The Philippine pharmaceutical market is valued at $960 million in 2001. Approximately 69 per cent of market is controlled by the multinational companies (MNC's), whilst the remaining 31 percent belongs to the generic companies. A starling fact is that a mere 5 percent of the populace were responsible for generating the 69 per cent of the total revenue of the market. Generic companies have failed to make quick inroads into the mindset of doctors.

The medical practitioners here need to be persuaded and influenced on the efficacy and safety of the generic products compared to the branded or ethical products available. To further convince the physicians, the generic companies need to enhance their product quality and company image.

Another key factor to the success of branded products is the large pool of funds that most generic companies cannot match up to. Loyalty and support of the physicians are induced via marketing campaigns and incentives of sponsorship of overseas scientific symposia.

In addition, the MNCs also enlist the physicians' support of their products by requesting participations in clinical trials and speaker pool assignments. These activities create loyalty towards the MNCs, thus converting this specialist market an almost impregnable market for the generic makers.

Therefore, to counter these tactics and actually place a foothold in this market, the generic makers must improve their product presentation which may consist of costly upgrades in formulation and in the packaging . However this is imperative to win over the confidence of the prescribing physicians.

United Laboratories, a home grown giant has learnt to thrive in this feisty environment and provides an interesting case study for would be generic marketeers. It lead the total pharmaceutical market with approximately 10 per cent share and monopolizes the generic market whereby it enjoys 80 percent share. It adapted the multinational style of marketing, with extensive product range, a well trained sales force, and continuous investment in image building. They market patented and non-patented products leveraging on the image and resources of multinational principals to enhance their products image.

An important strategy by this generic conglomerate is forming subsidiaries to market different products. The strategy was meant to conceal their monopoly of the generic market. In effect, the doctors continue their support, unaware of the fact that they are dealing with one company for a majority of their prescriptions.

In the Philippines, the biggest distribution channel for generics is through the retail pharmacies, where this accounts for at least 71 per cent of market revenues.