Adamed Pharma Becomes Sole Shareholder in Davipharm, One of the Fastest Growing Pharmaceutical Companies in Vietnam

Adamed Pharma is not only one of the leaders in the Polish pharmaceutical market, but also an active foreign investor. In Vietnam, the company acquired a majority stake (70 percent) in local pharmaceutical company Davipharm at the end of 2017, and a deal to acquire the remaining 30 percent stake was closed in April. Adamed Pharma has thus become the sole owner of the Vietnamese company, one of the fastest growing pharmaceutical companies in this part of Asia. To date, Adamed’s capital commitment in Vietnam has amounted to nearly USD 60 million. This is one of the largest Polish direct investments in this part of the world.

Currently, foreign markets account for nearly 40 percent of Adamed Pharma’s revenue. In the medium term, the goal is to achieve a 50:50 ratio, while in the ten-year horizon it is foreign revenue that is expected to predominate in the company’s overall revenue. Thanks to the Vietnamese investment, Adamed Pharma will further expand in Asia and export its drugs to highly regulated markets. The acquisition of a 100 percent stake in Davipharm not only underscores the importance of the local market in the company’s development plans, but is also a testament to Adamed’s strategy, a key element of which is international expansion.

“Polish companies, wanting to achieve stability, are forced to develop internationally as well, hence our decision to invest in Vietnam. The country has a population of nearly 100 million and is one of the fastest-growing markets with high potential in Asia. International expansion is not an easy process – there are already mature markets in Europe and the level of competition is much higher, so you have to reach out to distant markets,” says Michał Wieczorek, Chief Executive Officer, Davipharm.

“In order to achieve our goals, we need to build a competitive advantage, and this is part of our strategy. We will continue to invest in the development of modern technologies and drugs in order to effectively respond to the challenges of today’s medicine,” adds Michał Wieczorek.

The company’s ambitious goals in Vietnam were underscored by Małgorzata Adamkiewicz, MD, PhD, Chairman of the Supervisory Board of Adamed Pharma, during her speech to Davipharm associates at a ceremony at the Binh Duong manufacturing plant on the occasion of Adamed’s acquisition of a 100 percent stake in the Vietnamese company:

“My ambition, which I believe in, is for Davipharm to become the leader of the pharmaceutical market in Vietnam, providing patients with quality products at affordable prices,” she said.

“We will continue to work to strengthen the company’s position in the Vietnamese market by building a strong brand, developing new sales channels, especially retail, and expanding exports – a natural consequence of developing quality products. Close cooperation in areas such as business development, R&D and manufacturing will ensure synergies and faster growth for the entire Adamed Group,” added Małgorzata Adamkiewicz, MD, PhD.

Małgorzata Adamkiewicz, MD, PhD, Chairman of the Supervisory Board of Adamed Pharma, also stressed that achieving business success and business development must respect human rights, social progress and care for the environment.

As part of its social responsibility, in recent years Davipharm together with the Adamed Foundation has been running and funding the ADAMED SmartUP educational programme for students at the Polish-Vietnamese Friendship High School in Hanoi, as well as the “Chăm Sóc Sức Khỏe Việt” Non-Communicable Disease Prevention and Early Detection Programme, in cooperation with the Vietnamese Ministry of Health. Davipharm also collaborates with the University of Medicine and Pharmacy at Ho Chi Minh City and the Binh Duong School of Medicine to sponsor internships and offer employment to top students. The Vietnamese-German University of Technology, located adjacent to the factory, recently joined the company’s partner universities.

Davipharm currently manufactures more than 300 medicinal products and offers drugs in 12 therapeutic areas to patients in Vietnam, Cambodia, the Philippines and Myanmar. The capacity of the Binh Duong manufacturing plant allows for the production of 1.2 billion tablets per year. Davipharm’s manufacturing plant was the first in Vietnam to receive zone certification for the production of High Potent (HP) drugs in solid forms, including high quality cancer drugs. In addition, Davipharm is one of only a dozen pharmaceutical companies in Vietnam with European EU-GMP manufacturing certification. Davipharm currently has more than 400 employees.