Financial analysis report of four pharmaceutical companies dhg pharma traphaco imexpharm bidiphar

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE AND INVESTMENT DISSERTATION Financial Analysis Report of four pharmaceutical companies

INTRODUCTION

Rationale of the study

The pharmaceutical sector in Vietnam is poised to become one of the largest private industries, driven by its potential in drug development, vaccines, and pharmaceutical chemistry Annually, millions of workers are employed across the supply chain to ensure citizens have access to affordable, high-quality medications With a compound annual growth rate of nearly 10% from 2020 to 2023, the manufacturing sector is set to make a substantial impact on the national economy (Thu Minh, 2024) According to VIRAC (2024), the majority of pharmaceutical companies are experiencing steady growth, with 78.9% reporting consistent profitability and 73.7% seeing revenue increases Inspired by these promising trends, the author aims to provide an in-depth analysis of the pharmaceutical industry in Vietnam and globally, focusing on four leading manufacturers to uncover valuable insights that have captured the attention of marketers.

Area of the study

The report highlights the top four pharmaceutical corporations in Vietnam: Bidiphar (DBD), Traphaco (TRA), Imexpharm (IMP), and DHG Pharma (DHG) It provides a comprehensive analysis of both the global pharmaceutical sector and Vietnam's market, ensuring a thorough understanding of the industry's landscape.

A comparison among those afore-mentioned companies will also be conducted so that we can objectively weigh the issues.

Objectives of the study

This research aims to provide a thorough analysis of the Vietnamese pharmaceutical industry by evaluating four leading companies from 2019 to 2023.

+ To have a wider awareness of the drugs industry

+ To offer insightful recommendations regarding investments in this sector, grounded in both qualitative and quantitative basis

+ To acknowledge the opportunities and threats facing individual companies and the entire pharmaceutical industry

+ To propose profitable investment recommendations regarding four market leaders of domestic pharmaceutical markets depending macroeconomic, industry and company analysis.

Methods of the study

This report employs a methodology centered on secondary research, focusing on four selected companies: Bidiphar, Traphaco, Imexpharm, and DHG Pharma To achieve the research objectives, it utilizes a comprehensive database, analyst commentary, corporate information, and macroeconomic data Key sources for secondary research include corporate annual reports, analyst reports, major economic publications, national and international statistics, and expert insights Data is meticulously compiled from various financial platforms, including Market Line, Global Insights, and Bloomberg, utilizing published financial ratios such as leverage, profitability, liquidity, investment, and cash flow for the years 2019-2023 Additionally, industry and macroeconomic analyses are conducted using multiple models to inform investment decisions by highlighting growth potential The report integrates both quantitative and qualitative research approaches, ensuring an accurate reflection of the financial positions of the companies and the overall industry while maintaining high-quality standards through the author's perspectives.

Organization of the study

The paper is divided into 6 chapters which can be summarized as following:

Chapter 5: Recommendations - Future of pharmaceutical market and conclusion

MACROECONOMIC ANALYSIS

An overview of global market

In 2020, the global economy faced unprecedented challenges due to the COVID-19 pandemic, prompting significant upheaval in the pharmaceutical industry as it worked to prevent the virus's spread and develop effective treatments The healthcare sector took on immense responsibilities, focusing on infrastructure, medical equipment, and the urgent creation and testing of vaccines and medications With over 120,000 infections and more than 4,000 deaths reported in over 110 countries within just a month, the World Health Organization (WHO) declared COVID-19 a global pandemic and emphasized the importance of public health awareness and personal responsibility.

The landscape of global health transformed dramatically with the introduction of vaccines like AstraZeneca, Moderna, and Pfizer, designed to prevent epidemics Leading pharmaceutical companies from the United States, China, Brazil, and Europe have played a pivotal role in developing specialized drugs that have generated significant economic and social benefits According to the People’s Medicines Alliance (2023), the profits of the world’s 20 largest pharmaceutical companies soared during the pandemic, increasing from $83.4 billion in 2020 to $188 billion in 2022.

In other words, the pharmaceutical industry displayed amazing resilience and accomplished numerous noteworthy triumphs, despite the epidemic prevailing in all sectors.

PEST analysis of global market

The PEST framework, encompassing Politics, Economics, Social Science, and Technology, serves as a foundational model for macroeconomic analysis This section evaluates these four elements to elucidate their impact on the pharmaceutical industry, establishing a solid groundwork for subsequent company assessments.

Vietnam's pharmaceutical industry operates under strict regulations to ensure medication safety and health, aligning with global standards It is essential for citizens to access affordable common medicines that cater to the majority's consumption needs, in accordance with World Health Organization targets The National Strategy for the Development of the Vietnamese Pharmaceutical Industry aims for significant advancements by 2030, reflecting a long-term vision for growth and accessibility in healthcare.

On October 9, 2023, the Prime Minister approved Decision No 1165/QD-TTg, which aims to enhance research capacity and leverage technology nationwide to produce pharmaceutical products at optimal costs by 2045 The initiative targets local manufacturing to meet approximately 70% of market value and 80% of demand, with domestically produced vaccines fulfilling about one-third of service immunization needs and the total demand for extended immunization Additionally, the Vietnamese Government has issued new guidelines under Decree 88/2023/ND-CP, emphasizing pharmaceutical companies' accountability in disclosing medicine costs (Tue Van, 2023).

In 2023, pharmaceutical companies must disclose product prices, aligning them with the market's declared price levels for similar items and accounting for the factors that influence product value.

On October 9, 2023, Decision No 1165/QD-TTg was signed, establishing stringent controls over the distribution and sale of pharmaceuticals (Bush, 2019) Under this decision, all medicinal products available for purchase will be closely monitored by authorities, with 100% of drugs in circulation subjected to sampling and management to ensure their effectiveness and safety, as per the Ministry of Health regulations Additionally, approximately 30% of both domestically produced and imported generic medicines will require bio-equivalency assessments and circulation registration certificates Furthermore, clinical pharmacy operations must be conducted prior to the prescription of drugs to patients in all medical facilities engaged in drug use activities (Vu Phuong Nhi).

In 2023, government initiatives indicate a commitment to long-term development goals, focusing on making affordable, high-quality medications accessible to all citizens while enhancing the efficiency of medical testing and treatments.

According to Jervelund et al (2023), the pharmaceutical sector in Europe is significantly influenced by economic conditions, ranking as the second largest drug market globally due to its substantial contributions to the Gross Value Added (GVA) in the European Union The FIGARO Input-Output tables from Eurostat reveal that the GVA for the EU pharmacy sector, encompassing innovative, generic, and veterinary medicines, doubled over a decade, reaching 131 billion euros in 2020 The success of this industry relies on various external factors, such as fundamental research, a highly skilled workforce, and reliable supply chains, all of which are enhanced by a robust economy.

EU was projected to reach €565 billion in exports and €390 billion in imports in 2021 is evidence of the Gross domestic product (GDP)'s remarkable expansion, resulting in an economic strength (EFPIA, 2022)

Figure 1: Gross value added in the EU pharmaceutical industry during the period of 2011-2020 (Jervelund et al.,2023)

In recent years, emerging economies like Vietnam have experienced a significant increase in household healthcare spending, mirroring trends in developed nations The average annual healthcare expenditure per Vietnamese individual rose from just $6.70 in 2002 to $66 in 2021, boosting revenue for the pharmaceutical industry (KPMG, 2022) During the same period, Vietnam's GDP expanded by $326.7 billion, marking a nine-fold increase and elevating the country from 60th to 41st in global GDP rankings (Nguyen, 2023) The pharmaceutical sector is projected to grow at a compound annual growth rate of 11%, reaching $16.1 billion by 2026, driven by economic recovery post-COVID-19 (Ha Lan, 2023) Despite this growth, Vietnam's per capita healthcare expenditure remains relatively low.

6 peer group, compared to other ASEAN partners like Thailand, Singapore, and Malaysia, it is forecasted to have great growth potential in the national economy in the next few years

Figure 2: ASEAN Regional comparison of healthcare expenditure 2021 (KPMG,

The 2020s' most significant social event in terms of social stability was the COVID-19 pandemic The globe has seen millions of fatalities along with the collapse and loss of multiple businesses, all of which had significantly adverse effects on the lives of individuals and organizations Samuels (2020) observed that, although the situation had steadily improved after Covid, pharmaceutical companies were less interested in their corporate social responsibility programs and other initiatives that would improve world health prior to 2020 Since then, the United Nations had established the ambitious Sustainable Development Goals (SDGs) by 2030 to combat both communicable diseases (SDG 3.3) and non-communicable diseases (SDG 3.4), while also driving pharmaceutical companies to strengthen their social impact and report more on challenges that directly affect human life Based on a three-year analysis, the author observes that top 15 global pharmaceutical corporations had broadened the scope of their social impact initiatives and made greater investments in disclosing their accomplishments and actions (Deloitte,

Figure 3: The average percentage of categories covered by pharmaceutical companies (Deloitte, 2023)

Figure 4: The average percentage of indicators reported (Deloitte, 2023)

During the outbreak, pharmaceutical companies increased their public health assistance actions by 2%, focusing on four key pillars: governance, R&D, product delivery, and healthcare system capacity building, which directly impact health equity and access to medicines The introduction of more categories within each pillar highlights the effectiveness of drug accessibility while maintaining the operations of these companies Notably, prioritized diseases, diversity in clinical trials, access to medication index ratings, and access plan frameworks have emerged as significant areas of public interest Additionally, due to climate change accelerating the spread of infectious diseases, there is a pressing need for enhanced R&D efforts and actionable plans to tackle these challenges.

The increase in the "ATM Index ranking" serves as strong evidence of a company's dedication to improving access to medicine, as any movement or maintenance of its position in the Index requires substantial internal corporate mobilization across various dimensions.

Figure 5: Percentage of pharmaceutical companies reporting on the category in 2022 (Deloitte, 2023)

Technology has significantly transformed the pharmaceutical industry, enhancing business operations across various disciplines (Nandwana, 2023) Automation, optimization, and advanced data analytics through artificial intelligence (AI) have revolutionized pharmaceutical manufacturing, improving efficiency in clinical studies and quality control (Canorea, 2024) Additionally, the utilization of large data sets from cloud computing enables sales teams to gain valuable insights into consumer behavior, allowing pharmaceutical companies to implement targeted promotions and campaigns more effectively.

AI algorithms to find possible new markets or customers who might profit from specific

9 treatments Analysts project the market to accelerate from $905 million in 2021 to $9.24 billion in

2030 with the help of AI applications (Nandwana, 2023)

The rapid advancement of biotechnology systems is transforming biological research methods by enabling large-scale data analysis and offering a new perspective on the interconnections within biological processes These systems facilitate the development of innovative bioprocesses for producing fuels, polymers, fine chemicals, and pharmaceuticals, significantly enhancing the growth and establishment of industrial biotechnology.

Over the last two decades, Singapore has become a leading regional hub for pharmaceutical manufacturing, research, and innovation, establishing itself as a top nation in biomedical sciences (BMS) The government's strategic long-term plan aimed to increase annual BMS manufacturing output, enhance pharmaceutical infrastructure, and foster research and innovation capabilities This initiative has led to a significant rise in BMS and pharmaceutical production, evidenced by a notable increase in establishments in the sector, which were nearly three times higher in 2021 compared to 2020, highlighting the global potential of the innovative pharmaceutical industry.

Figure 6: Output (USD billion) and number of establishments of BMS in Singapore (KPMG, 2022)

INDUSTRY ANALYSIS

Rivalry among existing firms

The competition in Vietnam's pharmaceutical sector is exceptionally intense, particularly evident in the market for common medicinal products Numerous companies offer similar drugs for infections, fevers, and coughs, creating a highly competitive landscape Consumers often prioritize price and brand familiarity when selecting these products, influencing their purchasing decisions significantly.

Consumers often prefer well-known pharmaceutical brands due to concerns about safety, leading to a reluctance to try lesser-known alternatives The competition in the pharmaceutical market, particularly for specialized medications like antibiotics, is intense During Vietnam's economic opening, many effective foreign pharmaceuticals entered the market, further solidifying their preference among consumers despite higher costs These foreign products are favored for their rigorous testing and adherence to international standards To remain competitive, domestic pharmaceutical companies must enhance manufacturing practices, ensure stringent drug production, and prioritize delivering high-quality products to consumers in the future.

Threat of new entrants

New entrants in the pharmaceutical sector face a low threat to the current market due to stringent regulations that govern drug safety and efficacy This industry is closely monitored by global health authorities and governments, requiring compliance with complex standards set by organizations like the FDA in the U.S and the EMA in Europe These rigorous regulatory processes are designed to ensure the overall quality of drug products, thereby reducing uncertainty and informational asymmetries within the pharmaceutical field.

In Vietnam, Decree No 155/2018/ND-CP mandates that pharmaceutical companies comply with specific criteria set by the Ministry of Health to obtain operational licenses Building customer trust is crucial, as consumers are unlikely to purchase products that could pose risks without assurance of safety The pharmaceutical industry relies heavily on customer trust and brand recognition for sustainable growth, making it essential for established companies to have reputable brands and strong connections with healthcare providers Consequently, these factors can serve as significant barriers for new entrants in the market.

Developing a new medication is a lengthy and costly process that involves extensive research and development, clinical trials, and regulatory approval, often taking years and requiring billions of dollars Large pharmaceutical companies benefit from economies of scale, allowing them to reduce manufacturing costs and invest more in marketing, sales, and R&D In contrast, new entrants struggle to compete on price and market reach due to their lack of these economies Additionally, the industry demands substantial capital for R&D, manufacturing, marketing, and regulatory compliance, making it difficult for startups, particularly those without a proven track record, to secure necessary funding.

Threat of substitute products

The threat of substitute products in the pharmaceutical industry varies from moderate to high, influenced by the therapeutic area and treatment type While prescription drugs address the physical and psychological impacts of illnesses, they often come with adverse side effects that can exacerbate the conditions they aim to treat (Ridaeus, 2023) Alternative therapies, including non-pharmaceutical options and traditional medicines, are increasingly recommended Non-pharmaceutical treatments such as lifestyle changes, surgery, physical therapy, and nutritional supplements can effectively replace medications for various symptoms, with lifestyle modifications serving as alternatives for conditions like diabetes and hypertension Additionally, practices such as acupuncture and herbal medicine may be preferred in cultures with deep roots in conventional healthcare In Vietnam, medical professionals have explored the use of organically cultivated plants in herbal remedies, particularly through the Vietnam Orientally Traditional Medicine Association, to treat chronic diseases Notably, ginseng-based botanical treatments have demonstrated efficacy in supporting COVID-19 recovery and alleviating severe symptoms during the pandemic (Mai Huong, 2021).

The adoption of preventive measures in communities is an effective strategy to reduce pharmaceutical use, particularly in managing infectious diseases Vaccines can serve as alternatives to antiviral and antibiotic treatments by preventing illnesses before they occur The World Health Organization has advocated for widespread vaccination to enhance immunity and alleviate symptoms during the COVID-19 pandemic Public health initiatives, including vaccination campaigns and smoking cessation programs, play a crucial role in promoting overall health.

13 campaigns, not only raise public awareness of health issues but also strive to reduce the need for pharmaceutical interventions Therefore, these precautions also function as a replacement for prescription drugs.

Bargaining power of buyers

In the pharmaceutical sector, users' bargaining power is considered moderate, primarily influenced by the type of buyer Large hospital networks and healthcare distributors wield significant power due to their ability to purchase medications in bulk, compelling manufacturers to provide rebates or discounts The extensive variety of pharmaceuticals available enhances the influence of purchasing decisions, offering a competitive advantage Additionally, certain insurance companies and pharmacy benefit managers (PBMs) hold bargaining power over prescription costs and formularies, pressuring pharmaceutical firms to offer lower prices or risk non-coverage While large pharmacy chains and wholesalers possess some bargaining power through bulk purchases, individual consumers typically have limited influence in this dynamic.

The bargaining power of buyers varies between generic drugs and specialty pharmaceuticals due to price sensitivity and market competition Generic drugs, which contain the same active ingredients and therapeutic effects as brand-name medications, allow consumers to leverage competition for better prices (Aderson & PharmD, 2024) In contrast, specialty generics—often expensive and complex medications requiring extensive management—offer fewer alternatives, reducing buyers' negotiating power (Zamecnik, 2022) These specialty drugs, commonly used for conditions like multiple sclerosis, rheumatoid arthritis, and various cancers, tend to have limited equivalents, further diminishing patient options and bargaining leverage.

Bargaining power of suppliers

The bargaining power of suppliers in the pharmaceutical industry is considered moderate and varies based on supplier categories, material uniqueness, and market dynamics Suppliers of active pharmaceutical ingredients, excipients, and essential raw materials hold significant power, especially when offering unique or high-quality products that are difficult to source elsewhere Additionally, vendors providing specialized industrial and lab equipment exert considerable influence, particularly when their offerings are vital for manufacturing or research and have limited substitutes Conversely, when multiple suppliers are available for an input, the bargaining power of any single vendor decreases, allowing pharmaceutical companies to easily switch suppliers.

During periods of economic stability, pharmaceutical vendors often possess greater influence in a robust market Conversely, in challenging market conditions, they may offer more favorable terms to attract clients Fluctuations in currency rates and changes in trade regulations significantly affect the pricing and availability of imported raw materials, thereby strengthening suppliers' positions Furthermore, when the pharmaceutical industry utilizes bulk purchasing to secure better deals, suppliers dealing in larger quantities may find their negotiating power diminished, while those with smaller volumes could have better access to market demand.

FINANCIAL HEALTH ANALYSIS

TRAPHACO (TRA)

Founded in 1972, Traphaco Joint Stock Company (TRAPHACO) has established a strong reputation in the Vietnamese pharmaceutical industry With a vertical integration model, TRAPHACO specializes in the production, marketing, and distribution of both herbal and non-herbal pharmaceutical products The company boasts a comprehensive market presence, including four subsidiaries, three WHO-certified pharmaceutical and health protection food manufacturing factories, six GACP-WHO certified medical plant cultivation zones, a GMP-WHO medical extract factory, and a robust distribution network comprising 28 branches and over 30,000 contracted pharmacies nationwide.

Table 1: Proportion of revenue segments (Unit: billion VND)

Traphaco primarily distributes its pharmaceutical products through over-the-counter (OTC) and ethical drug channels (ETC), with the OTC channel generating the majority of revenues, while the ETC channel contributes 8%, as noted in the Traphaco Annual Report 2023 Despite the OTC channel's significant revenue share, it faces challenges in sustaining growth due to the slow socio-economic recovery, leading to a decline in sales for many OTC products, particularly functional foods, which saw a 20% drop post-COVID-19 In contrast, the ETC segment experienced a remarkable 24% revenue increase, surpassing targets by 6%, indicating that Traphaco has effectively adapted its strategy to focus on a rapidly growing segment that constitutes two-thirds of the pharmaceutical market.

Summary of key financial statement items

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Cash flows from/(used in) operating activities 217 346 290 248 288

Cash flows from/(used in) investing activities (32) (132) (198) (73) (168)

Cash flows from/(used in) financing activities (204) (202) (190) (209) 71

Traphaco Joint Stock Company recognized a slightly decrease in sale between FY2022 and

From 2019 to 2023, TRA experienced a significant sales increase of approximately VND 589 billion, representing a 34% growth This financial boost was largely driven by the COVID-19 pandemic in Vietnam, which heightened the demand for TRA's specialized pharmaceutical products, including test kits, fever reducers, and traditional medicines aimed at enhancing immunity after influenza.

In 2020, TRA achieved a significant revenue increase while successfully eliminating its long-term debts, leading to a reduction in interest payments to lenders Consequently, key financial indicators such as EBITDA, operating profit, and net income closely aligned with sales performance.

As of the end of FY 2023, TRA maintained a robust cash position of approximately VND 367 billion, alongside VND 400 billion in short-term held-to-maturity investments, reflecting its strategic focus during its maturity phase With around VND 100 billion allocated to long-term asset construction, TRA increased its short-term borrowing in 2023, capitalizing on low interest rates from lenders This approach has led to stable financial income and, consequently, a positive impact on TRA's net income.

Strategically opting out of expansion endeavors in recent years, such as constructing new facilities, TRA has maintained a debt-free status regarding long-term loans and observed a

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Sale EBITDA Operating profit (EBIT) Net income Net margin Operating margin

TRA experienced a 21% reduction in the ratio of non-current assets to total assets, bringing it down to 28% The company leveraged strong cash flows from operational activities and took advantage of lower interest rates on short-term loans to support daily working capital needs Additionally, dividends paid to shareholders were reduced, with the actual payments scheduled for early 2024.

(All financial statements, data and calculations refer to Appendix 2)

TRA IMP DBD DHG Mean

TRA observed a positive trend in its gross, operating, and net margins over the years Specifically, the net and operating margins remained constant approximately at 12% and 16%

Gross profit margin Operating profit margin

Net margin Return on assets

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Between FY2022 and FY2023, there was a notable 22% increase in revenue, although the gross margin saw a 2% decline This decrease in gross margin, despite stable EBITDA, can be attributed to the introduction of new machinery, which resulted in higher depreciation costs and ultimately increased the cost of goods sold.

TRA outperformed industry standards (IMP, DBD, and DHG) with a higher gross profit margin, although it experienced lower operating and net margins This discrepancy is largely attributed to substantial investments in advertising and sales initiatives to attract new customers, which negatively impacted the net margin Nevertheless, these marketing efforts were essential in driving sales growth, ultimately enhancing the gross margin.

The Group has consistently outperformed the industry average in Return on Assets (ROA) and Return on Equity (ROE) ratios, a success attributed to its maturity phase that focuses on optimizing existing assets rather than pursuing expansion This strategy enables the Group to achieve higher profits per Vietnamese Dong of asset and equity, in stark contrast to Duoc Hau Giang Company, which is currently investing in new factory developments and expanding its operations.

Operating CF to maturing obligation (OCFMO) 0.6 0.8 0.7 0.6 0.5 (0.13) 0.70 0.20 0.3

TRA experienced an increase in receivables turnover days, reaching 32, while effectively managing its payables turnover by adhering to supplier payment agreements This strategic approach to both trade receivables and payables days supports the company's efforts to maintain a stable capital structure.

Operating CF to maturing obligation (OCFMO)

Current ratio Quick ratio Working capital to sale

OCFMO, current and quick, working capital to sale

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Debtors, creditors and stock days

FY 2023 FY 2022 FY 2021 FY 2020 FY 2019

Inventory turnover saw a slight rise due to increasing raw material prices and heightened sales demand TRA has shown exceptional working capital management compared to industry peers, and its operating cash flows for meeting financial obligations are also marginally better than those of other companies in the sector.

In FY2023, TRA maintained a quick ratio of 1.7, while its current ratio decreased to 2.5, reverting to levels seen in 2021 This decline was largely due to significant short-term borrowing, as TRA adopted distinct financing strategies compared to the industry average current ratio of 3.6.

Since 2021, TRA implemented a zero long-term debt strategy, fully repaying its obligations and reducing its Debt-to-Equity (D/E) and Gearing ratios to zero This approach allowed TRA to channel its surplus cash flow into enhancing revenue growth within its financial operations.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Borrowing ratio D/E ratio Gearing ratio

In FY2023, TRA strategically capitalized on low borrowing interest rates, resulting in an increase in its borrowing ratio from 0.03 to 0.1 This approach sets TRA apart from other companies in the pharmaceutical industry, although its gearing ratios remain consistent with industry standards Notably, the Group's financial reports indicate a lack of non-current liabilities or long-term debt, highlighting its choice to refrain from constructing long-term assets or pursuing a development phase.

Sales to capital employed (SOCE) 1.39 1.57 1.70 1.74 1.54 0.96 1.12 1.03 1.04

TRA's efficiency ratios, such as SOCE, total asset turnover, and fixed asset turnover, have consistently improved over the years, reaching their peak at the end of 2022 However, there was a slight decline in FY2023, attributed to a decrease in sales and the utilization of certain fixed assets, including machinery.

BIDIPHAR (DBD)

Binh Dinh Medical Equipment Pharmaceutical Joint Stock Company (Bidiphar), established in 1980 as Pharmaceutical Enterprise II Nghia Binh, has evolved significantly over the decades Transitioning to a joint-stock company on March 1, 2014, Bidiphar boasts over 40 years of experience in pharmaceutical manufacturing Renowned as a leading pharmaceutical company in Vietnam, it consistently advances by researching and implementing new technologies in management, production, and business practices that adhere to international standards.

DBD is ranked among the top 5 pharmaceutical companies in Vietnam, offering over 300 products available in 99% of the nation's hospitals and more than 20,000 pharmacies (DBD Annual Report, 2023) The company has successfully exported over 70 products to more than 10 countries, including Laos, Yemen, Mongolia, Myanmar, and Cambodia, reflecting its commitment to quality DBD operates multiple pharmaceutical production lines that comply with international standards, such as GMP-WHO, specializing in both non-beta-lactam and beta-lactam antibiotic products, including injectable powders, lyophilized injections, solution injections, tablets, film-coated tablets, and hard capsules Additionally, DBD focuses on the manufacture and marketing of cancer treatment drugs, pharmaceuticals, and health supplements, alongside trading in medical equipment.

The company's motto, "Quality - Efficiency - Customer Satisfaction," underscores its commitment to providing high-quality products and services that enhance community health and deliver economic advantages for shareholders DBD demonstrates its dedication to social responsibility through initiatives aimed at creating genuine value for society.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Cash flows from/(used in) operating activities (1) 213 118 165 294

Cash flows from/(used in) investing activities (19) (2) (95) (158) (115)

Cash flows from/(used in) financing activities 66 (240) (62) (21) (146)

Looking at asset structure and scale of revenues on DBD’s financial statements, it can be seen that the company is still pursuing a continuous development strategy

In 2019, DBD's consolidated balance sheet revealed a substantial loan amount exceeding 241 billion VND, constituting 41% of non-current assets and 70% of total fixed assets, including ongoing construction projects Over the following five years, DBD gradually repaid these loans, maintaining an average loan proportion of 31% relative to total fixed assets and construction in progress, a figure notably higher than industry competitors like TRA and IMP, and comparable to DHG, despite DBD's asset scale being nearly one-third that of DHG This elevated loan ratio reflects DBD's ambitious growth targets and emerging strategies since its equitization in 2014, with a key focus on the cancer defense drug plant project in Binh Dinh province during the 2019-2022 period.

From 2020 to 2023, DBD experienced a significant rise in term deposits, highlighting its strong financial position and dependable funding sources amid economic fluctuations This stability is evident in the company's Cashflow Statements, which show a consistent increase in cash inflows from operations over the four-year period By 2023, these cash inflows surpassed total cash outflows for financing and investing activities, demonstrating the company's robust financial health.

DBD's profit and loss figures reflect remarkable growth and performance from 2020 to 2023, particularly during the Covid-19 pandemic, which significantly boosted the demand for medical devices and medicines Revenue surged from 1.2 trillion in 2019 to 1.6 trillion in 2023, achieving a 31% increase Alongside this revenue growth, net income and operating profit rose sharply by 89% over five years A key factor driving this profit increase was the establishment of a new plant for cancer defense drugs in Binh Dinh province in late 2022, which enhanced the company's capacity and introduced higher-priced specialty medicines.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

DBD IMP DHG TRA Mean

DBD has seen significant improvements in its profitability ratios, driven by the new plant for cancer defense drugs in Binh Dinh province, which was completed in late 2022 The gross profit margin increased from 32.9% in 2019 to 48.3% in 2023, while the net profit margin rose from 11.3% in 2019 to 16.3% in 2023, reflecting the company's successful expansion and enhanced financial performance.

2023 were slightly higher by around 1% than average figures of other rivals in the same industry with comparable scales and strategy

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Over a five-year period, DBD experienced a notable increase in both Return on Assets (ROA) and Return on Equity (ROE) ROA rose by 5.1%, from 8.8% in 2019 to 13.9% in 2023, indicating improved efficiency in asset investment However, DBD's 2023 ROA remained below the average of competitors such as TRA, DHG, and IMP, which stood at 15.3%, likely due to DBD's smaller market share In contrast, DBD's ROE showed significant growth, climbing from 15.3% in 2019 to 18.8% in 2023, surpassing the industry average of 18.4% for that year.

Operating CF to maturing obligation (OCFMO) (0.0) 0.6 0.4 0.4 0.7 (0.1) 0.2 0.5 0.2

Operating CF to maturing obligation (OCFMO)

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

DBD, similar to other established pharmaceutical companies, demonstrates a robust liquidity position characterized by high Current and Quick ratios over the past five years Notably, both ratios peaked in 2021, with the Current ratio reaching 3.3 and the Quick ratio at 2.4, likely influenced by the heightened demand during the peak of the Covid-19 pandemic.

19 period with a huge amount of products sold for disease defense campaigns and the company also needed to prepare highly liquidated assets during this time to cope with the circumstances

From 2019 to 2023, DBD exhibited high operational ratios, particularly in Debtor days and Stock days The Accounts Receivable turnover days for DBD consistently exceeded 100, reaching 116 days in 2023, significantly longer than the industry average of 36 days, although this did not adversely impact the company's liquidity ratios Additionally, DBD's Days of Inventory turnover was also above average, reflecting a longer sales cycle compared to competitors This metric decreased from 135 days in 2019 to 91 days in 2021, during the peak of the Covid-19 pandemic, before climbing to 203 days in 2023, while competitors averaged 177 days for inventory sales This disparity in turnover rates may indicate underlying operational challenges for DBD.

FY 2023 FY 2022 FY 2021 FY 2020 FY 2019

DBD's smaller market share can be attributed to its limited marketing budget compared to competitors In 2023, HDG allocated over VND 900 billion for selling expenses, while TRA and IMP spent over VND 600 billion and VND 300 billion, respectively In contrast, DBD invested an average of only VND 280 billion annually in selling expenses from 2019 to 2023.

Looking at Gearing ratios, DBD might be considered as the most geared company within

In 2019, DBD exhibited the highest leverage among four mature pharmacy companies, with a debt-to-equity (D/E) ratio of 7%, a borrowing ratio of 21%, and a gearing ratio of 10% However, by 2023, these figures had significantly decreased to 3% for D/E, 5% for the borrowing ratio, and 9% for the gearing ratio In contrast, most competitors, including TRA, IMP, and DHG, reported leverage ratios approaching zero in 2023.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

The DBD's development plan focuses on investing in infrastructure, particularly aimed at enhancing the Plant for Cancer medicines and supporting various upcoming projects in the coming years.

DBD's efficiency ratios, including Sales to Capital Employed (SOCE), Total Asset Turnover, and Fixed Asset Turnover, were comparable to industry peers The SOCE decreased from 1.26 in 2019 to 1.12 in 2023, primarily due to the new Cancer defense medicine plant introduced in late 2022, which did not yet yield corresponding sales Total Asset Turnover and Fixed Asset Turnover peaked in 2021 during the Covid-19 pandemic, resulting in high profits, but both ratios declined by 2023 In 2023, Total Asset Turnover and Fixed Asset Turnover stood at 0.83 and 4.62, respectively, aligning closely with competitors like TRA and DHG.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Sales to capital employed (SCE) Total asset turnover Fixed asset turnover

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Dividend payout & Dividend per share

Dividend payout ratio (DPR) Dividend per share

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Price over Earnings, Sales, Book and EPS

Earning per shares P/E ratioMarket to book ratio (P/B) Market to sale (P/S)

DBD's investor-related ratios reveal that the company did not pay dividends in 2021 and 2022, unlike its competitors TRA and DHG, likely due to its focus on investing in a Plant for Cancer defense medicines, which was completed in late 2022 However, DBD resumed dividend payments in 2023, achieving a Dividend Payout Rate (DPR) of 0.56 and a Dividend per Share (DPS) of 0.04, significantly higher than the average DPR of 0.38 among its main competitors The company's DPR and DPS have shown stability, with rates consistently around 0.50-0.56 for DPR and 0.03-0.04 for DPS, aside from the two years without dividends.

On another aspect, Price per sales (P/S) and Price per book (P/B) of DBD were higher than

IMEXPHARM (IMP)

Imexpharm Join Stock Company, established in 1977 and formerly known as Grade II Pharmaceutical Company, has over 47 years of experience in the pharmaceutical industry Committed to investing in product quality that meets superior global standards, Imexpharm has established itself as a leader in Vietnam's pharmaceutical sector, adhering to European standards The company operates four factories located in Dong Thap, Ho Chi Minh City, and Binh Duong, with three of these factories complying with EU-GMP standards and featuring a total of twelve production lines.

Despite the challenges of the pharmaceutical industry and economic fluctuations, IMP remains committed to its mission of enhancing Vietnam's pharmaceutical sector The company aims to provide high-quality, affordable medications that meet local healthcare needs and decrease dependence on imports.

IMP is a trusted manufacturing partner for leading global pharmaceutical companies like Sandoz, Pharmacience Canada, and Sanofi-Aventis The company prioritizes technological innovation, quality improvement, and workforce training to provide high-quality products and services With EU-GMP certified production lines in Vietnam, IMP has also achieved product registration in the European market.

IMP exemplifies excellence and innovation in Vietnam's pharmaceutical industry With its advanced manufacturing capabilities, strategic partnerships, and commitment to quality and affordability, IMP is poised for continued growth while enhancing the health and well-being of individuals in Vietnam and beyond.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Cash flows from/(used in) operating activities 67 73 235 379 (40)

Cash flows from/(used in) investing activities (121) (136) (83) (199) 79

Cash flows from/(used in) financing activities (61) 74 34 (272) (112)

Looking at asset structure and scale of revenues on IMP’s financial statements, it can be seen that the company is still pursuing a continuous development strategy

There is a highlight that the portion of fixed tangible assets together with constructions in progress for long-term fixed assets occupied a huge percentage in the total assets from 2019 to

In 2023, fixed tangible assets and constructions in progress accounted for approximately 43% of total company assets on average In comparison, DHG reported only 16%, TRA 29%, and DBD 23% This disparity is attributed to IMP's focus on high-tech medicine factories in the South, allowing them to target advanced pharmaceutical production chains, despite having smaller total asset scales than DHG.

Over the past five years, the company has experienced a significant rise in bank deposits, encompassing both cash equivalents and term deposits, which underscores its strong financial position and dependable funding sources amid economic fluctuations This trend is evident in the Consolidated Cashflow Statements, where cash inflows from operations grew nearly fivefold from 2019 to 2022, even as the company continued to invest in various activities.

Looking at Profit and Loss figures of IMP, it is noticeable that while during the period from

2020 to 2021, while the overall pharma companies witness increase in sales due to Covid-19

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

The COVID-19 pandemic significantly impacted IMP's revenues, which fell from nearly 1.4 trillion VND in 2020 to just 1.2 trillion VND in 2021 This decline was primarily due to the company's reliance on the ETC channel for selling prescription medicines and medical devices, which saw a sharp reduction in face-to-face interactions during lockdowns Additionally, IMP's dependence on imported materials for high-quality medications and the postponement of production due to material shortages further contributed to the downturn However, as the pandemic was brought under control in 2022, IMP's revenues rebounded impressively, soaring by 57% to nearly 2 trillion VND in net sales by 2023.

IMP DBD DHG TRA Mean

In 2023, profitability ratios showed slight increases, with the Gross Profit margin at 40.6%, the Operating Profit margin at 19.2%, and the Net Profit margin at 15%, reflecting a rise of approximately 3%-5% across all three metrics However, these figures remain lower than the average ratios of competitors such as TRA, DBD, and DHG This discrepancy is primarily attributed to IMP's reliance on imported materials for producing high-quality medicines, particularly given their longstanding EU-GMP certification.

Over a five-year period, IMP's profit growth has been sluggish, reflected in its gradual increases in Return on Assets (ROA) and Return on Equity (ROE) ROA rose by 4%, from 8.8% in 2019 to 12.8% in 2023, but remains 3% below the industry average for that year Similarly, ROE increased by 4%, from 10.4% in 2019 to 14.4% in 2023, yet it lags behind the average ratio of 19.9% among competitors like TRA, DHG, and DBD This underperformance can be attributed to the impact of Covid-19 on sales and the substantial scale of IMP's assets and equity, which are larger than TRA's, as the company focuses on high-tech infrastructure and high-quality imported materials for production.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Operating CF to maturing obligation (OCFMO) 0.3 0.2 0.6 1.0 (0.1) 0.7 0.2 0.5 0.5

IMP demonstrates a robust liquidity position similar to other mature pharmaceutical companies, maintaining high Current and Quick ratios over the past five years From 2019 to 2023, IMP's Current ratio consistently approached 3.0, peaking at 3.9 in 2023, significantly exceeding the industry average In contrast, the Quick ratio was notably lower, at just 1.6 in 2023, which is below the average of 2.0 among its three main competitors and considerably lower than DHG This indicates a relatively high inventory level at IMP compared to its peers.

Operating CF to maturing obligation

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

During the analyzed period, IMP exhibited significantly lower debtor days and stock days compared to its competitors, indicating improved operational efficiency and effective inventory management.

From 2019 to 2023, the Account Receivable turnover days at IMP showed a significant improvement, decreasing from 66 days in 2019 to just 45 days in 2023 This indicates that the company efficiently collects proceeds from credit sales in only 45 days, outperforming competitors with an average of 60 debtor days Conversely, the stock days at IMP increased from 147 days in 2019 to 216 days in 2023, highlighting a notable rise in inventory holding period.

In 2021, production delays caused by the Covid-19 pandemic led to challenges in importing materials and hindered ETC sales due to social distancing measures However, by 2023, as the pandemic was brought under control, stock days significantly decreased to just 176 days.

FY 2023 FY 2022 FY 2021 FY 2020 FY 2019

When comparing gearing ratios, IMP exhibits a notably low rate relative to competitors such as TRA, DHG, and DBD Over the past five years, the proportion of long-term debts at IMP has remained consistently low.

From 2019 to 2023, the company experienced minimal financial activity, with the exception of 2021 when it resorted to loans due to production delays and the new Plant IMP4 project In 2022, significant investment from the foreign pharmaceutical giant SK Group bolstered the company's prospects, especially since IMP had previously achieved overseas quality certification Despite relying on short-term borrowing to finance operations, the borrowing rate was notably low at 2% in 2023, a significant drop from the 13% peak in 2021 Additionally, the company's gearing ratios were kept at a minimal level, decreasing from 2% in 2019 to zero in 2022, where it remained through 2023.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

DHG PHARMA (DHG)

Founded in 1974, DHG Pharmaceutical Joint Stock Company (DHG Pharma) is a leader in Vietnam's pharmaceutical sector, operating two manufacturing plants, a printing and packaging factory, and three central warehouses With a robust distribution network of 34 branches serving over 30,000 customers nationwide, DHG Pharma focuses on manufacturing and trading pharmaceutical products, health supplements, and cosmeceuticals, with nearly 90% of its offerings being pharmaceuticals The company distributes its products through pharmacy, hospital, and modern retail channels, while also maintaining long-term partnerships with approximately 27 distribution partners and pharmacy chains across more than 20 countries, generating around 119 billion VND, or 2.4% of total sales in 2023.

In celebration of its 50th anniversary, DHG Pharma has introduced the mission "For a healthier and more beautiful life" while embracing the spirit of "Ever aspiring." The company is dedicated to advancing research and development of innovative products to cater to both domestic and international markets, collaborating closely with its parent company, Taisho.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Cash flows from/(used in) operating activities 838 826 452 901 240

Cash flows from/(used in) investing activities (224) (248) 46 (354) (180)

Cash flows from/(used in) financing activities (620) (575) (528) (550) (0)

From 2019 to 2023, DHG has experienced a consistent upward trend in total net sales, increasing from approximately 4 trillion VND in 2019 to over 5 trillion VND This growth reflects the company's strong performance in service revenues over the five-year period.

In 2023, DHG experienced a notable revenue growth, recovering from a dip to approximately 3.7 trillion VND in 2020 The surge of nearly 25% from 2020 to 2022 was largely driven by the heightened demand for medical devices and medicines during the Covid-19 pandemic Although the pandemic subsided by 2023, DHG continued to leverage its internal strengths and strategic developments, resulting in a sustained upward trend in revenues.

Over the past five years, DHG has experienced a remarkable increase in net profit margin, rising from 16% to 21%, which represents a 66% growth, while sales saw a more modest increase of 29% This trend highlights the company's effective operational management and strategic planning.

DHG's Balance Sheets reveal a significant 47% growth in total assets over two years, with non-current assets soaring nearly 55% from 2022 to 2023 This substantial increase is primarily driven by the development of major projects currently under construction, focusing on future assets and infrastructure for plants.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

67 which are qualified under Japan-GMP and EU-GMP in order to raise competitiveness and advantages with other companies

DHG IMP DBD TRA Mean

From 2019 to 2023, profitability ratios demonstrated significant growth, with Gross Margin, Operating Profit Margin, and Net Profit Margin increasing by 2.8%, 4.8%, and 4.7%, respectively This consistent rise indicates the company's sustainable growth, highlighting a genuine improvement in operations and services.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

In 2023, DHG outperformed its industry peers with a net profit margin of 20.9%, significantly higher than the average of 14.6% among the three largest pharmaceutical companies This success can be attributed to efficient operations, a strategic investment approach, and effective restructuring decisions, which collectively boosted financial income from investments in 2022 and 2023, despite a slightly lower gross profit margin compared to the industry average.

Between 2019 and 2023, DHG experienced steady growth in Return on Assets (ROA) and Return on Equity (ROE), with ROA rising from 15.2% to 18.6% (an increase of 3.4%) and ROE increasing from 18.7% to 21.7% (a growth of 3%) Notably, both ROA and ROE surpassed industry averages, which were 13.7% for ROA and 17.4% for ROE in 2023 This growth in return ratios indicates enhanced efficiency in utilizing assets and equity within the company.

Operating CF to maturing obligation (OCFMO) 1.2 1.0 0.6 1.1 0.2 (0.1) 0.7 0.5 0.3

Operating CF to maturing obligation

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Apart from Profitability, liquidity ratios of DHG also indicated a strong liquidity position of the company Namely, the average current ratio and quick ratio within 5 years from 2019 to

In 2023, DHG reported impressive financial metrics with ratios of 4.5 and 3.3, significantly surpassing the industry averages of 3.1 and 1.7, respectively Additionally, the company's working capital demonstrated a steady rise, increasing from 2.4 trillion VND to 3.4 trillion VND, consistently accounting for over 60% to 70% of sales, highlighting its robust and adequate working capital reserves.

DHG demonstrates exceptional performance in operational ratios, particularly in accounts receivable turnover and creditor days Over the past five years, DHG maintained an average debtor day of just 37 days, with a notable reduction to 32 days in 2023 This figure is nearly half that of its competitors, indicating that DHG efficiently collects payments from sales in significantly less time, which contributes to a robust current ratio for the company.

FY 2023 FY 2022 FY 2021 FY 2020 FY 2019

Gearing ratios in the pharmacy industry reveal a consistent trend, with companies maintaining a relatively low level of debt compared to their total resources Throughout the observed period, the ratio of total borrowing to total assets ranged from 7% to 11%, indicating that loans play a minor role in the overall financial structure of these firms.

From 2019 to 2023, DHG's capital structure primarily consisted of short-term loans, reflecting the company's maturity in the industry and strong liquidity position With robust cash flows supporting both operational activities and investment plans, DHG remains confident in its financial resources despite the significant investments required in the pharmacy sector The increase in borrowing in 2023 was mainly attributed to a plant enhancement plan, yet these loans represent only a small fraction of DHG's total assets and equity The company's confidence in its operating cash flows further mitigates financial distress risk.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

DHG's efficiency ratios, including sales to capital employed (SOCE), total asset turnover, and fixed asset turnover, reveal a steady increase in total and fixed asset turnover over the years, while SOCE experienced fluctuations but showed a declining trend up to 2023 Notably, fixed asset turnover surged from 4.33 to 6.15 by 2023, significantly outperforming competitors in the industry This impressive ratio underscores the effectiveness of DHG's investment strategy and highlights the competitive advantage derived from its superior infrastructure.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Sales to capital employed (SCE) Total asset turnover Fixed asset turnover

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Dividend payout & Dividend per share

Dividend payout ratio (DPR) Dividend per share

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Price over Earnings, Sales, Book and EPS

Earning per shares P/E ratioMarket to book ratio (P/B) Market to sale (P/S)

Investor-related ratios, including the Dividend Payout Ratio (DPR), Dividend per Share, Price-to-Earnings (P/E) Ratio, and Earnings per Share (EPS), indicate DHG's stable growth Notably, EPS surged from 4,860 VND in 2019 to 8,036 VND in 2023, nearly doubling within two years, while its main competitors averaged only 4,593 VND in 2023 This remarkable trend is attributed to a consistent increase in DHG's net income over the past five years and advancements in product development, particularly during the COVID-19 pandemic, which significantly raised the prices of medical and pharmaceutical products.

However, the P/E ratio witnessed a downward trend within 5 years, except for a rise in

RECOMMENDATIONS & CONCLUSION

Overall assessment

Given that the report emphasizes the four selected pharmaceutical giants, evaluating the businesses' overall financial performance and management capabilities is essential in light of the data as mentioned above

DHG Pharma stands out as the largest company among the four analyzed, showcasing impressive financial ratios that surpass industry averages, reflecting its robust stability in management, operations, production, and exports The firm consistently meets its annual goals, thanks to well-planned strategic development initiatives aimed at efficient execution As a result, investors are likely to favor DHG Pharma for sustainable, low-risk growth, followed by Traphaco and Bidiphar, due to its strong sales, profits, and dividend payment ratios In contrast, Imexpharm appears overvalued compared to the other three companies, primarily due to its inconsistent dividend payout rate.

The three pharmaceutical companies have a fair chance of competing for market share, as they all possess the capability to perform similar tasks Each company has equal opportunities to develop branded pharmaceuticals, influenced by their internal research and available resources The diverse preferences for prescriptions among individuals create greater chances for companies to develop new medications that meet the rising market demand However, a significant challenge in Vietnam's pharmaceutical sector is the reliance on imported raw materials, with over 90% sourced from abroad Consequently, any company that can effectively address the raw material shortage will likely secure a strong position in this competitive industry.

Future for the pharmaceutical industry

The global pharmaceutical industry has demonstrated its critical role by swiftly adapting to the challenges posed by the Covid-19 pandemic The Vietnamese pharmaceutical sector has not only ensured the availability of essential patient care equipment but has also consistently supplied medications to support health enhancement and recovery Despite the evolving epidemic situation over the past two years, the industry has maintained its commitment to meeting healthcare demands.

The political and economic instability in Vietnam has led to a significant decline in the demand for common medicines This raises important questions about the future trends in the pharmaceutical sector, particularly for Vietnamese firms.

The widespread deployment of high technology in drug production and management is essential for establishing a seamless supply chain from manufacturers to consumers As consumer buying habits evolve, e-commerce presents significant opportunities for innovative operations and sales growth, enhancing convenience for buyers In the over-the-counter (OTC) market, individuals can now easily purchase medications online rather than visiting pharmacies Nevertheless, traditional medical treatments remain crucial, as most patients still need a doctor's examination and prescription.

Foreign pharmaceutical companies have long invested in research and development of pharmaceutical materials, leveraging advanced machine technologies to enhance productivity In response, Vietnamese businesses are ramping up their R&D spending to establish a foundation for manufacturing specialty generics and achieving regional drug self-sufficiency Additionally, innovative technologies are improving drug production processes, ensuring high efficacy while reducing adverse effects for consumers.

Pharmaceutical companies should establish pure medicinal herb gardens to ensure a stable supply of raw materials, especially in light of the significant decline in medicine production during the COVID-19 pandemic due to import challenges Creating dedicated growing spaces for medicinal herbs is a strategic decision that will promote consistent growth and enhance production efficiency.

Generic drugs contain the same active ingredients as brand name drugs and are required to have the same therapeutic effects, safety, and quality They are typically less expensive because they do not require the original clinical trials, allowing for lower market costs Although generic drugs must be approved by the FDA and are held to the same quality standards as brand name drugs, they may differ in appearance due to trademark laws Not all brand name drugs have a generic equivalent immediately; generics can only be marketed after the brand's patent expires Branded generics, developed post-patent expiration, carry brand names but are still bioequivalent to their generic counterparts Additionally, authorized generics are identical to brand name drugs and are marketed under a private label by the original manufacturer While generics are generally more affordable, initial prices may be higher due to exclusivity periods granted to the first generic applicant.

Bidiphar (2024) Bidiphar Annual report 2023 Available at: https://www.vndirect.com.vn/cmsupload/beta/2024.04.24_VND.-Bao-cao-thuong-nien-

Bush, T (2019) Pestle analysis of the pharmaceutical industry, PESTLE Analysis Available at: https://pestleanalysis.com/pestle-analysis-of-pharmaceutical-industry (Accessed: 07 September

Canorea, E (2024) Technologies that will reshape the pharmaceutical sector in 2024, Plain

Concepts Available at: https://www.plainconcepts.com/tech-trends-pharma-2024/ (Accessed: 08

I don't know!

DHG Pharma (2024) DHG Pharma Annual report 2023 Available at: https://www.dhgpharma.com.vn/images/2024/BCTN/Bao-cao-Thuong-nien-2023.pdf (Accessed:

EFPIA (2022) The pharmaceutical industry in figures Available at: https://www.efpia.eu/media/637143/the-pharmaceutical-industry-in-figures-2022.pdf (Accessed:

The pharmaceutical market continues to be dominated by foreign enterprises, highlighting its status as a competitive landscape for international businesses This trend underscores the challenges faced by local companies in establishing a strong presence in the industry As foreign firms expand their influence, the need for strategic adaptations by domestic players becomes increasingly crucial to thrive in this evolving market.

The pharmaceutical industry significantly contributes to the European economy, as highlighted in the report by Jervelund et al (2023) This comprehensive analysis reveals the sector's role in job creation, innovation, and overall economic growth The findings underscore the importance of the pharmaceutical industry in enhancing public health and driving advancements in medical research For more in-depth insights, the full report can be accessed at Copenhagen Economics.

Imexpharm's Annual Report for 2023 provides a comprehensive overview of the company's performance and strategic initiatives The report is accessible online, offering insights into financial results and future projections For more detailed information, you can visit the official Imexpharm website The report was last accessed on September 8, 2024.

KPMG (2022) Delivering value through Emerging Tech and Innovation Available at: https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2023/value-emerging-tech.pdf (Accessed: 07 September 2024)

Mai Huong (2021) Nhiều bài thuốc đông Y đã được Nghiên Cứu, ứng dụng Trong Thực Tiễn,

Báo Sức khỏe & Đời sống - Cơ quan ngôn luận của Bộ Y tế Available at:

80 https://suckhoedoisong.vn/nhieu-bai-thuoc-dong-y-da-duoc-ke-thua-nghien-cuu-ung-dung-trong- thuc-tien-169211216200037488.htm (Accessed: 08 September 2024)

Nandwana, A (2023) Council post: How technology will impact pharmaceutical sales in 2023,

Forbes Available at: https://www.forbes.com/councils/forbesbusinesscouncil/2023/02/27/how- technology-will-impact-pharmaceutical-sales-in-2023/ (Accessed: 08 September 2024)

Nguyen, T.N (2023) GDP Việt Nam Tăng Hơn 300 tỷ USD sau 20 năm, nhảy Bao Nhiêu Bậc

Vietnam's GDP has surpassed $300 billion after two decades of significant growth, positioning the country favorably in the global economic landscape This impressive economic development highlights Vietnam's increasing influence and competitiveness in international markets For more detailed insights, visit the Economic Diplomacy page.

Olson, M.K (2014) Pharmaceuticals regulation, Pharmaceuticals Regulation - an overview |

ScienceDirect Topics Available at: https://www.sciencedirect.com/topics/medicine-and- dentistry/pharmaceuticals-regulation (Accessed: 08 September 2024)

According to the People’s Medicines Alliance (2023), during the pandemic, Big Pharma allocated nearly the same amount of funds to enriching shareholders as it did to research and development This raises concerns about the priorities of pharmaceutical companies in addressing public health needs For more details, visit the People’s Medicines website.

Reuters (2024a) TRA.HM - | Stock Price & Latest News | reuters Available at: https://www.reuters.com/markets/companies/TRA.HM/ (Accessed: 07 September 2024)

Reuters (2024b) IMP.HM - Imexpharm Corp Available at: https://www.reuters.com/markets/companies/IMP.HM/ (Accessed: 07 September 2024)

Ridaeus, D (2023) Can natural alternatives eliminate the negative effects of prescription drugs?,

Alternative to Meds Available at: https://www.alternativetomeds.com/blog/can-natural- alternatives-eliminate-the-negative-effects-of-prescription-drugs/ (Accessed: 08 September

Samuels, M (2020) Pharma companies are investing in social good could they do better?, SPH

Pharmaceutical companies are increasingly investing in social good initiatives, yet questions remain about the effectiveness and sincerity of these efforts While their contributions can positively impact communities, there is a growing demand for greater transparency and accountability in their social responsibility strategies Stakeholders urge these companies to align their philanthropic activities with their core business practices to ensure lasting benefits By prioritizing ethical considerations and engaging with the communities they serve, pharmaceutical firms can enhance their reputations and foster trust among consumers Ultimately, a more genuine commitment to social good could lead to improved health outcomes and strengthen the industry's overall impact on society.

Ngành dược Việt Nam dự kiến sẽ đạt mức tăng trưởng kép 8% trong dài hạn, chủ yếu nhờ vào xu hướng già hóa dân số và sự phát triển kinh tế trong nước cũng như toàn cầu Sự gia tăng nhu cầu về dịch vụ y tế và sản phẩm dược phẩm sẽ thúc đẩy sự phát triển của ngành này Các yếu tố như chính sách hỗ trợ từ chính phủ và sự đầu tư vào nghiên cứu và phát triển cũng đóng vai trò quan trọng trong việc nâng cao năng lực cạnh tranh của ngành dược Việt Nam.

In the article "Why Domestic Drugs Lag Behind Foreign Drugs?" by Tieu Diep (2019), published on the electronic newspaper Thương Trường, the author explores the challenges faced by domestic pharmaceuticals in competing with foreign counterparts The piece discusses factors such as regulatory hurdles, market perception, and investment limitations that contribute to the dominance of imported medications It highlights the need for improved quality, innovation, and strategic marketing to enhance the competitiveness of local drug manufacturers The full article can be accessed at: https://thuongtruong.com.vn/news/vi-sao-thuoc-noi-lep-ve-truoc-thuoc-ngoai-15759.html (Accessed: 08 September 2024).

To, U (2023) Thị Trường trái phiếu Chính Phủ Tháng 10/2023: Lãi suất phát Hành Tăng tại KỲ

Hạn 10 năm VÀ 15 năm, thitruongtaichinhtiente.vn Available at:

81 https://thitruongtaichinhtiente.vn/thi-truong-trai-phieu-chinh-phu-thang-10-2023-lai-suat-phat- hanh-tang-tai-ky-han-10-nam-va-15-nam-52161.html (Accessed: 08 September 2024)

Traphaco (2024b) Traphaco Annual report 2023 Available at: https://traphaco.com.vn/upload/files/20220606_TRA_AR2021-EN_nen.pdf (Accessed: 07 September 2024)

Tiêu đề	Financial Analysis Report of Four Pharmaceutical Companies DHG Pharma Traphaco Imexpharm Bidiphar
Tác giả	Nguyen Thao Anh
Người hướng dẫn	Assoc. Prof. Dr. Pham Duc Cuong
Trường học	University of the West of England
Chuyên ngành	Finance
Thể loại	dissertation
Năm xuất bản	2024
Thành phố	Bristol

Định dạng
Số trang	148
Dung lượng	4,02 MB