Imexpharm poised for strong growth driven by high-tech pharmaceuticals

Imexpharm poised for strong growth driven by high-tech pharmaceuticals

Imexpharm is pioneering the development of high-tech, high-value pharmaceuticals, establishing a solid foundation for sustainable growth both domestically and internationally.

According to information released by the Ministry of Health in January 2025, the burden of disease and mortality caused by non-communicable diseases (NCDs) in Vietnam currently accounts for more than two-thirds of the total national healthcare burden. Specifically, the country has approximately 12.5 million people with hypertension, 2.5 million people with diabetes, and over 2 million people with chronic obstructive pulmonary disease (COPD) and asthma. Alarmingly, around 125,000 new cancer cases are reported each year.

These figures highlight the alarming prevalence of NCDs, underscoring the need for advanced healthcare solutions to manage and effectively treat these conditions. This shift is also posing significant challenges for pharmaceutical companies, forcing them to adapt and adjust strategies to sustain growth and meet increasingly complex healthcare needs.

In response to this situation, the implementation of appropriate healthcare policies is essential. In April 2025, the Ministry of Health convened a meeting to initiate the development of the Disease Prevention Law. This law is expected to meet the requirements of protecting public health, with new regulations on the prevention and control of non-communicable diseases, mental health disorders, ensuring nutrition, disease prevention at educational institutions, providing clean water, protecting health from air pollution, climate change, and injury prevention. This marks the first time these policies have been proposed for adjustment at the legislative level to ensure stable and long-term implementation.

Pharmacists working at Imexpharm's laboratory. Photo: Imexpharm

Meanwhile, the domestic pharmaceutical industry is also undergoing a major transformation to adapt to the new disease pattern, which is increasingly characterised by the rise of conditions such as cancer, cardiovascular diseases, diabetes, and autoimmune disorders. Consequently, the development of advanced therapeutic solutions has become a priority. In particular, in the initial phase, Vietnam can concentrate on developing certain high-tech pharmaceutical areas that are both promising and compatible with current capabilities, such as biopharmaceuticals, biosimilars, high-tech herbal medicines, and first generics. Notably, these are also the key pharmaceutical groups that Imexpharm has identified as priorities for 2025.

According to SSI Securities, Vietnamese pharmaceutical companies need to expand their market share in froup 1 and 2 drugs to reduce dependence on imports. Growing demand in these segments is driven by an ageing population, shifting disease patterns, and rising income levels. Companies investing heavily in research and development (R&D) – such as Imexpharm – are poised to gain a significant competitive advantage.

Another favourable factor is the newly issued Resolution No.68-NQ/TW on private sector development, which encourages businesses to invest in science, technology and digital transformation. Notably, it allows companies to double (200 per cent) their actual R&D expenditures as deductible costs when calculating corporate income tax – providing a strong incentive for leading pharmaceutical companies like Imexpharm to deepen their R&D efforts. Currently, Imexpharm ia increasing its R&D spending by an average of 6 per cent annually and consistently maintains more than 100 ongoing R&D projects.

Turning point

Imexpharm Corporation stands out among publicly listed pharmaceutical firms as the leader in high-standard production capacity, boasting 12 EU-GMP-certified production lines and 3 EU-GMP-certified factories. Built on this foundation with its leading position in antibiotic production, including being the only domestic company operating an EU-GMP-certified Betalactam injection and oral antibiotic plant, Imexpharm is strategically shifting towards high-tech, high-value-added products, aimed at maximising revenue and profit growth.

Imexpharm’s high-tech facility achieves EU-GMP certification. Photo: Imexpharm

Simultaneously, the company is accelerating its focus on high-value therapeutic areas such as gastrointestinal, cardiovascular and diabetes treatments. These segments currently represent a combined market value of VND50 trillion (approximately $2 billion) and have demonstrated robust growth, with a compound annual growth rate exceeding 8 per cent over the past five years, while diabetes treatments alone are growing at an average of 13 per cent per year.

This strategic shift by companies like Imexpharm aligns with global pharmaceutical market trends. Worldwide pharmaceutical revenues are projected to grow at a compound annual growth rate (CAGR) of 7.8 per cent through 2026 while Vietnam’s pharmaceutical market is expected to grow even faster, at 10-13 per cent. With its advantages such as low labour costs, large domestic market, access to raw materials along with strong appeal to global investors, Vietnam is well-positioned to become a regional hub for pharmaceutical production and research.

In 2025, Imexpharm will break ground on the Cat Khanh Pharmaceutical Factory Complex, designed to meet EU-GMP standards. Once fully operational, the facility will have an estimated average design capacity of up to 1.4 billion product units per year, with actual output adjusted by phase. The complex will focus on producing high-value therapeutic drugs to meet long-term demand in both domestic and international markets.

Tran Thi Dao, general director of Imexpharm, speaks at the Imexpharm 2025 AGM. Photo: Imexpharm

With a high-quality product portfolio, extensive distribution network and modern management infrastructure, Imexpharm’s board of directors, at the 2025 AGM set ambitious financial targets: total revenue of VND2.98 trillion ($114.96 million) and pre-tax profit of VND493.5 billion ($19 million), representing increases of 18.6 per cent and 22.1 per cent, respectively, over the previous year.

The company also aims to achieve an average gross revenue growth rate of 15 per cent annually between 2024 and 2030. As such, 2025 is positioned as a pivotal year in Imexpharm’s long-term vision to become a leading pharmaceutical company in Asia, fully capable of competing with multinational giants.

Tran Thi Dao, general director of Imexpharm, emphasised, “From the outset, Imexpharm has prioritised investment in technology and quality. That commitment has enabled the company to maintain its leadership in EU-GMP-standard pharmaceutical production for many consecutive years. In 2025, Imexpharm will focus on three strategic pillars: enhancing operational efficiency, expanding into new therapeutic areas and accelerating growth by broadening our product and market ecosystem."

VIR