Behind the new wave of pharmaceutical stocks

Right in the first trading sessions of the year, pharmaceutical stocks had positive trading sessions. In particular, on February 11, IMP (Imexpharm Pharmaceutical JSC) stock increased to the ceiling price of 49,650 VND/share; DMC (Domesco Medical Import-Export JSC) increased to the maximum limit of 86,600 VND/share...

For many years, pharmaceutical stocks have been considered a group of defensive stocks favored by investors because of their stable growth and regular dividend payments. In particular, investors are expecting a new wave of pharmaceutical stocks to come from IMP with the news that SK Group wants to transfer shares; DBD sells capital to strategic investors; DMC with information about divesting state capital...

Employees work at Imexpharm's EU-GMP-certified factory. Photo: Imexpharm

In addition, the driving force of pharmaceutical stocks in 2025 is also coming from the expectation of changes in the bidding policy to prioritize enterprises that meet EU-GMP standards. Specifically, the Ministry of Health has issued Circular 03/2024 and Circular 07/2024 stipulating that for Group 1 and Group 2 drugs that have at least 3 domestic companies that can produce according to EU-GMP standards or equivalent, and meet the technical criteria prescribed by the Ministry of Health, in terms of quality, price, and supply capacity, imported drugs will not be bid for.

Therefore, enterprises such as Hau Giang Pharmaceutical, Binh Dinh Pharmaceutical, Ha Tay Pharmaceutical... are expected to have advantages, especially Imexpharm when owning 3 EU-GMP factory clusters and 12 EU-GMP production lines. In the long term, the National Pharmaceutical Strategy Implementation Plan, the Law on Pharmacy (amended) and the Law on Health Insurance (amended) all prioritize the development of the domestic pharmaceutical industry with the goal of ensuring the supply of quality drugs at reasonable prices, while creating favorable conditions to support the pharmaceutical industry to become a spearhead...

Bright prospects for high-tech pharmaceuticals

According to a new report by IQVIA for Q3 2024, high-tech, high-value products, especially vaccines, are driving market growth.

Specifically, in terms of market value (Market Value), the annual growth rate from 2022 to 2024 is 10.4%, while the total market value up to the third quarter of 2024 increased by 9% over the same period. In the context of a strong market growth thanks to high-tech products, Imexpharm has also proactively expanded its production capacity to anticipate this trend with a plan to build the Cat Khanh Pharmaceutical Factory Complex on a total area of ​​25,000 m2, with an expected investment of up to VND 1,495 billion in the third quarter of this year.

Inside Imexpharm's EU-GMP-certified pharmaceutical factory. Photo: Imexpharm

Although the delay of new policies is 1-2 years, in the short term, it is still the main driver of revenue growth for businesses such as Imexpharm, one of the fastest growing pharmaceutical companies in the country today. In 2024, Imexpharm achieved net revenue of VND 2,205 billion, up 10.6% over the same period last year. This is considered an industry-leading growth rate, driven by strong growth momentum in the ETC channel and the expansion of the injectable drug portfolio. In addition, persistent sales efforts in the OTC channel have helped Imexpharm maintain stability, even when the retail market of domestic companies is not growing.

By 2025, in addition to its strengths in antibiotics, such as cardiovascular, diabetes, and blood pressure, Imexpharm will expand its product lines to include high-value treatment products, especially injectables and dispersible drugs, which are expected to account for an increasing proportion of total pharmaceutical sales in the coming years. This trend is driven by increased treatment demand, health insurance, higher incomes, and developed healthcare infrastructure.

The pharmaceutical market has entered a more stable growth cycle in the past 2 years, at around 8-10% with an increasing trend of demand for high-value products. Although competition from imports will continue to be a pressure on domestic manufacturers, especially in the OTC market, this is also the driving force to improve the level of R&D and production in the country.

Innovation continues to be the strategic focus of Imexpharm, with the launch of 24 new products deployed in all factories; especially 1 First Generic product; implementing 98 R&D projects. Imexpharm has now increased the total number of European Marketing Authorizations to 28 for 11 products, consolidating a solid foundation for expansion into the global market.

People's Physician, Pharmacist Tran Thi Dao, General Director of Imexpharm, said: “Imexpharm is determined to implement the sustainable strategy QE - Quality and Efficiency to create advantages in bidding. With the strategy of expanding both in domestic and international markets, Imexpharm is confident in its ability to create sustainable value for stakeholders and actively contribute to the development of the pharmaceutical industry in Vietnam and the region”.