Pharmaceutical company, Imexpharm, experiences Q2 highs in earnings
Imexpharm, a leading Vietnamese pharmaceutical company, has seen a remarkable turnaround in its over-the-counter (OTC) medicine sector during the first half of 2025. The OTC revenue surged by 32% year-over-year, outpacing the traditionally dominant prescription and hospital procurement (ETC) segment, marking the first time OTC has become the primary growth driver for the company following a stagnation period in 2023 and 2024.
Key factors contributing to this growth include a surge in regional demand, particularly in the northern region where growth reached 70%, strong performance in key product categories such as antibiotics, cough medicines, and digestive support drugs, effective cost management, and improved operational efficiency.
The gross profit climbed 28% year-over-year, aided by controlled cost of goods sold, which grew only 18%—lower than net revenue growth—resulting in a consistent gross profit margin of 40%. Enhanced manufacturing planning and slightly lower API (active pharmaceutical ingredient) prices contributed to profitability, while selling, general & administrative (SG&A) expenses were kept in line with revenue growth, allowing profit before tax (PBT) to rise 31% year-over-year for the first half.
These positive developments have led to significant improvements in Imexpharm’s financial performance. Total assets exceeded VNĐ3 trillion (up 20%) by the end of Q2, with short-term assets up 21%. Profit surged 28.9% to VNĐ165 billion ($6.3 million) in the first half of 2025 compared to the same period in 2024. EBITDA growth reflected strong operational profitability, with EBITDA margin at 22% for Q2. OTC overtook ETC in growth contribution, signaling a shift in the company’s revenue mix.
The growth in the OTC sector has also brought about strategic shifts for Imexpharm. The company is less reliant on the ETC segment, reducing exposure to hospital procurement cycles and public sector price controls. The northern region’s outsized growth suggests successful regional marketing and distribution strategies.
Looking ahead, Imexpharm is well-positioned for sustained OTC growth, but faces both opportunities and challenges. Rising health awareness and discretionary spending in Vietnam support OTC demand, while retail chains and national apps improve pharmacy access and adherence. Imexpharm plans 16 new high-tech launches, targeting complex formulations and chronic care. However, traditional medicine and herbal alternatives remain popular, especially in rural areas, and simplified drug registration under the 2025 Pharmacy Law may speed up product launches. MOH price ceilings on reimbursed drugs could impact margins in the ETC segment, making OTC more attractive. API cost volatility could also be a concern in the future.
In conclusion, Imexpharm’s OTC medicine sector rebounded sharply in the first half of 2025, driven by regional demand, effective cost management, and strong product category performance. This shift has improved profitability and diversified revenue streams. Looking ahead, continued growth in the OTC segment appears promising, supported by favorable consumer trends and strategic initiatives, though external risks from competition and regulation warrant attention.
- Artificial intelligence (AI) could be leveraged by Imexpharm to improve its supply chain and production planning in the OTC medicine sector, thereby enhancing operational efficiency and cost management.
- The surge in OTC revenue for Imexpharm has opened up opportunities in the finance and business world, with potential for partnerships with regional financial institutions to secure funds for future growth and development.
- The breaking industry trend seen in Imexpharm's OTC medicine sector may attract attention from investors, particularly those interested in the healthcare and pharmaceutical industry, leading to increased funding and support for the company's future initiatives.
