The need to form large-scale pharmaceutical corporations leading the industry in technology

The national strategy for the development of the Vietnamese pharmaceutical industry through 2030, with a vision to 2045, aims to meet 80% of domestic drug demand and capture 70% of market value, creating significant opportunities for local pharmaceutical companies.

Packaging at Imexpharm factory (Source: Imexpharm)

As of October 2024, according to data from the Drug Administration of Vietnam and the Ministry of Health, the country has 288 GMP-standard drug manufacturers, but only about 10% meet EU-GMP standards or equivalent (Japan-GMP) standards, while the majority adhere to WHO-GMP standards.

The production capacity and R&D (research and development) capabilities of pharmaceutical enterprises in Vietnam remain limited and fragmented. To become a center high-tech generic drug research and production in the ASEAN region and achieve WHO level 4 classification, Vietnam needs breakthroughs.

In Vietnam, new domestic policies are expected to create the necessary pushes for pharmaceutical enterprises in both scale and technology. As one of the few domestic pharmaceutical companies pursuing high-quality drug production standards from the outset, Imexpharm is currently the owner of the most EU-GMP-certified high-tech pharmaceutical production line in Vietnam with 11 EU-GMP lines in 3 factory clusters.

Staff working at Imexpharm factory (Source: Imexpharm)

Imexpharm currently leads the antibiotic and cough medicine market in Vietnam , outperforming foreign enterprises and establishing many successes in the domestic market in both ETC (prescription) and OTC (non-prescription) channels.

In the first half of 2024, Imexpharm rose to the third position in the ETC channel with a market share of 2.3%, and far surpassed other domestic enterprises. In the list of drugs not for foreign tenders, most of which are EU-GMP certified, Imexpharm accounts for 12 out of 93 SKUs on this list, providing a substantial advantage in supplying drugs to the ETC channel.

This is a typical case study showing how domestic production is gradually increasing its contribution to the growing pharmaceutical market, estimated to reach a value of US$20 billion by 2045. Accelerating the value and output of domestic drugs also reduces the healthcare system’s dependence on imported drugs, ensuring timely access to quality medical services.

The advantages of long-term sharp growth

According to the newly released Financial Report, Imexpharm's revenue in the first 9 months of 2024 increased by 12% over the same period of last year, reaching VND1,553 billion, completing 66% of the year's revenue target and bringing the company closer to its target by the end of 2024. Pre-tax profits in September increased dramatically by 42% over the same period last year and 43% over that of August. In 2024, Imexpharm aims for the net revenue of VND2,365 billion and pre-tax profits of VND423 billion, increasing by 19% and 12% respectively compared to that of the previous year.

CEO Tran Thi Dao speaks at Imexpharm's 2024 Shareholders' Meeting (Source: Imexpharm)

Imexpharm has completely increased its charter capital to VND1,540 billion, the highest charter capital of a company in the domestic pharmaceutical industry to date. This is a positive development, providing Imexpharm with additional resources to invest in R&D, high-tech pharmaceutical production and drug innovation.

According to a KPMG report, the Vietnamese pharmaceutical market is projected to reach US$16.1 billion by 2030, indicating significant growth potential. This creates opportunities for pioneering enterprises in R&D to enter specialized areas such as special drugs, generic drugs, vaccines, biological products and pharmaceutical ingredients.

In fact, by investing deeply in R&D, Imexpharm is creating an advantage in the pharmaceutical market and opening up an effective competitive direction for domestic pharmaceuticals. In the first 9 months of 2024, the demand for products from the IMP4 factory surged, boosting production output. At the same time, the company also increased production capacity at the IMP2 and IMP3 factories to meet market demands. In the first 9 months of 2024, the company launched 16 new products with 99 ongoing R&D projects.

Imexpharm has also announced plans to build the Cat Khanh Pharmaceutical Factory Complex Project in Dong Thap, aiming to diversify the product portfolio, meet domestic demand, and expand into new export markets. The project will cover ​​25,000sq.m with a total investment of VND1,495 billion, funded by 20% equity and 80% borrowed capital. The project is expected to start construction in the third quarter of 2025 with the goal of completion by the end of 2028 and starting commercial operations between December 2028 and the first quarter of 2030.

These are the foundations for Imexpharm to continue to maintain its leading position in the domestic market and join the global pharmaceutical supply chain.

“Pharmaceutical enterprises like Imexpharm have strong long-term growth potential in a large market of about 100 million people. As health awareness rises, the government is particularly making great efforts to improve healthcare services as well as the pharmaceutical industry, boosting the international competitiveness. With its solid foundations, Imexpharm is confident in contributing to the completion of the national strategy of supplying quality pharmaceuticals to Vietnamese people,” said Mr. Nguyen An Duy - Deputy General Director of Finance at Imexpharm.