Bamboo Capital (BCG) has approved a plan on contributing capital into Tipharco Pharmaceutical JSC (DTG). BCG will buy 1.327 million shares, or 21.01 percent of stockholder equity, from Tipharco’s existing shareholders.

Tipharco has fallen into the hands of Bamboo Capital since the beginning of 2022, after a group of shareholders related to Nguyen Ho Nam, chair of BCG, bought a large amount of DTG shares. At the 2022 shareholders’ meeting, Nam was elected as the new chair of the company of the 2021-2025 tenure.

As of the end of January 2022, Nguyen Ho Nam held nearly 25 percent of shares of Tipharco, while Dang Thi Thu Hang 24.4 percent.

In late April, Tipharco announced that Ho Thi Thuy Dung bought 1 million shares of DTG shares and became a big shareholder of the company with 15.83 percent of shares.

Also at the 2022 shareholders’ meeting, Tipharco approved the dismissal of six members of the board of directors of the 2021-2025 tenure and elected a new board of directors with seven members.

Bamboo Capital has recently emerged as a corporation with the ambition of multi-field development, implemented by merger and acquisition (M&A) deals and corporate restructuring. Its two successful deals recently were with Tracodi and AAA (insurance).

Tipharco’s strategic products are antibiotics, analgesics and antipyretics, and cardiovascular, diabetes, digestive, respiratory drugs, Covid and post-Covid treatment products, and herbal medicine.

According to the Ministry of Health (MOH), the Vietnamese drug market has been growing very rapidly by 17 percent per annum in 2014-2018. The market is estimated to have the value of $7-8 billion, while the figure is expected to reach $16 billion by 2026.

The high growth rate explains why many foreign investors have jumped into the market and bought into Vietnam’s leading pharmaceutical firms. Pymepharco, the enterprise with the second largest capitalization value in the stock market, is an example.

In early 2021, the enterprise allowed its large shareholder Stada Service Holding B.V and related investors to raise the maximum ownership ratio to 100 percent of charter capital without having to make a public bid.

In early 2022, Indian Sri Avantika came to Hai Duong to conduct a field survey to develop an international drug park worth $10 billion in Vietnam.

Drug distribution is also an attractive business field in the eyes of investors. Long Chau, owned by FPT Retail, Anh Khang by The Gioi Di Dong and Pharmacity are three well known large drugstore chains. SSI estimated that the three chains would have 7,300 stores by 2025.

Manh Ha