IV. BASIC TERMS AND CONDITIONS DOH-REGIOINAL OFFICES ORDERS BNB Outlet shall exclusively purchase pharmaceutical products from PPI. In REG. ADDRESS case PPI pharmaceutical products are temporarily out of stock, BNB Outlet may source products from other reputable manufacturers/suppliers upon prior I Center for Health Development for Ilocos: Parian, San Fernando, written approval from PPI. Tel. No.: (072) 242.7035 For pharmaceutical products not carried by PPI, BNB Outlet may source them from other reputable manufacturers/suppliers, provided, PPI is properly II Center for Health Development for Valley: Carig, Tuguegarao, Cagayan informed and raises no objection. Products not registered in the BFAD are Tel. No.: (078) 844.6523 PROHIBITED to be sold by BNB Outlet. III Center for Health Development for Central : Maimpis, San Fernando, Other non-pharmaceutical products carried by PPI may likewise be retailed Tel. Nos.: (045) 961.7649; 961.2099 by BNB Outlets. IV Center for Health Development for Southern Tagalog: J.P. St. corner P. Tuazon, MINIMUM MONTHLY PURCHASE, PLACEMENT OF ORDERS, Project 4, City DELIVERIES Tel. Nos.: R4A: 913.4526; 913.4627; R4B: 995.0821 BNB Outlet must maintain the following minimum monthly purchase of V Center for Health Development for Bicol: Bagtang, Daraga, Legaspi City, pharmaceutical products from PPI or its authorized Territorial Distributors Tel. No.: (052) 483.0844 at its standard units of sale: VI Center for Health Development for Western : Mandurriao, City Minimum Monthly Tel. No.: (033) 321.1036 Location of BNB Outlet Purchase VII Center for Health Development for Central Visayas: Osmeña Road, City 1st class-5th class city/1st class municipality P10,000.00 Tel. Nos.: (032) 253.6355; 254.0109

6th class city/2nd-4th class municipality 7,500.00 VIII Center for Health Development for Eastern Visayas: City, Palo, Tel. Nos.: (053) 323.5069; 323.6517

5th-6th class municipality 5,000.00 IX Center for Health Development for Western : Upper Calarian, Tel. Nos.: (062) 991.1995; 991.1313 Minimum required purchase from PPI in order to be delivered shall be: For NCR—Ten Thousand Philippine Pesos (Php10,000.00) X Center for Health Development for Northern Mindanao: Carmen, City For Provincial Areas—Fifteen Thousand Philippine Pesos (Php15,000.00) Tel. No.: (08822) 727.400 BNB Outlet may buy directly from the BNB Outlet located at the PPI head XI Center for Health Development for Southern Mindanao: J. P. Laurel Ave. Bajada, office or any of its offices. Stocks must be picked up and paid in cash by BNB outlet. It shall be granted a 5% discount on Parallel Drug Importations Tel. No.: (082) 221.6320 (PDIs) except when the BNB Outlet has an overdue account. XII Center for Health Development for Central Mindanao: City OTHER CONDITIONS Tel. No.: (064) 421.2373 All products supplied by PPI, shall be sold not higher than the Maximum XIII Retail Price (MRP) established by PPI. Center for Health Development for Caraga: Pizzaro St. corner Narra Rd., City Tel. Nos.: (085) 341.2579; 342.5208 Accredited outlets shall extend the standard discount to qualified senior citizens in accordance with existing laws and government guidelines for the CAR Center for Health Development for Cordillera: BGHMC Compound, City grant of said discount. Tel. No.: (074) 442.8097

V. ESTIMATED ANNUAL PROJECTED MARGINAL STATEMENT ARMM Center for Health Development for ARMM: ARMM Compound, OF OPERATIONS Tel. No.: (064) 421.6842 (Based on PITC’s Financial Projections) NCR Welfareville Compound, Acacia Lane, City Tel. Nos.: (02) 535.4595; 718.3098 Sales P6,000.000.00

Variable Costs COST OF SALES 4,800,000.00 SOURCES OF INFORMATION: Supplies Expense 36,000.00 Utilities 72,000.00 PITC PHARMA, INC. (PPI) - Botika ng Bayan Secretaria Repairs 150,000.00 G/F Orient Mansion Building Communications 25,000.00 118 Tordesillas Street, Salcedo Village, City Taxes and licenses 27,500.00 Telephone Nos.: (632) 496.6945; 892.2021 Advertising Expense 30,000.00 Telefax No.: (632) 892.1061; 892.1647 Miscellaneous 10,000.00 5,150,500.00 Website: www.botikangbayan.com.ph

Contribution Margin 849,500.00 Bureau of Food and Drugs (BFAD) Civic Drive, Filinvest Corporate City Fixed Costs Alabang Drive, City Salaries and Wages 216,000.00 Telephone Nos.: (632) 807.0751; 807.8275; SSS, PHIC, HMDF 21,600.00 809.4390 local nos. 1331, 1281, 1282 Insurance Expense 13,500.00 Email address: [email protected]; [email protected] 13th month pay 18,000.00 Security expense 96.000.00 Website: www.bfad.gov.ph Lease expense 120,000.00 Interest Expense 60,000.00 545,100.00 BUREAU OF MICRO, SMALL AND MEDIUM Profit P304,400.00 ENTERPRISE DEVELOPMENT (BMSMED) 5/F, Trade and Industry Building 361 Sen. Gil J. Puyat Ave. Makati City Tel. Nos.: (02) 897.1693 / 897.7596 / 890.4968

Fax No.: (02) 896.7916 Email: [email protected]

www.dti.gov.ph Printed July 2009 July Printed

Starting a Business

III. APPLICATION AND EVALUATION PROCESS BFAD Requirements for Registration of Drug Retail Outlets What is Botika ng Bayan Program? 1. Interested applicants shall fill up the Application Form for (http://www.bfad.gov.ph/pdf/estLicensing/distributor/ the Accreditation of a Botika ng Bayan Outlet which can checklist/drugStore.pdf): Launched in 2004, the PITC-Pharma, Inc. (PPI), in be obtained from PPI. a) Notarized Petition Form/Joint affidavit of undertaking duly coordination with the Department of Health and the Bureau of accomplished. Food and Drugs, is currently implementing the Botika ng 2. Completed application forms, together with the Pre- b) Tentative list of Products using generic names and brand Bayan Program. Through the program, qualified privately- Qualification Requirements, shall be submitted in three names, if any. operated drug retail outlets nationwide comprise the sales (3) copies to the: c) Floor area, not less than 15 square meters. and distribution network for low priced, high quality medicines. d) Generic white labels and red labels. e) Rubber stamp of outlets. The Botika ng Bayan seal is the mark of guaranteed quality PITC PHARMA, INC.– Botika ng Bayan Secretariat and affordable prices. f) Pharmacist board of Registration Certificate, PRC-ID, valid G/F Orient Mansion Building PTR, 2 pcs. 2x2 ID picture and Certificate of Attendance of 118 Tordesillas Street, Salcedo Village, Makati City Botika ng Bayan, more than just making medicines more owner/pharmacist to a BFAD sponsored/accredited Telephone Nos.: (632) 496.6945/892.2021 Seminar on Licensing of Drug Establishments and Outlets. affordable, the program also creates more jobs, more Telefax: (632) 892.1061/892.1647 opportunities for Filipinos. g) If Sole Proprietorship, DTI Certificate of Business Name Registration. The applicant shall also pay PPI the non-refundable h) If Corporation or Partnership, copy of Registration with I. ELIGIBLE APPLICANTS accreditation fee of P2,000.00 for the first 2 years of SEC and Articles of Incorporation or Partnership. Non-government organizations (NGOs) and cooperatives operation, and renewable thereafter for another 2 years i) Contract of Lease for the space to be occupied, if the Trade and labor unions, employees’ associations upon payment of non-refundable renewal fee of owner does not own it. Corporate foundations and religious groups Php2,000.00. j) Picture of drugstore with signboard. Senior Citizens’ and women’s groups k) Location Plan and Floor Plan with dimension Sole proprietorships, partnerships and corporations 3. PPI shall verify the location plan/vicinity submitted by the l) Fee for LTO (License to Operate) valid for 1 year— applicant. There shall be no other BNB outlet within 300 P1,000.00. II. PRE-QUALIFICATION REQUIREMENTS meters away from an existing BNB accredited outlet. Valid and current registration, either with the Cooperative Exceptions may be approved by PPI depending on the Upon inspection of BFAD, the following must be present: Development Authority, Securities and Exchange ⇒ Reference Books Commission, Department of Labor and Employment, or population or business potential of the area upon ocular inspection and evaluation. (This is to make sure that Philippine National Drug Formulary any organization authorized and certified by a duly R.A. 3720, otherwise known as Food, Drugs and every BNB outlet becomes profitable to the investor/s recognized agency. Devices and Cosmetics Act while making BNB medicines more accessible to all.) Minimum initial capital evidenced by a certification issued R.A. 6675, Generics Act of 1988 and relevant by an authorized Bank of a financial institution acceptable implementing rules and regulations to PPI: 4. Upon approval of the location, applicant must submit the R.A. 5921, Pharmacy Law as amended and relevant required documents pertaining to their application within implementing rules and regulations 45 working days; otherwise it will be forfeited in favor of Minimum R.A. 8203, Special Law on Counterfeit Drugs an applicant with the same site/location who has Location of BNB Outlet Initial Capital submitted the required documents. ⇒ Any one of the following reference books: United States Pharmacopoeia/National Formulary 1st class-5th class city/1st class P300,000.00 5. After validation/verification and due evaluation, the (USP-NF) latest edition municipality applicant shall be officially informed of the decision of the Remington’s Pharmaceutical Sciences (latest edition) Accreditation Committee through a written notice sent by Goodman and Gilman Pharmacological Basis of 6th class city/2nd-4th class 200,000.00 mail or fax. (PPI reserves the right to reject applications Therapeutics (latest edition) municipality which fail to comply with the standards and guidelines of the program.) 7. Following the issuance by BFAD of the License to 5th-6th class municipality 100,000.00 Operate (LTO), qualified applicants to be directly serviced 6. PPI will issue an Endorsement Letter in the name of the by PPI, who intend to avail of a credit line with PPI, shall Valid government licenses, business permits. qualified applicant and shall be submitted to the BFAD, issue in favor of PPI a security in any of the following Proposed location plan or vicinity map (floor area should be together with other requirements for the application for a which PPI can “collect” when necessary or upon demand: at least fifteen (15) sq. meters). License to Operate as a Drugstore. (In the case of Metro Surety bond issued by a reputable bank or insurance Capability to comply with the documentation, technical and outlets, PPI will endorse the application directly to company acceptable to PPI other requirements of the Bureau of Food and Drugs the Head Office of the BFAD). Regional or provincial Cashier’s or Manager’s Check (BFAD) in the filing of the application for a License to applicants shall submit the Endorsement Letter issued by Domestic standby Letter of Credit Operate (LTO) as a Drugstore, including the availability of PPI, together with all required documents, to the BFAD Deed of Assignment of Bank Deposit the services of a licensed Pharmacist. Regional Offices where the proposed outlet is located. Filled-out Application Form from PPI for the Accreditation Applicants shall be responsible for following up, All BNB outlets without a Security Bond posted with PPI of a Botika ng Bayan Outlet. monitoring, or coordinating directly with BFAD during the shall at all times pay on cash basis for goods ordered/ evaluation period, and for complying with additional delivered. requirements which BFAD may require. PPI may, however, assist NCR applicants in facilitating BFAD’s 8. Upon compliance of all requirements and PPI approval, a approval when necessary and if requested by applicant.) Certificate of Accreditation will be issued by PPI.