When the border of pharmaceutical industry is fully open, local businesses will be subject to competitive pressures in front of foreign companies of high technology and high source of capital.

Through 50 years of operation, with more than 226 product codes, including 18 product codes for export, Danapha Pharmaceutical Joint Stock Company is a typically small business which creates big repute for the famous herbal products such as BaiThach for nephrolithiasis treatment, VG-for the treatment of liver disease, Tadimax for fibroids prostate treatment or Sedative medicine for insomnia treatment. All these have been voted as "Star of Vietnam medicines"by the Ministry of Health. However, before the effective time of the trade agreement signed, Danapha forces to accelerate for the risk of being left behind.

Currently,Vietnam pharmaceutical industry is quite strong. Despite the size of nearly $ 3 billion, the market share of domestic enterprises currently accounts for only 50% while herbal medicine sector has modest contribution of only about 1.55% of the market share. Moreover, only about 5/80 enterprises meet WHO GMP standard of herbal medicines, the rest are small herbal medicine facilities without registration.

In this context, the movements of Danapha concentrate on attacking the traditional medicines sector by good herbsand high-tech. Mr. Nguyen Quang Tri, the President and CEO of Danapha said that after equitization in 2007, the company has begun to promote investment towards the closed model, including the material areas, plant and research center.

Specifically, Danapha has put the first herbal medicine production factory into operation in Vietnam in accordance with GMP-WHO standard in 2010, with a capacity of 235 million tablets per year and developed material area in Da Nang city.
After 7 years from the time of equitization, the average growth rate of Danapha reaches 15% per year. Scale of revenue has expanded by 2.7 times, up to $ 349 billion by the end of 2014. Of which, export turnover reaches US $ 3.2 million and profit is more than 45 billion.

Despite positive results, Danapha is still facing many challenges. When the border of pharmaceutical industry isfully open, the domestic businesses will be under competitive pressure against many foreign companies of high-tech and larger capital scale.
According to Mr. Tri, the direction of Danapha remains the concentration on products with high levels of intelligence and high technology. Annually, Danapha spends 2 billion on research and development. The company also pioneers the application of nanotechnology in herbal medicine production. In 2009, Danapha established Danasome Pharmaceutical Joint Stock Company specializing in research and development of medicinal products with this technology application.

In principle, the nano is the ultra-small particles range of size from 40-400 nm, which helps increase the absorption of herbal substances transported to other organs in the body. There are two basic herbal processing forms: Phytosome and Liposome. Danapha  is thoroughly applying Phytosome processing technology to produce medicines to serve hormonal diseases treatment and health care. There are some typical kinds of medicines like Gasmin with support in the treatment of liver diseases, stomach diseases, Moflex used for the treatment of inflammation and osteoarthritis, or herbal cosmetics for beauty care as Curcumin Nano, Nano Q10.

Besides, Danapha is on the way of completing its study and commercialization of Liposome Paclitaxel injectable medicines for cancer treatment based on nanotechnology. This is a scientific research project of State scale assigned o Danapha by the Government in 2013. This is expected to become the breakthrough in manufacturing medicines for cancer treatment with effective treatment at low-cost for Vietnam patients.

With those potentials, Danapha plans to expand the scale through listing on the stock market which is expected to take place in 2016. This movementis said to be in preparation for a number of new investment deals, making the leap from 2016 onwards.

 

Source: http://nhipcaudautu.vn