On February 28 Bao Viet Securities Co will hold an auction of 600,000 shares for leading pharmaceutical firm Imexpharm Pharmaceutical Joint Stock Co with an initial price of 37,000 dong per share. This is the third highest price in the stock market after Hoang Gia and Vinamilk and many investors have shown an interest in obtaining these shares.
Imexpharm was established from the Pharmacy production factory and shifted to a joint stock company in July 2001. Imexpharm increased its chartered capital to 44 billion dong in March 2005. Vietnam Pharmacy Corp (Virapharm) is Imespharm’s biggest shareholder with 45% of shares.
Regarding its manufacturing technology, Imexpharm is the first company in Vietnam reaching Good Manufacturing Practice (GMP) standard.
Using 2003 figures, the five pharmacy companies with highest revenue are Hau Giang Pharmacy Co with 295 billion dong, Imexpharm 235.5 billion dong, Mekophar Chemical Pharmaceutical Joint Stock Co 267 billion dong, Sanophi Synthelabour Vietnam 214 billion dong and Vidipha Pharmacy Co 150 billion dong. Currently the annual average growth of Pharmacy is 18-20%. However, drugs manufactured in Vietnam just meet 40% of the demand and the other 60% must be imported.
Imexpharm is licensed to manufacture over 140 types of products of which 50 products are franchised from big companies such as Sandoz, Robinson Pharma, Pharmar pharmacy, OPV, Mege, and Union Pharma. The company launched ten products in 2004 under the brand name of Imexpharm with a further 15 products being launched in 2005. The percentage of drugs under brand name Imexpharm compared with drugs under franchised names has increased from 30% to 60% against three-years ago.
With their head office and two factories in Dong Thap spanning an area of 10,700 square metres and a branch in HCM City, Imexpharm is strong in it’s business manufacturing activities. Its manufacturing goods account for 85% of revenue and trading goods contributed 15%. Its main market is HCM City which accounts for 50% of the market share with the Mekong Delta provinces reaching 25%.
Imexpharm currently accounts for 2.8% of the drug market share. The company plans to increase market share to 4-5% in 2008. Imexpharm also plans to list in the stock market in 2006.
The company will use all the revenues from the issue of 2,600,000 shares (2,000,000 shares have been sold to strategic companies) to fund the Imex-milk factory, increasing material storage.