Major merger and acquisition deal in Vietnam’s pharmaceutical market

Vietnam’s pharmaceutical industry has recently witnessed a significant merger and acquisition (M&A) deal, with Livzon Pharmaceutical Group Inc. of China acquiring about 64.81% of Imexpharm Pharmaceutical Joint Stock Company (IMP). This deal, valued at over 5.73 trillion VND (equivalent to about 220.6 million USD), highlights the growing appeal of Vietnam’s pharmaceutical market to foreign investors.

Livzon, through its Singapore-based subsidiary Lian SGP Holding Pte. Ltd., will acquire shares from existing stakeholders, including SK Investment Vina III Pte. Ltd., which currently holds a 47.69% stake in IMP, along with other smaller investors. Once the acquisition is complete, expected within nine months, Imexpharm will become an indirect subsidiary of Livzon, and its financial performance will be integrated into Livzon’s consolidated reports. This transaction marks a significant divestment by SK Group, a major Korean conglomerate, as part of a strategic portfolio restructuring in Vietnam.

Livzon’s decision to enter the Vietnamese market signifies its goal of diversifying revenue streams and mitigating risks associated with fluctuations in the domestic market. Livzon, founded in 1985 and headquartered in Zhuhai, China, is a well-established player in the pharmaceutical sector, specializing in the research, development, and manufacturing of various pharmaceutical products, including biopharmaceuticals and traditional Chinese medicines. With over 9,000 employees and listings on both the Hong Kong and Shenzhen stock exchanges, Livzon possesses strong financial resources and extensive industry knowledge.

In recent years, Livzon has actively pursued international expansion, with foreign revenue accounting for nearly 15% of its total sales in 2024. The acquisition of Imexpharm represents a strategic move to enter one of Southeast Asia’s rapidly growing pharmaceutical markets. Imexpharm, a leading Vietnamese pharmaceutical company founded in 1977, has built a strong reputation, particularly in the antibiotic sector, where it holds approximately 10% of the domestic market share.

Imexpharm has made substantial investments in high-standard manufacturing facilities compliant with European standards (EU-GMP), positioning it well for both domestic sales and potential export opportunities. In 2024, the company reported revenues exceeding 2.2 trillion VND, marking an 11% increase from the previous year, with a net profit of 320 billion VND. Imexpharm aims for an average annual revenue growth of 15% until 2030, with plans to expand its manufacturing capacities, especially in cardiovascular, diabetes, and gastrointestinal treatment products.