Constantly launching new products

At its 2023 annual general shareholders' meeting, Traphaco announced a series of remarkable orientations. Among them, the company will constantly review its research journey to create breakthrough solutions for healthcare.

Firstly, in the Herbal Medicine segment, Traphaco continues to diversify its portfolio and develop more advanced flagship products such as Hoat Huyet Duong Nao and Boganic to expand its customer base.

In the field of Non-herbal Medicine, the company will focus on bioequivalent (BE) products in 2023 and beyond, alongside its flagship products like methophane cough medicine and eye drops.

According to Tran Tuc Ma, CEO of Traphaco, BE is a research procedure to prepare and prove that a product has the same therapeutic effect in terms of both efficacy and safety compared to a control drug – typically the original brand-name drugs from major corporations worldwide – through human clinical trial data. This is a complex, risky, and challenging process that involves many stages and requires a lot of time and effort.

Having overcome many difficulties, in 2022, the company announced BE offerings, including five Arizi products, Claritra, and three concentrations of DW-TRA Timaro (rosuvastatin). The company is confident that the products are as effective and safe as the original brand-name drugs.

As of now, Traphaco has announced six BE products. Meanwhile, four others have passed research and applied for BE status.

Dao Thuy Ha, COO of Traphaco said, "We will continue to promote the implementation of BE research in order to create high-quality products that meet demand and maximise the market opportunity. Currently, the company has two research models, Herbal medicine and Non-Herbal Medicine. Both departments are trying to put stock keeping units into production, develop new products, and optimise the depreciation and distribution process."

In 2022, Traphaco launched 16 new products, which quickly created a driving force for its growth. With these products, the company earned sales of VND156 billion ($6.64 million), exceeding 140 per cent of its plan.

The company has also set a clear goal for 2023 by launching 19 new products, including Arizi Antibiotics, Claritra, the DW-TRA TimaRo blood lipid-lowering drug, the DW-TRA RebaTot stomach ulcer drug, and the UDCA gallstone drug. These products are distributed through both OTC and ETC channels.

A distinct competitive advantage

Also at this year's AGM, Traphaco announced research to upgrade its Hung Yen factory to EU-GMP standards. Despite the financial costs, implementation time, and complicated technology, investing in EU-GMP manufacturing is a special decision.

Before this turning point, the pharmaceutical enterprise had over 50 years of operation. From a small factory serving railway workers, Traphaco has become a national pharmaceutical brand in Vietnam with four factories meeting WHO-GMP standards for Herbal Medicine, Non-Herbal Medicine, and supplements.

Protecting health is a journey full of effort. Even at the most challenging times, Traphaco always ensures timely production, storage, and distribution to meet customers' need for pharmaceutical products.

Unlike some companies that produce mainly generic drugs, Traphaco produces both generic and patent drugs. In addition, it also offers pharmaceutical processing, including patent and generic drugs, for partners. The company's research and production efforts have led to a list of drugs that achieve BE. These product segments will be a key part of the company's pharmaceutical supply chain in the coming years.

Traphaco not only maintains high-quality human resources across Vietnam, but also constantly improves labour productivity.

Speaking at the AGM, Traphaco's chairman Chung Ji Kwang said, "Traphaco's factories are highly automated, as digitialsation is strongly applied in the operation of the whole ecosystem. People also play an important role in the pharmaceutical industry. We are confident in the qualifications and experience of all our employees. Even during the most difficult times, we have achieved impressive results in terms of revenue and profit. Shareholders highly appreciate the dedication and professionalism that Traphaco's team has shown. This gives us great motivation and will certainly continue to encourage us for the bright future of the company."

Supply chain disruptions around the world did not slow Traphaco during the two years of the pandemic. On the contrary, it was an opportunity to implement restructuring activities, promote a redirect strategy to maintain growth momentum for consecutive years, and strengthen the depth of its production and business activities.

The size of Vietnam's healthcare market could reach more than $16 billion by 2026 and the sector has seen a growth rate of 7 per cent. Traphaco is very confident in its ability to maintain momentum while focusing on operational excellence and continuously enhancing its brand value.