Việt Nam's pharmaceutical market sees major M&A deal

Việt Nam's pharmaceutical market sees major M&A deal

This deal, valued at over VNĐ5.73 trillion (about US$220.6 million), underscores the increasing attractiveness of Việt Nam's pharmaceutical industry to foreign investors.

The headquarters of Imexpharm in Đồng Tháp Province. — Photo courtesy of the company

The Vietnamese pharmaceutical sector has recently witnessed one of its largest mergers and acquisitions (M&A) to date, with Livzon Pharmaceutical Group Inc. of China acquiring approximately 64.81 per cent of Imexpharm Pharmaceutical Joint Stock Company (IMP).

The deal, valued at over VNĐ5.73 trillion (about US$220.6 million), underscores the increasing attractiveness of Việt Nam's pharmaceutical industry to foreign investors.

Livzon, through its Singapore-based subsidiary Lian SGP Holding Pte. Ltd., will purchase shares from existing stakeholders, including SK Investment Vina III Pte. Ltd., which holds a 47.69 per cent stake, alongside smaller investors.

Once the transaction is finalised, expected within nine months, Imexpharm will become an indirect subsidiary of Livzon, with its financial results integrated into Livzon's consolidated reports.

This acquisition marks a significant divestment by SK Group, a major South Korean conglomerate, reflecting a strategic restructuring of its investment portfolio in Việt Nam.

Meanwhile, Livzon's decision to enter the Vietnamese market highlights its ambition to diversify revenue streams and mitigate risks associated with domestic market fluctuations.

Established in 1985 and headquartered in Zhuhai, China, Livzon is a prominent player in the pharmaceutical industry, specialising in research, development and manufacturing of various pharmaceutical products, including biopharmaceuticals and traditional Chinese medicines.

With over 9,000 employees and listings on both the Hong Kong and Shenzhen stock exchanges, Livzon possesses strong financial resources and extensive market expertise.

In recent years, Livzon has actively pursued international expansion, with foreign revenue accounting for nearly 15 per cent of total sales in 2024. The acquisition of Imexpharm represents a strategic move to penetrate one of Southeast Asia's fastest-growing pharmaceutical markets.

Imexpharm, founded in 1977 and recognised as one of Việt Nam's leading pharmaceutical companies, has established a solid reputation, particularly in the antibiotic sector, where it commands approximately 10 per cent of the domestic market share.

The company has made significant investments in high-standard manufacturing facilities compliant with European standards (EU-GMP), which positions it well for both domestic sales and export opportunities.

In 2024, Imexpharm reported revenues of over VNĐ2.2 trillion, an 11 per cent increase from the previous year, and a net profit of VNĐ320 billion.

The company aims for an average annual revenue growth of 15 per cent through 2030, with plans to further expand its manufacturing capabilities, particularly in cardiovascular, diabetes and gastrointestinal treatments. 

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