Pharma industry growth slows down
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The pharmaceutical industry’s revenues rose by just 3 percent in 2020, down from an average of 11.8 percent in the previous five years.
But it was a notable year for mergers and acquisitions. According to analysts at SSI Securities, the total value of M&A was VND1.68 trillion ($73 million) last year and involved a number of foreign investors.
In May, South Korean conglomerate SK Group, which makes anti-cancer and cardiovascular drugs and mental health medications, paid VND920 billion to acquire a 25 percent stake in Imexpharm Pharmaceutical Joint Stock Company.
In August, Japan’s Aska Pharmaceutical acquired a 24.9 percent stake in Ha Tay Pharmaceutical Joint Stock Company (Hataphar).
In December, German generic drugmaker Stada paid VND400 billion to increase its stake in Pymepharco by 6 percent to nearly 76 percent.
SSI analysts estimated the pharmaceutical industry to grow by 15 percent in 2021 mainly due to a rapidly aging population and rising incomes.
Questions & Answers
Q.What was the growth rate of the pharmaceutical industry's revenues in 2020?
What was the growth rate of the pharmaceutical industry's revenues in 2020?
The industry's revenues increased by just 3 percent in 2020. This was a significant drop from the average growth rate of 11.8 percent seen in the preceding five years.
Q.Which foreign investors were involved in major acquisitions within the industry last year?
Which foreign investors were involved in major acquisitions within the industry last year?
South Korean conglomerate SK Group, Japan's Aska Pharmaceutical, and German generic drugmaker Stada were involved. They acquired stakes in Imexpharm Pharmaceutical, Ha Tay Pharmaceutical, and increased their stake in Pymepharco, respectively.
Q.What is the estimated growth forecast for the pharmaceutical industry in 2021?
What is the estimated growth forecast for the pharmaceutical industry in 2021?
Analysts at SSI Securities estimate the industry to grow by 15 percent in 2021. This projection is largely attributed to a rapidly aging population and increasing incomes.
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