Facing the Goliaths

MANILA, Philippines - There is nothing generic about Benjamin Liuson’s The Generics Pharmacy. In fact, it is the unique “David” amidst many pharmaceutical “Goliaths.”

Liuson’s parents started their business in 1960 – importing and wholesaling medicine – when they bought The Pacific Insular Co. from German nationals who began the company in 1949. Innovators in the Philippine pharmaceutical business, the Liusons were promoting generic medicine years before the generics bill was passed.

In 2001, the Liuson family opened their first drugstore. It was different from all other drugstores since they only sold generic medicine. Seeing a gradual acceptance for generics, it was Liuson who decided to start franchising the business in June 2007.

Three years later, The Generics Pharmacy is the fastest-growing franchise in the Philippines. “By the end of the year, we will have 1,000 outlets open,” says Liuson, adding that this is a feat that he thought would take the company ten years to achieve.

Despite the current success of the franchise, there were many things that had to be surpassed to attain this. While Liuson notes that in the US and Canada, 45 percent of the pharmaceutical market is made up of generics; here in the Philippines – where more people need lower-costing medicine – generic medicine only makes up 10 percent of the market.

This is mainly due to consumers not being informed on generic medicine. Liuson says that many buyers, especially those from the lower income bracket, prefer to buy the higher costing branded medicine, thinking that these are more effective because of the higher price. “When we started, the franchisee had to spend time explaining to the buyers,” says Liuson.

The price of generic medicine is not low because it is of lesser quality compared to branded medicine, Liuson explains; branded medicine has to include in its price the costs for marketing and advertising, sales supervisors, “detail men” who visit doctors and talk about the product, samples, product and brand managers, commercials and perks that they offer doctors who support the brand. Generic medicine need none of these and can be sold at a fraction of the price.

Paracetamol, for example, is sold at a mere P0.60 at The Generics Pharmacy, while the branded eqivalent sells for around P2.90.

 “They don’t like us,” admits Liuson about big pharmaceutical companies and drugstore chains. But, he adds, “We’re really doing a lot of good. If 99.5 percent of the population is happy with what I’m doing, I think I’ve done my job.”

The hard work paid off, as the franchise grew quickly and more and more customers are supporting generics today. “The mere fact that the franchise grew fast is a sign that the people are accepting it,” says Liuson.

Liuson says that he realized that The Generics Pharmacy was well on its way to success when the business was on its sixth month. “We already had 60 stores then, and that means it really clicked.”

Liuson adds that many of the franchisees own more than one unit, testifying to the fact that the pharmacy is not only becoming popular, but is also proving to be profitable for the franchisees. Now the biggest drugstore chain in the Philippines, The Generics Pharmacy has beat all the odds and has branches in all major municipalities in the country.

They have also been able to reach locations where there are no drugstores at all – in places where people had to walk for two hours to reach a drugstore. “Before I did not know much about Philippine geography, but now I know about all the different places in the Philippines,” says Liuson. 

What is the secret to the success of The Generics Pharmacy? “Out of all the branches, only one is company-owned,” says Liuson. “All others are owned by Juan dela Cruz.”

He adds, “Others want all the branches to be company-owned. We took the risk, proved that it was profitable. We should not be greedy.”

“Ang negosyo simple lang – common sense.” According to Liuson, any business needs a quality product, which the pharmacy has with its effective medicine. The business’ products must be sold at an affordable, acceptable price.

Next, says Liuson, accessibility is key to a successful business. The pharmacy is found nationwide, with new branches opening every day.

Aside from these, Liuson says that the secret component to success is God’s will. “When you acquire wealth, remember the Lord your God because it is He who gives you the power,” he says, quoting Deuteronomy.

Taking CSR – corporate social responsibility – a step further, Liuson has started what he calls “Corporate Spiritual Responsibility.” Explaining his beliefs, he says, “Time passes so fast. Sooner or later all of us are gone. The most important thing in life is to land in heaven. The second is to bring as many people as we can to heaven.”

To do this, The Generics Pharmacy sponsors 200 or more Bibles per year, in partnership with the Philippine Bible Society, each bible printed with the title “Rx for life” on the cover. Now on the third year of the project, the Rx Bibles are now printed in Tagalog, English and Cebuano.

“One Bible for every family in the Philippines,” Liuson says, is their goal for the company’s Corporate Spiritual Responsibility. “We started with giving copies to suppliers and customers, then churches. Now the National Penitentiary will be receiving 10,000 copies of the Bible from us.”

“Our business itself is a social responsibility,” says Liuson, noting the many Filipinos that they are able to help everyday by making low costing medicine available.

One of the best comments the company has received so far is from a Manila’s customer, who told one franchisee: “Hulog ng langit kayo (You are a gift from heaven).” Liuson says, “This is the best compliment. It alleviates all problems, beats all profit, wealth, and recognition.”

Liuson says that they plan to offer even more products in the future, including some specialized and normally expensive medicine, such as those for cancer and dialysis. “We want to be able to help more people,” he says. It may have been a struggle, but the humble pharmacy has now grown into a company that is making a giant impact on the health and lives of many Filipinos.