The Duoc Hau Giang Pharmaceutical JSC (DHG) approved increasing its foreign ownership limit to 49 per cent at the company’s annual general meeting on April 18.

The resolution voted on by shareholders targets VND4.3 trillion ($192.2 million) in revenue in 2017, an increase of 15.5 per cent compared to 2016. After-tax profit is targeted at VND820 billion ($36 million), of which VND20 billion ($880,000) will be allocated to a fund for scientific and technological research.

The company will provide a 2016 dividend of 35 per cent in cash. The 2017 dividend is expected to fall to 30 per cent.

In the second and third quarters of this year, DHG will issue 43.5 million shares to increase share capital, raising its charter capital by an expected VND1.3 trillion ($57.2 million).

The Taisho Pharmaceutical Co., a major shareholder in DHG, said it will contribute to the company as both a major shareholder and a business partner. It has proposed a major program for upgrading the R&D plant, production management, and business collaboration.

In 2016, DHG recorded revenue of VNND3.8 trillion ($167.2 million) and pre-tax profit of VND760 billion ($33.3 million).

Taisho currently owns 24.5 per cent of DHG as its second-largest shareholder, after the State Capital Investment Corporation (SCIC), which holds 43.31 per cent.

The Japanese company supported DHG in it upgrading its PIC/S effervescent drug line in March this year and plans to also upgrade remaining lines.

Taisho has total assets of JPY759 billion ($7.1 billion). It reported revenue of JPY290 billion ($2.8 billion) in 2015 and after-tax profit of JPY22.47 billion ($219 million). It established the Taisho Vietnam beverage plant in 1999, which produces and distributes the Lipovitan energy drink.

According to Drug Administration of Vietnam under the Ministry of Health, Vietnam now has 718 licensed foreign companies in medicines and medicinal material production, of which 20 are from Japan, including the Ajinomoto Pharmaceuticals Co., Hisamitsu Pharmaceutical Co., Inc., Inabata & Co. Ltd, and the Meiji Seika Pharma Co.

VN Economic Times