market research report :pharmacy retail market in philippines 2013

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Pharmacy Retail Market PhilippinesPharmacy Retail Market – Philippines

October 2013

• Introduction• Pharmaceutical Market Overview• Regulations to Open Private Pharmacies• Distribution of Public vs Private Sector Pharmacies • Performance Review of Private PharmaciesSWOTCompany Profiles

• Supply Chain Analysispp y y• Importation Policy• Mark‐ups on Medicine Price – Distribution Channel‐wise• Insurance Penetration• Insurance Penetration• Salary Structure• Conclusion

2PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT

• Appendix

Philippines – Overview

Philippines – Statistics

•Point 1

•Point 2

•Point 3

•Point 4

Head Figure

Population (2013 estimate) x1

Population density (people per sq. km) (2012) x2

Rural population (% of total population) (2010) x3


Urban Population (% of total population) (2010) x4

Pharmaceutical Market in Philippines – Overview

Philippines – Pharmaceuticals Market Philippines – Pharmaceuticals Market

200

Php bn

•Point 1 100

150

200 +z% a6a5

a4a3a2a1

•Point 2

•Point 3

•Point 4

0

50

20‐‐e20‐‐20‐‐20‐‐20‐‐20‐‐

•Point 5

•Point 6 6.0%Segment 2Segment 1

Pharmaceuticals Sales – Segmentation (20‐‐)

•Point 7

•Point 824.0%

70 0%

Segment 3g

4

70.0%

Regulations to set up a Private Pharmacy in Philippines

Business Requirements for Opening a Pharmacy in Philippines

•Point 1

•Point 2

•Point 3

Business Name (BN) Registration

Different registrations needed to be accounted for

Mayor’s Permit

d ifi i b ( )Tax Identification Number (TIN)

Social Security System (SSS) Certificate


License to Operate (LTO)

Business Name Registration

Single Proprietorship Partnership

•Point 1

•Point 2

•Point 3

•Point 1

•Point 2

•Point 3

Requirements Requirements

•Point 1

•Point 2

•Point 1

•Point 2

•Point 3

•Point 4

•Point 3

•Point 4


•Point 5 •Point 5

License to Operate

• Point 1

Franchise Agreement Details

• Point 2• Point 3• Point 4• Point 5• Point 6 SAMPLE• Point 7• Point 8• Point 9

C t i th t i l th t i d t b il bl i ti t d f ll

SAMPLE

• Point 1• Point 2• Point 3

Certain other materials that are required to be available upon inspection are enumerated as follows

• Point 3• Point 4• Point 5• Point 6• Point 7• Point 8


• Point 8• Point 9

FDA Regulations and Basic Checklist (1/2)

• Point 1

Application to FDA

• Point 2• Point 3• Point 4• Point 5• Point 6 SAMPLE• Point 7

Basic Checklist on How to open a drugstore in Philippines (1/2)

SAMPLE • Point 1• Point 2• Point 3• Point 4• Point 4• Point 5• Point 6• Point 7• Point 8P i 9


• Point 9

Executive Order 98 promulgating 9th Regular Foreign Investment Negative List (29th Oct, 2012) (1/2)

Foreign Negative List that forbids FDI in certain domains

• Point 1• Point 2• Point 3 SAMPLE Section 1: Ninth Regular Foreign Investment Negative List

• Point 1

Section 2: Amendments• Point 1

i 2• Point 2 • Point 2

Section 3: Repeal• Point 1• Point 2

Section 4: Separability• Point 1• Point 2

Section 5: Effectivity• Point 1• Point 2


Executive Order 98 promulgating 9th Regular Foreign Investment Negative List (29th Oct, 2012) (2/2)

No Foreign Equity : Practice of all professions (Art XII, Sec 14 of the Constitution, Sec 1 of RA 5181) – Medicine

Annex A – List A : Foreign ownership is limited by mandate of the Constitution and specific laws

No Foreign Equity : Practice of all professions (Art XII, Sec 14 of the Constitution, Sec 1 of RA 5181) Medicine & Allied Professions

B CA E

K FL

J

I

G

H


Philippines Pharmacy Retail Outlets – Classification

At present, there are ~y pharmacy retail outlets in Philippines

•Point 1

•Point 2

•Point 3

P i t 4

SAMPLE •Point 4

Community Pharmacy Hospital Pharmacy

Private Pharmacy Public‐Private Partnership (PPP)

Pharmacy

Private Pharmacy Public Pharmacy

Chain Pharmacy

Pharmacy

Botika ng Bayan The total hospital pharmacy business contributes about x% of the total

h ti l t il b i


Standalone Pharmacy Botika ng Barangaypharmaceutical retail business

Philippines Private Pharmacy Retail Outlets

Private Pharmacy – Scenario

Total No. of Private Pharmacy

Community Private Pharmacy

Hospital Private Pharmacy

Organized Pharmacy Unorganized Pharmacy

Share Share

x1 x2 x3

•Point 1

Y1% Y2%

•Point 2

•Point 3

•Point 4

•Point 5

•Point 6

P i t 7•Point 7

•Point 8

•Point 9


•Point 10

Philippines Public‐Private Partnership Pharmacy Retail Outlets (1/2)

Public‐Private Partnership (PPP) Pharmacy – Scenario (1/2)

Botika ng Bayan Outlets

•Point 1

•Point 2

Year Cumulative Number

20‐‐ x1

•Point 3

•Point 4

•Point 5

20‐‐ x2

20‐‐ x3•Point 6

•Point 7

•Point 8

20‐‐ x3

20‐‐ x4

•Point 8

•Point 9

•Point 10

20‐‐ x5


Compounded Annual Growth Rate during 2006‐10: y%

Philippines Public Pharmacy Retail Outlets

Public Pharmacy – Scenario

•Point 1

•Point 2

•Point 3 SAMPLE•Point 4

•Point 5

SAMPLE Staffing Pattern in a Hospital Pharmacy

DesignationNo. of Beds

10‐15 2550 100 200 200 300

Tertiary Hospital Regular Medical CentreTertiary Hospital Regular Medical CentreChief Pharmacist

Supervising PharmacistSenior Pharmacist (s)

Pharmacist (s)Lab. Aide (s)


Clerk (s)StorekeeperUtility Worker

SWOT Analysis – Private Chain Pharmacy

• Strength 1

• Strength 2

•Weakness 1

•Weakness 2• Strength 2

• Strength 3

• Strength 4

•Weakness 2

•Weakness 3

•Weakness 4g

O

WS

•Threat 1

•Threat 2

•Opportunity 1

•Opportunity 2

TO

•Threat 3

•Threat 4

pp y

•Opportunity 3

•Opportunity 4

15

Private Chain Pharmacy: Company A

Company Information

Corporate Address Address 1

Tel No. +xx‐yy‐‐wwwww

Fax No. ‐

Email ‐

Website www.xxx.com

Year Founded 20‐‐Year Founded 20‐‐

Description News

Business Description (1/3)

p

Brief History• Point 1• Point 2

Business Overview• Point 1

Business Overview• Point 2

No. of Stores• Point 1• Point 2

P i 1


Product Mix• Point 1• Point 2

Private Chain Pharmacy: Company A

Description News

Store Formats• Point 1

Business Description (3/3)

Store Formats• Point 2

Financial Performance• Point 1• Point 2

SAMPLE Region Name No. of Stores

Region 1 x1

Region 2 x2Region 2 x2

Region 3 x3

Region 4 x4

Total No. of Stores x


There are b Watsons stores located in Metro Manila, which represents z% of the total no. of stores and comprises the highest share compared to the other regions

Pharmaceutical Supply Chain Network in Philippines (1/7)

P i t 1

Supply Chain Analysis (1/2)

•Point 1

•Point 2

P i 3

•Point 1

•Point 2

•Point 3•Point 3

•Point 4

•Point 5

•Point 4

•Point 5

•Point 6

•Point 7

•Point 8 35.0%Segment 2Segment 1

•Point 9

•Point 1065.0%


Pharmaceutical Supply Chain Network in Philippines (3/7)

A BImportation

Supply Chain of an MNC Drug Trader

A BImportation

C DManufacturing

EDistribution

• Point 1

• Point 2 SAMPLE19PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT

• Point 3SAMPLE

Parallel Drug Importation (2/3)

Retailing of Parallel Drug Imports in the Philippines (1/2)

D I

A B C E J

F K

LLG

H


H

Pharmaceutical Distribution Chanel in Philippines

Pharmaceutical Distribution Channel – Cost Additions Stage‐wise

xx yya

Stage 1or b

c

a

b c d ei

Stage 2

f g h

i

jStage 3k l

orm nRetail


0Dispensed Cost

Analysis of Mark ups on Medicine Price (Originator Brand and Generics)

Medicine

Originator Brand (OB) GenericsO g ato a d (O )

• Point 1

• Point 2

Ge e cs

• Point 1

• Point 2

• Point 3

• Point 4

•Point 1

Medicine Dosage form Strength OB brand name

•Point 2

i


•Point 3

Analysis of Mark ups on Medicine Price (Originator Brand and Generics) – Stage 1

Manufacturer’s Selling Price (MSP)

•Point 1 SAMPLE•Point 1•Point 2•Point 3 SAMPLE

Share of Mark‐ups for Locally Produced Generic Medicine

33%

Segment 1Segment 2Segment 3Segment 4

•Point 1

57%

3%7%

•Point 2


7%•Point 3


Wholesaler (1/2)

Originator Brands

•Point 1

P i t 2 SAMPLE•Point 2

•Point 3

•Point 4

SAMPLE Generics (1/2)

Generic Medicine Distributor Mark‐ups

•Point 1•Point 2•Point 3


Point 3


Retailer (1/2)

•Point 1 Point 2

Originator Brands

Type of Retailer Retailer Mark‐ups on OB

Private standalone pharmacy

Private chain pharmacyPrivate chain pharmacy

Public hospital pharmacy

•Point 1

•Point 2

•Point 3 SAMPLE25PHARMACY RETAIL MARKET IN PHILIPPINES2013.PPT

Point 3

•Point 4

SAMPLE

Health Insurance Scenario in Philippines

•Point 1

Health Insurance – Philippines

Point 1

•Point 2

•Point 3

•Point 4

•Point 5

•Point 6

•Point 7

Different types of health insurance plans that are prevalent in the Philippines are as follows

PhilH lth Private Health Health M i Expatriate Health International


PhilHealthInsurance Maintenance

Organization

pInsurance

International Health Insurance

Salary Structure in Philippines for Pharmacists

•Point 1

Compensation

Point 1•Point 2

Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8p p p p p p p p

•Point 1

•Point 2

•Point 3 SAMPLE•Point 4

•Point 5

SAMPLE


Finding 1

Thank you for the attentionPharmacy Retail Market – Philippines report is part of Netscribes’ Healthcare Industry Series.For any queries or customized research requirements, contact us at:

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Disclaimer: This report is published for general information only Although high standards have been used in the preparation “Netscribes” is


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market research report :pharmacy retail market in philippines 2013

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