Pascual Laboratoriesq

The General, Industry, Competitor Environments

Segment of the general environment:

1. Demographic Segment

• In a country of 95 million people, wherein only 30% of the population can currently afford medicines, the opportunities for future growth of pharmaceutical industry is significant.

• Age structure:

 0-14 years: 35.2% (male 17,606,352/female 16,911,376)

 15-64 years: 60.6% (male 29,679,327/female 29,737,919)

 65 years and over: 4.1% (male 1,744,248/female 2,297,381) (2010 est.)

• Ethnic mix:

 Tagalog 28.1%,

 Cebuano 13.1%,

 Ilocano 9%,

 Bisaya/Binisaya 7.6%,

 Hiligaynon Ilonggo 7.5%,

 Bikol 6%,

 Waray 3.4%,

 other 25.3%

• Distribution of family income

 Gini index: 45.8

Rank: 37

2. The Economic Segment

• Main Markets: North America, South America, Eastern Europe, Southeast Asia, Africa, Oceania, Mid East, Eastern Asia, Western Europe

• Competitors: International Pharmaceuticals Inc., PhilUSA Corp, United Laboratories Inc., Universal Robina Corp

• Import-Export Imbalance: The negative trade is heavy and only counterbalanced by the service account surplus. Over the last two decades, Philippine exports have shifted from commodity-based products to manufactured goods. However, in the midst of the current global economic recession, the exports of electronics, garments and textiles are yet to reach a level of import neutralization.

• Importation: There is an apparent big demand for medical and pharmaceutical products in the Philippines with importation increasing at an annual average rate of 12% from 2004-2008. Importation in 2009 is projected to reach US$736 Million.

• Market Overview: The $1.0 billion Philippine pharmaceutical market is growing 5.5% annually, with imports meeting 65% of demand. Drug price increases slightly trail CPI increases due to heavy competition and despite the lack of government price controls.

3. The Political/Legal Segment

• Implementation of the Cheaper Medicines Act Progressing...