Center for Health Market Innovations (CHMI)

Programs

Botika ng Bayan (BNB)

last updated Nov 16, 2011

Overview

Implementing organization: 
Department of Health (DOH), PITC Pharma, Inc., Food and Drugs Administration
Legal Status: 
Public-private partnership
Year Launched: 
2004
Stage: 
Existing/expansion stage
Income Level of Target Population: 
All income levels

Funding

Primary Source of Funding: 
Out-of-pocket payments
Additional Source(s) of Funding: 
Other 3rd party (e.g. debt, equity)

Scale

Number of Facilities Operated/Networked: 
2,256 outlets (as of 2010)
Summary: 

In 2004, the PITC-Pharma Inc. (PPI), in coordination with the DOH and the FDA, launched the Botika ng Bayan (BNB) program which entails legally qualified privately-operated retail outlets nationwide to provide consumers low-cost and high-quality medicines. Some outlets, however, are run by local government units and other government agencies.

Key program components: 

To start a BNB outlet, one must have valid and current registration as an institution (Securities and Exchange Commission, Cooperative Development Authority, Department of Labor, or other relevant agency), minimum revolving capital of Php 500,000 for the project as evidenced by a certification issued by an authorized bank (minimum initial capital was originally set at Php 300,000 for 1st-5th class city or 1st class municipality; Php 200,000 for 6th class city or 2nd-4th class municipality; and Php 100,00 for 5th-6th class municipality), proposed location plan (floor area of at least 15 sq. m.) and vicinity map. Applicants must also have the capability to comply with the documentation, technical and other requirements of FDA, including the availability of the services of a licensed pharmacist.

In addition, no drugs can be sold by the outlet other than those supplied by the PPI. The BNB will sell the drugs at no more than the prescribed Maximum Retail Prices (or government mediated access prices).

An offshootof the BNB is the Botikang Bayan Express, which are also privately run outlets usually situated in smaller areas or “barangays.” This requires a smaller amount of investment of Php30,000.00 for the initial set of medical stocks.

Since the program launched in 2004, the cumulative number of BNBs continues to rise, from 995 to 2,256 in 2010.

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