Davipharm: Rise Through High-Quality Pharmaceuticals Development Strategy
Breaking new ground with quality standards and accessibility of made-in-Vietnam medicines, Davipharm’s 20-year journey in the pharmaceutical industry stands as a testament to innovation and commitment to products’ development. Several key factors have contributed to its success and distinctive position. Let’s explore its strategic priorities for the future as a trailblazer in the field.
Strength in high-quality drug production
Davipharm’s commitment to producing high-quality generic drugs that match the quality of originators and those imported from stringent regulatory countries sets it apart. The company’s nationwide presence and competitive pricing ensure that all patients in Vietnam can access essential medications. This approach not only meets immediate health needs but also aligns with long-term healthcare goals.
Davipharm, a member of Adamed Group, is one of the leading domestic manufacturers of high-quality generic drugs. Established in 2004 and certified in 2007 with the first WHO-GMP, in 2014 Davipharm reached the first 100 registered products and started exporting its medicinal products to the Philippines and Cambodia. The company’s HP Zone has been certified by DAV (Drug Administration of Vietnam) as the first certified high-potent drugs manufacturing area in Vietnam (2021). Davipharm among several companies in Vietnam, also obtained its first EU-GMP certification in 2021.
The immediate focus for Davipharm includes launching new products, particularly from its HP zone, providing high-quality oncological drugs to Vietnamese patients at affordable prices. This initiative is crucial in addressing the growing need for cancer treatments within the country.
The COVID-19 pandemic highlighted vulnerabilities in global supply chains, emphasizing the importance of local production capabilities. Davipharm’s HP zone certification allows it to produce essential medications locally, ensuring access to life-saving treatments without international supply chain uncertainties. This capability is critical for national health security and patient safety.
Strategic positioning locally & international expansion
Vietnam’s strategic advantages make it a key market for Adamed, a 100% shareholder of Davipharm. With a population of over 100 million and rapid economic growth, the demand for high-quality pharmaceuticals is set to grow. Vietnam’s favorable business environment attracts foreign investments, and government efforts to improve infrastructure and transparency create a conducive environment for business growth.
When in 2017 Adamed Pharma S.A. acquired 70% of shares in Davipharm, becoming the biggest direct Polish investor in Vietnam, it set very ambitious goals. In April 2023 the company acquired the remaining shares, confirming its strong commitment to investing in Vietnam.
With US$60 million investment to date, out of which over US$10 million has been put into the modernization of R&D Centre and manufacturing site in Binh Duong, Davipharm, a member of Adamed Group, provides high-quality-made-in-Vietnam medicines at affordable prices to local patients and contributes to the country’s economic growth by expanding production capabilities and exporting high-quality pharmaceuticals.
Looking ahead, Davipharm’s strategic priorities are clear. It aims to solidify its position in the local market while significantly expanding its international presence. Unlike many companies focusing solely on local sales, Davipharm is expanding its horizons. Ranked as the seventh-largest local pharmaceutical company in the Vietnam prescription drug market according to IQVIA data for Q1-2024, Davipharm’s strategy includes a strong emphasis on international expansion. The aim is to export high-quality products meeting stringent international standards, supported by rigorous bioequivalence studies.
Speaking about the company’s ambition, Mr. Michal Wieczorek, General Director of Davipharm, stated that the company would like to significantly contribute to improving Vietnam trade balance by increasing export of its medicines. Currently, Vietnam exports only about 150-180 million Euros’ worth of pharmaceuticals annually while importing for around 1.5 billion Euros. Davipharm’s competitive production costs and high-quality products position it well to bridge this gap. These efforts are aligned with national goals, contributing to the country’s economic growth and pharmaceutical self-sufficiency.
Continuous innovation & excellence
Amidst the backdrop of the COVID-19 pandemic, Davipharm encountered formidable challenges. Despite of the adversity, the company witnessed remarkable production growth in 2022, fueled by triumphant bids in national tenders. This surge in performance facilitated the achievement of competitive conversion costs, culminating in a historic milestone—an unprecedented production output of 670 million tablets in 2023, a testament to Davipharm’s unwavering resilience and operational excellence.
Expanding production capacity and further improvement of processes to comply with European market requirements are also on the agenda. The main project involves the reconstruction of the production area, increasing production capacity up to 1.5 billion tablets. Additionally, plans are underway 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.
To ensure adequate quality, Davipharm has a competent and experienced team familiar with constantly changing requirements. The team dedicate time to training and support from expert knowledge, transferring the high-quality technologies from Adamed.
“Strategic goals extend beyond production and sales to workforce development. Davipharm believes that investing in employees is crucial for sustained success. Continuous training and development opportunities ensure the team remains competitive and innovative,” emphasized Mr. Wieczorek Michał.
Innovation and a relentless pursuit of excellence have marked Davipharm’s 20-year journey. The company looks forward to continuing its commitment to quality in the pharmaceutical industry, both in Vietnam and internationally, with its dedicated team and strategic vision.
Check out the article on Cafebiz newspaper HERE!