Traphaco enters Top 40 Most Valuable Brands of Vietnam 2017

On July 3, 2017, Forbes Vietnam released the list of 40 most valuable corporate brands, with a total value of over $5.4 billion for all 40 brands, up 20% over that of 2016. Traphaco brand ranked 30th on the list with a brand value of $28.6 million.

Forbes Vietnam made this list based on the exclusive method of Forbes, calculating the contribution of brand to the performance of the business. The most valuable brands are the ones that make up a great deal of revenue in the industries in which the brand plays a leading role. After making a preliminary list of more than 80 brands, Forbes Vietnam, with the support of Viet Capital Securities, calculated pre-tax income and interest, then determined the value of contributions of intangible assets. Business data collection is based on financial statements of companies, and data on the stock market.

The revenue earned by a business from its brand is determined from the value of the intangible asset after corporate income tax was calculated and distributed based on the brand's contribution to the industry. The final brand value is determined on the basis of the average P/E ratio of the industry. For unlisted companies, the comparative method to those in the same industry, with the same scale was used to determine the brand value.

Traphaco currently has more than 210 registered drugs in the market, of which 70% are made from natural materials. Big contribution to Traphaco’s revenue is the medicines that are made from its typical materials like Boganic and Cebraton, which are currently ranked the fourth and the 13th in the top 20 most popular OTC drugs in the market (according to research firm IMS Health).

In addition, Traphaco applies high technology in the distribution system management (DMS), equips tablets for its sales staff to update and analyze sales data accurately. This system helps manage information of each client and helps company managers make accurate decisions when analyzing each pharmacy's data without waiting for the salesman's reporting system.

The change of the wholesaling system with limited numbers of clients to the retailing system has brought to Traphaco up to 25,000 retailers. As a result, Traphaco announced revenue of VND1,998 billion by the end of 2016, consolidated profit of VND122 billion, up 12% y/y. The market capitalization value doubled to more than VND4,000 billion.

In other words, Traphaco has built its brand based on the product strategy - the company’s modern product technology and distribution system. This is the right direction because the foundation of Traphaco is the production of medicines and health care for the people with the motto “effective treatment is the core”. In fact, for all the pharmaceutical companies with a long history of development, prestige in the world, products always play a decisive role.

Traphaco has developed a strategy of development with clear objectives and roadmap. In particular, it sets the target to 2020, wit the market capitalization value to reach VND10,000 billion, total revenue of VND4,000 billion, and total profit of VND500 billion. In addition, Traphaco's technology will meet the highest standards of the Vietnamese pharmaceutical industry, with a modern management system based on integrated information technology. The target figures for the next four years all double compared to the present levels, showing the ambition and determination of Traphaco. Traphaco not only reaffirms its goal of leading the oriental medicine market of Vietnam, but also aims to conquer the western medicine market when its produce medicines up to the highest standard of GMP PIC/s, in order to turn Traphaco into the number one firm of the pharmaceutical industry of Vietnam in terms of growth rate, revenue, profit and market capitalization.