Best Pharmacy Franchises in the Philippines (2022)

Health is becoming a high priority among Filipinos.  Based on the 2019 health survey done by the Philippine Statistics Authority, the total health expenditure of Filipinos grew by 10.9%. The same report showed that every Filipino spent PHP 6,662.2 for health in 2019.  This simply proves that going into the pharmacy business is no losing proposition.

The purpose of this blog is to present the top pharmacy franchises in the Philippines.

Overview of the Philippine Pharmaceutical Industry

Oxford Business Group mentions that the Philippines is the third-largest pharmaceutical market in ASEAN, next to Indonesia and Thailand. The following factors drive the Philippine pharmacy retail market:

• A decline in the pharmacy growth
  The Food and Drug Administration is going after unlicensed pharmacies and thus the decline.  On the contrary, organized pharmacies are growing in number.
• Increase in the demand for generic drugs
  Due to the high prices of branded medicines, Filipinos now are going to the generics. The number of generics pharmacies has increased.
• Increase in health insurance coverage
  As of 2017, approximately 66% of the population has PhilHealth (the government-administered insurance plan) insurance. And there are still those with health insurance from insurance companies.
• Increase of lifestyle-related diseases 
  As a result of rising income, an increase in lifestyle-related diseases has been observed.  Coronary heart diseases, strokes, hypertension, and diabetes are the most prevalent.

In the Philippines, there are now three kinds of medicines: originator, branded generics, and unbranded generics. Originator is a medicine produced by the pharmaceutical company which holds the patent. Generic medicine to the Filipinos is the unbranded one. The confusion is with the branded generics and the unbranded generics.

This overview aims to present the status of the pharmaceutical industry in the country and the viability of the pharmacy business and franchise.

Pros and Cons of a Pharmacy Business

Before getting into the pharmacy business, you must know the pros and cons of the company.

Pros

Rewarding work

The retail pharmacy business can be very self-satisfying work. You are helping people with their immediate health concerns.

Building essential business connections

As you do the business, you will meet and get to know important figures in the pharmaceutical and local communities.

Receiving perks and discounts 

Doing pharmacy business has its perks and discounts.  You get them from the pharmaceutical companies and suppliers of the medicines you sell.

Getting accepted by the local community

Since you are helping them with their medicinal needs, the community will accept and respect you. And this, in turn, will translate into loyal customers.

Interacting with people

You will be meeting lots of people such as your customers, employees, and people from the pharmaceutical companies.

Cons

Entering the competition

Since it is lucrative, many want to enter the pharmacy business.  Having a good business plan is a necessity.  Study the demand and the market.  Find a very strategic location.

Finding the right suppliers

Without the suppliers, there is nothing to sell.  Finding the right suppliers is very crucial.

Motivating employees

Employees are important since you cannot do all the business work.  You have to find ways to make their work exciting and rewarding.  Give them incentives for their good work.  Provide them with a supportive and positive working environment.

Accomplishing the legalities

Before you start the business, you are faced with so many permits and certificates to accomplish.  Most of them are renewed yearly.  Aside from these, there are taxes to be paid.

Dealing with the overhead expenses

To make your business profitable, you have to deal with the overhead expenses.  Overhead expenses include rent, utilities, office supplies, salaries, workers’ benefits, and insurances.

Committing time

To succeed, you have to commit time to oversee, evaluating, planning, and forecasting.

Types of Pharmacies in the Philippines

At present, there are two types of pharmacies in the Philippines:

Retail pharmacy

This is the most common type of pharmacy in the country. Most pharmacy chains fall under this category, like Mercury Drug, Rose Pharmacy, and Southstar Drug. They carry patented or originator medicines and branded generics. Retail pharmacies do not offer pharmacy franchises in the Philippines.

Generics pharmacy

Generics pharmacy came about starting in 1998 when the Generics Act was passed.  Now, you see many generics pharmacies cropping out.  Usually, they sell unbranded generic medicines.  Examples of this are The Generics Pharmacy and Generika Drugstore. Generics pharmacies are the ones offering pharmacy franchises in the Philippines.

Tips To Succeed in Pharmacy Franchise

 The following are the tips to help you succeed in the pharmacy franchise:

Check yourself

1. Your goals
2. Your experience
3. Your resources
4. Your business and management philosophy and the franchise operation you’re considering.

Check franchisors

There are several pharmacy companies offering franchises.  You have to select the one whose franchise offering fits your goals, experience, resources, and business and management philosophy.

If you have chosen your franchisor, work with them in the following:

• Developing a full business plan
• Performing a market analysis
• We are assessing revenue potential based on the local population and competition.
• Finding the right location
• Implementing business operations like store layout, staffing, inventory management, workflow management, and more
• Marketing your store

List of Pharmacies

Here is a list of top pharmacy franchises in the Philippines.

1. The Generics Pharmacy

The Generics Pharmacy started as Pacific Insular Co., a German importer, and wholesaler of medicine, in 1949. In 1959, the Liuson family bought the company.  In 2001, the company ventured into the retail pharmacy business with one outlet. Now, they have 1,900 outlets nationwide.

• Franchise Fee: P300,000
• Initial investment: P600,000
• Royalty fee: 1% 
• Advertising Fee: 1%
• Website: https://tgp.com.ph/
• Email: [email protected]
• Contact Number/s: +63821-11111

2. Generika Drugstore

Generika Drugstore was established in 2003.  However, it opened its first outlet in 2004 in Muntinlupa.  In 2015, Ayala Healthcare Holdings, Inc. acquired some stakes in the company.  Currently, Generika has 760 stores nationwide.

• Franchise Fee: P210,000
• Initial investment: P900K to P1.7M (includes the franchise fee)
• Website: https://www.generika.com.ph/
• Email: [email protected]
• Contact Number/s: +632 8828-1818

3. Gamot Publiko

Established in 2009, Gamot Publiko focuses on providing affordable, effective, and quality generic medicines.  At present, it has 50 stores in Metro Manila and in the provinces of Laguna, Cavite, Marinduque, Quirino, Quezon, Cebu, Negros Occidental, Bohol, Davao and Cotabato.

• Franchise Fee: P120,000
• Initial investment: P600,000 to P800,000 per outlet (depending on size)
• Website: https://gamotpubliko.com/
• Email: [email protected]
• Contact Number/s: +632 8723-8142, +632 7917-6696, +632 8723-2443

4. Farmacia ni Dok

Farmacia ni Dok carries generics, branded, and natural medicines.  It also sells personal care products. 

• Initial investment: P349k - 1.9m (includes the franchise fee)
• Royalty fee: Standard All Generic at Php 2,500 and Premium Branded- Generic at Php 3,000
• Website: https://farmacianidok.com/
• Email: [email protected]
• Contact Number/s: +632 8696 0337, +632 8532 0018

5. Murang Generics Pharmacy

Murang Generics Pharmacy started in 2009 with two branches in Naga City and three branches in Metro Manila.  Now, it is found all over the Philippines.  It is committed to bringing the Filipino people affordable but effective generic medicines.

• Franchise Fee: P250,000
• Initial investment: P670k - 850k
• Website: http://www.muranggenericspharmacy.com.ph/ (broken link)
• Email:  [email protected]
• Contact Number/s: +632 804-3498

6. Southeast Drug

Southeast Drug started in 2007 in Santiago, Isabela, with a small drugstore.  Six months later, another pharmacy named “Botica ni Nanay Juling '' was opened in Muntinlupa.  It was named after the mother of one of the founders.  Then, Southeast Pharmaceuticals, a medicine and supplies distribution company, was born.

Out of these two ventures came Southeast Drug, which opened its first branch in Muntinlupa in 2013.

• Franchise Fee: P99,000
• Initial investment: P700,000 - P1.1M
• Continuation fee: P2,000 for All-in-One Pharmacy and P1,500/mo for branded medicines.
• Website: not available
• Email:  [email protected]
• Contact Number/s: +632 8554 0835

7. Valuemed Generics

Valuemed Generics is a newcomer.  However, it is opening its pharmacy business to those interested in franchising.

• Initial investment: P150,000 (includes the franchise fee)
• Royalty fee: 1% of the total monthly gross sales
• Advertising Fee: 1% of the total monthly gross sales
• Store space: min. 15 sqm
• Website: https://www.valuemedgenerics.com
• Email: [email protected]
• Contact Number/s: +63 961 873 5488

8. St. Francis Generic Drug

St. Francis Generic Drug is owned by St. Francis Group of Companies, the developer of St. Francis Square, Ortigas.  St. Francis Generic Drug is a drugstore and convenience store combination.  Its first branch was opened in 2006. Now, they are open to franchising.

• Franchise fee: P130,000
• Initial investment: P600k
• Royalty fee: 1% of the total monthly gross sales
• Advertising Fee: 1% of the total monthly gross sales
• Store space: min. 15 sqm
• Website: www.stfrancisgenerics.net
• Email: [email protected]
• Contact Number/s: 632-1010

9. Rika Drugstore

Started 1987, Rika Drugstore is a famous drugstore in Cagayan de Oro City. Currently, it has six branches in Cagayan de Oro and a branch each in Alubijid and Tagoloan, Misamis Oriental.

• Franchise Fee: P300,000
• Total investment: P1.8 Million
• Royalty fee: P15,000/month of gross sales
• Store space: min. 15 sqm
• Website: www.rkfranchise.com
• Email: [email protected]
• Contact Number/s: 1800-10-88888RK

Conclusion

The retail pharmacy business is growing because there is a need for pharmacies all over the country.  One of the drivers is generic medicines.  Filipinos now are opting for generics instead of the branded ones.  They find them affordable and just as effective as the branded ones. Because of this, generics pharmacies are opening branches all over the country. 

This is good news. If you want to go into the pharmacy franchise business, you can check the list of pharmacy franchises in the Philippines. These are the pharmacies that opened themselves to franchising.

You can get some more information from the franchise listing of Franchise Market Philippines.

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