return icon

Drug giants gaining with fresh products

While Vietnam’s drugmakers are heading to develop new products to increase efficiency and sustain sustainable growth, competition from imported drugs is making their road tougher.

Drug giants gaining with fresh products

Traphaco JSC, the country’s second-largest publicly traded drugmaker, on December 9 kicked off the commercialisation of new products as a result of the technology transfer from South Korea’s Daewoong.

Kim Dong Hyu, deputy general director of Traphaco, said, “The technology transfer is a big step which will bring about important values to Traphaco, not only in terms of revenue growth and financial efficiency but also strengthens Traphaco’s position in the market.”

The cooperation with Daewoong is one of the key activities of Traphaco for the next five years, aiming to increase total revenues by 13.3 per cent and pre-tax profit by 15 per cent. The technology transfer will cover 70 products. The target is within reach as Daewoong is one of the leading manufacturers and distributors of prescription drugs in South Korea.

In the first phase, the transfer covers medication for liver, cardiovascular, and stomach illnesses. The second phase, which began in August, focuses on products with high market potential and treatment efficiency.

Besides Daewoong, Traphaco is intensifying cooperation and partnerships, especially with South Korean pharma firms to diversify its portfolio of products, focusing on ties with those capable of competing in tenders and the hospital channel, thus increasing the market share of the eastern medicine segment.

The drugmaker, which now has South Korean leadership, boasts three big shareholders – State Capital Investment Corporation (35.67 per cent), Magbi Fund Ltd. (24.99 per cent), and Super Delta Pte., Ltd (15.12 per cent).

Like Traphaco, DHG Pharmaceutical JSC is offering new products from its two production lines meeting Japanese GMP standards as certified by the Japan Pharmaceuticals and Medical Devices Agency. This year, DHG made 100 products eligible for the hospital channel from the lines, thus enabling the company to gain a competitive edge in tenders and revenue generation.

With Japan’s Taisho as the main foreign shareholder with 51.01 per cent, the company plans to develop two more production lines focusing on cardiovascular diseases and diabetes which are increasing in Vietnam.

General director of DHG Masashi Nakaura said, “The year marked a decade of innovations as DHG has been striving to supply international-standard drugs to people. Driving this growth momentum, we plan to recruit talents in 2022 and upgrade the company’s image to an international one with a vision of stable growth of 6-7 per cent annually in the next five years.”

Elsewhere, Imexpharm (IMP), Vietnam’s fourth-biggest publicly traded drugmaker, announced its new Cephalexin 500mg produced at its high-tech Binh Duong factory, which was granted market authorisation in Spain. The factory meets EU-GMP standards. IMP is also seeking EU-GMP recognition for its IMP 4 factory in a move to venture further into the ethical drugs segment, which is expected in 2022. SK Investment Vina III Pte., Ltd. is now the biggest foreign stakeholder of IMP with 29.42 per cent.

The change in business strategy has greatly contributed to the company’s improvements in the business result. In the first nine months of 2021, Traphaco made revenues of nearly $69.6 million, and after-tax profits of $8.51 million, up 21.9 per cent and 38.5 per cent on-year respectively. The result mostly comes from self-produced drugs. Traphaco expects that new products from the technology delivery can further increase revenues from next year.

Similarly, DHG fetched an after-tax profit of $26.34 million, up 14.5 per cent on-year.

However, not all drugmakers shared such results. IMP saw its net revenues fall 1.4 per cent on-year to $37.83 million, while its pre-tax profit decreased by 7.3 per cent.

Industry insiders said that pharma companies will face challenges to achieve whole-year growth targets set earlier this year. Global interruption in supply chains, rising global transportation costs, and a high rise in cost for ingredients due to the prolonged pandemic are possible barriers.

Vietnam’s pharmaceutical industry experienced low growth at 3 per cent in 2020, according to SSI Securities Corporation. In early 2021, Fitch Ratings forecast that the industry would grow 8.7 per cent this year. However, the pandemic caused a standstill in the industry performance in the third quarter.

In addition, local pharma giants are facing stiff competition from imported pharmaceuticals. According to a report from the General Department of Vietnam Customs in 2020, Vietnam imported $3.3 billion worth of pharmaceuticals, up 7.4 per cent on-year.

Source: VIR


Major investors worry as stock market weakens

The stock market boards have been covered with red amid investors’ rising caution. There are few buyers, while selling pressure still exists. Foreign investors’ behavior has affected the market.

Vietnam sees great potential in ASEAN halal market

Despite opportunities available in the ASEAN halal food market, Vietnamese exporters have to date exported only a small amount of halal products to some countries in the region.

Vietnam is becoming a beacon in the region: The Brussels Times

The Brussels Times of Belgium has run an article highlighting that Vietnam is becoming a beacon in the region with the capacity to control inflation and maintain economic growth at a high level despite turbulent international affairs.

Students' mindset about memorizing, copying texts stifles writing skills and creativity

A foreign professor who teaches at an international-standard university in Vietnam recently said he was disappointed about students’ semester-end exam papers.

At least six bodies found drifting off Phu Quoc seaside

Senior Lieutenant-Colonel Le Minh Chanh, Deputy Head of the Police Division of Phu Quoc City has just informed that the functional forces and residents have detected six bodies drifting off the seaside under a severe decomposition situation.

Police forces break down nearly 200-kilogram gold smuggling ring

The police have broken up a huge gold smuggling ring from Cambodia to Vietnam, said Lieutenant General To An Xo, spokesperson for the Ministry of Public Security of Vietnam.

Vietnam's CPI rises over 3% in Q3

Vietnam’s Consumer Price Index (CPI) in the third quarter of this year inched up 3.32% against the same period last year, according to data released by the General Statistics Office (GSO) on September 29.

Vietnam enjoys trade surplus of 6.52 bln USD in Jan-Sep

Vietnam estimates a trade surplus of 6.52 billion USD in the first nine months of this year.

Vietnamese, Cuban PMs discuss measures to boost cooperation

Prime Minister Pham Minh Chinh and his Cuban counterpart Manuel Marrero Cruz held talks following the official welcome ceremony in Hanoi on September 29 for the Cuban Government leader, who is paying an official visit from September 28-October 2.

Foreign service providers fulfill tax obligations in Vietnam

Since the portal for tax payment of cross border activities was launched on March 21 this year, 36 foreign service providers have registered, declared and paid taxes through it, heard a webinar held by the Government Portal on September 29.

Foreign Minister Bui Thanh Son pays official visit to Austria

Foreign Minister Bui Thanh Son paid an official visit to Austria on September 28 and 29, which is an important event when the two countries are marking the 50th anniversary of their diplomatic ties (1972-2022).

40 deaths by rabies in Vietnam this year

As many as 40 people in Vietnam have been killed by rabies since the start of this year.

More businesses need to use AI

AI is not a luxury. It can be applied on a large scale in many fields.

Vietnamese fruit exporters enter world’s largest durian market

Vietnam’s first 100 tons of durian on September 17 were shipped from Dak Lak to China, the world’s largest durian consumption market.

Garment, textile, footwear industries face declining in orders

Enterprises in the textile, garment and footwear industries are facing a decrease in orders through the rest of this year and possibly into the next year.