Decoding Imexpharm's high growth momentum in 2025

The new wave of pharmaceutical dtocks

Right from the early trading sessions of the year, pharmaceutical stocks have shown positive movements. On February 11^th, IMP (Imexpharm Pharmaceutical Joint Stock Company) hit the daily price ceiling, reaching VND49,650 per share while DMC (Domesco Medical Import-Export Joint Stock Corporation) surged to VND86,600 per share.

For years, pharmaceutical stocks have been considered a defensive investment, favored for their stable growth and consistent dividend payouts. The latest surge in pharmaceutical stocks is fueled by expectations surrounding IMP as SK Group considers divesting its stake. Meanwhile, DBD (Binh Dinh Pharmaceutical and Medical Equipment JSC) is selling shares to strategic investors, and DMC is undergoing state divestment.

Workers at IMP EU-GMP factory. Photo: Imexpharm

Additionally, the pharmaceutical stock rally in 2025 is fueled by anticipated changes in bidding policies that prioritize EU-GMP certified companies. The Ministry of Health has issued Circular 03/2024 and Circular 07/2024, which stipulate that for Group 1 and Group 2 drugs, if at least three domestic manufacturers meet EU-GMP or equivalent standards and fulfill the Ministry’s criteria on quality, pricing, and supply capacity, imported drugs will be excluded from the bidding process.

This policy shift is expected to benefit companies such as DHG Pharma, Binh Dinh Pharma, and Ha Tay Pharma, with Imexpharm standing out due to its three EU-GMP certified factory clusters and 12 EU-GMP certified production lines. In the long term, the Action Plan of the National Strategy for Vietnam’s Pharmaceutical Industry Development, along with the revised Pharmaceutical Law and Health Insurance Law, underscores the government’s commitment to strengthening the domestic pharmaceutical sector. These initiatives aim to ensure a stable supply of high-quality medicines at competitive prices while positioning the industry as a key economic driver.

A clear outlook for high-tech pharmaceuticals

According to IQVIA’s third-quarter 2024 report, high-tech and high-value pharmaceutical products, particularly vaccines, are driving market growth. The report indicates a compound annual growth rate (CAGR) of 10.4% per annum from 2022 to 2024, with a year-over-year growth of 9% as of the moving annual total (MAT) for Q3 2024. Recognizing this trend, Imexpharm is proactively expanding its production capacity with plans to develop the Cat Khanh Pharmaceutical Complex on a 25,000 m² site, investing approximately VND1,495 billion in Q3 this year. This strategic initiative will allow Imexpharm to further diversify its product portfolio, meet growing demand, and expand into additional export markets.

Inside an EU-GMP factory of IMP. Photo: Imexpharm

While policy changes typically take 1-2 years to materialize, they serve as a key short-term growth driver for companies like Imexpharm, one of the fastest-growing pharmaceutical firms in Vietnam. In 2024, Imexpharm achieved a net revenue of VND2,205 billion, marking a 10.6% increase from the previous year. This revenue is the highest among its peers and was driven by continued momentum in the ETC (Ethical Drugs Channel) and injectable products. Moreover, resilient sales efforts in the OTC (Over-the-Counter) segment kept it on par with the stagnant retail channel of local companies.

Looking ahead to 2025, in addition to its strengths in antibiotics, cardiovascular, diabetes, and hypertension drugs, Imexpharm plans to expand into high-value segments, particularly injectables and dispersible tablets, which are expected to account for a growing share of pharmaceutical sales in the coming years. This trend is fueled by rising treatment demands, increased healthcare coverage, higher disposable incomes, and improved medical infrastructure.

Over the past two years, the pharmaceutical market has entered a phase of stable growth, maintaining an 8-10% annual increase with rising demand for high-value products. Although competition from imported medicines remains a challenge for domestic manufacturers, particularly in the OTC market, it also serves as an impetus for advancements in R&D and manufacturing capabilities.

Innovation remains at the heart of Imexpharm’s strategy, with 24 new products launched across all production facilities, including one First Generic product and 98 ongoing R&D projects. Additionally, Imexpharm has expanded its European marketing authorization to 28 licenses for 11 products, further reinforcing its foundation for global growth.

People’s Doctor and Pharmacist Trần Thị Đảo, General Director of Imexpharm, affirmed:

“Imexpharm is dedicated to implementing a sustainable Quality and Efficiency (QE) strategy to strengthen its competitive edge in bidding. With a strategic expansion plan targeting both domestic and international markets, we are confident in delivering long-term value to our stakeholders while contributing to the growth of Vietnam’s pharmaceutical industry and the broader region.”