Vietnam's pharma major Imexpharm sees profit surge on OTC sales recovery

Imexpharm Pharmaceutical JSC (IMP) has reported a strong profit rebound in the second quarter of 2025, driven mainly by a resurgence in the over-the-counter (OTC) sales channel, following a subdued period during 2023-2024.

The company, listed on the Ho Chi Minh Stock Exchange (HoSE) as IMP, recorded a 32% year-on-year increase in OTC sales during the quarter.

In its Q2 financial statement, Imexpharm posted revenue of VND633 billion ($24.2 million), up 22.3% compared to the same period last year. The gross profit margin improved from 38.7% to 40.1%, while selling expenses rose at a slower pace than revenue growth.

As a result, its after-tax profit reached VND90.3 billion ($3.45 million), up 37% year-on-year.

For the first six months of 2025, Imexpharm recorded a total profit of VND165 billion ($6.3 million), a 28.9% surge over the same period in 2024.

Previously, Imexpharm's profit had declined due to weakened demand in the OTC market, depreciation from its new IMP4 plant, which began operations in March 2023, and rising active pharmaceutical ingredient (API) costs.

However, profitability began to recover in the second half of 2024, with a record-high VND121 billion ($4.63 million) in Q4.

In H1/2025, both the OTC and ETC (ethical drugs) sales channels experienced growth. However, in contrast to last year when growth was led by the ETC channel, the main driver this year has been the strong recovery in OTC sales, which grew 32% year-on-year.

This marks the first time since 2023-2024 that OTC has taken the lead in driving the company’s overall growth. The OTC recovery was observed across all regions, with the northern region leading at a remarkable 70% growth. Meanwhile, the ETC channel maintained a steady 24% increase.

The improved profit margin was supported by optimized production planning and a slight decrease in API prices.

At this year’s AGM, Imexpharm’s shareholders approved a 2025 business plan targeting VND2,981 billion ($113.95 million) in revenue and VND493.5 billion ($18.86 million) in pre-tax profit, up 18.6% and 22.1%, respectively, compared to 2024.

As of mid-year, the company had achieved 48% and 42% of the year respective revenue and profit targets.

In the first half of 2025, Imexpharm underwent a major ownership change. As part of a global portfolio restructuring, South Korea’s SK Group divested all its holdings, including its stake in Imexpharm.

On May 22, Imexpharm announced that Lian SGP Holding Pte. Ltd., a Singapore-based entity wholly owned by China’s Livzon Pharmaceutical Group Inc., had signed a framework agreement with SK Group, Binh Minh Kim Investment JSC, and KBA Investment JSC to acquire IMP shares.

Accordingly, Lian SGP Holding Pte. Ltd. agreed to purchase 47.69% from SK Group, 9.75% from Binh Minh Kim, and 7.37% from KBA Investment, bringing Lian’s total ownership to 64.81% of Imexpharm’s charter capital.

Livzon Pharmaceutical Group, founded in 1985, is a major Chinese pharmaceutical conglomerate with a registered capital of over RMB935 million ($130.3 million).

The group specializes in R&D, manufacturing, and distribution of pharmaceuticals, traditional Chinese medicine, APIs, and operates in over 30 countries, including the U.S., the EU, South Korea, Japan, and Southeast Asia.

In the stock market, IMP shares closed Thursday at VND51,700 ($1.98) apiece.