Ayala takes on pharmacy giants with a Japanese wellness bet

May 31, 2026
11:27AM PHT

Ayala-backed AC Health is looking to stand out in a pharmacy market long dominated by Mercury Drug and Watsons, betting Filipino consumers will embrace a distinctly Japanese approach to health and wellness retail.

The healthcare group opened the first St. Joseph Drug Powered by SUGI branch at One Ayala, bringing in the retail playbook of Japan’s Sugi Holdings as competition increasingly shifts beyond prescription drugs and into wellness, beauty and preventive healthcare.

The launch follows AC Health’s acquisition of a 49 percent stake in St. Joseph Drug in 2024 and a subsequent partnership with Sugi Holdings to bring Japanese products and retail expertise to the Philippines. 

The flagship store also marks the latest chapter for the nearly 70-year-old St. Joseph Drug brand as it seeks to expand beyond its traditional stronghold in North and Central Luzon.

Beyond medicine

Instead of competing solely on medicines, the concept combines pharmacy services with skincare, supplements, beauty products and lifestyle items, mirroring the format that has made Japanese drugstores destinations for everyday wellness spending.

The store also carries Japanese wellness products, household essentials, snacks and beverages, reflecting a retail model built around preventive care rather than treatment alone.

AC Health is bringing Japan’s drugstore model to the Philippines, blending traditional pharmacy services with wellness, beauty and lifestyle products as it expands beyond medicine into preventive healthcare and everyday wellness./Photo from Ayala 

“Through St. Joseph Drug Powered by Sugi, we wanted to create a destination that feels approachable, modern, and rooted in wellness — while still delivering the accessibility and reliability people expect from a pharmacy,” Atty. Yet Abarca, president and CEO of AC Health Pharma Ventures, said in a statement.

Japanese expertise

The partnership gives AC Health direct access to the retail expertise of one of Japan’s leading drugstore operators, known for integrating pharmacy services, wellness products and preventive healthcare into a single retail experience.

“We are very excited to bring the Sugi wellness experience to the Philippines through this partnership,” Tsuyoshi Yamamoto, director and CEO of S. Trading, Sugi Holdings’ overseas trading company, said in the same statement.

The launch forms part of AC Health’s broader effort to build a consumer healthcare ecosystem that extends beyond clinics, hospitals and traditional pharmacy dispensing into preventive health and wellness.

—Edited by Miguel R. Camus 

Ayala Malls, St. Joseph Drug, AC Health, and Sugi executives launch the first Japanese-inspired pharmacy in One Ayala, bringing together local healthcare expertise and Japan’s globally recognized approach to preventive wellness and customer-centered retail./Photo from Ayala 
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