Pharmaceutical companies ” upstream “

Difficult situation , many pharmaceutical companies have actively managed to ensure growth in revenue and profits

According to statistics , the demand for drugs in water using continuous annual growth with an average speed of 18 % ( from 2008-2012 ) , however, the value of domestic drug production only accounts for about 46-50 % of the total value of drug use in the country . This proportion gradually decreased since 2007 and the rest is imported . Data from the General Administration of Customs , May 8, 2013 , imports of pharmaceutical Vietnam increased by 5.7 % over the same period , reaching $ 1.2 billion . In addition, imports of pharmaceutical raw materials rose 7.1 % to $ 193 million , mostly from China , India . This makes the pharmaceutical companies Vietnam under fierce competition with multinational corporations like Sanofi , GSK , Novartis …

Along with that , the application of the procurement rules on drugs medical facility from January 01/2012/TTLT-BYT-BTC Circular 6-2012 that affect revenue generation treatment of pharmaceutical companies in water . According to Circular 01 , the product package to join the technical scoring criteria on the floor and can score the lowest winning bid price . Therefore, the majority of domestic companies at a disadvantage when selling price is relatively higher due to more investment in modern machinery to achieve technical standards , quality medication , brand .

Given the problems mentioned above , many companies have found their own solutions . Specifically Hau Giang Pharmaceutical Joint Stock Company ( DHG ) effective exploitation of the advantages of distributed systems throughout 24 provinces in Vietnam and flexible strategy in many different market segments . Along with that , the main products of DHG is still the generic drug line , does not require the complexity of the manufacturing process , not a prescription and are widely used . Currently , DHG developing additional product lines as naturally derived Naturenz , Spiruna , Natto Enzymes … to catch the market trend shifting from products to prescription drugs with many side effects to the product itself improve human health . Meanwhile , Imexpharm Corporation ( IMP ) has chosen its own path by focusing on quality products with high quality raw materials are imported mostly from European countries – North America combined investment large production line technology in Europe (mainly imported from Germany ) , accept the higher prices of competitors by not using cheap raw materials from countries such as China , India , Pakistan … thereby ensuring high bioavailability ( drug efficacy after oral administration ) and minimize the adverse effects on the patient’s body .

JSC Cuu Long Pharmaceutical ( DCL ) is also taking advantage factory capsule ( empty capsules ) only in Vietnam , not only to meet the needs of pharmaceutical manufacturing order DCL also provides some large for many large pharmaceutical companies in the country . In 2013, DCL has aggressively cut operating segments are not effective , changes in fundamental policies of inventory management , accounts receivable , which significantly improved operating cash flow in the period. Traphaco Pharmaceutical Corporation ( TRA ) also continue to promote the advantages of herbal product line , along with doing all input materials ( 80 % of the materials used in the water ) . In the Import and Export Corporation Medical DMC ( DMC ) , the main product is the generic product line with a focus on the antibiotics, cardiovascular , diabetes , obesity … with diverse materials mainly imported from the major suppliers in China and India has helped DMC creating competitive advantages in raw material prices compared to competitors . Activity direct pharmaceutical exports are also focused on the DMC profit from this segment is quite high due to the expensive cost of sales and cost characteristics of the pharmaceutical industry . Export turnover of DMC was steady at $ 2 million / year in major markets such as Myanmar , the Philippines , Cambodia … by DMC has the ability to respond flexibly to the requirements of partners in terms of quality , price and size …

From the selected direction , most companies have completed 70-80 % of the plan year in revenue and profit after May 9, 2013 . In the last months of 2013, the business situation is expected to rise slightly from the third quarter of 2013. With a focus on exploiting the products of high -yielding , most companies will complete the plan year profit . In the long term , the growth potential of Vietnam’s pharmaceutical industry is forecast to continue high , because in the period of economic demand increased drug use . In terms of scale , the modern pharmaceutical market in Vietnam is still relatively small compared to other countries in the region . According to the BMI ( Business Monitor International ) , in the long term , Vietnam’s pharmaceutical industry will continue to grow by 17.2 % / year over the period 2013-2016 .