support our CSR objectives:

I. Improve Human Health and Quality of Life

A. Health Education Initiatives

- Your Doctor Knows Best


In 2007, AZ Philippines launched this weekly disease information campaign in
the Philippine Daily Inquirer aimed at educating patients about various diseases.
This information campaign tapped the expertise of some of the country’s highly
regarded doctors who write about specific health topics.

- AZP Website

A Disease Awareness section on the AZ Philippines website was put up to


support health/disease education among patients and healthcare professionals

- Lay Fora
The Medical Affairs Team has been doing disease awareness lectures to
different companies since last year. They developed slide sets and brochures for
lay education on hypertension, dyslipidemia and asthma in support of patient
clubs/associations.

38
B. Access to Medicines

Patient Support Program (“AZ Cares For You”)

AZ Cares For You is a patient starter and adherence support program for better
patient education/awareness and helps improve patient compliance. It is a patient
support program in which an enrolled patient will receive educational materials
and support services within six months. This program aims to facilitate initiation
of patients to therapy, educate patients on proper management of their medical
condition and provide support to encourage patients to stay on therapy
continuously for six months and beyond.

II. Promote the importance of science within the community

- Fellows Program

Developed as part of AZP’s commitment to support the Continuing Medical


Education of Filipino doctors and assists in the training & development of
physicians in the field of Cardiology, Gastroenterology, Pulmonology &
Oncology

- AZ Academy
An annual multi-specialty scientific conference featuring renowned international
and local speakers presenting advances in cardiology, gastroenterology,
respiratory, infection and oncology for improved patient care with focus on CME,
training and science. AstraZeneca Philippines is committed to innovative CME
programs of the highest quality, conducted to the highest ethical standards.

The activity also paved the way in launching the AZ Learning Resource Center,
a virtual learning facility that offers a wealth of resources and provides a vast
database of medical literature within the easy grasp of the Filipino physician.

III. Support local communities through charitable donations

- PHAPCares Foundation - Since 2003, AstraZeneca donates over 1.2 million


pesos worth of medicines every year for indigent patients, calamity victims,
and participates in other special healthcare activities and outreach programs
organized by the foundation.
- Mercury Drug “Operation Bigay Lunas” – Under this project, AZP has
donated about 2MPhp worth of medicines to five cities this year.
- Partnerships with Foundations/ Medical Missions -AZP has worked in
partnership with the AVON, Habitat for Humanity, ABS-CBN’s Bantay

39
Kalikasan and various medical/dental missions around the country organized
by non-profit and charitable organizations.
- Partnerships with VSO Bahaginan - AZP has an agreement with VSO
globally as their health partner. AZP is locally supporting VSO Bahaginan
and they develop CSR and local support for projects.

IV. Enable employee participation

- AVON Breast Cancer Walk


Since 2006, AstraZeneca has been a major partner of Avon for its “Avon
Walk Against Breast Cancer.” AZP employees have been participating in this
annual event, which promotes awareness and early detection of the disease.

40
ELI LILLY

THE LILLY MDR-TB PARTNERSHIP

Tuberculosis (TB) and Multidrug-Resistant Tuberculosis (MDR-TB)

Tuberculosis (TB) is often thought to be a “disease of the past,” but about one-third of the world's
population carries a latent strain of the disease. Two million people die from TB each year, one
every 20 seconds, and the spread of the disease has been fueled by HIV/TB co-infection.

The World Health Organization (WHO) defines multidrug-resistant tuberculosis (MDR-TB) as


resistance to at least rifampicin and isoniazid, two of the first line anti-TB medicines. It is a type
of TB that often develops in patients who do not adhere to treatment for regular TB, have failed
first-line treatment or contracted the disease unknowingly. Treatment for regular, first-line TB
lasts six to nine months and is administered under the direct observation of a healthcare worker.
In much of the developing world, people find it very difficult to adhere to such a long, rigorous
course of treatment, which requires isolation from families and friends to prevent contamination.

There are many challenges associated with the treatment of MDR-TB, which does not respond
well to treatment with first-line medicines. MDR-TB is complex to diagnose, and the course of
treatment can last up to 24 months. Significant human resources are required to oversee treatment
and compliance in countries where healthcare workers are scarce. Patients choosing
hospitalization for the initial treatment period can increase the risk of MDR-TB transmission to
staff and patients, particularly those already compromised by HIV/AIDS. There is an urgent need
for additional training of healthcare workers on the prevention of transmission of TB within
healthcare facilities, as well as training in diagnosis, treatment and monitoring of resistance.

About The Lilly MDR-TB Partnership

The Lilly MDR-TB Partnership was created to help contain and ultimately conquer multidrug-
resistant tuberculosis (MDR-TB), a disease so daunting that no single organization can fight it
alone. The Partnership, a public-private initiative, mobilizes 18 partners on five continents in the
battle to stop the spread of MDR-TB and save lives. Lilly is donating $135 million in cash,
medicines and technology to increase access to treatment and focus global resources on
prevention, diagnosis and treatment of patients with MDR-TB.

The Lilly Partnership initiatives all have one thing in common: improved care for some of the
world’s most vulnerable people, who are least able to fight this disease. The public-private
partnership provides access to medicines, transfers manufacturing technology to the developing
world, trains healthcare workers, raises awareness and promotes research and prevention, while
providing support for communities and advocating on behalf of patients. The partners work
together closely, sharing knowledge, expertise and research in the quest to contain and conquer
one of the world’s oldest diseases. The Lilly MDR-TB Partnership is about more than the transfer
of technology and know-how — it’s the Transfer of Hope.

41
About the Transfer of Technology

The Partnership is overseeing the transfer of technology and expertise to manufacture Lilly’s two
antibiotics for MDR-TB, capreomycin (Capastat®) and cycloserine (Seromycin®). Since 2003,
Lilly has transferred technology, formulas and trademarks to manufacturers in South Africa,
China, India and Russia — some of the world’s highest-burden countries. This unique approach
not only allows patients to access medicines at lower prices, but also supports local economies
and the manufacturing of high-quality medicines. Lilly supplies manufacturing know-how,
financial assistance to purchase manufacturing equipment, and training on Good Manufacturing
Practices, which raises the overall standards of safety for the production of these medicines. Lilly
has negotiated agreements with the companies participating in the technology transfer, including
how much may be charged for products to be used in treatment programs sponsored by the World
Health Organization (WHO) and other donor organizations.
Meanwhile, Lilly continues to supply both capreomycin and cycloserine at concessionary prices
to WHO-approved DOTS programs (Directly Observed Treatment, Short-course) for MDR-TB.
Under DOTS, supervisors observe the patients while they are taking their medications for the
duration of their treatment. These medicines are supplied through the WHO’s Global Drug
Facility.
Lilly has shipped some 1.7 million vials of capreomycin and 5.5 million capsules of cycloserine
through the WHO DOTS program to patients in 40 countries. In the Philippines, Lilly has been
delivering Capreomycin and Cycloserin to Global Fund (GF) projects through the IDA. Between
2002 and 2006, Lilly was able to supply 4,965 vials of Capastat and 545,920 capsules of
Seromycin. In 2007, Lilly supplied 5,884 vials of Capreomycin 1g powder injectable vials which
benefited 750 patients.

42
Novartis
BioCamp

• The Novartis International Biotechnology Leadership Camp—BioCamp for


short—is a global program that aims to support the development of the
biotechnology industry by providing high-level education to young talents in this
field. It is a three-day biotechnology seminar for postgraduate students from
different countries who have excellent management and leadership potential.
• Through BioCamp, participants acquire in-depth knowledge of the latest
developments in the global biotech industry, acquire cross-culture and
disciplinary experience, as well as cutting-edge expertise and management skills
essential for success in the biotechnology business.
• Participants in the global seminar are selected through local BioCamp seminars
organized by Novartis in the 140 countries where the company operates.
• For BioCamp 2007, Novartis Philippines, in partnership with deans and other
school officials, kicked off the program with a campus road show to create
awareness among students in different universities. The campus road show was
followed by a half-day local BioCamp seminar conducted by noted biotechnology
experts. After a rigorous selection process, Novartis Philippines chose two
outstanding students to participate in the global seminar held last year in Tokyo,
Japan.
• Started in 2005, Biocamp has served as a career catalyst for several Filipino
students, propelling them to successful endeavors in biotechnology, management
and R&D.
• Through Biocamp, Novartis aims to enhance the global competitiveness of future
Filipino scientists and managers and, ultimately, contribute to nation building.

Community Partnership Day

• Community Partnership Day (CPD) is an annual Novartis event and a concrete


manifestation of the company’s strong commitment to corporate citizenship.
• During CPD, thousands of Novartis associates worldwide engage in volunteer
activities to benefit people in their local communities. For CPD 2008, Novartis
Philippines partnered with three charitable institutions to reach out to the
underprivileged and neglected.
• At the Philippine Christian Foundation Inc. in Tondo, Manila, Novartis associates
transformed preschool rooms to interesting and fun places of learning by painting
the walls, floors and putting rubber mats for the safety of the children. They also
donated educational building blocks and posters of the English and Filipino
alphabets. The foundation is a charitable institution that aims to improve the
quality of life of poor Filipino families. It provides education, livelihood and
skills training to a community in the Tondo dump site.
• At the Asilo De San Vicente De Paul in U.N. Avenue, Manila, Novartis associates
renovated and converted a portion of the institution’s backyard into a vegetable

43
garden. Asilo is a temporary shelter for neglected and abandoned children. It
provides these unfortunate kids with home-life care, and educational and medical
assistance to prepare them for eventual family and community integration.
• Novartis associates became moms and dads for a day to orphans at the
Associacion De Damas De Filipinas, a temporary shelter for street children and
abandoned children in Paco, Manila. They fed, bathed, and played with the little
angels of the orphanage.
• Novartis associates donated personal care items such as soaps, shampoos,
toothpastes and toothbrushes to the young residents of Asilo and Damas.

Programs to promote patient access to medicines


In recent years, Novartis has supported Filipino patients’ access to medicines through
several programs:

• With the World Health Organization, Novartis has provided over 70,000
treatments of our anti-malarial drug Coartem to Filipino patients at production
cost.
• The Novartis Glivec International Patient Assistance Program (GIPAP) has
helped provide our cancer drug Glivec to almost 900 Filipino patients since its
inception in 2003. This innovative program is being implemented in more than 67
participating centers across the archipelago. To date, benefits provided by GIPAP
to Filipino patients are valued at Php 1.2 billion.

44
Pfizer
The Pfizer Philippines Foundation

Leadership that serves

The concept of servant leadership is the kind of leadership that is most lasting and
effective. It is one marked by compassion for people, commitment to their well-being and
the fervor to accomplish goals with the highest standards of excellence for the good of
the greater whole. As the world’s largest research-based company across industries,
Pfizer’s leadership is reflected in acts of giving, the inspiration of its very purpose. Its
more than 10,000 scientists give every single day of their lives to discover and develop
innovative medicines, making them available to 38 million patients around the world.
Through its products and services, the Company educates and empowers consumers to
longer, healthier and happier lives.

Integral to the definition of Pfizer’s mission, vision and values is responsible corporate
citizenship, where service to community takes the forefront. On this ground, Pfizer
Philippines Foundation, Inc., was born in 1997. Its birth has further enriched the
decades-long corporate social responsibility initiatives of Pfizer, especially as it continues
to expand its network of partnerships.

Indeed, the Foundation has come a long way, progressively taking on larger roles. From
medicine donation, it has taken corporate social responsibility to greater heights by
initiating programs that raise public awareness on disease prevention and management,
collaborating with organizations that have sustainable healthcare programs, and
employing active employee volunteerism.

The programs of PPFI fuel Pfizer with a unique brand of leadership in various levels of
the Philippine healthcare system. Through PPFI’s efforts, Pfizer hopes to make a
significant and sustainable difference in the lives of Filipino communities in every part of
the nation.

Leaders for Health Program


PPFI in early 2002 partnered with the Department of Health and the Ateneo de Manila
University, giving birth to the Leaders for Health Program (LHP). Translating to an
investment of Php 3.3 million for every one of 39 municipalities in four years, the P60-
million program is close to benefiting a million Filipinos.

The LHP has become the flagship program of the Foundation which brings together local
chief executives, municipal health officers and community leaders. It opened
opportunities for them to jointly make a diagnosis of their areas, identify and prioritize
health problems, and develop a Municipal Strategic Health Agenda (MSHA). By using
innovative learning and teaching methodologies, the LHP develops a corps of competent,
professional and committed leaders who will provide effective leadership in various
levels of the local healthcare system.

45
By far, LHP is present in 39 medically underserved municipalities in 14 provinces across
seven regions. These health leaders develop and implement effective strategies and good
governance practices to strengthen their healthcare system. Going forward, Pfizer’s
support continues in the various LHP sites by giving grants to projects that will enhance
healthcare systems in those sites.

Gawad Kalusugan –Pfizer


The Gawad Kalusugan-Pfizer Program is a partnership between PPFI and Gawad Kalinga
(GKal), a non-government organization that organizes poor communities through the
provision of shelter, education, and health programs. GKal is a three-year multi-sectoral
integrated area development program where stakeholders converge to develop
marginalized communities into self-reliant organizations equipped to manage their health
concerns.

Engage
To concretely demonstrate the value of Community, Pfizer developed a program called
Engage which aims to provide its employees the opportunities to share their time,
resources and talents with the underserved communities in Gawad Kalinga. Through this
program, Pfizer colleagues are able to regularly participate in various education, health
and other civic-oriented activities.

Providing an Enabling Environment for Research (PEER) in Health is a research


grant program initiated by Pfizer Philippines in partnership with the National Institute of
Health Philippines, the Department of Science and Technology-Philippine Council for
Health Research and Development. Selected grantees first undergo training on research
project development, good clinical practice and data analysis and later receive funding
support worth Php200,000 for each project.

Philippine Science High School-Pfizer Youth Science Research Program


To promote excellence in science research among the youth, PPFI partnered with the
Philippine Science High School in Western Visayas, one of the country’s leading schools
that produces highly competent students in science and research. PPFI provided a
research hub with state-of-the-art facilities and an annual USD 1,500 grant to support the
various scientific studies conducted by PSHS students.

LIFE-Pfizer Advocacy Program for Childhool Leukemia


Pfizer forged ties with the Leukemic Indigent Fund Endowment (LIFE) Foundation to
implement an advocacy program for childhood leukemia. The project aims to increase
public awareness on childhood leukemia by providing medical assistance to the most
underprivileged leukemia patients.

Kythe-Pfizer Child Life Program


Through a partnership with Kythe Foundation and the Asia Foundation, PPFI launched
the Kythe Child Program which provides support for cancer-stricken and chronically ill
pediatric patients.

46
Roche

With Roche, the commitment to help uplift and bring about positive changes in the
community has been ongoing for the past years. Known to be an active company towards
helping out several projects for various communities in the different subsidiaries around
the world, Roche considers safety and environmental protection as two important and
enduring issues that companies like them could address. At Roche, protecting people and
the environment is not just a legal or social obligation — it is a key concern in everything
they do.

The campaign to save our environment is never more urgent than now. Here in the
Philippines, several corporations have aligned with the government and NGOs to do what
it takes to promote and actually realize environmental protection and resuscitation.

In line with this global commitment and in cooperation with Bantay Kalikasan’s “Save
the La Mesa Watershed Project”, some 117 employees from the different departments of
Roche Philippines joined in the “Adopt-a-Forest” teambuilding activity held in May
2008. For this project, Roche Philippines has committed to plant trees in a designated
area near the watershed to protect the remaining rainforest within Metro Manila from
further denudation. A series of activities within the next few years will hopefully support
the rehabilitation and forestation of the area which consists of the La Mesa Eco-Park and
La Mesa Nature Reserve. Aside from tree-planting held early in the morning, the
volunteers also participated in an Environmental Awareness Lecture to help them
understand and promote ecological sustainability. In turn, Roche Philippines has
expressed its commitment to strive in creating a healthy eco-forest reserve in its adopted
hectare in the next three years.

The La Mesa watershed is a government property titled under the MWSS and
commissioned in 1929. It straddles the boundaries of Quezon City, Kalookan City, and
Municipality of Montalban and the provinces of Bulacan, and Rizal. It houses the

47
filtration plant that distributes water to five cities and 32 municipalities or about 12
million residents in Metro Manila. It is also the last forest of its size in the metropolis.

Over and above the company’s primary role as an innovative healthcare business, Roche
also has a long heritage of wider community involvement – in humanitarian and social
projects, as it encourages its employees to actively volunteer their time and resources to
projects such as the annual AIDS WALK, where total voluntary contributions from
employees are matched by the company, and the total amount raised is donated to the San
Lazaro Hospital; the annual RED CROSS Blood Donation; “Build-a-Home” housing
project with Gawad-Kalinga; cash and medicine donations to typhoon victims; and the
ongoing advocacy campaigns and programs for different Patient Support Groups among
others.

48
Sanofi-Aventis Philippines

A corporate commitment to social responsibility accompanies Sanofi-Aventis


Philippines’ business operations. A company responsive to community needs, it firmly
believes in doing business with a social conscience.

To give meaning to its corporate values, the company undertakes humanitarian


sponsorship actions focused on the health and well-being of children as they represent a
cause dear to the sanofi-aventis Group.

The company encourages its staff to get involved in humanitarian undertakings. Thus, to
put volunteerism a stride forward, Sanofi-Aventis formed the Blue Hands Volunteer
Group for employees willing to make a difference and who want to share their time and
talent for the little ones who have less in life.

Blue Hands is the company’s strategic response to social consciousness. As the


company’s social service arm, it fosters the spirit of volunteerism among employees and
provides opportunities for meaningful involvement in community outreach programs.

Pedia Healthcare is the flagship Corporate Social Responsibility (CSR) program of Blue
Hands. The program aims to promote the health and well-being of underprivileged, sick
and abandoned children in the community.

Sanofi-Aventis’ CSR program seeks to provide hope, inspiration and encouragement to


kids afflicted with childhood cancers at the Philippine Children’s Medical Center
(PCMC) and those with heart ailments at the service ward of the Philippine Heart Center
(PHC).

Sanofi-Aventis has supported the induction phase of chemotherapy treatment of five


leukemia patients at the PCMC. Annually, it also sponsors the cardiac rehabilitation of
100 children operated on for various heart diseases. The company has provided financial
support to PHC for the procurement of patient monitoring device, exercise and office
equipment, toys and educational materials for indigent kids enrolled in the PHC Pediatric
Cardiac Rehabilitation Program, the first of its kind in Asia.

Other regular beneficiaries are slum dwellers under the care of the Urchins Street Kids
Association, abandoned children with physical deformities and third degree malnutrition
at the Little Lamb Center in Cebu City, and survivors of violence and sexual abuse at the
Chameleon Association in Iloilo City.

Sanofi-Pasteur, the vaccines division of Sanofi-Aventis, also believes in giving back to


the community. It has given free mass immunization against influenza, typhoid fever and
MMR (mumps, German measles and rubella) to street kids in Paranaque and to young
girls in Iloilo who are victims of abuse and exploitation.

49
Sanofi-Aventis is also active in the fight against childhood cancer. Under the banner “My
Child Matters”, it has formed an alliance with the Philippine Society of Pediatric
Oncology, the PCMC and Project: Brave Kids to help save young lives through a yearly
childhood cancer awareness campaign. Since 2006, a grant of almost five million pesos
has been awarded to PCMC in support of a childhood cancer advocacy program. Blue
Hands organizes a bloodletting activity among Sanofi-Aventis and Sanofi Pasteur
employees for young cancer patients every quarter.

Blue Hands also has a Service Action program called ServAct which focuses on the
company’s relief assistance to victims of calamities and natural disasters. The program
includes donations and partnerships with government and non-government entities in
support of socially-relevant projects.

Blue Hands is truly the heart and soul of Sanofi-Aventis Philippines, a company which
believes that in the highly competitive corporate world, it is through this healthy habit
called giving that one profits the most.

50
Zuellig Pharma
Zuellig Pharma practices corporate social responsibility and corporate governance
through various programs and policies which impact its stakeholders, customers and
publics.

Zuellig Pharma also contributes significantly to the country’s national healthcare system
by distributing high quality pharmaceutical and healthcare products throughout the
country.

Our Programs

• PHAPCares Medicine Donations for Indigents


Zuellig Pharma contributes to the PHAPCares Program to promote wider access of
indigents to quality essential medicines in 72 DOH-retained hospitals nationwide.
Our contributions consist of cash, logistics services and products.

• Community Disaster Response Program


Zuellig Pharma provides disaster relief operations supported by employee volunteers
for the benefit of families affected by typhoons, earthquakes, fire and other
emergencies.

• The Hatid Saya Outreach Program


A Christmas outreach gift-giving activity which is performed by Zuellig Pharma
employees at specified hospitals. We generally reach almost 2,000 indigent patients
in 17 hospitals nationwide.

• Specific Projects
Zuellig Pharma is involved in several specific projects such as the DOH-Jaycees
Outstanding Doctors Awards; funding for the Ateneo de
Manila Medical School; Avian flu equipment donation to the DOH; and
the Professorial Chair Award of the UP College of Internal Medicine among
others.

• Avian Flu Readiness Project


Zuellig Pharma remains ready to assist the DOH with logistics assistance should a
pandemic cause a national healthcare emergency.

• Voluntary Blood Donation Database


Zuellig Pharma provides a database of blood donors in times of emergency.

Zuellig Pharma’s programs aim to support government and industry initiatives to assure
quality healthcare services; improve equity of access of indigents to quality essential

51
medicines; support initiatives on health protection and safety; and provide timely and
appropriate assistance in times of emergency.

52
STATISTICS ON THE
PHARMACEUTICAL INDUSTRY
2008

53
SECTION I
The Global Pharmaceutical Industry

1. The Global Pharmaceutical Market Size


The pharmaceutical industry worldwide is composed of drug manufacturers and
biotechnology companies, including distribution and wholesale companies that handle
their products. The products manufactured and distributed include medicinal and
biological compounds, diagnostics reagents, household remedies, vitamins-minerals
preparations, nutritionals, herbals and medical devices.
The global market is currently valued at US$ 631bn as of MAT2 June 2007 and growing
consistently at a compounded average growth or CAGR of 7.9 percent since 2002 (see
Table 1 below).
While the North American and European markets have been posting within industry
average growth rates, the Asia-Pacific/Africa and Latin American markets have been
registering faster growth rates of 11.3 percent and 13.7 percent, respectively.

Table 1: Market Size - Audited global market by region


3
MAT June ’07 US$ billion
MAT MAT 2002-2006
Region June 2007 % Share June 2006 CAGR
North America 299 47.5 291 8.7
Europe 189 30.0 182 7.0
Japan 56 8.9 57 2.8
Asia/Africa/Australia 56 8.9 52 11.3
Latin America 29 4.6 28 13.7
Global Market 631 100.0 609 7.9

2. Leading Global Pharmaceutical Markets


Based on IMS MAT June 2007, North America currently occupies 47.5 percent share of
the global market with the United States as its major contributor. The United States is
the global pharmaceutical industry’ leader at 44.6 percent market share (see Table 2 on
the succeeding page).
The European market follows as the world’s second largest drug market with 30 percent
share. Europe’s Top 5 composed of France, Germany, UK, Italy and Spain cumulatively
represents two-thirds of the European market with 20.7 percent market share.
Japan ranks as the world’s second largest country in the world following the U.S. with
9.0 percent market share despite its experiencing slow growth in previous years.
Due to the ageing population in these aforementioned major markets, it is expected that
drug consumption will continue to grow in these regions.

2
MAT – Moving Annual Total
3
Global Market Trends, Monthly Executive Summary, November 2007. IMS.

54
Brazil (18%), Russia (24%), India (16%), China (21%), South Korea (18%), and Turkey
(14%) are the chief countries currently showing better than global average growth.
Referred to as the “pharmerging” economies for 2008, these countries are expected to
contribute nearly 25 percent of growth worldwide4 while the seven traditional global
markets’ (i.e., US, UK, France, Germany, Italy, Spain and Japan) are expected to
slowdown or level-off due to pressure from factors as patent expiration, generic
proliferation and new cost control measures from health insurance payors.

The identified pharmerging countries mentioned above will continue to post high growths
in 2008 due to increased access to both generics and innovative new medicines as
healthcare becomes more accessible in the rural and far-flung areas. Moreover, due to
improvements in these countries’ economy, governments can subsidize a portion of
treatment costs, and more people can avail of increased public and private health
insurance. As such, the global pharmaceutical industry will be undergoing development
refocus starting with the shifting of efforts from mature markets to emerging markets.5

Table 2: Pharmaceutical Market Size – Top 20 countries


6
Moving Annual Total June ’07 US$ billion
MAT %
Rank Country Jun 2007 Share % Growth/2006
1 US 283.3 44.6 8
2 Japan 56.3 8.9 -2
3 France 36.2 5.7 12
4 Germany 33.6 5.3 7
5 UK 22.1 3.5 14
6 Italy 21.3 3.4 7
7 Spain 17.8 2.8 17
8 Canada 16.0 2.5 10
9 China 12.1 1.9 21
10 South Korea 9.5 1.5 18
11 Brazil 9.1 1.4 18
12 Mexico 8.4 1.3 8
13 Turkey 8.1 1.3 14
14 Australia 7.2 1.1 12
15 India 5.9 0.9 16
16 Poland 5.2 0.8 17
17 Russia 5.1 0.8 24
18 Belgium 4.8 0.8 9
19 Greece 4.5 0.7 27
20 Netherlands 4.1 0.7 11

4
IMS 2008 Global Pharmaceutical Forecast. www. imshealth.com
5
Pharmaceuticals: background and risks. www.globaledge.msu.edu.com
6
IMS: Global Market Trends, Monthly Executive Summary, November 2007.

55
3. Leading Global Pharmaceutical Companies
Cumulatively valued at US$ 378.6bn, the world’s Top 20 pharmaceutical companies
represent 60 percent of the industry’s global market (see Table 3). The remainder of the
industry is composed of many other new and smaller specialty companies, biotech
companies, and other start-up companies that concentrate on a specific product(s).

Table 3: The Top 20 global pharmaceutical companies


7
Moving Annual Total June ’07 US$ billion sales
Corporate MAT % Growth/
% Share
Rank Company Head Office June 2007 2006
1 Pfizer USA 45.1 7.1 -1
2 Glaxo-Smith Kline UK 37.7 5.9 5
3 Novartis Switzerland 33.1 5.2 9
4 Sanofi-Aventis France 32.3 5.1 7
5 AstraZeneca UK 28.7 4.5 11
6 Johnson & Johnson USA 28.2 4.4 4
7 Roche Switzerland 25.6 4.0 20
8 Merck & Co. USA 25.1 4.0 1
9 Abbott USA 18.3 2.9 8
10 Amgen USA 16.7 2.6 14
11 Lilly USA 15.6 2.5 11
12 Wyeth USA 15.4 2.4 5
13 Bayer Germany 13.6 2.1 10
14 Boeringher Ingelheim Germany 11.6 1.8 7
15 Bristol-Myers- Squibb USA 11.5 1.8 -17
16 Teva Israel 10.4 1.6 28
17 Takeda Japan 10.3 1.6 7
18 Schering-Plough USA 0.9 1.4 12
19 Merck KGaA Germany 0.7 1.2 15
20 Novo Nordisk Denmark 0.6 1.0 18

Pfizer is the world’s largest pharmaceutical company and accounts for 7 percent of the
global market, followed by Glaxo-Smith Kline (UK) and Novartis (Switzerland) with 5.9
percent and 5.2 percent share, respectively.
Nine drug companies from the Top global 20 list are American representing 29.1 percent
of global market share, while ten are European representing 32.4 percent share of the
global market.
Among these Top 20 global pharmaceutical companies, Teva, a major Israeli
manufacturer of generic drugs and innovative medicines in niche markets, holds its own
at 16th place but posting the highest growth among the Top 20 global pharmaceutical
companies at 28 percent, followed by Danish healthcare company Novo Nordisk with 18
percent and American biotech company, Amgen with 14 percent.
At No. 19 position, Merck KGaA rose by 15%.

7
IMS 2Q 2007 Global Health News

56
Two pharmaceuticals companies registered negative growth, namely: Pfiizer, -1 percent,
and Bristol Myers Squibb, -17 percent.
Several pharmaceutical companies are beginning to experience business slowdown due
to competition from parallel imports, and generic products as their principal products of
innovation become off-patent and are made available generically by other drug
manufacturers.
4. Leading Global Pharmaceutical Products
The following tables provide information of the leading global markets on the therapeutic
class level (Table 4A) and brand or product level (Table 4B).
The most widely used medicines indicated therein reflect a growing trend in the
prevalence of chronic diseases such as hypertension, hypercholesterolemia, depression
and psychosis, diabetes and cancer worldwide.
Table 4A: Top 10 global therapeutic classes
8
Moving Annual Total June ’07 US$ billion
MAT June 2007
Rank Therapeutic Class % %
Sales Share Growth
1 Cholesterol & triglyceride regulators 31.3 4.9 -3
2 Anti-ulcerants 28.1 4.4 3
3 Antidepressants 20.1 3.2 0
4 Antipsychotics 19.2 3.0 13
5 All Other Antineoplastic agents 17.7 2.8 33
6 Anti-Epileptics 14.0 2.2 15
7 Erythropoietin products 13.8 2.2 7
8 Oral Antidiabetics 12.5 2.0 11
9 Calcium antagonists, plain 11.8 1.9 0
10 Angiotensin-2 inhibitors 11.2 1.8 13

8
IMS 2Q 2007 Global Health News

57
Table 4B: Top 10 Global Pharmaceutical Brands
9
Moving Annual Total June ‘07 US$ billion
MAT June 2007
Rank Brand Manufacturer Type of Drug % %
Sales Share Growth
Cholesterol &
1 Lipitor Pfizer triglyceride regulator 13.4 2.1 1
2 Nexium Astra-Zeneca Anti-Ulcerant 6.8 1.1 11
Glaxo-Smith Anti-Asthma & COPD
3 Seretide/Advair Kline 6.6 1.1 12
4 Plavix Sanofi-Aventis Antiplatelet 5.8 0.9 -9
Erythropoietin
5 Aranesp Amgen Products 5.0 0.8 19
6 Enbrel Wyeth Antirheumatics 4.9 0.8 20
7 Zyprexa Eli Lilly Antipsychotic 4.8 0.8 4
8 Risperdal Janssen Antipsychotic 4.7 0.8 12

9 Norvasc Pfizer Calcium antagonist 4.4 0.7 -10


10 Seroquel Astra-Zeneca Antipsychotic 4.2 0.7 16

Latest world public health statistics compliment the above data as it points out that the
top leading causes of death worldwide are heart disease and stroke, followed by lower
respiratory infection and COPD10, cancer of the colon and rectum, and diabetes
complications. This surge may be closely linked to increased incidence due to poor
lifestyle of and a large number of the global population that is ageing.
Thus, consistent with expected demand due to growing disease prevalence, the global
pharmaceutical industry expects a continued rise in drug consumption for medicines in
the areas of cardiology, oncology, and diabetes care in the years to come.

9
IMS 2Q 2007 Global Health News
10
COPD or chronic obstructive pulmonary disease

58
5. The Asia - Pacific Pharmaceutical Market
The Asia-Pacific region accounts for US$ 50.2 bn or 8 percent of the global market for
pharmaceutical products (see Chart 1 below).

11
Chart 1: Comparative Share: Asia Pacific & Other Regions 2Q 2007

Comparative Share by Global Regional Market


MAT 3Q07

1% 5%
8%

9%

47%

30%

NORTH AMERICA EUROPE JAPAN

ASIA PACIFIC AFRICA LATIN AMERICA

The four biggest markets in the Asia-Pacific region are China-Hong Kong with 27.3
percent market share, followed by South Korea with 19.4 percent share, and growing by
21 percent and 18 percent, respectively.

Australia is the third largest with 15 percent share and growing by 12 percent. India is
fourth with 12.7 percent share and growing at 16 percent rate. All these countries are
growing faster than global industry average and represent 6 percent of the global
pharmaceutical industry (see Table 1).

With these developments, the Asia-Pacific region is looked upon as the new growth hub
for the pharmaceutical industry in 2008. Based on industry analysts’ assessment, China
and South Korea are the two identified pharmaceutical markets among the seven
“pharmerging” economies on the watch list are expected to set the pace of business
growth worldwide.

11
IMS 2Q 2007 Global Health News

59
The following table (see Table 5) shows the breakdown of the Asia-Pacific region per
country from the largest to the smallest market.

Table 5: Asia Pacific pharmaceutical market & players


12
Moving Annual Total September ’07 US$ million
MAT Sept 07 % Share in Asia
ASIA PACIFIC MARKET USD in thousands Pacific Market
CHINA + HK 13,718,641 27.28
KOREA 9,750,530 19.39
AUSTRALIA 7,554,621 15.02
INDIA 6,409,457 12.75
TAIWAN 3,075,977 6.12
INDONESIA 2,266,854 4.51
THAILAND 2,135,262 4.24
PHILIPPINES 1,975,256 3.93
PAKISTAN 1,341,963 2.67
NEW ZEALAND 802,295 1.60
MALAYSIA 470,946 0.93
BANGLADESH 417,877 0.83
SINGAPORE 368,104 0.73
TOTAL ASIA PACIFIC 50,287,783 100.00

The remainder of the Asia-Pacific region consists of the following smaller countries of
Taiwan, Pakistan, New Zealand, Bangladesh, and the ASEAN nations of Indonesia,
Thailand, Philippines, Malaysia, and Singapore. Cumulatively, these countries represent
2 percent of the total global pharmaceutical business.

With its pharmaceutical market valued at US$ 1.95bn, the Philippines’ share against the
total pharmaceutical world market is 0.31 percent. Within the Asia-Pacific region, the
Philippines contributes 3.93 percent of the total Asia-Pacific market. Among its ASEAN
peers, the Philippines takes on the position as ASEAN’s third biggest market directly
following Thailand, with Indonesia taking the lead post.

12
IMS 2Q 2007 Global Health News

60
6. Global Trends & Prognosis for 2008 onwards
According to IMS Health’s 2008 Global Pharmaceutical Market and Therapy Forecast,
the global pharmaceutical market is expected to grow at a 5 to 6 percent in 2008,
compared with 6 to 7 percent in 2007.
Based on the dynamics of the market and industry capability, the pharmaceutical
industry is expected to grow and generate sales turnover between US$735 to 745bn in
2008.13
The global pharmaceutical scenario in 2008 will include the following developments:14
1. A slowdown of the top seven countries (i.e., US, France, UK, Germany, Italy,
Spain and Japan) cumulative performance within a 4 to 5 percent growth range
due to limits on government health spending and competition from generics in
these industrialized countries,

2. The significant rise of emerging markets of China, Brazil, Mexico, South


Korea, India, Turkey and Russia which is expected to grow by 12 to 13 percent
due to increased access to both generics and innovative new medicines as
healthcare improvements in these countries’ economy, governments can
subsidize a portion of treatment costs, and more people can avail of increased
public and private health insurance.

3. Accelerated negative effects on sales of expiration of patents for established


pharmaceutical companies,

4. Increased business aggressiveness of biotech and generics companies,

5. Decline in drug treatment costs in several major therapy areas where leading
products have lost or will lose patent protection, and as generic drugs capture
significant market share (i.e., lipid regulators, calcium channel blockers, selective
serotonin re-uptake inhibitors, osteoporosis therapies and proton pump
inhibitors),

6. With an aging population consuming three times as many drugs as


younger people, demand is expected to rise and opportunities to increase, thus
drug spending is expected to triple from 2000 to 2050, and

7) Oncolytics, angiotensin-2-antagonists, antidiabetic products, respiratory


agents and antipsychotic products will continue to rise driven by an ageing
population.

13
IMS 2008 Global Pharmaceutical Market Forecast. www.imshealth.com
14
IMS 2008 Global Pharmaceutical Market Forecast. www.imshealth.com

61
SECTION II
The Philippine Pharmaceutical Industry

1. Philippine Pharmaceutical Market Size


The Philippine pharmaceutical industry is valued at Php 103.58bn based on IMS MAT15
September 2007 and is growing at a CAGR of 10 percent (see Chart 2 below).
Chart 2: Philippine Pharmaceutical Market
16
Moving Annual Total September ’07 Php billion

Total Pharmaceutical Market


MAT 3Q03 to MAT 3Q07
4-Yr CAGR: 8.68
BILLIONS

120 16

14.41
14
100

12

80 10.56
SALES IN PESOS

9.88 10

% GROWTH
60 8

103.58
5.66
94.27 6
85.27
40 80.70
70.54
4

20
2

0 0
2003 2004 2005 2006 2007

The total Philippine pharmaceutical market includes all products classified as drug or
non-drug, as follows:

Drugs:

Drugs refer to medication or medicine or other substance (either ethical or OTC17)


intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in
man and/or intended to affect the structure or any function of the human body, but which
does not include devices or their components, parts and accessories.18 The common
and widely used classification system is the Anatomical Therapeutic Chemical
Classification System or ATC system.

15
MAT or Moving Annual Total
16
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit
17
OTC or over-the-counter
18
Philippine Republic Act 3720

62
a. Ethical or prescription drugs refer to drug products (branded or unbranded)
which are prescribed by a medical practitioner and are only exclusively promoted
ethically by drug companies via deployment of professional medical
representatives. By Philippine law, consumers are not able to purchase medicines
from the drugstore or hospital pharmacy without a supporting prescription from a
licensed doctor.

b. OTC or over-the-counter drugs refer to drug products (branded or unbranded)


which can be bought by the consumer in a drugstore, pharmacy, pharmacy-
licensed supermarket or grocery even without a doctor’s prescription. In contrast
to ethical drugs, OTC products may be advertised via print, radio and TV media.

Both ethical and OTC products are marketed either branded or unbranded.

Branded drugs refer to any drug manufactured and sold under the protection of a patent,
brand name or trademark. Unbranded drugs basically refer to the generic equivalents of
their original counterparts.

In the Philippines, most of the generic products are marketed by local drug firms using
brand names in order to establish identification and association with its manufacturer or
importer and are referred to as “branded generics.”

Non-drug:

Non-drug items refer to nutritional and infant milk preparations, baby care, cosmetics,
diagnostic and other medical devices.

a. Nutritional formulas are nutritional supplements for general nutrition which


contain vitamins, minerals, fiber, and/or protein, among other additives to either
substitute regular food during sickness, or to enhance user’s diet during
pregnancy, convalescence or old age.

b. Infant milk preparations are formulas designed for infant consumption mostly
made from cow milk or soy milk, which serve as artificial substitute for human
breast milk.

c. Baby care products are mostly over-the-counter or consumer products specifically


used for infant grooming such as soaps, shampoos, oils, powder, lotions, creams,
and gels.
d. Cosmetics – articles intended to be rubbed, poured, sprinkled on, introduced into,
or otherwise applied to the human body or any part thereof for cleansing,
beautifying, promoting attractiveness, or altering the appearance.19

e. Diagnostic devices refer to a range of medical instruments and equipments used


in the diagnosis of a disease or physical condition in man.20

19
Philippine Republic Act 3720
20
Philippine Republic Act 3720

63
e. Medical devices refer to a wider range of health or medical devices (i.e.,
instruments, apparatuses, implements, machines, contrivances, implants, in vitro
reagents, or other similar or related articles, including component parts, or
accessories) used in the treatment, mitigation, or prevention of a disease or
abnormal physical condition in man.21

2. Ethical (Rx), Over-the-Counter (OTC) and Nutritionals


In the Philippines, the bulk of the pharmaceutical market is from the sale of ethical or
prescription products which represent 69 percent of the total pharmaceutical market (see
Table 6 below). OTC products, on the other hand, occupy 24 percent share.

Considered as “health food,” nutritional products consist of both general nutrition and
infant milk formulas, which are either ethically prescribed by doctors and/or sold over-
the-counter in drugstores, pharmacies and other BFAD-licensed retail outlets.
Nutritionals represent the remaining 7 percent market share.

Table 6: Comparative Share: Ethicals, Over-the-Counter & Nutritionals


22
Moving Annual Total September ’07 Php billion

Pharmaceutical Product Categories MATS Sept 2007 % Share to Total


Ethical (Rx) products 71.579 69
Over-the-Counter (OTC) products 25.307 24
Nutritionals 6.697 7
Total Philippine Pharmaceutical Market 103.584 100

21
Philippine Republic Act 3720
22
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

64
Chart 3 below provides a graphic illustration of the pharmaceutical market’s breakdown
among the three major product categories aforementioned.
23
Chart 3: Comparative Share: Ethicals, Over-the-Counter & Nutritionals Php billion

Share of Ethicals vs OTC vs Nutritionals


MAT 3Q07
6%

24%

69%

Ethical OTC Nutritionals

3. Local & Foreign Pharmaceutical Corporations in the


Philippines
The Philippine Generics Law of 1988 was enacted as a legal framework to implement
the Philippine National Drug Policy (PNDP) to rationalize the pharmaceutical sector and
give consumers more informed choice and greater cost savings.

Two decades after, the drug industry saw significant changes which led to the rise and
proliferation of local pharmaceutical companies producing both generic and branded
generic medicines, which in turn resulted in more affordable medicines available in the
market for patients.

23
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

65
Table 7 below shows the increasing trend in the number of registered local
pharmaceutical companies per year from 2003 to 2007. The number of foreign
pharmaceutical companies increased through the years as well.
24
Table 7: Number of Foreign & Local Companies established from ‘03 – ‘07

COMPANIES 2003 2004 2005 2006 2007


LOCAL 208 210 224 224 240
FOREIGN 165 171 194 203 231

The succeeding tables demonstrate the comparative performance trends from 2003 to
2007 between local and foreign companies in terms of peso sales growth (Table 8) and
currency share (Chart 4). The market is growing with the contribution from both local
and foreign companies.

The foreign companies cumulatively posted Php 71.12bn sale (68.6% share) in 2007
with a single digit four-year CAGR of 9.0 percent, while the local companies cumulatively
registered a Php 32.46bn sale (31.3 percent share) with a double-digit four-year CAGR
of 12.67 percent.
25
Table 8: Comparative Growth Trend: Foreign & Local Companies ’03 - ’07 Php billion
4-Year
COMPANIES 2003 2004 2005 2006 2007 % CAGR
FOREIGN 50.38 56.99 60.83 65.86 71.12 9.00
LOCAL 20.15 23.71 24.43 28.4 32.46 12.67
Total 70.53 80.70 85.26 94.26 103.58 10.08

24
Cummulative # of Companies. Includes companies with sales as captured by IMS audit.
25
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

66
26
Chart 4: Comparative Share Trend: MNCs & Local Companies ’03 - ’07 Php billion

Foreign & Local Pharma Companies


Share Trend MAT 3Q03 to MAT 3Q07
120%

100%

28.57% 29.38% 28.66% 30.13% 31.34%


% Share In Pesos

80%

60%

40%
71.43% 70.62% 71.34% 69.87% 68.66%

20%

0%
03 04 05 06 07
YEAR

FOREIGN LOCAL

The following illustrations show another set of comparative performance trends from
2003 to 2007 between local and foreign companies, that is, in terms of growth in
counting units27 or CU sale (see Table 9) and counting units share (see Chart 5).

In terms of counting units, the foreign pharmaceutical companies cumulatively sold


23.42bn for a 52.3 percent share of actual total units sold and is going thru a slow
gradual decline beginning at 2003 to 2006, while the local pharmaceutical companies
cumulatively sold 21.36bn units in the market for a 47.7 percent share in total actual
units sold with an increasing trend from 2003 to 2007. Moreover, local companies
posted a four-year CAGR of 8.16 percent while foreign counterparts showed 3.87
percent four-year CAGR.
28 29
Table 9: Comparative Growth Trend: Foreign & Local ’03-’07 CU billion

2003 2004 2005 2006 2007 4-Year


% CAGR

FOREIGN 20.13 23.77 23.31 23.14 23.42 3.87


LOCAL 15.61 17.98 18.76 18.52 21.36 8.16
Total 35.74 41.75 42.07 41.66 44.78 5.80

26
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit
27
Counting units refer to the actual number of units sold of a product or brand.
28
CU or counting units
29
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

67
Chart 5: Comparative Share Trend: Foreign & Local Companies ’03-’07
30
Moving Annual Totals- Counting Units billion

Foreign & Local Pharma Companies


Share Trend MAT 3Q03 to MAT 3Q07
120%

100%

80% 43.68% 43.08% 44.60% 44.46% 47.69%


% Share In CU

60%

40%

56.32% 56.92% 55.40% 55.54% 52.31%


20%

0%
03 04 05 06 07
YEAR

FOREIGN LOCAL

Based on these illustrations, the foreign pharmaceutical companies take the lead in the
market when in comes to peso value; however, in terms of counting units sold, the split
of pharmaceutical business in the Philippines takes a shift to an almost equal share
between foreign and local pharmaceutical companies which indicate a robust and
progressive development for the industry.

30
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

68
Chart 6 below shows the comparative share of business between foreign and local
pharmaceutical companies on a per therapeutic class (level 1). Based on the illustration,
the foreign companies occupy the larger piece of the business per therapeutic category
based on peso value. In some TCs, local company participation is even negligible (i.e.,
anti-neoplastic and immunological products, diagnostic agents and parasitology
products.)

Chart 6: Comparative Share Per TC – Level 1: Foreign & Local companies


31
Moving Annual Total September ‘ 07 Php billion
Share of Foreign/Local per TC in Pesos
MAT 3Q07

120.00%

42.3% 28.0% 44.2% 36.9% 23.5% 6.1% 40.9% 21.3% 16.5% 13.1% 3.9% 19.3% 4.9% 66.6% 4.0% 2.5%
100.00%
96.1% 95.1% 96.0% 97.5%
93.9%
80.00% 86.9%
83.5%
78.7% 80.7%
76.5%
72.0%
60.00%
57.7% 63.1%
59.1%
55.8%
40.00%

33.4%
20.00%

0.00%
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31
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

69
Chart 7 below, however, shows that local companies sell more in counting units in
several therapeutic categories than their foreign counterparts such as anti-infectives,
musculo-skeletal system, cardiovascular, respiratory, nervous systems and hospital
solutions to mention a few, thus indicating that consumers have a wider range of
products to choose from both foreign and local sources.

Chart 7: Comparative Share Per TC – Level 1: Foreign & Local Companiess


32
Moving Annual Total September ‘07 Counting Units billion
Share of Foreign & Local per TC in CU
MAT 3Q07
120.0%

64.2% 48.9% 68.4% 43.1% 51.1% 4.1% 82.3% 68.1% 59.3% 40.4% 2.0% 26.2% 3.2% 86.9% 1.6% 6.3%
100.0%
98.0% 96.8% 98.4%
95.9% 93.7%
80.0%

73.8%
60.0%
56.9% 59.6%
51.1%
48.9%
40.0%
40.7%
35.8%
31.6% 31.9%
20.0%
17.7%
13.1%

0.0%
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32
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

70
4. Leading Philippine Pharmaceutical Companies in Value
Table 10 below shows the country’s Top 20 pharmaceutical companies as of MAT
September 2007.
33
Table 10: Top 20 Leading Philippine Pharmaceutical Companies Php billion

% CAGR
Rank Company
4Yrs
1 United Laboratories 10.24
2 Glaxo-Smith Kline 2.57
3 Pfizer 10.72
4 Wyeth 11.46
5 Sanofi-Aventis 8.60
6 Abbott 13.88
7 AstraZeneca 5.61
8 Novartis 5.73
9 Roche 16.41
10 Johnson & Johnson 8.41
11 Boeringher Ingelheim 9.45
12 Bristol Myers Squibb 5.23
13 Bayer 6.88
14 Pascual Laboratories 12.12
15 Schering Plough 7.09
16 Merck Sharpe & Dohme 3.31
17 Servier 10.21
18 Natrapharm 32.18
19 Merck Inc 10.6
20 GX International 22.74
Xx OTHERS
Total Philippines

Overall, the combined size of the Top 20 pharmaceutical companies in the Philippines is
valued at Php 84.86bn which represents 81.93 percent of the total pharmaceutical
market.
Among the Top 20 list, sixteen (16) of these are foreign. These 16 foreign companies’
combined sale is valued at Php 58.23bn or 81.87 percent share of the total volume sale
of foreign pharmaceutical companies in the country.
The remaining four drug companies in the Top 20 list are local, namely: United
Laboratories, Pascual Laboratories, Natrapharm and GX International. The combined
sale of these four (4) local pharmaceutical companies is valued at Php 26.6bn or 81.94
percent of the local companies’ total volume sale.
Making it to No. 1 slot is United Laboratories followed by foreign companies Glaxo-Smith
Kline and Pfizer for second and third places, respectively.
Natrapharm tops the list with the highest four–year CAGR of 32.18 percent. Another
local company, GX International, posted the second highest four-year CAGR of 22.74
percent. Roche and Abbott follow with a four-year CAGRs of 16.41 percent and 13.88
percent, respectively.

33
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

71
5. Leading Pharmaceutical Companies in Counting Units
Below is the list of the Philippines’ Top 20 pharmaceutical companies in counting units
term (see Table 11 below). In this list, thirteen are foreign pharmaceutical companies,
namely: Wyeth, Abbott, Bristol Myers Squibb, Nestle, Glaxo-Smith Kline, Johnson &
Johnson, Baxter, Sanofi-Aventis, TC Pharma Industries, Boeringher Ingelheim, B.
Braun, Ponds Chemical and Novartis. These thirteen constitute 90.1 percent of the total
share of foreign companies based on counting units.
The remaining seven are Filipino, namely: United Laboratories, Euro Med Laboratories,
Pascual Laboratories, Intermed Marketing, International Pharma, GX International and
Rhea, representing 93.35 percent of the total share of local pharmaceutical companies
based on counting units.
Compared with the thirteen foreign companies, these seven local companies have
cumulatively grown by 14.98 percent from last 2006 compared to the foreign companies’
cumulative growth rate of 1.11 percent in counting unit terms during the same period.
34
Table 11: Top 20 leading pharmaceutical companies in Counting Units billion
4-Year
Rank Company % CAGR

1 UNITED LAB 3.27


2 EURO-MED LAB 15.05
3 WYETH 8.66
4 ABBOTT LAB 12.99
5 BRISTOL MYERS SQUIBB 19.16
6 NESTLE -16.62
7 GLAXO SMITHKLINE -4.11
8 JOHNSON & JOHNSON 5.18
9 BAXTER -0.20
10 PASCUAL LABS 11.21
11 SANOFI-AVENTIS 4.06
12 INTERMED MKTG 27.89
13 TC PHARMA IND. 16.91
14 INTERNATIONAL PHARMA 9.67
15 BOERINGHER INGELHEIM -4.84
16 B BRAUN 34.10
17 PONDS CHEMICAL 14.99
18 GX INTERNATIONAL 21.91
19 RHEA 15.70
20 NOVARTIS -11.82
Xx OTHERS 0.00
Total Philippines 5.80

34
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

72
Moreover, two Filipino companies- United Laboratories and Euro-Med Laboratories-
occupy Nos.1 and 2 positions in the Top 20 pharmaceutical companies in the Philippines
list in counting units sold. They are then followed by foreign companies Wyeth and
Abbott Laboratories for third and fourth places, respectively. The next Filipino company
that emerges from the list is Pascual Laboratories, Inc. at No. 10 slot.

73
6. Leading Therapeutic Classes in Value and Counting Units
The Top 20 therapeutic classes in the Philippines amount to Php 53.09bn or 51.25
percent of total industry. Table 12A below shows the run down.
35
Table 12A: Top 20 TCs in the Philippines
36
Moving Annual Total September ’07 Php billion

Rank Therapeutic Class Indication MAT % 4 - Year


Sept 2007 Share % CAGR

1 CALCIUM ANTAGONISTS Hypertension 4.430 4.28 14.44


NON-NARCOTIC
2 ANALGESICS Pain Relief 4.324 4.17 6.98
Nutrition
3 INFANT FORMULAS Supplement 4.234 4.09 11.58

4 CEPHALOSPORINS & COMBINATION Infection 4.062 3.92 6.60


BROAD SPECTRUM
5 PENICILLIN Infection 3.944 3.81 9.69
ANTIRHEUMATIC NON-
6 STEROIDAL ANALGESICS Pain Relief 3.533 3.41 3.99
7 ORAL ANTIDIABETICS Diabetes 3.111 3.00 12.97
MULTIVITAMINS + Vitamin
8 MINERALS Supplement 2.996 2.89 7.72
9 EXPECTORANTS Cough 2.978 2.88 6.14
CHOLESTEROL & Hyper-
10 TRIGLYCERIDE REGULATOR Cholesterolemia 2.135 2.06 13.64

11 VIT C WITH Vitamin


MINERAL COMBS Supplement 2.073 2.00 8.44
ANGIOTENSIN-2
12 ANTAGONIST – PLAIN Hypertension 2.042 1.97 21.54
13 ANTIULCERANTS Ulcer 1.963 1.90 10.85
14 COLD PREPARATIONS Colds 1.939 1.87 7.96
ANGIOTENS-2 ANTAGONIST
15 COMBINATION Hypertension 1.706 1.65 31.40
16 FLUOROQUINOLONES Infection 1.655 1.60 2.18
MACROLIDES & Infection
17 SIMILAR TYPE 1.640 1.58 5.99
BETA BLOCKING AGENT
18 PLAIN Hypertension 1.466 1.42 13.57
Asthma
19 BETA2 – STIMULANTS 1.429 1.38 2.33
Nutrition
20 OTHER GENERAL NUTRIENTS Supplement 1.423 1.37 18.40

Xx * Others * 50.492 48.75 0.00

Total Philippines 103.584 100.00 10.08

35
TCs or therapeutic classes
36
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

74
The Philippine pharmaceutical industry’s top 3 therapeutic classes are as follows: the
calcium antagonists at No. 1 slot directly followed by non-narcotic analgesics, and then
by infant formulas at third.

Out of the Top 20 TC’s enumerated, four are anti-infectives, namely: cephalosporins &
combination (3.92%), broad spectrum penicillin (3.81%), fluoroquinolones (1.6%) and
macrolides (1.58%). Combined together, this anti-infective group is valued at Php
11.303bn occupying 10.9 percent share of the total pharmaceutical market. Among this
anti-infective group, broad spectrum penicillin has posted the highest CAGR at 9.7
percent for the past four years.

The second largest group next to the anti-infectives and valued at Php 9.646bn is the
combined market of four (4) anti-hypertensive TC’s, namely: calcium antagonists
(4.28%), antiotensin-2-antagonists plain (1.97%), angiotension-2 antagonists
combination (1.65%), and beta blocking agents (1.42%). These four represent 9.31%
share of the total Philippine pharmaceutical market.

Moreover, each of the aforementioned anti-hypertensive TC has individually registered


high CAGR growths which are the highest growth values among the Top 20 TC’s:
calcium antagonists (14.4%), angiotensin-2-antagonist plain (21.54%), angiotension-2
antagonists combination (31.40%) and beta-blocking agents (13.57%).

The pain relief market is the third biggest group of TC’s comprised of the non-narcotic
analgesics (4.17%) and the NSAIDs37 (3.41%) with a combined sales volume of Php
7.857bn or 7.59 percent market share versus total pharmaceutical market. During the
past four years, the non-narcotic analgesics have been growing at a CAGR of 6.98
percent while the NSAID TC grew at 3.99 percent.

The nutrition supplement market emerges as the fourth largest group in the Top 20 TC’s
list. It is composed of infant milk formulas (4.09%) and other general nutrients (1.37%).
These two TC’s total to a combined Php 5.657bn or 5.46 percent. Over the past four
years, the other general nutrients formula preparations have been posting higher CAGR
of 18.40 percent versus infant milk formulas’ 11.48 percent CAGR.

Lastly, vitamin supplement group composed of multivitamins-minerals preparations


(2.89%) and vitamin C-mineral combinations (2.00%), come out as the fifth largest TC
group in the list summing up to a total of Php 5.069bn for a 4.89 percent market share.
Vitamin C + mineral combinations and multivitamin-minerals preparations have been
posting CAGR of 8.44 percent and 7.72 percent, respectively, during the past four years.

37
NSAIDS or non-steroidal anti-inflammatory drugs

75
Chart 8 below provides a visual perspective of the shares occupied by the major TC’s
described above.
38 39
Chart 8: Share of the Top 20 Therapeutic Classes in the Philippines Php billion ,

Share of the Top 20 TCs to Total Pharma


MAT 3Q07

2.1% Anti-infectives: 10.9%


1.9%
2.9% Anti-hypertensive: 9.4%
3.0% 1.9%
Infant Milk+ other gen nutri: 5.5%
3.4% 1.4% MultiVit+Min/Vit C+Min: 4.9%
4.2% Non-narcotic analgesics: 4.2%
4.9%
NSAIDs: 3.4%
5.5% Oral Antidiabetes: 3.0%

Expectorants: 2.9%

Choles+Trigly Regulator: 2.1%


9.4%
Antiulcerants: 1.9%

48.7% Cold prep: 1.9%


10.9%
Beta 2 stimulants: 1.4%

Others: 48.8%

38
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit
39
Anti-Infectives (cephalosporin & combination + broad spectrum penicillin + flouroquinolones
+ macrolides. Anti-hypertensives (Ca antagonists + angiotension-2 antagonists plain and combination + beta blocker
agents)

76
On the other hand, Table 12B below shows the Top 20 TC in the Philippine
pharmaceutical industry in terms of counting units sold.

Table 12B: Top 20 Therapeutic Classes in the Philippines


40
Moving Annual Total September ‘07 Counting Units billion
MAT 4 – Year
Rank Therapeutic Class Indication Sept % % CAGR
2007 Share
1 INFANT FORMULAS Nutrition Supplement 10.138 22.63 7.53
2 ELECTROLYTE SOL OVER100ML Fluid & Electrolyte Replacement 5.976 13.34 7.77
3 STANDARD SOL OVER 100ML Fluid & Electrolyte Replacement 4.897 10.93 11.11
4 OTHER GENERAL NUTRIENTS Nutrition Supplement 2.343 5.23 -7.41
5 VIT C INC.MINERAL COMBS Vitamin Supplement 1.895 4.23 6.11
6 NON-NARCOTIC ANALGESICS Pain Relief 1.787 3.99 2.81
7 EXPECTORANTS Cough 1.284 2.87 0.24
8 MULTIVIT WITHOUT MINERALS Vitamin Supplement 1.222 2.73 2.17
9 MULTIVITAMINS + MINERALS Vitamin Supplement 1.159 2.59 5.93
10 TONICS Vitamin Supplement 1.096 2.45 32.59
11 BABY CARE Infant Grooming 0.844 1.88 8.76
12 PROTEIN SUPPLEMENTS Protein Deficiency 0.649 1.45 16.98
13 COLD PREPARATIONS Cold Relief 0.585 1.31 7.47
14 BETA2-STIMULANTS Asthma 0.544 1.21 -2.52
15 STOMATOLOGICALS Mouth Care 0.532 1.19 8.93
16 ANTISEPTICS-DISINFECTANTS Skin Infection 0.463 1.03 0.04
17 OTH GYNAECOLOGICAL PRODS Gynaecological Conditions 0.452 1.01 2.75
18 HORMONAL CONTRACEPT SYST Contraception 0.392 0.87 12.92
19 ORAL ELECTROLYTE REPLACER Fluid & Electrolyte Replacement 0.391 0.87 3.97
20 BROAD SPECTRUM PENICILLIN Infection 0.386 0.86 6.57
Xx * Others * 7.756 17.33 0.00
Total Philippines 44.789 100.00 5.80

In terms of counting units sold, the largest TC group is the Nutrition Supplement
composed of infant formulas (22.63%), other general nutrients (5.23%) and protein
supplements (1.45%) with a combined sale of 13.3bn counting units sold or 29.31
percent share of the total pharmaceutical market. Among these three, only the protein
supplements registered a high positive CAGR at 16.98 percent over the past four years
over infant formulas and other general nutrients.

The second largest TC group is the fluids and electrolytes with a combined sale of Php
10.873bn counting units sold for 24.27 percent share of the total pharmaceutical market.
Oral electrolyte replacements may also be added into this category with 0.391bn
counting units sold, occupying 0.87% market share.

The third largest TC group is the Vitamin Supplement group composed TC’s: vitamin C
plus minerals combination (4.23%), multivitamins without minerals preparations (2.73%),
multivitamins plus minerals preparations (2.59%) and tonics (2.45%) with a combined
sale 5.372bn counting units sold. Tonics TC posts of a strong four-year CAGR of 32.59
percent.

40
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

77
Non-narcotic analgesics comes as fourth largest TC in terms of counting units sold with
1.787bn counting units sold (3.99%) but growing a four-year CAGR of 2.81 percent.

Expectorants is fifth largest TC with 1.28bn counting units sold (2.87%) with a four-year
CAGR of 0.24 percent.

78
7. Leading Pharmaceutical Brands in Value and Counting Units
The Top 20 brands in the market amounts to Php 16.419bn or 15.85 percent of total
pharmaceutical market (see Table 13A). Ten of these brands are prescription products
and the other 10 are classified as over-the-counter or OTC products.

Out the Top 20, eleven brands are foreign and nine are local brands. Out of the eleven
foreign brands, eight are prescription medicines and three are over-the-counter. Out of
the nine local brands, seven are over-the counter and two are prescription medicines.

Norvasc, Pfizer’s antihypertensive takes No. 1 slot as the country’s leading


pharmaceutical brand. Norvasc posts a four-year CAGR of 24.3 percent.

Anti-asthma Ventolin of Glaxo-Smith Kline, which is also a prescription brand, follows


second with a four-year CAGR of 2.16 percent. The next five products following Ventolin
are all OTC brands - all of which are from United Laboratories- posting their respective
four-year CAGR as follows: Ceelin (6.10%), Solmux (8.84%) , Biogesic (10.99%),
Neozep (14.38%) and Enervon-C (0.33%).
41
Table 13A: Top 20 Pharmaceutical Brands in the Philippines Php billion
4 – Year
Rank Brand Indication % CAGR

1 NORVASC (Pfizer) Hypertension 24.30


2 VENTOLIN (Glaxo- SK) Asthma 2.16
3 CEELIN (Pediatrica-UL) Vitamin Supplement 6.10
4 SOLMUX (Westmont-UL) Cough 8.84
5 BIOGESIC (Biomedis-UL) Pain Relief 10.99
6 NEOZEP (Myra-UL) Cold Relief 14.38
7 ENERVON C (United American-UL) Vitamin Supplement 0.33
8 PLAVIX (Sanofi-Aventis) Risk of Thrombosis
22.78
9 ALAXAN (Therapharma-UL) Pain Relief -4.77
10 AUGMENTIN (Glaxo-SK) Infection 1.29
11 MYRA E (Myra-UL) Vitamin Supplement 36.01
12 NEOBLOC (GX Int’l) Hypertension 19.60
13 LIPITOR (Pfizer) Hypercholesterolemia 7.61
14 XENICAL (Roche) Weight Mgt 48.35
15 ENSURE (Abbott) Nutrition Supplement 33.23
16 TAZOCIN (Wyeth) Infection 18.44
17 31.37
ZEGEN (United American-UL) Infection (2-year CAGR)
18
PLENDIL ER (Astra_Zeneca) Hypertension -2.38
19 SERETIDE (Glaxo-SK) Asthma 23.66
20 CENTRUM (Wyeth) Vitamin Supplement 13.13
Xx * Others * 0.00
Total Philippines 10.08

41
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

79
In terms of counting units sold, Table 13B below shows the Top 20 brands in the
Philippine pharmaceutical market.
42
Table 13B: Top 20 Pharmaceutical Brands in the Philippines in Counting Units billion
4 – Year
Rank Brand Indication % CAGR

1 DEXTROSE LR EURO (Euromed) Fluid & Electrolyte Replacement 13.07


2 SODIUM CHLORIDE (Euromed) Fluid & Electrolyte Replacement 24.32
3 CEELIN (Pediatrica-UL) Vitamin Supplement 3.09
4 BONNA (Wyeth) Nutrition Supplement 7.08
5 SOD CHLORIDE L V P LV/ Fluid & Electrolyte Replacement 7.58
6 BONAKID (Wyeth) Nutrition Supplement 7.43
7 DEXTROSE LR L V P LV/ Fluid & Electrolyte Replacement 7.75
8 BONAMIL (Wyeth) Nutrition Supplement 5.98
9 PROMIL KID (Wyeth) Nutrition Supplement 19.43
10 GAINPLUS (Abbott) Nutrition Supplement 14.23
11 EUROSOL M (Euromed) Fluid & Electrolyte Replacement 12.74
12 LACT RINGER (Euromed) Fluid & Electrolyte Replacement 31.47
13 PROMIL (Wyeth) Nutrition Supplement 4.65
14 LACTUM 1+ (Mead Johnson) Nutrition Supplement 44.97
15 PEDIASURE (Abbott) Nutrition Supplement 38.78
16 BIOGESIC (Biomedis-UL) Pain Relief 11.27
17 PROGRESS (Wyeth) Nutrition Supplement 4.69
18 S 26 (Wyeth) Nutrition Supplement 8.26
19 ENSURE (Abbott) Nutrition Supplement 23.74
20 VENTOLIN (Glaxo Smith Kline) Asthma -4.88
Xx * Others *
Total Philippines 5.80

Out of the Top 20 brands, twelve are foreign and eight are local- thirteen of which are
over-the-counter products and seven prescription products.

Out of the Top 20 brands on the list, eleven are nutrition supplements, with a combined
sale of 7.844bn counting units sold or 17.51 percent of total market share.

Six of the Top 20 are fluid and electrolyte replacement prescription brands with a
combined sale of 7.412bn counting units sold or 16.55 percent of total market share.

Dextrose LR by local company Euromed is the leading pharmaceutical brand in the


Philippines in terms of counting units sold. Sodium Chloride also by Euromed follows
second.

OTC vitamin C preparation, Ceelin, from United Laboratories is third.

Lastly, prescription anti-asthma brand, Ventolin, takes the No. 20 spot.

42
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

80
8. Top 10 Prescription Brands in Value and Counting Units
Table 14A: Top 10 Ethical/Prescription Brands in the Philippines
43
Moving Annual Total September ’07 Php Billion

4 –Year
Rank Prescription Brand Indication % CAGR

1 NORVASC (Pfizer) Hypertension 24.30


2 VENTOLIN (Glaxo-SK) Asthma 2.16
3 PLAVIX (Sanofi- Aventis) Thrombosis 22.78
4 AUGMENTIN (Glaxo-SK) Infection 1.29
5 NEOBLOC (GX International) Hypertension 19.60
6 Hyper-
LIPITOR (Pfizer) Cholesterolemia 7.61
7 TAZOCIN (Wyeth) Infection 18.44
8 Infection 31.37
ZEGEN (United American –UL) (2-Yr CAGR)
9 PLENDIL ER (Astra- Zeneca) Hypertension -2.38
10 SERETIDE (Glaxo-SK) Asthma 23.66
Total Ethical Philippines- Value 10.43

Out of the Top 10 ethical or prescription brands in the Philippines in Table 14A above,
eight are foreign (i.e., Norvasc, Ventolin, Plavix, Augmentin, Lipitor, Tazocin, Plendil ER
and Seretide the remaining two are local (i.e., Neobloc by GX International and Zegen
by United Laboratories).
On the same list, five are cardiovascular drugs prescribed either to treat hypertension
(Norvasc, Neobloc and Plendil ER) or to control cholesterol (Plavix and Lipitor), which
altogether account for Php 3.871bn sales or 5.41 percent of the total pharmaceutical
market.
On the other hand, the remaining three are anti-infective brands which account for Php
1.818bn or 2.54 percent share of the total market. These are Augmentin, Tazocin and
Zegen.
The market prominence enjoyed by these Top 10 ethical brands correlates to the high
prevalence of infectious diseases (i.e., respiratory illness) as well as the continuous rise
in chronic diseases especially hypertension, heart disease and diabetes in the
Philippines.

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81
Table 14B below presents the Top 10 ethical brands in terms of counting units sold.

Out of the Top 10 prescription brands, nine are local all of which are fluids and
electrolyte replacement brands with seven of these manufactured by Euromed.

The one remaining brand is foreign anti-asthma brand, Ventolin by Glaxo-Smith Kline.

Dextrose LR by local company Euromed takes the lead in terms of counting units with
Sodium Chloride, also from local Euromed, in second place.

Table 14B: Top 10 Ethical/prescription Brands in the Philippines


44
Moving Annual Total September ’07 Counting Units billion

4 - Year
Rank Prescription Brand Indication % CAGR

1 DEXTROSE LR EURO Fluid & Electrolyte


(Euromed) Replacement 13.07
2 SOD CHLORIDE EURO Fluid & Electrolyte
(Euromed) Replacement 24.32
Fluid & Electrolyte
3 SOD CHLORIDE L V P LV/ Replacement 7.58
Fluid & Electrolyte
4 DEXTROSE LR L V P LV/ Replacement 7.75
Fluid & Electrolyte
5 EUROSOL M (Euromed) Replacement 12.74

6 Fluid & Electrolyte


LACT RINGER EURO (Euromed) Replacement
31.47

7 VENTOLIN (Glaxo Smith Kline) Asthma -4.88


8 DEXTROSE.9%S EURO Fluid & Electrolyte
(Euromed) Replacement 15.92
9 DEXTROSE.3%S EURO Fluid & Electrolyte
(Euromed) Replacement 12.37

10 EURO ION (Euromed) Fluid & Electrolyte


Replacement 13.04
Total Ethical Phils- CU 6.92

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82
9. Top 10 Over-the-Counter Brands in Value and Counting Units
Table 15A: Top 10 OTC Brands in the Philippines
45
Moving Annual Total September ’07 Php billion

4 – Year
Rank OTC Brand Indication % CAGR

1 Vitamin
CEELIN (Pediatrica) Supplement 6.10
2 SOLMUX (Westmont) Cough 8.84
3 NEOZEP (Myra) Cold Relief 14.38
4 BIOGESIC (Biomedis) Pain Relief 9.54
5 Vitamin
ENERVON C (United American) Supplement 0.33
6 ALAXAN (Therapharma) Pain Relief -4.77
7 Vitamin
MYRA E (Myra) Supplement 36.01
8 XENICAL (Roche) Weight Mgt 48.35
9 Vitamin
CENTRUM (Wyeth) Supplement 13.13
Vitamin
10 CHERIFER (GX Pharma) Supplement 22.77
Total Phils OTC - Value 8.59

Out of the Top 10 OTC brands in Table 17A, 8 are local and 2 are foreign (see Table
15A above).
Ceelin, a Vitamin C preparation for children, takes No.1 slot with a four-year CAGR of
6.10 percent. Four other vitamin supplement preparations comprise the vitamin
supplement group as follows: Enervon C, Myra-E, Cherifer and Centrum, which is the
only foreign brand in this group of five. Together, all 5 brands generate Php 3.799bn in
sales which is 12.85 percent of the total pharmaceutical market.
Of these Top 10 OTC brands, the first seven products all come from local
pharmaceutical company, United Laboratories: Ceelin, Solmux, Biogesic, Neozep,
Enervon C, Alaxan and Myra E. The tenth product- Cherifier comes from local company
as well.
The remaining two are foreign: Xenical (Roche) and Centrum (Wyeth). Xenical has the
highest four-year CAGR at 48.35 percent.

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83
Table 15B below shows the Top 10 OTC brands in terms of counting unit sold.
Out the Top 10 OTC brands, seven are foreign and three are local brands. All seven
foreign brands are nutritionals. Five of these nutrition supplements come from Wyeth
while the remaining two are from Abbot and Mead Johnson.
Two of the three local brands are vitamin supplement preparations-Ceelin. One is an
anti-pyretic. All are from United Laboratories.
Ceelin from United Laboratories tops the list as the No. 1 OTC brand with the highest in
counting units sold registering a four-year CAGR of 3.09%.
Lactum 1+ registers the highest four-year CAGR at 44.97 percent followed by Promil Kid
at 19.43%

Table 15B: Top 10 OTC Brands in the Philippiness


46
Moving Annual Total September ‘07 Counting Units billion

4 – Year
Rank OTC Brand Indication % CAGR

1 Vitamin
CEELIN (Pediatrica-UL) Supplement 3.09
2 Nutrition
BONAKID (Wyeth) Supplement 7.43
3 Nutrition
BONAMIL (Wyeth) Supplement 5.98
4 Nutrition
PROMIL KID (Wyeth) Supplement 19.43
5 Nutrition
GAINPLUS (Abbott) Supplement 14.23
6 Nutrition
PROMIL (Wyeth) Supplement 4.65
7 Nutrition
LACTUM 1+ (Mead Johnson) Supplement 44.97
8 Nutrition
PROGRESS (Wyeth) Supplement 4.69
9 Vitamin 6.36
REVICON ION (Myra-UL) Supplement (2-Yr CAGR)
10 BIOGESIC (Biomedis-UL) Pain Relief 9.49
Total OTC Phils - CU 4.40

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84
10. New Drug Product Introductions
The Philippine pharmaceutical industry relies heavily on global initiatives of research-
based foreign pharmaceutical companies in the United States, Europe and Japan. The
introduction and launch of new medicines in the Philippine market are carried out locally
either by the respective local subsidiaries or authorized distributors of these foreign
companies in the Philippines. It is when patents of innovator drugs do expire that
Filipino pharmaceutical companies take the opportunity to develop and manufacture or
import the generic equivalents of said off-patent drugs for commercial trade. Most of the
generic equivalents in the country are sourced abroad too.

Below is a table (Table 16) of new drug introductions made in the Philippines from 2003
to 2007 in selected therapeutic classes covering both innovative drugs by foreign
companies, as well as generic equivalents by local pharmaceutical companies.
47
Table 16: Drug Introductions made in the Philippines from ’03 - ’07
No. of New Products
Existing since 2003
ATC Drug Classification INDICATION Products

MNC LC TOTAL MNC LC


C08A CALCIUM ANTAGONISTS
PLAIN Hypertension 25 30 0 3 3
N02B NON-NARCOTIC
ANALGESICS Pain Relief 57 229 6 3 5
Nutrition
V06C INFANT FORMULAS Supplement 61 3 8 4 0
CEPHALOSPORINS &
J01D COMBINATION Infection 98 150 4 15 11

BROAD SPECTRUM
J01C PENICILLIN Infection 39 177 26 4 6
NON-STEROID
M01A ANTIRHEUMATIC DRUG Pain Relief 44 57 10 9 3
A10B ORAL ANTIDIABETICS Diabetes 47 33 12 12 13
MULTIVITAMINS + Vitamin
A11A MINERALS Supplement 37 94 25 1 11
R05C EXPECTORANTS Cough 36 192 12 4 3
CHOLESTEROL &
TRIGLYCERIDE Hypercholestero-
C10A REGULATOR lemia 24 22 7 9 9
HUMAN INSULIN
A10C +ANALOGUES Diabetes 21 3 18 4 0
L01C VINCA ALKALOIDS Neoplasm 29 5 4 7 5
L01B ANTIMETABOLITES Neoplasm 29 4 12 8 3
L01A ALKYLATING AGENTS Neoplasm 16 1 11 1 1

Since 2003, eighty-four new products have been introduced into the market by foreign
pharmaceutical companies, and seventy-three new products were introduced into the
Philippine market by local companies, for a combined total of 157 new products released
in the past five years for these selected ATC groups.

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85
48
Table 17: Top 15 Brands Launched in the Past 5 Years ’03 – ’07 Php million
Rank %
MAT Launch Brand Therapeutic 2-Year
Sept Year Class CAGR
2007

1 2003 ZEGEN (United Lab) Anti-Infective 31.37

2 2004 LIFEZAR (United Lab) Anti-hypertensive 75.78

3 2004 NATRAVOX (Natrapharm) Anti-Infective 60.22

Anti-Hypercholes- 4.82
4 2003 CRESTOR (Astra Zeneca) terolemia

5 2004 COMBIZAR (United Lab) Anti-hypertensive 118.18

6 2003 ARCOXIA (Merck Sharp & Dome) NSAID 20.57

7 2004 VERSANT XR (United Lab) Anti-hypertensive 62.16

PRITOR PLUS 32.25


8 2003 (Glaxo-Smith K) Anti-hypertensive
AVANDAMET
9 2003 (Glaxo-Smith K) Anti-diabetes 31.81
OMEPRON
10 2005 (United Lab) Anti-ulcerant 184.70

11 2004 BIOFLU (United Lab) Cold preparation 43.63

PREVENAR
12 2006 (Wyeth) Anti-Infective 0.0
AMVASC
13 2006 (United Lab) Anti-hypertensive 0.0
GLUCOVANCE
14 2003 (Merck) Antidiabetes 19.08
FORGRAM
15 2003 (United Lab) Anti-Infective 19.13

Table 17 above provides the list of Top 15 products launched between 2003 and 2007.
Nine brands from this Top 15 are local and six are foreign.

Eight of these are made by United Laboratories (i.e., Zegen, Lifezar, Combizar, Versant
XR, Omepron, Bioflu, Amvasc and Forgram). The 9th local brand is manufactured by
Natrapharm (Natravox).

The remaining six from this Top 15 list are foreign: Glaxo-Smith Kline’s Pritor Plus and
Avandamet; Astra-Zeneca’s Crestor; Merck Sharpe & Dohme’s Arcoxia; Wyeth’s
Prevenar; and Merck’s Glucovance.

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IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

86
Despite their recent launch in 2006, Amvasc and Prevanar registered good
performances and made it to Top 15 products alongside those products launched five
years ago.

Except for Bioflu which is an OTC cold preparation, the rest (14) of the top new products
launched (2003 - 2008) are ethical or prescription medicines.

Moreover, five of the fourteen ethical or prescription products launched are anti-
hypertensive drugs and one for hypercholesterolemia. This makes a total of six
launches made under the cardiovascular category.

The remaining eight prescription medicines, four are anti-infective drugs, two are
indicated for diabetes, one is an anti-ulcerant and the last other one is an NSAID.49

In terms of disease markets targeted based on products launched, local pharmaceutical


company United Laboratories focused resources in introducing branded generics
indicated for hypertension (4 anti-hypertensive products) and infection (3 anti-infective
products) markets.

The foreign pharmaceutical companies, on the other hand, launched new introductions
in various markets: 1) NSAID (Arcoxia by MSD), hypertension (Pritor Plus by Glaxo-SK),
hypercholesterolemia (Crestor by Astra Zeneca), diabetes (Avandamet by Glaxo-SK and
Glucovance by Merck), and infection (Prevanar by Wyeth).

The trail of top new products introduced in the country in the five past years reinforces
the developing trend or pattern of drug consumption leaning towards the treatment of
chronic diseases, particularly hypertension and diabetes.

49
NSAID- Non-steroidal anti-inflammatory drug

87
11. Healthcare Delivery
a. Number of doctors in the country-
50
Table 18: Universe of doctors in the Philippines per Specialty - 2006
Metro Manila Luzon Visayas Mindanao Total
Specialty 2006 2006 2006 2006 2006
General Practice 4,653 5,205 2,644 2,130 14,632
Internal Medicine 4,133 2,027 1,157 678 7,995
Internal Medicine 2,940 1,637 907 580 6,064
Pulmonology 399 118 79 32 628
Endocrinology/Diabetology 224 103 43 17 387
Oncology 128 36 19 11 194
Gastroenterology 185 55 45 13 298
Rheumatology 37 7 11 5 60
Nephrology 220 71 53 20 364
Cardiology 713 192 117 62 1,084
Dermatology 712 226 64 69 1,071
Pediatrics 3,467 1,979 985 643 7,074
OB-Gynaecology 2,748 1,580 797 569 5,694
Surgery 2,300 1,307 656 550 4,813
General Surgery 1,608 1,011 506 441 3,566
Orthopedic Surgery 470 216 123 84 893
Uro-Surgery 222 80 27 25 354
EENT 1,315 522 200 177 2,214
Opthalmology 616 160 78 53 907
EENT/ENT 699 362 122 124 1,307
Psychia/Neuro 637 162 110 69 978
Psychiatry 322 82 76 42 522
Neurology 315 80 34 27 456
Total no. of doctors 20,678 13,200 6,730 4,947 45,555

Based on Table 18 above, there are 45,555 medical practitioners in the country. Thirty-
two percent of these are in general practice (GP). Moreover, Internal Medicine Group
(IM) accounts for 17.5 percent of the total number of doctors thus making it the
specialization with the largest membership next to general practitioners. Other popular
medical specializations include pediatrics (15.5%), OB-Gynecology (12.5%), and
General Surgery (10.6%). This overall percentage pattern is especially evident in the
regions of Luzon, Visayas and Mindanao, excluding Metro Manila.

Metro Manila has the largest concentration of doctors with 45.4 percent share of the total
number of practicing in the area, followed by Luzon (29%), Visayas (14.8%) and
Mindanao (10.9%) in that order.

50
IMS – Philippine Medical Data Index: Universe data 2006

88
b. Hospital count
51
Table 19: Universe of Hospitals in the Philippines – Private & Goernment - 2005
Infirmary Primary Secondary Tertiary Total Total
Priv &
Region Govt Priv Govt Priv Govt Priv Govt Priv Govt Priv Govt
LUZON 150 213 141 231 7 58 21 22 319 524 843
Cordillera Region 25 10 11 9 0 0 1 0 37 19 56
Ilocos Region 17 46 15 28 1 6 6 5 39 85 124
Cagayan Valley Region 16 22 17 10 0 3 2 0 35 35 70
Central Luzon Region 13 40 38 77 1 16 6 6 58 139 197
Southern Tagalog Region 51 56 44 89 3 23 2 9 100 177 277
Bicol Region 28 39 16 18 2 10 4 2 50 69 119
VISAYAS 87 32 68 31 3 12 8 18 166 93 259
Western Visayas Region 25 5 29 7 2 3 3 8 59 23 82
Central Visayas Region 32 17 24 14 0 8 4 9 60 48 108
Eastern Visayas Region 30 10 15 10 1 1 1 1 47 22 69
MINDANAO 94 192 45 77 8 28 8 13 155 310 465
ARMM 14 6 6 1 0 0 0 0 20 7 27
CARAGA 21 16 8 3 3 3 0 0 32 22 54
Northern Mindanao 17 36 12 21 3 9 2 5 34 71 105
Zamboanga Peninsula 20 24 7 13 0 4 1 1 28 42 70
Southern Mindanao Region 7 66 5 17 2 6 2 4 16 93 109
Central Mindanao Region 15 44 7 22 0 6 3 3 25 75 100
NCR 5 28 18 58 8 15 24 32 55 133 188

TOTAL 336 465 272 397 26 113 61 85 695 1060 1755


TOTAL PRIVATE AND GOVT 801 669 139 146 1755

As of 2005, there are 695 registered government hospitals in the Philippines. Of these,
336 are infirmaries, 272 are primary hospitals, 26 are secondary and 61 are tertiary (see
Table 19 above).

On the other hand, private hospitals total 1060. Of these, 465 are infirmaries, 397 are
primary hospitals, 113 are secondary and 85 are tertiary.

In total, the combined number of government and private hospitals in the country is
1,755. These numbers are based on the Department of Health’s distribution list of
licensed hospitals in 2005.

51
Department of Health: Distribution of Licensed Hospitals 2005

89
c. Spread of Drugstore Outlets
52
Table 20: % Spread of Drugstore outlets in the Phils - 2007
% REGIONAL BREAKDOWN
DRUGSTORE TYPE % Total
GMA Luzon Visayas Mindanao
INDEPENDENT 89.5 80.1 92.1 91.4 91.6
CHAIN DRUGSTORE 10.5 19.9 7.9 8.6 8.4

Total Independent + Chain 100.0 19.9 43.5 17.9 18.8

Independent drugstores account for 89.5% of total drugstore count in the country while
chain drugstore businesses account for 10.5% (see Table 20 above).

Greater Manila Area (GMA) or Metro Manila has 19.9% share of drugstores nationwide.

Luzon, which is the largest group of islands of the archipelago, has 43.5% drugstores
nationwide. Visayas’ and Mindanao’s drugstore count are not significantly far from each
other with 17.9% and 18.8% share, respectively.

d. “Botika ng Bayan” Program

In August of 2004, the Philippine International Trading Corporation (PITC), a


government-owned international trading company, was designated as a key agency in
the implementation of the President’s 10-Point Legacy, which includes the lowering of
the prices of essential medicines by 50 percent, by 2010. One initiative which seeks to
expand the marketing and distribution network for high quality, low cost medicines is the
Botika ng Bayan program, which PITC will undertake in close coordination with the
Department of Health (DOH) and the Bureau of Food and Drugs (BFAD). 53

Under this program, PITC will accredit privately-operated retail drugstores nationwide.
Each outlet will distribute a full range of branded and generic, over-the-counter and
prescription medicines, and home remedies. The Botika ng Bayan seal will be the mark
of guaranteed quality and affordable prices.

The PITC since then has put up around 7,000 community-based drugstore retail outlets
referred to as “Botika ng Bayan” all over the Philippines. The plan for 2008 is establish
6,000 more outlets which will lift the total number of “Botika ng Bayan” to 13, 514 by the
end of the year if target is met.

52
Drugstore count is in percentage. Percent approximation based only on the number of outlets active in IMS universe file
53
Philippine International Trading Corporation (PITC) - Botika ng Bayan. www.pitc.gov.ph

90
SECTION IV
Pharmaceutical Distribution Channel
in the Philippines

1. The Distribution Diagram


The distribution of pharmaceutical products in the Philippines is a three-tier set-up that
starts from manufacturer and/or importer and ends with the consumer.
After manufacture or repacking into finished pharmaceutical products, the task of
distribution of the medicines is either handled by the company’s own distribution team or
passed on to a contracted distributor company which takes care of physical inventory
count, storage and safekeeping, sales order booking, delivery to and payment collection
from intended wholesalers and retailers.
Wholesalers are buyers of pharmaceutical products in bulk. These wholesalers may also
do retail activity of their own. Wholesalers may either be a huge drugstore chain, a large
independent drugstore, a hospital, or traders referred to also as sub-distributors whose
areas of coverage are not within the pharmaceutical company’s, or distributor’s current
geographical reach.
Retailers, on the other hand, are buyers of medicines for the purpose of directly selling
to the consumers. These retailers may either be a drugstore, a grocery or supermarket
with pharmacy license, a hospital (public or private), a private clinic, a private or
industrial company, a government agency, a non-government organization (NGO), or
dispensing physician.
A buying consumer is identified either as someone who made the purchase of the
pharmaceutical product from a retailer or is the ultimate end-user of the purchased item.
See Chart 9 on the following page for the distribution diagram on the succeeding page.

91
Chart 9: Philippine Pharmaceutical Industry – National Distribution

COMPANIES DOING THEIR OWN


DISTRIBUTION / DISTRIBUTORS TRADERS / SUB –
DISTRIBUTORS

DRUGSTORE HOSPITAL OTHER RETAIL


80.1% 9.7% 10.2%

CHAIN INDE- PRIVATE, GOVT DP, CLINICS GOV’T


62.7% PENDENT INDUSTRIALS, 2.3% W/O BEDS, AGENCIES
CLINICS W/ INDUSTRIALS 0.3%
17.4% BEDS 9.9%
7.4%

CONSUMER OR END USER

The distribution diagram above shows the present distribution channels of the
pharmaceutical industry. A pharmaceutical company can use its own distribution sales
force to sell directly to drugstores (both chain and independent outlets), hospitals
(private and government), and other customers (dispensing doctors, private clinics,
government agencies and non-government organizations). It can also contract a third
party distributor who will in turn sell to the same customers.

Thus, one-, two- and three-level marketing channels are the norm in the industry to
facilitate forward movement of medicines to the consuming buyer. The percentages
indicated inside the boxes above represent the percent share on total market (in terms of
peso currency) that pass thru each channel based on IMS full year 2007 data.

92
2. Drug Distribution by Channel
Applying the 3Q MAT IMS Sales figures, below are the market breakdowns by Trade
and Geographical channels (see Table 21):
54
Table 21: Distribution Breakdown By Channel Php billion

Channel MAT MAT % Share to %Growth/2006


Sept '06 Sept '07 Total
Total Drugstore 83,903 92.45 89.25 8.28
Total Hospital 10.365 11.133 10.75 7.41
Private 7.447 8.065 72.44 8.30
Government 2.918 3.067 27.54 5.10
Total DS & H 94, 269 103.584 100.00 9.88

The drugstore channel is the primary channel of distribution with 89.25 percent share of
the total industry and has shown a steady increase from last 2006 by posting an 8.28
percent growth rate. On the other hand, hospitals occupy 10.75 percent of the market. It
showed a 7.41% increase against year 2006. Seventy two percent of the hospital sales
come from the Private hospitals, while the remaining 27.5% are from the government
hospitals. Chart 10 below is a graphical presentation of these statistics.

55
Chart 10: Comparative Share Trend: Hospital & Drugstore Channels ’03 to ’07 Php billion
Total Pharmaceutical Market By Hospital and Drugstore Sector
MAT 3Q03 to MAT 3Q07
BILLIONS 4-Yr CAGR: 8.68
120 16
14.4
14.6
104
14
100 94 11
13.1
11.2
85 10 12
81
80 10
10.2
71 9
SALES IN PESOS

10
10.6 % GROWTH
8 9.9
60 8
92
7.5 84
7.4
75 6
40 62 72 5.4
5.7
5.4
4

20
2

0 0
2003 2004 2005 2006 2007

PHILIPPINES DRUGSTORE PHILIPPINES HOSPITAL PPI_ % Gr PHPA % Gr TOTAL % Gr

54
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit
55
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

93
Table 22 below provides information regarding the pharmaceutical industry’s distribution
by geographic region. Metro Manila accounts the largest share with 41.7 percent of the
country’s total drug distribution. This is followed by Luzon covering 31.04% of the
market. Visayas comes next with 14.77% share and then Mindanao with 12.92% share.
56
Table 22: Distribution Breakdown By Geographic Region Php billion

Region MAT Sep-07 % Share to Total


Metro Manila 43.203 41.70
Luzon Provincial 32.155 31.04
Visayas 15.303 14.77
Mindanao 12.921 12.47
Total 103.584 100.00

Chart 11 below provides a visual illustration of the comparative growth trend of business
in the Philippine pharmaceutical industry in these 4 regions. Over the past 5 years, the
pharmaceutical business for both Metro Manila and Luzon have shown a steady rise
compared with Visayas and Mindanao which only showed minimal growth.

57
Chart 11: Comparative Growth Trend by Geographic Region ’03 to ’07 Php billion
Total Market By Region
MAT 3Q03 to MAT 3Q07
BILLIONS

50

45

40

35
Sales In Pesos

30

25

20

15

10

0
2003 2004 2005 2006 2007

METRO MANILA LUZON VISAYAS MINDANAO

56
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57
IMS 3Q07 Combined Philippine Pharmaceutical Index and Philippine Hospital Pharmaceutical Audit

94
3. Importance of Effective Channel Distribution
Due to the nature of the pharmaceutical industry, medicines must be made available in
as huge and as wide a geographic area, and as many wholesale and retail outlets as
possible, in the right quantities at the shortest waiting time possible - especially for the
essential and life saving drug products. This explains why most pharmaceutical
companies prefer relying on industrial distributors to handle total distribution
management of their products not just as hired “hands” but as long-term partners in
business to maintain quality safekeeping of product inventories in the field and to ensure
the end consumers’ continuous easy access to medicines.
Not only do industrial distributors provide pharmaceutical companies with storage and
order booking service output but back-up or add-on services as well such as delivery,
credit and collection, promotions, customer and products monitoring, and marketing
research.

4. Local and Sub-Distributors


The majority of pharmaceutical companies in the Philippines have contracted distributors
to handle the nationwide distribution except for companies which may their own
distribution facilities and logistics. Nonetheless, the three major distributors in the
Philippines are Zuellig Pharma, Metro Drug and Getz Bros.
1. Zuellig Pharma Philippines

Zuellig is the leading distributor by far in the Philippines and is now part of the
holding company Interpharma Asia Pacific. Zuellig also owns the second biggest
distributor, Metro Drug, giving it a share of about 60 percent of the
pharmaceutical market.
It has grown its base in the Philippines into one of the largest multinational
pharmaceutical distribution companies in the region with a good wealth of
experience, and strong track record and broad portfolio of principals.

Zuellig’s capability includes coverage of all trade channels in the country,


including traditional pharmaceutical outlets such as drugstores and hospitals, as
well as selected modern trade outlets with operations well supported by the latest
technology and ISO certified.

2. Metro Drug

Metro Drug like Zuellig has built a distribution and management information
system and has positioned itself to provide a viable and cost efficient alternative,
for the distribution of medicine and healthcare products throughout the
Philippines. Today, Metro Drug has become one of the largest and most efficient
distributors of pharmaceutical and healthcare products in the Philippines.

95
3. Getz Bros

Getz has operated throughout the Philippines for nearly 90 years. At present, the
company operates three business units, namely: Consumer Products and Health
Care, Biomedical and Pharma Sales/Distribution.

Aside from these three major players, the following companies also offer distribution
services: 1) GB Distributors, 2) Commerz Trading, 3). Dyna Drug (Micropil), 4). Exx Abb,
5). Home Care Solutions, 6). Primemed and 7) Globo Asiatico.

96
DIRECTORY OF MEMBERS

NAME/ CONTACT DETAILS


CATEGORY

1. ABBOTT LABORATORIES, INC. MNC


102 Edsa Mandaluyong, M.M.
P.O. Box MCPO, 1229 Makati City
Tel. No.: 631-8472 to 87
Telefax: (632) 631-8488 / 634-0041
2. ALCON LABORATORIES (PHILS), INC. MNC
3rd Flr., LGI Bldg., Ortigas Avenue
Greenhills, San Juan, Metro Manila
Tel. No.: 721-3956 to 59
Telefax:(632) 722-4167
3. ASTRAZENECA PHARMACEUTICALS MNC
16th Floor Net 3 Center, corner 3rd Avenue Street
Bonifacio Global, & 30th Street Bonifaco Global,
Taguig 1634
Tel. No.: 777-8700
Telefax: (632) 856-4286
4. BAXTER HEALTHCARE PHILS., INC. MNC
19th/F Wynsum Corporate Plaza
Emerald Avenue, Ortigas Center, Pasig
Tel. No.: 637-5368 to 69
Telefax: (632)637-5367
5. BAYER PHILIPPINES, INC. MNC
36th Floor PBCom Tower
6795 Ayala Avenue cor. V.A. Rufino St.
Makati City
Tel. No.:887-9700
Telefax: 893-1388
6. BIOMERIEUX S.A. MNC
11th Flr., Pearlbank Centre
146 Valero St., Salcedo Village, Makati City
Tel. No.: 810-2131/ 817-7741
Telefax: (632) 812-0896
7. BLUE SKY TRADING CO., INC. LOCAL GENERICS
416 Dasmariñas St., Binondo, Manila
P.O. Box 1819 Manila
Tel. No.: 241-8501 to 04
Telefax: (632) 241-3846
8. BOEHRINGER INGELHEIM PHILS., INC. MNC
23rd Flr., Citibank Towers, Villar corner
Valero Sts., Salcedo Village, Makati City

97
Tel. No.: 867-0800
Telefax: (632) 848-0506
9. BOIE-TAKEDA CHEMICALS, INC. MNC
12th Floor, Sky Plaza Bldg., Oledan Square
6788 Ayala Avenue, Makati City
P.O. Box 850 MCPO, 1299 Makati City
Tel. No.: 886-6954 to 61
Telefax: (632) 886-6941
10. BRISTOL-MYERS SQUIBB PHILS. MNC
2309 Don Chino Roces, Makati City
P.O. Box 1031, MCPO, Metro Manila
Tel. No.: 841-8181
Telefax: (632) 816-7752
11. BUERGLI PHARMA, INC. SERVICE ORGANIZATION
18th Floor Trafalgar Plaza
Salcedo Village, Makati City
105 HV Del Costa Street
Salcedo Village, Makati City
Tel. No.: 864-0186
Telefax: (632) 864-0185
12. CALMOSEPTINE PHILS., INC. MNC
710 Del Pilar St. Guizo
Mandaue City, Cebu
Tel. No.: (032) 344-6535 ; 343-7048
Telefax: (032) 420-2534
13. CATALENT PHARMA SOLUTIONS MNC
8TH Floor Citiland Shaw Tower
Shaw Boulevard cor. St. Francis Street
Mandaluyong City
Tel No: 284-3756
Telefax: 2843769

14. CROMA MEDIC INC. MNC


Suite 203, Alegria Building
2299 Pasong Tamo, Makati City
P.O. Box 1818, MCPO, 1268 Makati City
Tel. No.: 817-8541
Telefax: (632) 812-8581
15. DUNCAN PHARMACEUTICALS PHILS. MNC
2266 Chino Roces Avenue, Makati City
Tel. No.: 892-0761 to 72
Telefax: (632) 810-9320
16. ELI LILLY PHILIPPINES, INC. MNC
32/F Wynsum Corporate Plaza
22 Emerald Avenue, Ortigas Center
Pasig City 1605, Philippines

98
Tel. No.: 634-5646 / 634-5704
Telefax : 634-7334
17. FARMACIA ORO 370 Quezon Avenue, Quezon City LOCAL GENERICS
P.O. Box 2350 Manila
Tel. No.: 712-3556 / 712-4969 / 712-5375
Telefax: (632) 712-3576
18. FVA MEDICAL SPECIALTIES, INC. MNC
V.A. Rufino St., Legaspi Village, Makati
Tel. No.: 893-2658 / 628-1214 / 628-1236
Telefax: (632) 815-0751
19. GLAXOSMITHKLINE PHILS. MNC
2266 ChinoRoces Ave., Makati City
P.O. Box 586 MCPO, 1299 Makati City
Tel. No.: 892-0761
Telefax: (632) 893-8019
20. HI-EISAI PHARMACEUTICALS, INC. MNC
20/F, Multinational Bancorporation
Centre, 6805 Ayala Avenue, Makati City
Tel. No.: 887-1047
Telefax: (632) 887-5172
21. HIZON LABORATORIES, INC. LOCAL GENERICS
29 Quezon Avenue, Quezon City
Tel. No.: (Quezon City) 712-5906 to 09
Antipolo) 697-5933 to 34
Telefax: (632) 697-5937 / 711-3987
22. IMS HEALTH PHILIPPINES, INC. SERVICE ORGANIZATION
2nd Floor LRI Business Plaza
210 Nicanor Garcia St.,
Bel-Air Village, Makati City
Tel. No.: 864-0501 to 05
Telefax: (632) 864-0482
23. INTERPHIL LABORATORIES LOCAL GENERICS
Canlubang Industrial Estate
Bo. Pittland, Laguna
Tel. No.: (049) 549-2346 to 49
(632) 817-7533
Telefax: (632) 817-2435
24. JANSSEN PHARMACEUTICA MNC
A division of Johnson & Johnson
Edison Road, Barrio Ibayo
1700 Parañaque City
Tel. No.: 824-7901
Telefax: (632) 776-9820
25. JOHNSON & JOHNSON MEDICAL MNC
Edison Road, Barrio Ibayo
1700 Parañaque City

99
Tel. No.: 824-7901
Telefax: (632) 824-1345
26. LIETZ, INC. RUDOLF LOCAL GENERICS
Lietz Industrial Complex
Edison Avenue (P. Leviste) Km. 14
SLEX, 1709, Paranaque
Tel. No.: 821-7181
Telefax: (632) 824-3770
27. MEDICOMM PACIFIC, INC. SERVICE ORGANIZATION
4th Floor of the Taipan Place
F. Ortigas Jr. Avenue,
Ortigas Business District,
Pasig City
Tel. No.: 6381461 to 70
Telefax: (632) 6383232
28. MERCURY DRUG CORP. RETAILER
No. 7 Mercury Avenue cor. E. Rodriguez
Bagumbayan, Quezon City
P.O. Box 1847 Manila
Tel. No.: 911-5071 to 87
Telefax: (632) 911-6664
29. MERCK, SHARP & DOHME PHILS. MNC
26th Floor Philamlife Tower
8767 Paseo de Roxas, Makati City
Tel. No.: 885-0700 to 29
Telefax: 885-0773 to 75
30. METRO DRUG, INC. DISTRIBUTOR
Manalac Ave., Sta. Maria Industrial Estate
Bagumbayan, Bicutan, Taguig, M.M.
Tel. No.: 837-2121 to 38/ 837-3043 to 52
Telefax: (632) 837-0895
31. METRO PHARMA PHILS., INC. LOCAL GENERICS
600 Shaw Boulevard, Pasig City
Tel. No.: 637-1849 to 53
Telefax: (632) 637-6053
32. MORISHITA-SEGGS PHARMACEUTICALS MNC
782 San Rafael Street, Mandaluyong
Metro Manila
Tel. No.: 532-0443 / 532-2148 / 531-9242
Telefax: (632) 532-0740
33. NATRAPHARM LOCAL GENERICS
The Patriot Bldg., Km. 19 West Service Rd.
South Luzon Expressway Sucat, Paranaque
P.O. Box 1211 MCPO, Makati City
Tel. No.: 541-4372 / 541-4378 / 821-7382
Telefax: (632) 821-7383

100
34. NEW MARKETLINK PHARMACEUTICAL LOCAL GENERICS
Tao Corporate Center (TCC)
2291 Don Chino Roces Avenue, Extension
Makati City 1231
Tel. No.: 836-5838 to 47
Telefax: (632) 976-9041
35. NOVARTIS HEALTHCARE PHILS. MNC
5/F Asian Reinsurance Bldg., Salcedo
cor. Gamboa, Legaspi Village, Makati
Tel. No.: 815-9371 to 85
Telefax: (632) 816-6439
36. ONE PHARMA COMPANY, INC. LOCAL GENERICS
A. Liwanag corner G. Diaz St.
BFRV, Las Pinas City
Tel. No.: 872-4292 / 871-2943 / 872-3971
Telefax: (632) 871-2941/872-4292
37. PACIFIC PHARMACEUTICAL GENERICS, INC. LOCAL GENERICS
Rm. 303 Lawyers Cooperative Building
459 Quezon Avenue, Quezon City
P.O. Box 1783, Manila
Tel. No: 711-3933/ 712-4921/ 712-4990
Telefax: (632) 712-4921 / 743-1622
38. PANPHARMA-MEINZ PHARMACEUTICALS CORP. MNC
10th Flr., Feliza Building U.A. Rufino
(formerly Herrera) Legaspi Village, Makati
Tel. No.: 812-1601 to 05
Telefax: (632) 812-1600
39. PFIZER, INC. MNC
23rd Floor Ayala Life - FGU Center
6811 Ayala Avenue, Makati City
Tel. No.: 888-6001
Telefax: (632) 864-3708
40. PL ASIA PACIFIC (PHILS) MNC
26th Floor Phil. Axalife Building
1286 Sen. Gil Puyat Avenue cor. Tindalo, Makati
Tel. No: 887-2423
Telefax: (632) 887-2917
41. PHARMASIA CUVEST LOCAL GENERICS
3/F Montepino Bldg., Adelantado st.
cor. Gamboa & Amorsolo Sts., Legaspi Village
Makati City
Tel. No: 813-7555 / 813-7565
Telefax: (632) 818-0764
42. PHARSIGHT, INC. SERVICE ORGANIZATION
2008 Herrera Tower
Salcedo Village, Makati City

101
Tel. No: 862-4579
Telefax: (632) 842-4579
43. PHILUSA CORPORATION DISTRIBUTOR
28 Shaw Blvd. cor. Pioneer St., Pasig City
P.O. Box 2338 Manila
Tel. No.: 631-1731 to 39
Telefax: (632) 635-6510
44. ROCHE PHILIPPINES, INC. MNC
2252 Pasong Tamo, Makati City
Tel. No.: 893-4567
Telefax: (632) 893-3030
45. SANOFI PASTEUR MNC
4/F Feliza Bulding
108 V.A. Rufino St, Legaspi Village, Makati City
Tel. No.: 479-9101
Telefax: (632) 815-2979
46. SANOFI-AVENTIS PHILS., INC. MNC
3rd Floor, Feliza Bldg., 108 V.A. Rufino St.
Legaspi Village, Makati City
P.O. Box 1243 MCPO, 1252 Makati City
Tel. No.: 859-5555
Telefax: (632) 813-1676
47. QUALIMED PHARMA, INC. LOCAL GENERICS
Unit 1001 Centerpoint Building
Ortigas Center, Pasig City
Tel. No.: 687-1174
Telefax: (632) 635-9232
48. SCHERING-PLOUGH CORP. MNC
12th Floor San Miguel Properties Centre
St. Francis St., Ortigas Center
Mandaluyong City
Tel. No.: 637-0594 to 97 / 638-2490 to 96
Telefax: (632) 638-2497
49. SCHWARZ PHARMA PHILS., INC. MNC
9th Floor Salcedo Tower
169 HV Dela Costa St., Salcedo Village, Makati
Tel. No.: 893-8554
Telefax: (632) 894-2630
50. STIEFEL PHILIPPINES, INC. MNC
1604 West Tower, PSE Centre
Ortigas Center, Pasig City
Tel. No.: 638-0632 to 64
Telefax: (632) 637-6875
51. SWISS PHARMA RESEARCH LAB., INC. LOCAL GENERICS
Barrio Diezmo, Cabuyao Laguna
Mla. Office: 416 Dasmarinas St. Binondo

102
Manila
Tel. No.: 241-8501 to 04 / (049) 549-2373
Telefax: (049) 549-7210 / (049) 549-7774 to 77
(632) 241-0621
52. TRANSFARMA PHILIPPINES, INC. MNC
26/F Philippine AXA Life Centre
1286 Sen. Gil Puyat Ave. cor Tindalo St.
Makati City
Tel. No: 459-2573
Telefax: (632) 887-5534
53. VIZCARRA PHARMA, INC. LOCAL GENERICS
6th Floor Segundina Bldg.
464 United Nations Avenue
Ermita, Manila
Tel. No.: 523-3037 / 524-5641 to 42
Telefax: (632) 522-3580
54. WELLCOME HEALTHCARE PHILS., INC. MNC
2266 Chino Roces Avenue, Makati City
Tel. No.: 892-0761 to 72
Telefax: (632) 8109320
55. WYETH PHILIPPINES MNC
2236 Chino Roces Ave., Makati City
Tel. No.: 843-0941 to 50
Telefax: (632) 817-3523

56. ZUELLIG PHARMA CORP. MNC


Zuellig Bldg., Sen Gil Puyat Ave., Makati
P.O. Box 2587, 1265 Manila
Tel . No.: 819-1561
Telefax: (632) 8431495

103