Vietnam pharma firm Bidiphar to sell 23.3 mln shares to build new factories 

Vietnam pharma major Binh Dinh Pharmaceutical Medical Equipment JSC (Bidiphar) plans to offer approximately 23.3 million shares to strategic investors via private placements to finance the construction of two new factories.

The minimum price is VND50,000 ($1.97) per share.

According to broker Phu Hung Securities (PHS), the offering is expected to take place between 2024 and 2025, subject to State Securities Commission approval.

Bidiphar, listed on the Ho Chi Minh Stock Exchange as DBD, is currently negotiating with four domestic and foreign investors. Its strategic partners must bring new values to the company and be committed to technology transfer and long-term investment.

The two factories will be built from 2024 to 2028 in the Nhon Hoi Economic Zone in the south-central province of Binh Dinh, meeting EU-GMP standards. They include a sterile small-volume injectable factory and a solid oral dosage form (OSD) non-betalactam tablet plant.

The sterile small-volume injectable plant will cover nearly 25,000 square meters, with an investment of VND840 billion ($33.1 million), primarily for manufacturing injectables, eye drops, and other sterile drugs.

With an estimated annual output capacity of 120 million products, it is expected to be operational by Q1/2027.

Meanwhile, the VND822 billion OSD non-betalactam tablet plant, spanning 16,220 square meters, will mainly produce non-betalactam solid drugs, such as tablets, film-coated tablets, hard capsules, sachets, and effervescent tablets.

Work on this factory is expected to begin in 2025, with operations slated to start in Q1/2027.

Strong growth

Phu Hung Securities forecast that Bidiphar will record a 9.1% growth in net revenue in 2024 and 9.8% in 2025, to VND1.8 trillion ($70.85 million) and nearly VND2 trillion respectively. The company's after-tax profit is projected to increase by 4% this year and by 21% next year.

According to the broker, since its restructuring strategy began in 2020, which involved expanding its customer base through the retail pharmacy channel, Bidiphar has achieved strong business performance. In the 2019-2023 period, its revenue and after-tax profit grew at a compound annual growth rate (CAGR) of 6% and 14%, respectively.

In the first nine months of 2024, Bidiphar’s net revenue reached nearly VND1.25 trillion ($49.2 million), up 3.5% year-on-year, and its pre-tax profit saw a slight increase, hitting over VND254.3 billion ($10 million).

In 2024, Bidiphar targets VND2 trillion ($78.72 million) in revenue and VND320 billion ($12.6 million) in pre-tax profit. It means the company already fulfilled 62.4% and 79.5% of the year's respective revenue and pre-tax profit targets.

Bidiphar now boasts a portfolio of nearly 400 pharmaceutical products, categorized into 19 groups. Among these, antibiotics, cancer drugs, and dialysis solutions are the company's three main pillars, contributing approximately 65% of total revenue and 51% of gross profit in the nine-month period.

In the stock market, DBD closed Tuesday at VND59,000 ($2.32) per share, up 2.43% from the previous session.