Traphaco Joint Stock Company

Traphaco is a pharmaceutical company which specializes in the development, marketing and distribution of Vietnamese traditional medicines. Traphaco produces and sells more than 230 products focusing on: central nervous system, digestive, cardiovascular, analgesics, respiratory and ontological system, eye care, etc. They have nationwide distribution channels through which they products are sold.

The company operates a GMP-compliant factory in Hanoi and is a shareholder of another GMP-compliant factory in Hung Yen Province. Traphaco’s factories use high-tech pharmaceutical equipment imported mostly from Germany and Korea.

Revenue in 2007 was estimated at $33.4 million.

Traditional Medicines

Traditional medicines play a key role in Traphaco’s business strategy. The company is now focusing its substantial resources to develop this product line by taking advantage of the variety of special herbal species in Vietnam. Key medicines in this product line are “Hoat huyet duong nao”, Boganic, “Luc vi am”, Alaska, Ampelop, “Ha thu o”, “Vien sang mat”, Sitar, “Ich mau”, “Thap toan dai bo”, “ Ha Thu o” tea, “Luc vi am”. Revenue from these products accounts for around 84% of total revenue from traditional medicines.

With the strength in well-known brand of traditional medicines, capability of R&D and manufacture, independent herbal material supply, strong distribution network to the consumers and especially the unceasing trend to use traditional medicines, Traphaco will have opportunity to enjoy healthy sales growth in the next years and be the clear leader in traditional medicine market in Vietnam.

Western Medicines

Traphaco have a wide range of Western medicines with more than 100 products that are licensed to put into circulation. The key medicines in this product line are Amovita, Antot-Philatop, Avircream, Dibetalic, Levigatus, “T-B Mouthwash”, Trafedin, Tramorin, Trapha. Most of these medicines product are sold OTC. Revenue from these products occupies around 60% of total revenue from western medicines.

Investment Thesis

Traditional medicines is a very promising sector in Vietnam for investors. This sector is a proven successful business model in China which has generated very good shareholder value. With a core competence in brand building and development of a wide distribution network for OTC medicines, Traphaco can maintain its leading position in traditional medicines market and continue to enjoy healthy grow rate in coming years.

History of the Company

1972: Traphaco joint venture was formally the Pharmaceutical workshop of Railway Hospital – a subsidiary of Ministry of Transportation. It was established on 28 November to produce some basic pharmaceutical products for the hospital

1993: The workshop was upgraded to a pharmaceutical factory under the name of Railways pharmaceutical factory (Raphaco). It then had about 100 employees

1994: The company was officially renamed to Traphaco with additional functions of improving its pharmacies and drug stores in Hanoi and building distribution network in the North of Vietnam

1998: The first factory of Traphaco was built and operated in Phu Thuong - Hanoi and it obtained the General Manufacture Practice – ASEAN (GMP-Asian) accreditation from Vietnam Drug Administration Department. It was the first pharmaceutical factory that had such professional compliance of GMP in the North of Vietnam and one of the sevens in the country

2000: The company was equitized and officially named Traphaco Pharmaceuticals and Equipment Joint Stock Company

2001: The company was renamed to Traphaco Joint Stock Company

2004: The construction of Hoang Liet factory was completed. Traphaco moved its factory from Phu Thuong to Hoang Liet. Hoang Liet factory was built in 9,000m2 area (with 50 years leasing time) and was accredited GMP/GSP/GLP – Asean. (GSP means General Storage Practice, GLP means General Laboratory Practice)

2007: Traphaco’s factory is accredited to GMP-WHO standards in Jan-2007