MEDIPLAST officially merges with VINAMED

September 14, 2017 | 21:48

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Aiming to take advantage of each enterprise’s existing strengths to expand their scale of operations, medical equipment manufacturers MEDIPLAST and Vietnam Medical Equipment Corporation (VINAMED) have officially merged.

The two pharmaceuticals join hands to broaden their horizons

Accordingly, MEDIPLAST has handed over its entire assets, including cash, real estate projects, factories, and machinery, among others, to VINAMED.

In return, VINAMED issued individual shares to swap for MEDIPLAST’s existing shareholders at a ratio of 3:1. The shareholders of MEDIPLAST have become VINAMED’s shareholders, enjoying the same rights and benefit as VINAMED’s original shareholders.

The merger will help MEDIPLAST increase its capital to expand its operations. In recent years, MEDIPLAST has been having difficulties in diversifying its products due to a lack of capital, management capacity, and relationships with foreign partners, while VINAMED seems a perfect complementary partner.

The merger is an important step in building VINAMED as a corporation specialising in the healthcare sector with five key businesses, namely medical equipment production and distribution, as well as medical technology and consultancy, communications system (PACS) solutions, and healthcare facilities. These five businesses will create a closed supply-service chain for VINAMED. After the merger, MEDIPLAST will be in charge of marketing for the entire VINAMED product portfolio.

Formerly the Department of Basic Materials and Construction under the Ministry of Health (MoH), the company was officially renamed VINAMED on May 2, 1996 by MoH Decision No.720/BYT-QD. On July 12, 2016, VINAMED completed its equitisation and was officially transformed into a joint stock company.

For nearly 30 years, VINAMED has been training highly responsible and enthusiastic management staff, pharmacists, and engineers. The company’s trainees are knowledgeable about medical equipment and have experience in business, logistics services, as well as equipment repair and installation.

In May, VINAMED officially received the investment certificate to develop a high-quality medical services centre at Thanh Hoa General Hospital in the framework of Thanh Hoa Investment Promotion Conference 2017, which took place on May 18.

The project has a total investment value of VND739 billion ($32.55 million) contributed by Thanh Hoa General Hospital and VINAMED. The project is a paramount item in the plan of restructuring and developing healthcare services in the province by 2020 with vision to 2030 and is in line with Vietnam's comprehensive planning for the healthcare sector for the same time period.

Considered one of Vietnam's leading medical equipment manufacturers, MEDIPLAST operates mainly in the fields of manufacturing, trading, import and export of medical equipment, materials, and medical instruments, and related products with the most modern production lines of the UK and Japan.

In late July, it inaugurated MEDIPLAST medical plastic factory (phase 1) at the northern province of Bac Ninh's Dai Dong Industrial Zone.

Construction formally starting in November 2016, the factory was completed and came into operation in June 2017. At present, it focuses on the production of sterile plastic syringes and feeding syringes, K1 auto disable syringes, INSULIN syringes, scalp vein set needles, and infusion sets.

With an area of 13,000 square metres and staff of more than 200, the new factory in Bac Ninh will help MEDIPLAST increase production capacity and develop new products to meet the demand for high-quality plastic medical equipment in the country and become the supplier of global organisations, such as the United Nations Children's Fund (UNICEF), the World Health Organization (WHO), the Program for Appropriate Technology in Health (PATH), and the Global Vaccine Alliance Translation (GAVI), among others.