Traphaco sets 306 billion VND net profit target for 2026, up 10%

Vietnam’s pharmaceutical sector is moving into a phase of “standardization and upgrading” following the revised Drug Law that has taken effect. New rules on drug registration, manufacturing standards, electronic prescribing, and traceability are raising technical requirements across the industry. As a result, a wave of legal reviews has led to the revocation of many drug registrations and has forced some substandard firms to scale down operations, creating market share gaps for companies with stronger foundations.

At the same time, demand is changing quickly. Consumers are increasingly prioritizing not only effectiveness, but also safety, traceability, and scientific evidence. Distribution is also shifting toward modern pharmacy chains and e-commerce channels.

Traphaco’s 2025 performance

Against this backdrop, Traphaco JSC (TRA) reported 2025 results with consolidated revenue of VND 2,657 billion, up 13% year-on-year. After-tax profit reached VND 278 billion, up 8%, which the company said is well above the industry’s average growth of about 5%.

OTC channels remained the revenue backbone, contributing nearly 89% of total revenue, up 10.5%. The company also reported a shift in revenue structure: retail chain growth rose 23%, e-commerce more than tripled, the high-end Eastern medicine segment grew 68%, and the high-quality new medicine segment grew 31%.

Distribution restructuring to tighten control

Traphaco said it restructured its OTC distribution system by streamlining 26 secondary-level branches into a model of three primary-level branches. The company also established a dedicated distribution company to strengthen management and optimize resources.

2026 targets

For 2026, Traphaco set targets of VND 2,916 billion in revenue and VND 306 billion in after-tax profit, implying roughly 10% growth. The company noted that the targets for the 2025–2030 period are expected to be even more challenging.

Product development and R&D progress

In 2025, Traphaco launched 18 new products. In the Eastern medicine segment, it continued product development while improving formulations and scientific dossiers for key products tied to medicinal plant origins compliant with GACP-WHO standards.

For pharmaceutical products, Traphaco focused on high-quality generics through in-house R&D and technology transfer. The company also began biosimilarity testing for several products to expand its portfolio for participation in tenders.

In 2025, Traphaco launched 11 new pharmaceutical products and achieved successful BE biosimilarity testing for 6 products.

“Developing a new product in the pharmaceutical industry typically requires 4-5 years, so Traphaco has consistently prioritized R&D. The strategy of heavy R&D investment not only supports near-term revenue growth but also builds a solid foundation in product, technology, and quality to enhance competitiveness and proactively meet increasing market demands,” said Ms. Dao Thuy Ha, CEO of Traphaco.