2016-2020 Plan: Positioning in the high-end ETC market segment and export

People’s Doctor, Pharmacist Tran Thi Dao, Vice Chairwoman of the Board of Directors and General Director of Imexpharm stated that the project to upgrade the two Cephalosporin and Penicillin factories in Binh Duong, which includes 03 production lines, has been approved by the European Medicines Regulatory Authority from February 15-19, 2016, and is expected to receive EU-GMP certification in Q2 2016. With the new circular guiding the amended Procurement Law expected to be issued in the second half of 2016 and come into effect in early 2017, Ms. Dao mentioned that the company will implement its plan to re-enter the ETC market in the last 6 months of 2016, laying the groundwork for stronger ETC growth in 2017. With European standard products, Imexpharm can confidently compete in joint tenders with European pharmaceutical groups and also intensify its export activities to markets the company has already explored.

The General Director also announced that the investment for the High-Tech Factory project will be increased to 370 billion VND, enabling the construction of four modern production lines that meet EU-GMP standards, up from the 2 lines initially planned. The leadership team has made substantial revisions to the original project, including changes in market focus, applied technology, and product offerings. The factory will utilize specialized formulations to distinguish itself from the current product lineup and avoid market overlap. With technology transferred from Europe, the factory aims to target the high-end ETC segment and expand exports. Its production capacity will range from 56 to 85 million units (2-3 shifts per day). The project is expected to become operational in 2018, with products designed to fulfill both orders and export requirements from Imexpharm's strategic partners.

2016 revenue to increase by 12%

Imexpharm's leadership expects the ETC market to recover in 2016, rebounding from its low in 2015. Meanwhile, the OTC market will see slower growth as it consolidates. As a result, the company forecasts total revenue of 1.1 trillion VND for 2016, reflecting a 12% increase compared to 2015. Pre-tax profit, excluding contributions to the Science and Technology Development Fund, is projected to reach 140 billion VND, marking a 6.3% growth from the previous year.

The General Director of Imexpharm also outlined four key strategies for 2016:
Increase charter capital to 390 billion VND to meet the funding needs for production, business operations, and the High-Tech Factory project in Binh Duong, through a share issuance to existing shareholders and the implementation of an ESOP program.
Invest in advanced technologies to create a sustainable competitive advantage.
Continue focusing on developing the OTC market, implement the ETC strategy in the second half of 2016 as a foundation for 2017, expand the export market, and effectively manage sales system risks.

Strengthen senior human resources by managing talent based on a culture of work efficiency, providing coaching for leadership staff to reach Level 3, and implementing position-based salary policies along with strategies to attract senior-level talent.
Imexpharm's target for 2020 is to reach 2,000 billion VND in revenue, with an average annual growth rate (CAGR) of 15.3%, and export revenue is expected to account for about 10% of total revenue.