Vietnam's pharma major Imexpharm to build $58 mln plant in southern Vietnam

Imexpharm Pharmaceutical JSC (IMP) expects to complete procedures by September to begin construction of its Cat Khanh pharmaceutical plant in Dong Thap province in Q4/2025.

The VND1.5 trillion ($57.75 million) project, covering over 97,600 square meters in the Quang Khanh Industrial Cluster, aims to diversify Imexpharm’s product portfolio to meet domestic demand and expand export markets, thereby increasing revenue and profit as part of its long-term strategy.

Once fully operational in 2028-2030, the plant is expected to have a production capacity of 1.4 billion products per year. It will be operated in compliance with WHO-GMP and EU-GMP standards, with a projected operational lifespan of 50 years from full commissioning.

Key financial indicators for the project include a projected net present value (NPV) of VND4.4 trillion ($169.4 million) for the 2025-2037 period, an internal rate of return (IRR) of 16%, and a minimum payback period of 7 years.

Regarding progress, IMP stated that it completed land lease payments and received the land in March.

Previously, the firm had planned to break ground on the Cat Khanh plant by the end of 2025 and begin commercial production in the second half of 2028.

The plant’s product portfolio is being finalized, featuring 146 R&D projects focused on non-antibiotic treatments such as cardiovascular, diabetes, and digestive conditions, as well as various injectable antibiotics.

The company expects the high-tech products from the IMP5 plant to yield significantly higher profit margins than its current portfolio, improving overall profitability upon launch.

Currently, IMP operates four plant complexes with 12 EU-GMP-standard production lines. The Cat Khanh complex will become IMP’s fifth complex.

In 2025, the company plans to launch 16 new products, focusing on high-tech segments like “first generic” drugs, biosimilars, and complex formulations, which are expected to contribute 5-10% of the company’s 2025 revenue.

The firm’s AGM on April 25 approved the 2025 business plan, targeting a revenue increase of 18.6% over 2024 to VND2.98 trillion ($114.74 million), and a pre-tax profit rise of 22.1% to VND493.5 billion ($19 million).

Strategically, IMP will continue to leverage its strengths in the ETC (ethical drugs) channel and focus on high-tech pharmaceutical segments such as injectables.

In the OTC (over-the-counter) channel, IMP will expand its reach and strengthen cooperation with pharmacy chains, particularly in northern Vietnam, where market penetration remains low.

Since the second half of 2024, the company has built a new sales team in its Hanoi branch with 34 medical reps, boosting the number of clients by 50% year-on-year and significantly contributing to overall growth.

Broker Phu Hung Securities (PHS) maintains a positive outlook on IMP’s growth prospects based on four expectations. The first is favorable industry trends as rising healthcare demand and government support for domestically produced drugs are driving growth in Vietnam’s pharmaceutical sector.

The second is high-standard production advantage. IMP leads the industry with 12 EU-GMP-certified production lines, providing a strong foundation for growth in the ETC channel, particularly in tier-1 and tier-2 hospital drugs. IMP has risen from 11th place in 2022 to the top 3 in the prescription drug market (including both domestic and foreign companies).

Third, IMP holds a 10% market share in oral and injectable antibiotics, with standout high-tech, next-generation products and a strong position in the fight against antibiotic resistance. High-tech plants IMP3 and IMP4 continue to play vital roles in this growth area.

Fourth, it is product diversification strategy. The upcoming IMP5 plant, focusing on new treatment groups such as cardiovascular, diabetes, and digestive conditions, will help expand market reach and strengthen IMP’s position in the medium to long term.

On the Ho Chi Minh Stock Exchange (HoSE), IMP shares closed Thursday at VND50,600 ($1.95) apiece.