April 2013 A bi-monthly publication of PITC Pharma, Inc. Vol. 1, No.2

Pres. Pet reports 1st quarter net income of P6.25 M

PITC Pharma, Inc. posted a net income of Php 6.25 million in the first quarter of 2013, up by 178% from last year’s loss of Php 7.97 million and 255% over the projected income of Php 1.76 million.

Total sales for the period grew 301% to Php 32.46 million from Php 8.09 million for the same period in 2012. Major sales contributors for the quarter were the 3rd quarter delivery of Acute Lymphocyctic Leukemia Medicines Access Program (ALLMAP) and Breast Cancer Medicines Access Program (BCMAP) medicines for the Department of Health (DOH) and the completion of the CHAMP Project for the City Government of Cebu.

Gross profit for the first three months totaled Php 16.4 million, higher by 251% over the same quarter last year while operating expenses decreased by 29% to Php 6.08 million from Php 8.57 million. Consequently, income from operation for the quarter was Php 10.32 million, 365% better than last year’s loss of Php 3.9 million and 81% higher than budget.

PPI’s performance for the first three months of the year sets an optimistic tone for 2013. “We expect to sustain this growth trend for the next quarter as the purchase orders for the 2013 oncology project and influenza and pneumococcal vaccines

amounting to Php 353.914 million gets to be invoiced as we commence delivery to the different access sites,” Pres. Pet said.

The availability of commonly-used essential medicine being carried by the Procurement Service of the Department of Budget and Management (PS-DBM) may soon be possible. This is if the proposal submitted by PPI to have 30 essential medicines made available by the PS-DBM in its 25 depots and commissaries is approved by Budget Secretary Florencio Abad.

President Pet met with Atty. Estanislao C. Granados, Jr., PS-DBM Executive Director on April 8, 2013 to discuss a possible partnership arrangement between PPI and PS-DBM that will address the essential medicines requirement of the public sector.

During the past few months, the National Center for Pharmaceutical Access and Management (NCPAM) has been leading consultations and workshops with stakeholders in drafting a National Medicine Procurement Strategy (NMPS). The output of these consultations and workshops is an Administrative Order (AO) that will lay-down the policies and guidelines for a strategy that will apply to procurement of medicines from the Department of Health (DOH) Central Office down to the Rural Health Units (RHUs). Recognizing the mandate and strengths of PPI, the proposed AO designates PPI to be the procuring arm of the DOH.

It has been observed that procurement of medicines in the public sector is fragmented. The DOH centrally procures medicines for some national health programs while its regional offices conduct their own procurement for localized programs. On the other hand, medicines procurement for local government units was devolved in 1992 with the enactment of R.A. 7160 otherwise known as the Local Government Code of 1991. Therefore, the need to subsume procurement of medicines under a broader national health care development program and national procurement policy is very important.

The DOH thought of coming out with a NMPS to steer medicines procuring agencies toward the adoption and enforcement of minimum standards that will secure the availability and affordability of quality assured medicines along the entire pharmaceutical supply and distribution chain in the public sector.

Currently, PPI is handling the on-going medicines access programs on childhood leukemia and breast cancer. Another national program that NCPAM is thinking of passing on to PPI is the replenishment system for the Rational Treatment Packs which are currently being used by RHUs for Philhealth’s Primary Care Benefit 1 (PCB1) package. If the AO is approved, this would mean an additional business for PPI of Php 1.4 billion per year.

PPI and PSPPI and PSPPI and PSPPI and PS----DBM explore possible partnershipDBM explore possible partnershipDBM explore possible partnershipDBM explore possible partnership

DOH medicines procurement strategy eyes PPI as its procurement arm

During the meeting, he presented to Dir. Granados the pooled procurement system that PPI is offering to the different national government agencies as well as local government units. He pointed out that the current practice of individual procurement of medicines has resulted in extreme variability of prices in the Philippines across each facility and even for the same item within the same public health facility. This was the result of a study done in 2009 by the Health Action International (HAI) to assess efficiency of public procurement of medicines at various levels of the health system in the Philippines. An example shown

Meeting with Philhealth. President Pet met with Philhealth COO Alexander A. Padilla (3rd from right) and the Special Benefits Team headed by Dr. Robert P. So (4th from left) to discuss PPI’s role in the implementation of the Philhealth special benefit packages. Others in photo are: Daryl Calabio, Dr. Billy Ignacio, VP Joe Cortez, Joy Riel, Cynthia Rio and Dr. Mel Santillan.

PPI and PS-DBM explore.../ page 3

2 April 2013

PET’s CORNER

Bienvenido “Pet” Bautista President & CEO

EDITORIAL TEAM

Writers: Joy Riel and Boots Trillana

Lay-out Artists: Jess Belen and Isa Jurado

People, Programs, Initiatives is a

bi-monthly publication of PITC Pharma, Inc. with offices at 2/F NDC Building, 116 Tordesillas St., Salcedo Vill., 1227 Makati City. Telephone numbers: (02) 840-1123, 840-2680, 840-3704, 840-4540, 840-4056 and website at www.pitcpharma.com.ph

People, Programs, Initiatives

On�April�23,�2013,�we�submitted�to�the�Board�of�PPI�our�first�quarter�results�and�what�a�refreshing�change�it�has�been�for�our�company.�We�are�now�profitable�on�a�net�income�basis�and�we�are�tracking�way�ahead�of�last�year�in�sales�and�operating�income.��

What�has�changed?�I�believe�it�is�because�everyone�now�in�the�company�has�a�winner's�attitude.�There�is�now�a�'can�do'�attitude�among�all�of�us,�from�a�'can't�be�done'�to�a�'can�certainly�be�done�or�we�will�try�our�best'�posture.��

What�is�a�winner's�attitude?�He�is�a�person�who�says�that�life�is�tough�but�if�I�am�tough�on�myself,�life�is�going�to�be�infinitely�easier�on�me.�So�the�message�to�all�my�co-workers�is:�whatever�you're�doing,�give�it�all�you've�got.�That's�the�winner's�attitude.�Have�you�noticed�that�your�own�perspective�has�changed?�For�the�better?��

But�we�need�to�continue�to�plan,�to�strategize,�and�to�plant�the�seeds�which�will�sprout�the�fruits�of�our�labor.�We�have�done�lots�of�planting�-�establishing�our�credibility�with�our�customers�and�our�suppliers,�sending�over�a�hundred�offer�letters�to�many�governors�and�mayors,�barangay�chairs,�and�have�done�lots�of�presentations�to�establish�the�fact�that�we�are�not�a�supplier�but�a�procurement�arm�of�any�government�agency�that�needs�medicines.��

We�continue�to�tear�down�the�roadblocks�to�doing�our�jobs�well�-�the�GPBB�has�given�an�opinion�that�a�performance�security�bond�is�not�mandatory�but�is�discretionary�on�the�part�of�the�procuring�agency.�If�we�are�able�to�reduce�our�costs�of�doing�business,�then�cash�flow�will�be�less�of�a�problem�and�we�will�be�true�to�our�promise�to�our�suppliers�that�we�will�now�be�paying�them�on�time.�Another�roadblock�is�the�persistent�use�or�reimbursement�by�government�agencies�of�'branded'�medicines�even�if�this�is�a�violation�of�RA�6675�or�the�Generics�Act�of�1988.�In�this�light,�we�understand�that�our�request�that�a�circular�be�issued�by�the�COA�mandating�that�only�medicines�included�in�the�Philippine�National�Formulary�should�be�used�by�all�government�agencies�is�ready�for�signing�by�the�Chair,�Hon.�Ma.�Gracia�Pulido-Tan.�Another�roadblock�is�the�lack�of�training�of�our�people;�most�of�the�Mancom�have�now�received�some�form�of�outside�training,�and�more�important,�all�of�you�have�recently�undergone�a�seminar�on�RA�9184�or�the�Government�Procurement�Reform�Act,�which�ensures,�as�we�get�bigger�in�terms�of�being�THE�procuring�arm�of�agencies�for�medicines,�that�we�all�do�our�jobs�better.��

Make�no�mistake�about�it�-�the�bar�has�been�heightened,�the�expectations�are�higher,�the�admin�work�more�disciplined�(we�have�just�released�our�PPI�Code�of�Conduct),�but�the�rewards�will�be�greater.�You�will�all�be�recognized�and�given�credit�for�your�accomplishments,�so�just�keep�repeating�behavior�that�works�-�remarkably�it�is�that�simple.��

Finally,�as�I�look�at�my�first�5�months�and�see�the�strides�we�have�made,�there�is�one�more�aspect�to�our�work�that�needs�improvement,�and�that�is�compatibility.�In�our�small�company�there�continue�to�be�lots�of�independent�minded�personalities,�which�is�good,�but�only�to�a�point.�We�all�need�to�work�together�more�closely,�understand�our�different�roles,�and�be�compatible.�A�company�with�internal�strife,�no�matter�how�small,�will�not�be�able�to�conquer�the�challenges�and�opportunities�if�it�is�or�even�perceived�to�be�divided.��

I�love�this�famous�quotation�which�is�applicable�to�us�in�PPI:�“Daily�actions�are�a�person's�temple.�Spirituality�is�our�lamp,�Morality�is�the�door,��Ethics�the�vehicle�and�Love�the�altar.”��

Thank�you�and�Mabuhay�ang�PPI!������

Training is essential to the achievement of the company’s targets. This could be in-house training or training arranged by outside experts. A training program allows a company to strengthen the skills that each employee needs to improve, but many employers find the development opportunities expensive. Employees also miss out on work time while attending training sessions, which may affect the completion of on-going projects. Despite the potential drawbacks, training and development provides both the company as a whole and the individual employees with benefits that make the cost and time a worthwhile investment. The company will gain the most from its employees if they are given the opportunity to develop their skills and competencies. A highly skilled employee is a very productive and “engaged” employee.

PPI’s financial conditions has made it challenging for the company to provide training to its employees. Recognizing its importance, Pres. Pet arranged with some of his friends in the training industry to provide PPI scholarships, giving some of the officers and staff the opportunity to attend trainings and seminars related to their specific field of work.

Cynthia Rio and Litz Cruz, Field Operations Managers attended the 9-Step Strategic Sales Planning which was held on January 15 – 16, 2013 while Olga Layog and Corky Arriola participated in the Effective Negotiating and Influencing Skills on January 17 – 18, 2013. Both seminars were conducted by Mansmith and Fielders, Inc., the leader in sales and marketing seminars and the free seats were courtesy of its Chairman, Mr. Josiah Go.

On January 30 – 31, 2013, Administration Manager Boots Trillana was sent to attend the Seminar on Crafting HR Policies and Contracts conducted by the Center for Global Best Practices while VP for Finance Jackie Mendoza attended the Seminar on Transfer Pricing Regulations and other Updates conducted by Punongbayan and Araullo on February 28, 2013. Atty. Che Pantaleon attended a 4-day MCLE-accredited seminar in March 2013. PPI also capitalized on the free seminars provided by the Department of Health (DOH) and the Bureau of Internal Revenue (BIR). Nancy Ramos and Leah Zaragosa attended the DOH Orientation Seminar on the Philippine National Formulary

Pet

The Power of Training and

Development

The power of training ... /page 3

3 April 2013

1st quarter business review and sales conference 1st quarter business review and sales conference 1st quarter business review and sales conference 1st quarter business review and sales conference

People, Programs, Initiatives

Sales Team in Action. . .Sales Team in Action. . .Sales Team in Action. . .Sales Team in Action. . .

VP Joe Cortez and Litz Cruz during the presentation to the V. Luna General Hospital Therapeutic Committee Members headed by its Chairperson Col. Regina M. Canonizado.

President Pet with Civil Service Commission Chairman and former PPI Chairman Francisco T. Duque and Commissioner Robert Martinez during the ISA Public Governance Forum held at EDSA Shangri-la Hotel last 19 March 2013.

was the procurement prices for generic amoxicillin 500mg capsules which varied from Php1.50 to Php10.90 per capsule.

He informed Dir. Granados that one of the recommendations of the study is for government to explore more efficient methods of medicines procurement such as pooled procurement. Consolidation of purchasing power for medicines across all government agencies and health facilities is one means to addressing the imbalance on market leverage between supply and demand. In line with this, PPI thought of partnering with PS-DBM by proposing the inclusion of 30 essential medicines in their list of commonly-used items and making this available in their 25 depots and commissaries in the different regions. The proposal will not only ensure transparency and enhance efficiency in the procurement of medicines and be mutually beneficial for both organizations but more importantly it will result in government entities having access to low-priced quality medicines sourced from reputable local and foreign companies.

Dir. Granados told Pres. Pet that now would be an opportune time for PPI to propose this set-up since Sec. Abad wants to include medicines which are frequently ordered by government agencies in its list of commonly-used items. The proposal was sent to Sec. Abad through Dir. Granados on April 15, 2013.

System on March 7—8, 2013. Irma Lim and Mary Jane Diagro participated in the Seminar on Tax Updates and Joyce Alimon, Irma Lim and Becky Capricho in the Seminar on Government Withholding Agent which were sponsored by BIR on March 7, 2013 and April 19, 2013, respectively.

Attendance to these trainings and seminars seeks to improve not only the employee’s proficiency related to their specific field, but also their interpersonal and communication skills. These abilities are constantly developing and perhaps more important than field related abilities.

Olga Layog and Lolit Caburnay of the Field Operations Department for Ins t i t u t ional Accounts presents PPI’s services to the National Council on Muslim Filipinos headed by Secretary Mehol Sadain (top photo on the right, 2nd from right) and the Pag-ibig Clinic staff headed by Mr. Philip Quijano, OIC of the Personnel Department (top photo).

PPI and PSPPI and PSPPI and PSPPI and PS————DBM explore possible DBM explore possible DBM explore possible DBM explore possible

partnership partnership partnership partnership from page 1

Pres. Pet presents PPI’s pooled procurement system during the 1st Quarter Management Conference of the Bureau of Jail Management and Penology (BJMP).

The power of training…. from page 2

The 1st Quarter Sales Conference and

Business Review was held on April 3 – 4, 2013 at the A. Barretto Hall of the NDC Building in Makati City. It gathered all the 11 field-based officers and gave them the opportunity to improve effectiveness by sharing market information and feedback from the different customers. The managers of the different support groups were also invited to attend to enhance cooperation between and among the different departments.

The activity focused on coming out with an action plan to be able to meet the company’s target as well as identifying and targeting the big ticket accounts which should be prioritized considering the limited manpower and financial resources of the company.

At the end of the 2-day activity, Pres. Pet hosted dinner and entertainment for all the participants.

4 April 2013 PPI ACTIVITIES

BIRTHDAY CELEBRANTS! MARCH

Isa Jurado - 4

APRIL

Leo Balen - 8

Atty. Rory F. Timbol – 9

Litz Cruz – 12

Dick Lucero – 26

Irma Lim—30

UPCOMING ACTIVITIES and EVENTS…..

10 May 2013—State of the Business Meeting 11 May 2013 - PPI Company Outing

Warm welcome and fond farewell . . . Warm welcome and fond farewell . . . Warm welcome and fond farewell . . . Warm welcome and fond farewell . . . In the workplace, just as in life, there are moments of welcoming and there are times when one must bid a fond farewell. As PPI continues to beef up its present manpower complement to achieve its targets, it made four key appointments just before the election ban on hiring took effect on March 29, 2013.

Marivic Diane P. Conste joined PPI on March 18, 2013 as Account Officer for its Corporate Accounts. Diane, as she is fondly called by family and friends has a

combined 7-year sales experience in the pharmaceutical, healthcare and manufacturing industry. She was formerly connected with Hi-Esai Pharmaceutical Incorporated and Isopharma Incorporated as Medical Representative. She graduated from the Polytechnic University of the Philippine with a degree in Clinical Psychology in May 2003.

Mapple Anne B. Abiera was appointed on March 20, 2013 to supplement the greatly depleted Accounting Department. Maan was conferred the Academic Award of Excellence when she

graduated with a Bachelor of Science in Accountancy degree from the Manuel S. Enverga University Foundation in March 2012.

Dianella P. Caponpon joined PPI on March 25, 2013 as Sales Processor of the Sales Support and Administration Department (SSAD). Prior to joining PPI, Ella was a Preventive

HealthCare Consultant for GlaxoSmithKline Philippines, Inc. She earned her Bachelor of Arts in Mass Communication degree from St. Scholastica’s College in March 2007. Just a month after her appointment, Ella will be working double-time as she takes on the responsibilities of Irene Neiz who will be going on maternity leave. Atty. Ben Ferdinand F. Cruz was appointed Manager of the Legal Affairs Department on March 26, 2013. In November 2008, Atty. Ben started his first job as a Corporate Associate Counsel at Thunderbird Resorts, Inc.. In September 2010, he joined the Securities and Exchange Commission (SEC) as its Security Review

Counsel. He also teaches law at the City University of Pasay. Atty. Ben graduated cum laude with a degree in Bachelor of Arts in Political Science from the University of the Philippine in Diliman. He also pursued his law studies from the same school and graduated in April 2006. He took the bar examinations on the same year and was admitted in May 2007.

As PPI welcomes its new members, it also bids farewell to Joicy Capulong, Pharmacist at the Regulatory Affairs Division who resigned on April 4, 2013, Cynthia Rio, Field Operations Manager for Institutional Accounts who will be leaving on April 30, 2013 and Joy Riel, Consultant whose last day in PPI will be on May 8, 2013. Cynthia and Joy have been with PPI since its creation in 2005 and even when the pharmaceutical business was just a department under PITC while Joicy served the company for almost 4 years. Cynthia has been instrumental in growing the DOH account while Joy played an important role in shaping the different access programs of the DOH wherein PPI is currently its procurement partner.

The PPI family welcomes Diane, Maan, Ella and Atty. Ben to their new roles and wishes Joicy, Cynthia and Joy all the best on their next great adventures in life.

Seminar on the Government Procurement Law

The entire PPI Bids and Awards Committee (BAC) together with all Account Officers and some officers and staff involved in the procurement process attended the company-initiated Seminar on R.A. 9184 otherwise known as the Government Procurement Reform Act last April 10, 2013 held at the A. Barretto Hall of the NDC Building in Makati City.

The one-day event focused on the Revised Implementing Rules and Regulations (IRR) of R.A. 9184. Resource person Atty. William G. Ragamat, Head of the Information and Management Division of the Government Policy and Procurement Board – Technical Support Office (GPPB-TSO) discussed the Revised IRR and Procurement Planning and Monitoring while Atty. Marc Gregory M. Solano, PMO IV of the Legal and Secretariat Division talked about the Standardized Bidding Procedures for Goods, Alternative Methods of Procurement and the Penal, Civil and Administrative Provisions, Protest Mechanisms and Blacklisting Guidelines.

The seminar was an opportunity for the BAC members to brush-up on the procurement law and for the sales personnel to understand the process which will come in handy when dealing with government clients. Certificates of participation were given to all the attendees after the seminar.

Salu-salo with President Pet

Filipinos are well known for making up any excuse to have a salu-salo since we are so fond of eating together, both for gustatory and socio-cultural reasons. Every other month, Pres. Pet hosts a salu-salo for birthday celebrants. Unlike the usual get-together where there are lots of food, this one is heavy on sharing of laughter and information – where the company is going, personal stories about the celebrants and anything that the employee

wants the boss to know. It is a time for him and the employees to get to know each other.

Last April 2, 2013, the March and April birthday celebrants were treated by Pres. Pet to merienda at the PPI Conference Room. In attendance were Isa Jurado, Leo Balen, Litz, Cruz, Dick Lucero and Irma Lim who are all celebrating their birthdays in March and April and Administration Manager Boots Trillana.

PPI issues Employee Code of Conduct

PPI recently adopted a Code of Conduct for Employees that sets out the standards of behavior expected of its officers and staff. Employees were each given a copy of the Code and were asked to sign-off on the document to signify their acceptance and intent to follow the policies set forth. The company’s Administration Department is responsible for implementing and monitoring compliance with the Code. Violations of the Code shall subject the employee to disciplinary action.

PPI Activities, Events and Updates PPI Activities, Events and Updates PPI Activities, Events and Updates PPI Activities, Events and Updates

Participants listen to Atty. Marc Gregory M. Solano of GPPB-TSO during the Seminar on Government Procurement.

March and April birthday celebrants during the salu-salo with Pres. Pet. (L-R) Dick Lucero, Leo Balen, Boots Trillana, Irma Lim, Litz Cruz and Isa Jurado