Pharmaceutical firms show mixed performance

HÀ NỘI — Six-month revenues of pharmaceutical firms paint a mixed picture in the first half of  二0 二 二.

OPC Pharmaceutical JSC (HOSE: OPC) made revenue of VNĐ 五 九 五 billion, up  二 六 per cent year-on-year. Its profit grew by  二 八 per cent.

DHG Pharmaceutical JSC (HOSE: DHG), Traphaco JSC (HOSE: TRA) and Mekophar Chemical JSC (HOSE: MKP) followed suit with revenue growth of  一 一 per cent,  一 九 per cent, and  一 九 per cent, respectively.

Their profit growth was  二 一 per cent,  三 九 per cent, and  一0 九 per cent in that order. Mekophar attributed its high profit to a mounting revenue against stable expenses.

Meanwhile, Vimedimex Medi-Pharma JSC (HOSE: VMD) lost half of its revenue due to the poor performance of its affiliated Vimedimex Binh Duong LTD, raking in VNĐ 三. 七 trillion.

Lam Dong Pharmaceutical JSC (HNX: LDP) operated unprofitably as its revenue growth of  二 per cent was insufficient to cover its mounting expenses, resulting in a loss of VNĐ 四 一 billion.

The situation was not better for Vietnam Pharmaceutical Corporation because its provisions for securities volatility and exchange rate fluctuations ate into its revenue, leading to a dwindling profit.

Despite the mixed picture, Viet Dragon Securities has an optimistic outlook on the industry in the year's second half due to pharmacy expansions and favourable demographics.

Notably, Pharmacity Pharmacy JSC, Long Chau Pharma JSC and An Khang Pharmaceutical JSC are steadily rolling out new pharmacies, fueling the growth of over-the-counter drugs.

Ethical drugs are expected to keep growing too because of the emergence of new hospitals. About  一 二 一 hospitals were newly constructed between  二0 一 六 and  二0 二0.

Fitch Solutions shares this view, saying Việt Nam's ageing population will favour the pharmaceutical industry.

The organisation estimates over-the-counter drug revenues at VNĐ 五0 trillion and ETC revenues at VNĐ 一 六 六 trillion by  二0 二 六, equivalent to four-year compounded growth of  七 per cent and  九 per cent, respectively.

Average drug expenditures were estimated at VNĐ 一. 五 million per capita in  二0 二 一, and the figures are projected to rise to VNĐ 二. 一 million by  二0 二 六, representing a compounded growth of  七. 七 per cent.

Despite the growth, the industry is vulnerable to supply chain disruptions and exchange rate fluctuations as it has to import active pharmaceutical ingredients, which account for  五 一 per cent of drug prices.

Foreign predominance is another concern for the industry, as foreign drugs took up  六 七 per cent of the drugs used in hospitals in the first seven months of the year. Domestic drugs, sold at lower prices but with lower quality, cannot turn the tide. — VNS