Imexpharm’s ambition to enter global pharmaceutical supply chain

Welcoming talent

The Imexpharm Pharmaceutical Joint Stock Company (IMP) recently collaborated with the Can Tho University of Medicine and Pharmacy in the Mekong Delta to organize a career counseling workshop on production and drug quality management for pharmacy students in 2024. Professor Nguyen Trung Kien, Rector of the Can Tho University of Medicine and Pharmacy, noted that Imexpharm is currently recruiting many medical and pharmaceutical students, about 20 per cent of whom are former students of the university.

“At Imexpharm, people are always the key factor for the company’s development and success,” said Dr. Nguyen Vinh Luan, Human Resources Director at Imexpharm. “Imexpharm is fortunate to have top talent from Vietnam’s pharmaceutical industry. The company consistently invests in human resources at all levels to ensure a talented leadership team, an excellent scientist team, along with a top-notch operational, sales, and marketing team, all to drive the business forward.”

From its early days, with only a few dozen staff in the Mekong Delta’s Dong Thap province primarily tasked with receiving and distributing medicine during the subsidy period, Imexpharm’s research and development (R&D) department has grown significantly. Today, 80 per cent of its staff hold a university degree or higher,  with some having been trained in Europe. Attracting young scientists to create a strong research foundation has been Imexpharm’s focus for many years. Simultaneously, Imexpharm has always been a pioneer in developing and applying new technology to produce high-quality pharmaceuticals that meet international standards.

In 2023, Imexpharm allocated 5 per cent of its revenue to R&D activities. The company currently holds more than 333 products licensed for commercial use in Vietnam. In 2023, Imexpharm secured eleven additional registration numbers for six products in Europe, including complex products such as Ampicillin / Sulbactam, bringing the total number of Marketing Authorizations in Europe to 28 for eleven types of products.

The company now has the most EU-GMP factory clusters in Vietnam, comprising three such clusters and eleven EU-GMP lines. This investment has positioned Imexpharm as the top producer of antibiotics in Vietnam. Notably, it has applied advanced enzymatic technology to produce high-quality, safe, and effective antibiotics.

R&D advantages

With its strategy of building EU-GMP-standard factories and prioritizing scientific research, Imexpharm has gained a leading competitive edge over domestic pharmaceutical companies. It has also positioned itself for a period of “golden development”, enabling it to compete with multinational giants.

In 2023, Imexpharm had 93 R&D projects, with 15 products launched to the market, enhancing its portfolio of new pharmaceutical products. The company is also planning to expand its non-antibiotic product sector by building the IMP5 factory, which will produce new product lines, including drugs for cardiovascular, diabetes, otorhinolaryngology, coughs, and digestive ailments. Producing specialty drugs locally, as Imexpharm does, increases consumer access to drugs that were previously only available through imports.

In the first half of 2024, Imexpharm reported net revenue of VND1,008 billion ($41,07 million), up 10 per cent year-on-year. Pre-tax profit and EBITDA reached VND161 billion ($6.56 million) and VND215 billion ($8.75 million), respectively, with a stable EBITDA margin of 21 per cent.

This strong growth momentum continued to be clearly evident in July 2024, when Imexpharm's net revenue reached VND159 billion ($6.47 million), an increase of 28 per cent compared to the same period last year. The ETC channel continued its solid growth, while the OTC channel showed a strong recovery with impressive growth rates of 63 per cent for OTC and 23 per cent for ETC. July marked the most impressive growth period of the year amid market volatility.

Notably, the Board of Directors of Imexpharm has just announced that September 18 will be the closing date for the list of shareholders eligible to receive shares from the capital increase. The upcoming issuance of more than 77 million shares at a 1:1 ratio will raise Imexpharm’s charter capital.

Recently, Imexpharm partnered with South Korea’s Genuone Sciences for drug registration, manufacturing, and distribution, alongside advanced technology transfers. This partnership follows many previous collaborations with global pharmaceutical corporations such as Sandoz, Sanofi-Aventis, Pharmascience, and DP Pharma.

Production experience, along with EU-GMP standard lines, has equipped Imexpharm with outstanding production capabilities and the ability to meet international quality standards, opening up opportunities to participate in the global drug supply chain. With European-quality products, it has successfully entered new markets such as Mongolia and secured export contracts in other markets such as Singapore, Malaysia, and the Philippines.

These strategies not only lay the foundation for the 2030 vision of tripling revenue but also consolidate Imexpharm’s position in the global market. At the same time, these orientations align with the rising demand for high-quality treatment solutions in Vietnam and the region. “Research and development are the driving forces behind innovation and medical advancement to improve public health quality,” said Imexpharm’s General Director. “To fully capitalize on growth opportunities in the pharmaceutical industry, the government needs to reform necessary policies and establish implementation directions in many domains, from investment incentives and legal frameworks to education and training programs.”