Pharma giants seek to cash in on local market potential

While several sectors are being hit by the coronavirus outbreak, the pharmaceutical and healthcare industry is taking an advantage, with numerous expansion strategies among players being placed in the gun barrel.

Pharma giants seek to cash in on local market potential
Pharmaceutical firms are among the few who could profit from recent global events and are planning to extend operations further 

 

According to the latest report on the novel coronavirus (nCoV) crisis from BIDV Securities, there are positive signals for companies in pharmaceuticals and healthcare, with them expecting to be one of the beneficiaries from the outbreak. Conversely, aviation, oil and gas, tourism, and other sectors that consist of strong exports to China are set to suffer the most.

Shares of pharmaceutical firms have gained in recent days, with Imexpharm Pharmaceutical JSC (IMP), Hau Giang Pharmaceutical JSC (DHG), and OPC Pharmaceutical JSC being the most impressive. IMP, DHP, and Ha Tay Pharmaceutical JSC are gaining from an increase in demands for antibiotics, while Binh Dinh Pharmaceutical and Medical Equipment JSC and OPC Pharmaceutical JSC are benefiting from bactericides.

“The drug firms trading via the over-the-counter (OTC) channel and with a high rate of products related to the nCoV outbreak will gain as local demands are growing,” the report stated.

IMP, DHG, OPC, and Traphaco JSC are among the biggest drugmakers in Vietnam. Traphaco now has one distribution company and 28 distribution branches, while DHG has 37 distribution branches and OTC is one of their main business lines.

In addition to growing demands, the government’s newly-approved policy that gives an exemption from import duty for medical masks, materials for local healthcare mask production, and water disinfection to further efforts to prevent and fight against the nCoV outbreak will become another boon for those trading these products.

A representative of Dai Uy Pharmaceutical JSC, which produces masks, said that it has about six quintals of filters for gauze mask production. If its factories run at the maximum capacity of three shifts a day, they can produce nearly 100,000 units on a daily basis. However, this means they will run out of filters within the next 10 days.

In this trend, along with domestic drug makers, multinational corporations (MNCs) are also earning an advantage. 3M Vietnam, established in 1994 as a leader in personal protective equipment, has been growing steadily in the country. In recent days amid the nCoV epidemic, 3M-branded gauze masks have been the most sought-after in Vietnam. “3M is increasing global production of respiratory protection products as quickly as possible in response to the outbreak,” a representative of 3M told VIR.

Novartis, Sanofi, GSK and Pfizer, which are the leading producers of medicines and vaccines, are also important players in the medicine supply chain. “The epidemic does not affect our operations in Vietnam. We are working to ensure the supplies of brand-name drugs and necessities for patients,” said Roeland Roelofs, country president at Novartis Vietnam.

In 2019, the value of Novartis medicines in Vietnam reached more than $120 million.

To expand in Vietnam, Novartis last month inaugurated its new legal entity in the country, Novartis Vietnam Co., Ltd., becoming one of the first MNCs in the country to successfully transform from a representative office to a foreign-invested enterprise importer. This new move will enable the firm to ship more branded drugs to Vietnam.

 

Similarly, at a regional and global level, Sanofi is currently leveraging its unique expertise in infectious diseases to help China and the rest of the world combat the emerging outbreak.

“At this moment, our focus is ensuring there is no discontinuation in the production and distribution of our medicines and vaccines in China by closely monitoring the situation,” said Haissam Chraiteh, general manager of Sanofi Indochina.

After 50 years of presence in Vietnam, Sanofi developed a leading position in the national pharmaceutical market. In 2019, Sanofi made a significant contribution to developing the local healthcare industry by providing around 50 scientific training sessions, offering integrated care solutions to help millions of Vietnamese patients prevent and treat ailments, and bringing millions of vaccine doses to help protect adults and children from infectious diseases.

Last year also marked an important one for Sanofi after it received an import license from the Ministry of Health, thus enabling it to ensure and stabilise product supply to Vietnamese consumers.

Vietnam is now open to receive many kinds of branded pharmaceuticals and vaccines produced in third countries. MNCs tend to produce branded drugs and vaccines in related nations to reduce costs and to tap into local advantages and Vietnam, where drug spending per capita rose 10.6 per cent on-year in 2018, and is forecast to increase further in the coming time.

With two-digit growth forecast in the next five years, reaching an estimated $7.7 billion in 2021 from the current $5 billion, Vietnam’s lucrative pharmaceutical industry continues to be on the radar of many MNCs.

Vietnam is likely to see strong business and investment activities from such groups in the near future, driven by the enforcement of the EU-Vietnam Free Trade Agreement. VIR

Bich Thuy

Pharmaceutical stocks benefit from disease spread

Pharmaceutical stocks benefit from disease spread

Pharmaceutical stocks are experiencing an upsurge as fears of coronavirus have boosted demand for healthcare products and services, lifting demand for shares.  

Foreign investors continue to target Vietnam’s pharmaceutical industry

Foreign investors continue to target Vietnam’s pharmaceutical industry

Vietnam's pharmaceutical market has a lot of potential coming from the demographics, rising income and priority policies of the government.

 
 

Other News

.
Coronavirus: Amazon workers threaten strikes over virus protection
Coronavirus: Amazon workers threaten strikes over virus protection
BUSINESSicon  31/03/2020 

Some US workers at Amazon and Instacart are threatening to strike over inadequate coronavirus protections.

Aerospace components manufacturing plant inaugurated in Da Nang
Aerospace components manufacturing plant inaugurated in Da Nang
BUSINESSicon  31/03/2020 

The Sunshine aerospace components manufacturing facility was recently inaugurated in the central city of Da Nang, according to the Da Nang Hi-Tech Park and Industrial Zones Authority.

Toyota Motor Vietnam suspends vehicle production
Toyota Motor Vietnam suspends vehicle production
BUSINESSicon  31/03/2020 

Toyota Motor Vietnam (TMV) suspended vehicle production on March 30.

European Council passes final procedure for EVFTA
European Council passes final procedure for EVFTA
BUSINESSicon  31/03/2020 

The European Council on March 30 passed a decision to ratify the EU-Vietnam Free Trade Agreement (EVFTA), paving the way for the deal to come into force.

Disbursement of public investment would help lift Vietnam's GDP by 0.42 percentage points
Disbursement of public investment would help lift Vietnam's GDP by 0.42 percentage points
BUSINESSicon  30/03/2020 

Boosting the disbursement of all planned public investment would help increase this year’s gross domestic product (GDP) by 0.42 percentage points, according to the General Statistics Office (GSO).

Kien Giang, Long An provinces want rice export ban lifted
Kien Giang, Long An provinces want rice export ban lifted
BUSINESSicon  30/03/2020 

The Mekong Delta provinces of Kien Giang and Long An have asked the Government to reconsider its temporary ban on rice exports, saying it would discourage farmers from growing the autumn-winter crop this year.

Restaurants offer free delivery amid COVID-19 outbreak
Restaurants offer free delivery amid COVID-19 outbreak
BUSINESSicon  30/03/2020 

Because of the impact of COVID-19 outbreak, many restaurants in HCM City are struggling and offering free delivery services to attract customers who are eating at home instead of going out.

COVID-19: Business facilities, services allowed to operate in Hanoi
COVID-19: Business facilities, services allowed to operate in Hanoi
BUSINESSicon  30/03/2020 

Hanoi has also called on places of worship not to organize events with large numbers of people, and to limit public gatherings as the number of COVID-19 infection cases in the city keeps rising.

Fitch Solutions lowers Vietnam’s growth forecast
Fitch Solutions lowers Vietnam’s growth forecast
VIDEOicon  30/03/2020 

Fitch Solutions has recently revised down Vietnam’s economic growth in 2020 to 6.3 per cent from 6.8 per cent previously due to the Covid-19 outbreak.

FDI businesses cry out for help as COVID-19 exerts impact
FDI businesses cry out for help as COVID-19 exerts impact
BUSINESSicon  30/03/2020 

Many foreign direct investment (FDI) businesses are taking the full brunt of the novel coronavirus outbreak (COVID-19) and they are in dire need of support from the government to weather the storm.

Workers face salary cuts as firms fight to survive amid COVID-19
Workers face salary cuts as firms fight to survive amid COVID-19
BUSINESSicon  30/03/2020 

Many businesses have been forced to give workers time off work, especially at weekends due to reduced demand caused by the novel coronavirus (COVID-19).

Mekong Delta shrimp prices fall as COVID-19 hits demand
Mekong Delta shrimp prices fall as COVID-19 hits demand
BUSINESSicon  29/03/2020 

Shrimp prices have plummeted in the Mekong Delta since global demand has been hit severely by the COVID-19 pandemic.

Association calls for consistent tax incentives for social housing developers
Association calls for consistent tax incentives for social housing developers
BUSINESSicon  29/03/2020 

Tax incentives for developers of social housing projects for lease should be made clear and consistent to encourage private investment in the segment, according to the HCM City Real Estate Association.

Petrol prices see sharp fall of up to 4,252 VND per litre
Petrol prices see sharp fall of up to 4,252 VND per litre
BUSINESSicon  29/03/2020 

The retail prices of petrol plummeted from 3pm of March 29, making it the sixth consecutive reduction since the beginning of this year.

COVID-19: Bamboo Airways restricts domestic, charter flights
COVID-19: Bamboo Airways restricts domestic, charter flights
BUSINESSicon  29/03/2020 

Bamboo Airways, Vietnam’s newest airline, has announced it will reduce the frequency of domestic flights amid the critical time of COVID-19 fight as directed by the Government and Ministry of Transport.

HCM City property developers offer more products
HCM City property developers offer more products
BUSINESSicon  29/03/2020 

The HCM City real estate market provides more housing projects and subsidises rentals to boost the market amid the COVID-19 pandemic.

Mekong Delta rice farmers earn high income from rice straw
Mekong Delta rice farmers earn high income from rice straw
BUSINESSicon  29/03/2020 

Rice farmers in the Mekong Delta are earning higher incomes from selling rice straw left over from the harvested 2019 – 20 winter-spring rice crop.

Ministry proposes 843 million USD bailout package for businesses during COVID-19
Ministry proposes 843 million USD bailout package for businesses during COVID-19
BUSINESSicon  29/03/2020 

The Ministry of Labour, Invalid and Social Affairs has proposed the Government issue a 20 trillion VND (843 million USD) bailout package to soften the economic impact of the COVID-19 pandemic.

No end to woes of local textile and garment industry
No end to woes of local textile and garment industry
BUSINESSicon  28/03/2020 

While the supply of raw materials from China is recovering after a month of suspension, textile and garment businesses find that they have moved out of the frying pan into the fire as the COVID-19 pandemic

Vietnam's first-quarter GDP growth hits decade low
Vietnam's first-quarter GDP growth hits decade low
BUSINESSicon  28/03/2020 

Vietnam’s gross domestic product (GDP) in the first quarter of 2020 grew 3.82 percent, the lowest pace during the 2011-2020 period, head of the General Statistics Office Nguyen Bich Lam said on March 27.

 
 
 
Leave your comment on an article

OR QUICK LOGIN