The problem of finding a business capable of leading the domestic pharmaceutical industry
In the pharmaceutical industry development strategy, the formation of large-scale enterprises is necessary to ensure a stable supply of drugs for the domestic market and aim to promote exports.
Great opportunity for domestic pharmaceuticals
The pharmaceutical industry is facing opportunities for recovery and high growth. With a market of 100 million people and a rapid aging rate, the demand for health care and treatment with drugs and pharmaceuticals is increasing, and spending on pharmaceuticals is also on the rise.
In addition, the new generation Free Trade Agreements (FTAs) that Vietnam has signed also create growth momentum for the pharmaceutical industry in the coming time, aiming at product lines that meet higher standards. These opportunities are set out in the National Strategy for the Development of the Vietnamese Pharmaceutical Industry to 2030, with a vision to 2045, opening up prospects for sustainable development for the industry.
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| Employees working at Imexpharm factory. Photo: Imexpharm |
According to data up to October 2024 from the Department of Drug Administration, the country has about 288 drug manufacturing facilities according to GMP principles, of which the number of facilities meeting EU-GMP standards or equivalent (Japan-GMP) is about 31, the rest are facilities meeting WHO-GMP standards.
Of all industries, according to Pharma Group, the pharmaceutical industry always has the largest investment in R&D. The R&D content of the world's biopharmaceutical industry is up to 15.5% of revenue. The general trend of the Vietnamese and world pharmaceutical industry is to upgrade to the highest production standards to create high-quality products. The Vietnamese pharmaceutical market is increasingly competitive due to the participation of large multinational enterprises, so the formation of domestic pharmaceutical enterprises with sufficient financial and technological scale is more urgent than ever.
And competitiveness in the international market
The pharmaceutical market has initially had brands that have affirmed their names with a scale in the Top 10 in terms of revenue such as Imexpharm, DHG Pharma, Stella Pharm... Most of these enterprises have foreign strategic shareholders to increase the content of R&D, international management model as well as expand domestic and foreign markets.
Therefore, these enterprises are facing opportunities for high growth and expansion and competition in the international market. According to the Drug Administration of Vietnam, the total value of the Vietnamese pharmaceutical market in 2023 is estimated to reach 8 billion USD, and is forecast to grow strongly to 20 billion USD by 2045, putting Vietnam in the group of countries with the highest pharmaceutical value and fastest pharmaceutical growth rate in the world.
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| General Director Tran Thi Dao speaks at Imexpharm 2024 Shareholders' Meeting. Photo: Imexpharm |
“A strong financial foundation continues to help the Company invest in technology, keeping up with the strong changes in the pharmaceutical market structure in the coming time. In addition, we are also ready for digital transformation and green transformation to compete on an international scale,” said Ms. Tran Thi Dao, General Director of Imexpharm Pharmaceutical Joint Stock Company.
With 3 EU-GMP factory clusters and 11 EU-GMP production lines, Imexpharm is ranked No. 1 in Vietnam for antibiotics. Imexpharm is leading a new trend for the Vietnamese pharmaceutical market, both meeting domestic market demand and improving competitiveness with foreign pharmaceuticals.
Recently, Imexpharm has completed increasing its charter capital to VND1,540 billion, becoming the company with the highest charter capital in the domestic pharmaceutical industry today. This is a positive signal in the context that the Vietnamese pharmaceutical industry is still quite fragmented, with many small companies with limited financial potential. On the other hand, the strong financial foundation continues to create conditions for Imexpharm to invest more strongly in R&D, high-tech pharmaceutical production, and pharmaceutical invention, contributing to the strategy of ensuring drug supply for the domestic market.
According to the newly released Financial Report, Imexpharm's revenue in the first 9 months of the year increased by 12% over the same period last year, reaching VND 1,553 billion, completing 66% of the year's revenue target, bringing the Company closer to the year-end target. Pre-tax profit in September increased dramatically by 42% over the same period last year and 43% over August. In 2024, Imexpharm targets net revenue of VND 2,365 billion and pre-tax profit of VND 423 billion; respectively increasing by 19% and 12% over the previous year.
With favorable growth conditions, in the first 9 months of 2024, Imexpharm launched 16 new products with 99 ongoing R&D projects. By providing quality, reasonably priced specialty drugs, the Company has replaced imported drugs in many hospitals, helping to increase competitiveness in the domestic market and create barriers for foreign pharmaceutical companies. Along with 3 EU-GMP standard factory clusters, to anticipate growth, Imexpharm has also announced plans to build the Cat Khanh Pharmaceutical Factory Complex Project in Dong Thap.
“In the long term, the Company will promote the development of new products that are in high demand, complex and difficult to produce. The investment direction for high technology and innovative pharmaceuticals of pharmaceutical companies such as Imexpharm contributes to Vietnam achieving the goal of becoming a regional pharmaceutical production center,” said the leader of Imexpharm.
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