VIETNAM PHARMACEUTICAL INDUSTRY REPORT Q4/2017

Transcription

1 VIETNAM PHARMACEUTICAL INDUSTRY REPORT Q4/2017 1

2 Content Executive Summary 4 1. Business Environment Macroeconomic Situation Legal Barriers Impacts of Free Trade Agreement Vietnam Pharmaceutical Industry Overview Global Pharmaceutical Industry Production - Consumption Export - Import Production and Consumption Situation in major countries Large Enterprises in the world Vietnam Pharmaceutical Industry Overview History of Vietnam Pharmaceutical Industry Industry Position Industry Scale and Feature Value Chain of Vietnam Pharmaceutical Industry Raw Materials Production Technology Research and Development Production Consumption Export - Import Price Movement Distribution System Risks and Challenges Industry Planning Driving Forces and Forecast Enterprise Analysis Profitability Ratios Cost Structure Asset Management Ratios Capital Structure Solvency Ratios Returns Ratios Appendix Financial Statement 111 2

3 Abbreviations ETC Ethical drugs OTC Over The Counter (nonprescription-drugs) EU-GMP Europe Good Manufacturing Practice Patent Drug Drugs under intellectual property rights EVFTA EU Vietnam Free Trade Agreement Pharmerging Countries with emerging Pharmaceutical Industry GDP Good Distribution Practice PIC/S - GMP Pharmaceutical Inspection Co-operation Scheme on Good Manufacturing Practice (EU-GMP) Generic Drug Drug product that is comparable to a brand/reference listed drug product in dosage form, strength, quality and performance characteristics, and intended use." GDC General Department of Vietnam Custom GLP Good Laboratory Practice GSO General Statistic Office of Vietnam GMP Good Manufacturing Practice TPP Trans-Pacific Partnership GMP - WHO Good Manufacturing Practice recommended by the World Health Organization (WHO - GMP) WHO World Health Organization GPP Good Pharmacy Practice WTO World Trade Organization GSP Good Storage Practice MOH Ministry of Health DAV Drug Administration of Vietnam 3

4 Executive Summary The country currently has about 178 drug manufacturers Products of Vietnamese pharmaceutical companies are concentrated in the form of simple, generic, low value, overlap The market value of patented drugs in Vietnam tends to increase Import value of pharmaceutical products in the first 9 months of 2017 reached USD 2.06 billion, up 7.3% over the same period in Vietnam Pharmaceutical industry uses about 60,000 tons of medicines, of which about 80-90% is imported. In 2016, according to VIRAC s estimation, Pharmaceutical industry value is expected to reach USD 4.9bn. Pharmaceutical exports in the first 9 months of 2017 reached USD million, up 11.4% over the same period in The ratio of Research and Development expenses in revenue at domestic companies is just about 5% The growth of the prescription drug market will exceed the growth rate of Over-the-counter (OTC) market Meanwhile, Vietnamese habit of self-medicating has caused to the increase 4

5 Executive Summary The biggest wholesale market systems in Vietnam pharmaceutical distribution in Ho Chi Minh City and Hanoi, For the WTO, the Vietnamese pharmaceutical market has gradually opened Pharmaceutical products are necessities, thus, economic growth virtually has hardly any impact on the industry growth rate, With higher level of opening after the TPP, domestic pharmaceutical companies will face the threat of more competition from FDI ones Most of the enterprises of pharmaceutical industry maintained positive operation with high levels of gross profit and net profit in the period M&A trend between domestic and foreign enterprises takes place strongly in the form of franchise drug production and the field of distribution. Vietnam Pharmaceutical industry is forecast to continue the double-digit growth Some main industry driving forces are the protection from state policies 5

6 Content 1. Business Environment 1.1 Macroeconomic Situation 1.2 Legal Barriers 1.3 Impacts of Free Trade Agreement 6

7 1. Business Environment 1.1 Macroeconomic Situation GDP growth, M/2017 Source: VIRAC, GSO Consumer Price Index for Medicines and Health Services, M/2017 Source: VIRAC, GSO 7

8 1. Business Environment 1.1 Macroeconomic Situation VND/USD exchange rate, /2017 VND/CNY exchange rate, /2017 Source: VIRAC, SBV Source: VIRAC 8

9 1. Business Environment 1.1 Macroeconomic Situation Population and growth, Million people Population structure, Source: VIRAC, GSO Source: VIRAC, GSO 9

10 Content 1. Business Environment 1.1 Macroeconomic Situation 1.2 Legal Barriers 1.3 Impacts of Free Trade Agreement 10

11 1. Business Environment 1.2 Legal Barriers Regulations on standards of Pharmaceutical Industry Standard of Good Manufacturing Practice recommended by the World Health Organization (WHO - GMP) Standard of Good Storing Practice (GSP) 11

12 1. Business Environment 1.2 Legal Barriers Regulations on drug registration Regulations on control of drug price 12

13 1. Business Environment 1.2 Legal Barriers Regulations on import-export Regulations on drug advertising information 13

14 1. Business Environment 1.2 Legal Barriers Regulations on drug promotion Distribution Decision No.10/2007/QD-BTM and Circular 34/2013/TT-BCT: Bidding 14

15 1. Business Environment 1.2 Legal Barriers Regulations on importing pharmaceutical materials Circular No. 03/2016/TT-BYT taking effective from Mar 6th

16 1. Business Environment 1.2 Legal Barriers On Apr 6th 2016, Draft Law on Pharmacy (amended) wass passed and this Law will take effect from Jan 1 st 2017 Controlling the rising price of brand-name drugs Controlling the drug prescription for commissions, Pharmaceutical Law 2016 contains regulations on preferential domestically produced medicines consistent with the Law on Bidding, Allowing the sales of drugs in supermarkets Prohibiting the advertising, prescription of products which are not drugs 16

17 1. Business Environment 1.2 Legal Barriers On August 05, 2017, the Prime Minister signed Decree No. 54/2017/ND-CP detailing some articles and measures to enforce the Pharmaceutical Law The decree takes effect from July 01,

18 Content 1. Business Environment 1.1 Macroeconomic Situation 1.2 Legal Barriers 1.3 Impacts of Free Trade Agreement 18

19 1. Business Environment 1.3 Impacts of Free Trade Agreement WTO - Vietnam became the 150 th member of WTO on 11/07/2006 Import value of pharmaceutical products, USD million Source: VIRAC, DAV 19

20 1. Business Environment 1.3 Impacts of Free Trade Agreement 20

21 1. Business Environment 1.3 Impacts of Free Trade Agreement 21

22 1. Business Environment 1.3 Impacts of Free Trade Agreement TPP Trans-Pacific Partnership, signed on 02/04/2016 in Auckland, New Zealand 22

23 1. Business Environment 1.3 Impacts of Free Trade Agreement 23

24 1. Business Environment 1.3 Impacts of Free Trade Agreement Other Free Trade Agreements 24

25 Content 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry 2.2 Vietnam Pharmaceutical Industry Overview 2.3 Risks and Challenges 2.4 Industry Planning 2.5 Driving Forces and Forecast 25

26 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Production Consumption USD billion World medicine expenditure, e Source: VIRAC, IMS health 26

27 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Production Consumption USD billion Worldwide prescription drug sales, Consumption share by drug type, Source: VIRAC, EvaluatePharma Source: VIRAC, IMS health 27

28 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Production Consumption Consumption share by group, 2016 Source: VIRAC, IMS health Top 10 pharmaceutical products consumed the most in the world, 2015 Source: VIRAC, IMS health 28

29 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Export-Import USD billion World pharmaceutical exports, e Top countries importing and exporting of pharmaceuticals, 2016 Source: VIRAC, UN Comtrade Export Value (USD billion) Import Value (USD billion) World pharmaceutical imports, e Source: VIRAC, UN Comtrade Source: VIRAC, UN Comtrade 29

30 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Typical countries 1. The U.S General information about the US health sector, Japan 30

31 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Typical countries 3. China General information about China health sector,

32 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Typical countries 4. Germany 5. France 32

33 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Top 10 typical pharmaceutical enterprises Company Johnson & Johnson (America) General information Top 10 Pharmaceutical enterprises with the largest revenue, 2016 USD billion Pfizer (America) Roche (Switzerland) Novartis (Switzerland) 33

34 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Top 10 typical pharmaceutical enterprises Merck (America) Sanofi (France) Gilead Sciences (America) AbbVie (America) AstraZeneca (The U.K) Amgen (America) 34

35 Content 2. Vietnam Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry 2.2 Vietnam Pharmaceutical Industry Overview 2.3 Risks and Challenges 2.4 Industry Planning 2.5 Driving Forces and Forecast 35

36 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry History of Vietnam Pharmaceutical Industry

37 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Industry Position 37

38 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Industry Scale and Features 38

39 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Industry Scale and Features Classifying market of the Pharmaceutical industry Classification by treatment approach Classification by drug ownership Drug market Drug market Nonprescription Prescription drugs Patented drugs Generic drugs Others drugs (OTC) Source: VIRAC, Hanoi University of Pharmacy 39

40 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Industry Scale and Features Bac Ninh Hanoii Hai Phong Hung Yen Nam Dinh Thanh Hoa Content is intentionally Hoang Sa removed for demo purpose Binh Dinh Phu Yen Binh Phuoc Khanh Hoa Dong Thap Dong Nai An Giang Can Tho HCMC Tien Giang Ben Tre Ca Mau Truong Sa Source: VIRAC 40

41 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Value Chain of Vietnam Pharmaceutical Industry Value Chain of Vietnam Pharmaceutical Industry Raw material suppliers Manufacturers Distributors/Big wholesalers Drugstore Hospitals Re-packaging and labeling Franchised production Secondary distributors, small wholesalers Clinics Patients Source: VIRAC 41

42 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Raw Materials Classification of pharmaceutical raw materials 42

43 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Raw Materials Material imports, M/2017e USD million Source: VIRAC, GDVC 43

44 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Raw Materials USD million Pharmaceutical materials import, 9M/2016 9M/2017 Source: VIRAC, GDVC 44

45 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Production Technology Major equipment in pharmaceutical production lines No. Machinery name Year of use Origin Price Machinery origin of large pharmaceutical manufacturers Machinery origin Company Vietnam China Countries with average technology level (India, Korea and etc.) Countries with average technology level (Japan, Italy and Germany) Source: VIRAC Source: VIRAC 45

46 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Production Technology 46

47 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Research and Development Ratio of R&D/revenue at major pharmaceutical companies in the world,

48 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Production 48

49 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Production USD billion Domestic pharmaceutical production value, e Source: VIRAC, DAV 49

50 2. Vietnam Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Production Statistics of produced medicines by type, months/2017e Products Unit e 2016e 9M/2017e Source: VIRAC, GSO 50

51 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Pharmaceutical market value, e USD billion Source: VIRAC, DAV 51

52 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Structure of medicine comsumption, e Source: VIRAC, DAV 52

53 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption VND trillion Domestically produced medicine consumption, M/2017e Source: VIRAC, GSO 53

54 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption USD/person/year Drug expenditure per capita in Vietnam, e USD/person/year Drug expenditure per capita, 2016e Source: VIRAC, DAV Source: VIRAC, DAV 54

55 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Structure of medicine consumption by channel, e Source: VIRAC, DAV Patent and Generic medicines consumption structure, e Source: VIRAC, DAV 55

56 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Prescription Drug Market USD billion Market value of prescription drugs, e Source: VIRAC, DAV 56

57 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption OTC Drug market USD billion Non-prescription drug market OTC, e Source: VIRAC, DAV 57

58 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Patent Drug market USD billion Patented drug, e Source: VIRAC, DAV 58

59 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Consumption Generic Drug Market USD billion Generic drug market, e Source: VIRAC, DAV 59

60 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Export Import USD million Pharmaceutical imports, M/2017e Pharmaceutical imports, 9M/2016 9M/2017e USD million Source: VIRAC, GDVC Source: VIRAC, GDVC 60

61 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Export Import Top Vietnam import partners, 9M/2017e Partners Proportion Importers Top importers, 9M/2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 61

62 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Export Import USD million Pharmaceutical imports, M/2017e Content is intentionally Source: VIRAC, UN Comtrade, GDVC removed for demo purpose 62

63 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Export Import Major export structure by country, 9M/2017 Export structure by enterprise, 9M/2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 63

64 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Price Movement Rate of drug re-price (increase), Source: VIRAC, DAV 64

65 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Price Movement Drug prices in the market in the first 6 months of 2017 continue to stabilize. Price movements of some major drugs in the market, 3/2016 9/2017 No. Drug Units Producers 6/2016 9/ /2016 3/2017 9/2017 Unit: VND1,000 Compared to the beginning of the same period Source: VIRAC, Agency for Price Management 65

66 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Price Movement The difference in the price of some drugs at Hapulico market, 2017 Unit: VND thousand Drugs name Highest price Lowest price Price Diference Source: VIRAC 66

67 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System Drugs distribution network in Vietnam Source: VIRAC 67

68 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System The distribution system in Vietnam includes these main components: 1. Professional pharmaceutical distribution enterprises Top pharmaceuticals distribution enterprise by revenue, 2016 Source: VIRAC 68

69 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System 2. Pharmaceutical companies producing along with distributing 3. The wholesale market system 69

70 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System 4. Public and private hospitals system The number of medical facilities, Unit: number of facilities Source: VIRAC, GSO 5.The private clinics system 70

71 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System 6. Drugstores system: 71

72 2. Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview Distribution System Typical chain of pharmacies, 2016 Chain Logo Number of stores Area Content is intentionally Source: VIRAC removed for demo purpose Outstanding distribution chain business results, 2016 VND billion Source: VIRAC 72

73 Content 2. Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview 2.3 Risks and Challenges 2.4 Industry Planning 2.5 Driving Forces and Forecast 73

74 2. Pharmaceutical Industry Overview 2.3. Risks and Challenges Legal Risks 74

75 2. Pharmaceutical Industry Overview 2.3 Risks and Challenges Industry Risks Material risk 75

76 2. Pharmaceutical Industry Overview 2.3 Risks and Challenges Industry Risks Market risks Competition risks The risks on products and technology 76

77 2. Pharmaceutical Industry Overview 2.3 Risks and Challenges Industry Risks Investment risk and failure in research and development Average cost of R&D to produce new drugs (USD million) Number of new drugs allowed to circulate Average cost Cost of R&D research for 10 years Average cost for each new drug Source: VIRAC, Innothink Exchange rate risk 77

78 2. Pharmaceutical Industry Overview 2.3 Risks and Challenges Challenges Substitute products Unqualified sample ratio, e Poor quality drug situation Drug prices Source: VIRAC, DAV Production licensing time 78

79 2. Industry Overview 2.3 Risks and Challenges Challenges Fake drug issue Real drug Fake drug 79

80 Content 2. Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview 2.3 Risks and Challenges 2.4 Industry Planning 2.5 Driving Forces and Forecast 80

81 2. Industry Overview 2.4. Industry Planning 81

82 Content 2. Pharmaceutical Industry Overview 2.1 Global Pharmaceutical Industry Overview 2.2 Vietnam Pharmaceutical Industry Overview 2.3 Risks and Challenges 2.4 Industry Planning 2.5 Driving Forces and Forecast 82

83 2. Industry Overview 2.5. Driving Forces and Forecast Driving Forces Source: VIRAC, WHO 83

84 2. Industry Overview 2.5. Driving Forces and Forecast Driving Forces USD million Total healthcare expenses, f Population tower, 2016 Population motivation and healthcare awareness: Source: VIRAC, WHO Source: VIRAC, GSO Over-60 population growth in the world, Million people Source: VIRAC, IMS health 84

85 2. Industry Overview 2.5. Driving Forces and Forecast Industry development trend 85

86 2. Industry Overview 2.5. Driving Forces and Forecast M&A Trend in the World 2016 is a blurry year compared to the record breaking 2015 in the Mergers and Acquisitions (M&A) market. M&A of pharmaceutical industry, e Source: VIRAC, EvaluatePharma 86

87 2. Industry Overview 2.5. Driving Forces and Forecast M&A Trend in Vietnam 87

88 2. Industry Overview 2.5. Driving Forces and Forecast Global Forecast Country Growth rate Source: VIRAC, IMS Health 88

89 2. Industry Overview 2.5. Driving Forces and Forecast Global Forecast The increase of cure The revenue of top drugs in developed countries, 2018 The revenue of top drugs in developing countries, Drugs USD billion 1 Drugs 2 3 USD billion Source: VIRAC, IMS Health Source: VIRAC, IMS Health 89

90 2. Industry Overview 2.5. Driving Forces and Forecast Vietnam Forecast 90

91 2. Industry Overview 2.5. Driving Forces and Forecast Vietnam Forecast The growth of total drug consumption and average drug spending per capita, f Source: VIRAC 91

92 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 92

93 3. Enterprise Analysis 10 typical pharmaceutical enterprises in typical pharmaceutical enterprises in 2015 No. Company Major sector Revenue (VND billion) Main features Source: VIRAC 78

94 3. Enterprise Analysis 10 typical pharmaceutical enterprises in 2015 No. Company Major sector Revenue (VND billion) Main features Source: VIRAC 79

95 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

96 3. Enterprise Analysis 3.1 Profitability Ratios Pharmaceutical companies have a good business year when they have a positive profit margin, with the average group of producers having higher gross margins and ROS than the distribution group. VND billion Profit indicators, Source: VIRAC 96

97 3. Enterprise Analysis 3.1 Profitability Ratios 97

98 3. Enterprise Analysis 3.1 Profitability Ratios COGS/NR, 2016 Source: VIRAC 98

99 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

100 3. Enterprise Analysis 3.2. Cost Structure The group of manufacturing enterprises spent more on selling than the distribution group Selling costs, Source: VIRAC 100

101 3. Enterprise Analysis 3.2. Cost Structure General and administrative expenses, Source: VIRAC 101

102 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

103 3. Enterprise Analysis 3.3. Asset Management Ratios The total days in inventory of the whole pharmaceutical industry in increased slightly. Day Inventory days, 2016 Source: VIRAC 103

104 3. Enterprise Analysis 3.3. Asset Management Ratios Days Average collecting period, 2016 Source: VIRAC 104

105 3. Enterprise Analysis 3.3. Asset Management Ratios Asset turnover, 2016 Source: VIRAC 105

106 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

107 3. Enterprise Analysis 3.4. Capital Structure Self-funding ratio, Source: VIRAC 107

108 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

109 3. Enterprise Analysis 3.5. Solvency Ratio Solvency, Source: VIRAC 109

110 Content 3. Enterprise Analysis 3.1 Profitability Ratios 3.2 Cost Structure 3.3 Asset Management Ratios 3.4 Capital Structure 3.5 Solvency Ratios 3.6 Return Ratios 77

111 3. Enterprise Analysis 3.6. Return Ratio Profit ratio, Source: VIRAC 111

112 Content 4. Appendix Financial Statement 112

113 4. Appendix Financial Statement INCOME STATEMENT DHG Pharmaceutical Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 113

114 4. Appendix Financial Statement INCOME STATEMENT Traphaco Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 114

115 4. Appendix Financial Statement INCOME STATEMENT Domesco Medical Import Export Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 115

116 4. Appendix Financial Statement INCOME STATEMENT Imexpharm Pharmaceutical Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 116

117 4. Appendix Financial Statement INCOME STATEMENT OPC Pharmaceutical JSC. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 117

118 4. Appendix Financial Statement INCOME STATEMENT S.P.M Corp Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 118

119 4. Appendix Financial Statement INCOME STATEMENT Vimedimex Medi Pharma Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 119

120 4. Appendix Financial Statement INCOME STATEMENT Ha Tay Pharmaceutical JSC. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 120

121 4. Appendix Financial Statement INCOME STATEMENT Ben Tre Pharmaceutical Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 121

122 4. Appendix Financial Statement INCOME STATEMENT Lam Dong Pharmaceutical Jsc. Unit: VND million Net revenue BALANCE SHEETS Cost of goods Unit: VND Gross profit A. SHORT-TERM ASSETS I. Cash and cash equivalents Revenue from financing activities Financial expense Loan interest expenses II. Short-term financial investments III. Short-term receivable 1. Short-term receivables of customers Cost of sales Enterprise administration expenses Net profit from business operations IV. Inventories Total accounting profit before tax B. LONG-TERM ASSETS Costs of current corporate income tax TOTAL ASSETS Costs of deferred corporate income tax Profit after tax A. LIABILITIES I. Current liabilities 1. Borrowings and short-term financial leased liabilities 2. Taxes and other payables to the State budget II. Long-term Liabilities 1. Borrowings and long-term financial leased liabilities 2. Provision for long-term payables B. OWNER S EQUITY TOTAL CAPITAL RESOURCES CASH FLOW STATEMENT Unit: VND million I. Cash Flow From Operating Activities Depreciation of fixed assets Unrealized foreign exchange profit(loss) Net Cash Flow From Operations II Cash flow from investing activities Purchases of fixed assets and other long-term assets Net cash flow from investing activities III. Cash flow from financing activities Net cash flow from financing activities Effect of foreign exchange differences Net cash flow of the year 122

123 REPORT DISCLAIMER REPORT DISCLAIMER This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organisation, or place it on a website for public access without the express written permission of VIRAC. SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US: VIETNAM INDUSTRY RESEARCH AND CONSUTANT (VIRAC JSC.,) 6 th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam Website: viracresearch@virac.com.vn Tel:

124 Thank you!