Center for Health Market Innovations (CHMI)

Programs

The Generics Pharmacy

last updated Jun 22, 2012

Overview

Implementing organization: 
The Generics Pharmacy Franchising Corp.
Legal Status: 
Private (for-profit)
Year Launched: 
2007
Stage: 
Existing/expansion stage
Income Level of Target Population: 
All income levels
Summary: 

The Generics Pharmacy (TGP) advocates for quality and affordable drugs accessible to all Filipinos. It was in 2007 that TGP tapped FranCorp to facilitate its expansion. Within three-and-a-half years, it has expanded to 1,000 outlets all over the country, covering both provinces and chartered cities.

Program goals/rationale: 

Access to drugs and drug compliance are some of the problems in the Philippines due to skyrocketing prices. Though the country has institutionalized The Generics Law which strengthened the presence of generic medicines in the market, bottlenecks to compliance and access still persist.

Key program components: 

Franchising requires a total fee of about Php600,000 to Php800,000 (US$14,000 – US$19,000) covering the total Php210,000 as well rights and services: right to use the trademark, name and logo of the franchisor; startup and pre-operating assistance; site evaluation assistance; architectural/store design and construction assistance; extensive training on pharmacy retailing, business management and operations, and customer service; technical education and guidance on the dispensing of generic drugs; and marketing and advertising support. The franchise arrangement also requires the franchise to contribute 1 percent of gross sales as advertising fee.

The continuing expansion of TGP indicates its effectiveness in increasing access of Filipinos to affordable generic drugs. Generic drugs generally have the lowest prices among other drugs (Gloor, 2009).

The franchising scheme of TGP shows sustainability as it also enables establishment of rural pharmacy with low capitalization, reliable supply of inventory from the franchisor, and provision of training and supervision. This scheme also appears to be profitable and at the same time socially relevant since it also captures the low-income group.

Additional Information
Read the Generics Pharmacy Case Study here

Program history: 

The Generics Pharmacy (TGP) initially started as a family enterprise in 1949, which was involved in pharmacy importation and distribution. As the Generic Drug law was passed in 1989 the company decided to sell generic drugs primarily to government hospitals.

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