Davipharm: EU-GMP Certified Pharmaceutical Factory – Inside and Beyond

Davipharm, a member of Adamed Group, celebrates a significant milestone—its 20th anniversary. This occasion stands as a powerful testament to Davipharm’s unwavering commitment to quality, innovation, and growth within the pharmaceutical industry.

From its humble beginnings as a local business, Davipharm has risen to become one of Vietnam’s fastest-growing high-quality pharmaceutical companies and future cornerstone of the international pharmaceutical landscape.

Delving into Davipharm’s remarkable journey reveals the substantial progress made in manufacturing processes and strategic initiatives that are poised to shape the company’s future trajectory.

When Adamed Pharma acquired 70% of Davipharm’s shares in 2017, becoming the largest direct Polish investor in Vietnam that time, it set very ambitious goals. In April 2023, the company acquired the remaining shares, reaffirming its strong commitment to investing in Vietnam.

With a total investment of US$60 million to date, including over US$10 million dedicated to modernizing the R&D Center and manufacturing site in Binh Duong, Davipharm provides high-quality, made-in-Vietnam medicines at affordable prices to local patients. The company also contributes to the country’s economic growth by expanding production capabilities and exporting high-quality pharmaceuticals.

In 2021, Davipharm successfully certified Vietnam’s first HP Zone for manufacturing high-potency drugs in solid forms, including high-quality oncology drugs. That same year, the company obtained its first EU-GMP certification, becoming one of the few pharmaceutical companies in Vietnam to achieve this quality standard.

Amid the challenges posed by the COVID-19 pandemic, Davipharm faced formidable obstacles. Despite these adversities, the company experienced remarkable production growth in 2022, driven by successful bids in national tenders. This surge in performance led to competitive conversion costs, culminating in a historic milestone – an unprecedented production output of 670 million tablets in 2023, a testament to Davipharm’s resilience and operational excellence.

Skilled Workforce and Continuous Improvement
According to Mr. Wojciech Makowski- Operations Director of Davipharm, at the core of Davipharm’s operations is a steadfast commitment to quality and regulatory compliance. Guided by a meticulously maintained quality system, Davipharm adopts the GEMBA approach – “Go and See” – to closely observe and control processes, ensuring strict adherence to rigorous quality standards.

To maintain high quality, Davipharm boasts a skilled and experienced team that is well-versed in constantly evolving requirements. The team dedicates time to training and benefits from expert knowledge, transferring high-quality technologies from Adamed.

Davipharm’s organizational culture is deeply rooted in transparency, efficiency, and sustainability, with a focus on optimizing resource utilization. In health, safety, and environmental matters, Davipharm remains committed to minimizing energy consumption and reducing its environmental footprint. Through initiatives like the KAIZEN program for continuous improvement and investments in automation, Davipharm strives to enhance operational efficiency, minimize waste, and foster a culture of continuous improvement.

Photo: The automated packaging line is continuously improved to optimize performance.

In the production areas, significant emphasis is placed on increasing batch sizes and upgrading technology, leading to optimal long-term savings. Various lean tools, including SMED (Single-Minute Exchange of Die), are utilized to enhance efficiency, with workshops focused on developing solutions to improve quality and minimize setup time.

Aligned with the company’s activities, ESG practices are being integrated. Environmental consciousness and carbon footprint reduction rank among our strategic priorities. An ESG-friendly approach is deemed essential for its export-oriented endeavors.

Investment for Future and Expansion Plans
Looking ahead, Davipharm is poised to continue its growth and innovation trajectory. The company plans to invest $12 million in CAPEX and another $12 million in R&D projects over the next five years, as stated by Mr. Szymon Turyński – Chief Financial Officer of Davipharm.

Photo: Davipharm’s storage capacity will have to expand to support ambitious production plans.

The main project involves reconstructing the production area, increasing production capacity to 1.5 billion tablets annually. Additionally, there are plans to construct another warehouse and packaging facility in Binh Duong over the next five years, enabling the delivery of approximately 2 billion units. This expansion will enhance the company’s ability to meet both local and international demand.

With a product range covering 12 therapeutic areas, Davipharm responds to the key challenges of modern medicine by delivering high-quality products and services at affordable prices, elevating the image of made-in-Vietnam medicines.

Davipharm employs over 450 people across its Binh Duong factory and Ho Chi Minh City office. The company prides itself on its diverse team of experts from various countries. This multicultural environment enriches the company culture and bolsters its ability to attract, recruit, and retain top talents.

It actively partners with various educational institutions, including the University of Medicine and Pharmacy in HCMC, Binh Duong Medical College, Vietnamese-German University, Vietnam National University HCMC, and Van Lang University, to offer factory tours, internships, and trainee programs, creating valuable opportunities for students and future professionals.

Photo: Vietnamese-German University students participating in a factory tour at Davipharm.

As Davipharm celebrates two decades of excellence, with ambitious plans for the future, the company’s focus on maintaining high standards, fostering a skilled workforce, and embracing ESG practices ensures that it will remain a key player in the global pharmaceutical industry.

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