Imexpharm terminates distribution contract with IMGSA Group

July 29, 2017 | 18:24

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Imexpharm Pharmaceutical Joint Stock Company, Vietnam's fourth biggest pharmaceutical firm, will not extend the distribution contract with its foreign partner IMGSA Group in the future.

In Resolution No.32/NQ-HDQT-IMEX released on July 27, the firm said that members of the Board of Directors did not approve to the extension and will then terminate this contract.

According to a VIR source, under the contract, IMGSA helped distribute Imexpharm's (IMP) products abroad, including the EU and Portugal.

Though the foreign partner wants to extend the contract, it did not reach an agreement with IMP.

IMP made a net revenue of over VND500 billion ($22.7 million) from sales and services during the first half of 2017, up 16.5 per cent on-year, while its gross profit rose 28.84 per cent on-year to VND213.38 billion ($9.69 million).

IMP has three foreign shareholders: Balestrand Limited (6.09 per cent), Franklin Templeton Investment Funds-Templeton Frontier Markets Fund (8.49 per cent), and Kwe Beteiligungen AG (8.23 per cent).

Imexpharm is developing two new factories, the VND370 billion ($16.8 million) Binh Duong high-tech pharmaceutical plant and the VND180 billion ($8.2 million) Vinh Loc high-tech antibiotic plant. Both are scheduled to be put into operation in late 2018.

The drug maker aims to increase its revenue by 23 per cent and pre-tax profit by 19 per cent in 2017. "We will focus on the on-going construction of the two new plants, returning to the ethical channel market, developing our distribution network, and boosting exports," Nguyen Quoc Dinh, chairman of IMP's Board of Directors, told VIR.