Unilab Philippines Prepared by • Elvie Grace A. Ganchero & Cristina V. Pavia
Asia • Philippines
UNILAB’s RiteMed Initiative:
Making Medicine Accessible to the
Poor
Prepared by • Elvie Grace A. Ganchero & Cristina V. Pavia
(Philippines)
Sector • Health
Enterprise Class • Local SME (Southern MNC subsidiary)
Summary
United Laboratories, Inc. (Unilab) is the oldest pharmaceutical company in the Philippines; after starting in 1945, Unilab continues to be one of the largest. It has manufacturing, distribution and licensing arrangements in nine countries, including China. Its financial success stems from a deliberate strategy to offer high-quality and affordably priced healthcare products. Seizing an opportunity to support the Philippine government’s campaign to make lower-priced drugs available to the population, Unilab set up RiteMed in 2002, a subsidiary whose main mission was to market and distribute generic medicines. Through economies of scale, the company was able to sell generic products 20 to 75 percent cheaper than its branded counterparts, 1 profitably meeting revenue targets of US$20 million within five years. It successfully leveraged the reputation of its parent company to convince Filipinos to use generics, making quality drugs more accessible to the poor.
The Philippine Health Situation
Prevailing poverty conditions for about 40 percent of Filipinos (35 million people) 2 is evidenced by the high incidence of preventable diseases. Diseases such as tuberculosis and measles afflicted a significant number of the population, even as new threats were confronted— dengue fever, diabetes, hypertension, HIV/AIDS and others. The poor could not easily afford healthcare goods and services. The majority of Filipinos had to apportion meager resources to meet their basic needs. 3 The priorities were food, livelihood and water
(in this order), with health ranking fourth.
Those who were very poor rarely saw a doctor and could not afford medicines. Tuberculosis patients in an urban slum area, for example, had one
UNILAB’s RiteMed Initiative:
Making Medicine Accessible to the
Poor
Prepared by • Elvie Grace A. Ganchero & Cristina V. Pavia
(Philippines)
Sector • Health
Enterprise Class • Local SME (Southern MNC subsidiary)
Summary
United Laboratories, Inc. (Unilab) is the oldest pharmaceutical company in the Philippines; after starting in 1945, Unilab continues to be one of the largest. It has manufacturing, distribution and licensing arrangements in nine countries, including China. Its financial success stems from a deliberate strategy to offer high-quality and affordably priced healthcare products. Seizing an opportunity to support the Philippine government’s campaign to make lower-priced drugs available to the population, Unilab set up RiteMed in 2002, a subsidiary whose main mission was to market and distribute generic medicines. Through economies of scale, the company was able to sell generic products 20 to 75 percent cheaper than its branded counterparts, 1 profitably meeting revenue targets of US$20 million within five years. It successfully leveraged the reputation of its parent company to convince Filipinos to use generics, making quality drugs more accessible to the poor.
The Philippine Health Situation
Prevailing poverty conditions for about 40 percent of Filipinos (35 million people) 2 is evidenced by the high incidence of preventable diseases. Diseases such as tuberculosis and measles afflicted a significant number of the population, even as new threats were confronted— dengue fever, diabetes, hypertension, HIV/AIDS and others. The poor could not easily afford healthcare goods and services. The majority of Filipinos had to apportion meager resources to meet their basic needs. 3 The priorities were food, livelihood and water
(in this order), with health ranking fourth.
Those who were very poor rarely saw a doctor and could not afford medicines. Tuberculosis patients in an urban slum area, for example, had one
References: Dayrit, Manuel. “Twelve Herculean Labors and the Accomplishments of the Department of Health under the Arroyo Administration, 2001-2004.” Speech given at the 3rd University of Department of Health, Philippines. 1999. “Health Sector Reform Agenda Philippines, 19992004.” HSRA Monograph Series No.2. December 1999. Gamboa, Butch. 2007. “Botika ng Bayan: All set to liberate the sick Pinoy.” The Philippine Star Newspaper Kanavos, J., J. Lim, and C. Pascual. 2002. “On Improving the Poor’s Access to Affordable Drugs.” Health Policy Note Nielsen, AC. 2005. “A Qualitative Study on Coping Mechanisms and Behaviour on Consumers’ Medical Plight.” Presentation Pabico, Alex. 2006. “New Rx Needed for the Generics Movement.” Philippine Center for Investigative Journalism (PCIJ) Philippine Pharmaceutical Handbook. 2003. Policarpio, Jonas. 1991. “Understanding Filipino Patients’ Economic Coping Behavior.” National Health Survey. Policarpio, Jonas. 2005. “A Qualitative Study on Coping Mechanisms and Behaviour on Consumers’ Medical Plight.” Introductory presentation of AC Nielsen Study Policarpio, Jonas. 2006. Economics in Health for the Allied Health Sciences. C&E Publishing Inc: Quezon City.