Generika: Soaring prices lift demand of generic medicines

CEBU, Philippines — Unlike before, Filipinos have embraced generic drugs much more nowadays at a time when prices of almost all basic necessities have been soaring.

Generika Drugstore, for one, is seeing this demand to continue particularly in Cebu.

“Cebu is a good market for us. We’re doing good here,” Peewee de Vera, national operations head, told The FREEMAN in an interview over the weekend.

He said that generic drugs have been accepted by more Filipino consumers already unlike some 15 years ago.

Years back, generic medicine was perceived to be low-class quality and inferior compared to the pricey “branded” medicines that consumers have been accustomed to.

“The industry has seen a growth of at least 40 percent year on year. Filipinos little by little have accepted generic medicine due to economic reasons like prices of goods have been increasing,” de Vera said.

He noted that consumers buying generic drugs can save as much as 85 percent.

“As the reception to generic medicine among our countrymen increases, we continue to see positive growth,” he said.

To date, the Ayala-led drugstore now has over 750 stores nationwide, of which 118 are in Visayas and at least 40 branches are in Cebu.

In July 2015, Ayala Corp’s subsidiary AC Health acquired the 50 percent stake in Generika owned by the family of Julien Bello.

Generika started in 2003 and was one of the first to engage in the retail distribution of affordable generic medicine.

Generic drugstores which have mushroomed in Philippines in recent years have changed the game in the retail pharmaceutical industry as they compete with well-known pharmaceutical manufacturers.

Aside from Generika, Ayala’s healthcare business also includes FamilyDOC, a chain of community-based primary care clinics. AC Health is also investing in health technology through its HealthTech arm, Vigos and MedGrocer, an FDA-licensed online pharmacy.

“Our partnership with Generika is a key pillar in our vision to provide accessible, affordable, and quality healthcare to a greater number of Filipinos,” Ayala Corp president Fernando Zobel de Ayala said.

“With Generika, we have an established retail health footprint that serves as the first point of care in the community. With this, we see the enormous potential for Generika to become an enabler of preventive health and wellness,” he added. (FREEMAN)