Mekophar Chemical Pharmaceutical Joint-Stock Company Is Endangered by Government Price Regulations According to BAC Company Report18 Jan 2012 • by Natalie Aster
LONDON – Since July 2011 many foreign medicines have gained in price noticeably. At the same time Vietnamese drugs almost didn’t change its price tags due to governmental price regulations. Domestically-made drugs, however, are produced according to GMP-WHO Standards, and have good quality. All Vietnamese manufacturers name this situation as “unfair”. Mekophar has also appeared under these restrictions in unfavorable position.
The company has its own ways of coping with the problem. Currently, Mekophar is the only company in Vietnam that can manufacture antibiotics materials products. With recent increase of tax rate for import antibiotic material products (5% for ampicillin material and 10% tax rate for amoxicillin material) MKP can gain a significant advantage comparing to foreign products and win raw materials market in Vietnam.
Export is another great opportunity for Mekophar to deal with current unpredictable market conditions in Vietnam. Export prices are not regulated by the government; therefore Mekophar may put an appropriate price tag on all its products to save profitability. Mekophar drugs are willingly accepted by international pharmaceutical institutions as equal pharmacokinetic substitutes for more expensive foreign analogues. So the company has a price advantage in international market, and should use it to expand its export share in revenues.
Mekophar financial results are more than adequate to support further growth. Q3 2011 revealed revenue and net income of VND 260 B and VND 20.5 B respectively. Profit margin in quarters of 2011 varied from 7.7% to 9.1%. According to the results of financial year 2010 revenue and net income reached VND 895 B and VND 71 B respectively (a 38.1% and 16.1% increase from FY 2009 numbers).
Founded in 1975 and headquartered in Ho Chi Minh (Vietnam), Mekophar Chemical Pharmaceutical Joint-Stock Company is a medicals manufacturer, the only one in Vietnam to produce antibiotic raw materials. The company also distributes its drugs both domestically and internationally, produces pharmaceutical packaging, and engages in rental business (office buildings).
Get full information on the company’s activities, businesses, products, strong and weak sides, peers from the report "Mekophar Chemical Pharmaceutical Joint-Stock Company Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis" recently published by Market Publishers Ltd.
Title: Mekophar Chemical Pharmaceutical Joint-Stock Company Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Jan, 2012
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