DHG expands growth momentum

DHG is preparing for long-term growth thanks to savvy investment

The AGM for DHG Pharma held on April 19 gave the nod to all proposals of the company’s Board of Directors with high consensus.

Last year, DHG Pharma achieved $203.3 million in revenue and $47.8 million in pre-tax profit, up 16.8 per cent and 27.3 per cent on-year, respectively. The figures were the best results in the company’s history.

The developments came by leveraging the company’s enhanced labour productivity, investment efficiency, and effective cost management. Its gross profit saw marked improvements by virtue of increased production output and low-cost inventory of raw materials and finished products.

Last year, DHG Pharma maintained its leading position in the local pharmaceutical sector for the 26th consecutive year in terms of revenue and profit, carving a spot in the top five pharmaceutical groups with the largest market share in the local sector.

Also in 2022, DHG Pharma reaffirmed its journey to search for breakthrough solutions to protect human health. Accordingly, many projects on technology transfer with subsidiaries belonging to its Japanese partner Taisho Group, as well as projects on product transfer, were carried out as scheduled.

Along with this, five new products were created, 16 new products were granted domestic registration numbers, and 23 products were granted export registrations. As of December 31 last year, the company had 48 bioequivalent products, five more compared to the previous year.

DHG Pharma’s impressive growth momentum leverages a sustainable foundation capitalising on its robust production capacity, nationwide distribution channel, and augmenting export capacity.

Last year, the company’s two factories reported total production output that was up 40 per cent on-year; production value also reached $278.4 million, showing a 38 per cent jump on-year. Despite a spike in production demand, best efforts were made to ensure stable supply and top quality.

This year, DHG Pharma envisages to reach $217.3 million in revenue and $49.13 million in pre-tax profit, continuing its growth trajectory despite very challenging domestic and global markets.

At the company’s 2023 AGM, DHG Pharma noted that the company would continue to invest in automatic production lines to bolster productivity, increase the transfer of new products, and comprehensively cooperate with Taisho.

According to an assessment published by Mirae Asset Vietnam Securities, unlike many other pharmaceutical groups heavily dependent on a prescription drugs channel that is affected by state drug procurement policies and raw material cost pressures, DHG Pharma is eyeing profit growth for the third consecutive year thanks to its leadership in the non-prescription drugs channel, based on a wide distribution network.

The end of social distancing and positive changes in sales and management policies have also underpinned DHG Pharma’s growth momentum. Notably, its new Japan-GMP factory, due to come on stream from the second quarter of 2024, is expected to entail long-term growth for the company.

Currently, of more than 300 drug lines by DHG Pharma, more than 100 products are manufactured on the Japan-GMP production line. In addition, the company’s continued investment in an EU/Japan-GMP factory with a total investment value approximating $30.4 million will likely serve as a long-term growth driver for the company.

Taisho spends $110 million on controlling stake in DHG Taisho Group, one of the five largest pharmaceutical firms in Japan, now officially holds a controlling stake in Hau Giang Pharmaceutical JSC (DHG) after spending VND2.47 trillion ($107.4 million) buying 20.6 million DHG shares.

DHG keeps throne by continuous innovation to create new values Being the sole company to score a hat-trick at the 2019 Listed Enterprise Award with more excellent achievements than last year, DHG Pharmaceutical JSC (DHG) has grown from strength to strength, with deeper co-operation with Japanese strategic partner Taisho Pharmaceutical Co., Ltd.