Burdened by medication costs

Figures show that Vietnamese people currently pay 40 per cent of their healthcare expenses, which is double the recommendation of the World Health Organization (WHO) and creates a financial burden that makes many people hesitant to seek treatment.

N.T.T, 60 years old, from the Mekong Delta’s Long An province, has been battling diabetes for the past ten years. His blood sugar levels frequently spike, and he has developed foot and nerve problems, necessitating regular checkups and medication as prescribed by his doctor. He claims to spend over VND 1 million ($40) on monthly medications, some of which is not covered by public health insurance or only partially reimbursed. Paying for medicine out of pocket while his family struggles financially has become a source of anxiety for him.

Meanwhile, experts believe that Vietnam is facing a disease burden due to the increase in non-communicable diseases. Hospital reports indicate that 65-75 per cent of inpatients suffer from non-communicable diseases. As a result, the financial burden of healthcare for the population will continue to rise. The aging population in the country and the dual disease pattern (communicable and non-communicable diseases) pose additional challenges to the healthcare system.

According to experts, one of the reasons for the high cost of medications in Vietnam is the need to import many of them, with prices estimated to be 20-25 per cent higher than in China and India. Imported medications account for 80 per cent of the domestic pharmaceutical market, posing a significant challenge.

Domestic pharmaceutical companies, meanwhile, primarily manufacture generic medications. Overlaps in production within this segment intensifies price competition. The majority of brand name medications (innovative drugs) are imported from foreign countries, and some are not included in the public health insurance coverage list.

Technology transfer to resolve cost issues

In light of these challenges, pharmaceutical companies such as Imexpharm (IMP) have changed their direction and entered into strategic partnerships with foreign pharmaceutical companies. The strategy of transferring technology for the production of high-quality and specialty medications with Genuone Science - one of the leading pharmaceutical companies from South Korea - helps IMP optimize medication prices, reduce patient expenses, and contribute to the development of Vietnam’s pharmaceutical industry. This move also meets the increasing demand for treatment of chronic diseases such as cardiovascular disease and diabetes as the disease model in the country undergoes significant changes.

IMP has proactively enhanced its research and development (R&D) capabilities, concentrating on products with high technological content while investing heavily in cutting-edge machinery that meets European standards of Good Manufacturing Practice (EU-GMP), guided by the principle of “Top quality - European standards”.

The company currently owns three modern EU-GMP standard factories, with eleven EU-GMP standard production lines. It was the first Vietnamese company to achieve the GMP-ASEAN - Good Manufacturing Practice for Pharmaceuticals certification.

“The emphasis on EU-GMP standard investment not only enhances Imexpharm’s competitiveness against foreign pharmaceutical companies in the domestic market but also serves as a solid foundation for Imexpharm’s entry into the global pharmaceutical supply chain,” said Imexpharm’s General Director, Dr. Tran Thi Dao.

IMP has had eleven products (with 27 registration numbers) distributed and circulated in Europe, and 2023 alone obtained eleven product registrations in Europe granted for six products, including challenging products like Ampicillin and Sulbactam.

It also aims to expand its export market and is ready to penetrate new markets in the ASEAN region by establishing a global partnership development team to tap into overseas markets. In 2023, IMP boosted its export activities, such as setting up a booth to showcase its products at CPhI Worldwide, a major international pharmaceutical industry event in Barcelona, Spain, and is continuously exploring export markets of potential such as Cambodia and Myanmar.

The company has announced that it successfully exported its first shipment of antibiotics to Mongolia via air freight in early 2024.

Maintaining and strengthening cooperation with international partners and solidifying its position as a licensed manufacturing partner for many leading multinational pharmaceutical corporations is another key strategy for IMP. In addition to technology transfer and import, production, and distribution collaborations with Genuone Sciences from South Korea, the company is currently partnering with Sandoz, DP Pharma, Galien, Pharmascience Canada, Sanofi-Aventis, and others.

With a smart strategy and strong investment in R&D and expectations of high growth in the export sector, IMP is solidifying its position in the Vietnamese pharmaceutical industry and contributing to taking Vietnamese pharmaceuticals to the world.

Mr. Sam Lee, CEO of Genuone Sciences, praised IMP as an integrated pharmaceutical company involved in research, manufacturing, and distribution that has achieved milestones in quality, technology, production lines, and bold market expansion. Its well-defined investment plan and successful focus on developing high-quality medications provide valuable insights for businesses seeking to unlock Vietnam’s potential as a regional hub for high-value pharmaceutical production.