Unilab buys Pascual Lab generics unit

MANILA, Philippines - United Laboratories Inc. of the Campos family has gobbled up the generics subsidiary of one of its competitors, Filipino-owned Pascual Laboratories Inc. (Pascuallab).

Unilab’s RiteMed Philippines Inc. quietly acquired Pharex HealthCorp, a wholly owned subsidiary of Pascuallab.

Negotiations took “quite some time” but the deal was sealed only on May 19, industry sources told The Star.

Unilab insiders said RiteMed decided to acquire Pharex because it would complement its business.

“The reason for the acquisition is that the businesses are complementary. RiteMed wanted to get into primary and preventive healthcare,” a Unilab insider said.

Despite the acquisition, Pharex would retain its name, the source also said.

Sought for comment, Pascuallab president Jose Augusto “Jappy” Pascual confirmed the deal. 

“It is confirmed that Pharex HealthCorp. has been fully acquired by RiteMed. The acquisition was beneficial to all parties involved,” he said.

Both RiteMed and Pharex sell generics medicines.

Pascuallab set up Pharex in 1972 as its exclusive marketing, sales and distribution arm.

“As a matter of fact, Pharex is short for Pharmaceutical Excellence – the very foundation on which the venture is built,” the company said in its profile.

In 1987, when Pascuallab appointed Metro Drug as exclusive distributor of brands, it was also able to secure the marketing of its generic medicines.

“The move was timely. Soon after, the Generics Act of 1988 was enforced,” Pharex said.

The law was passed to promote, require and ensure the production of an adequate supply, distribution, use, and acceptance of drugs and medicine, which are identified by their generic names.

Pharex’ parent firm Pascuallab is a pharmaceutical company founded in 1946 or after World War II by husband and wife team Isoceles and Leonora Pascual. At present, the company is headed by Dr. Abraham Pascual.

Unilab, meanwhile, set up RiteMed in 2002, to market and distribute generic medicines. Through economies of scale, the company was able to sell generic products at 20 to 75 percent cheaper than the branded counterparts.

Although a newcomer at that time in the generics industry, RiteMed grew steadily because of its successful advertisement as a “branded generic” and wide distribution network.

RiteMed drugs were sold in all retail outlets nationwide including the government’s Botika ng Bayan for a wider reach.

Unilab, the oldest pharmaceutical company in the Philippines established in 1945, is now the top in the industry with a 20 to 25 percent market share.