DVD tries to buy Tobicom brand of Ahn Gook Pharm (Korea)

According to the resolution of the shareholders’ meeting in 2010, one of nine big and important projects of DVD in 2010 is to buy and merge some pharmaceutical companies having suitable development strategy and having additional advantage for DVD; Moreover, to continue buying license of 20 products, technology transfer and franchise of good products with total estimated investment of VND 150 billions.

For first assessment of the project, General Manager, Mr. Le Van Dung, said it can be considered that DVD has almost finished planned targets. In detail, DVD bought strategic shares of two big companies: Savi Pharm and Ha Tay Pharmaceutical Joint Stock Company; bought franchise license of over 20 good products, including many special products like Mada Plus, Boro H1, Hom New Ginseng, Ronagra, Ronamax, etc.

In addition, DVD signed strategic corporation agreement with many pharmaceutical and healthcare equipment companies like: Tan Phat Pharmaceutical Joint Stock Company, Minh Ngoại Phu Gia Trading Joint Stock Company and Au My Pharmaceutical Joint Stock Company. According to these agreements, DVD in corporation with its partners agreed to develop business strategy to position the company and its main products; to support business partners in other issues related to copyright and technology transfer from overseas.

With these results, DVD planned to adjust its targets in the extraordinary shareholders’ meeting which is scheduled in September 2010.

In fact, many pharmaceutical companies with good franchise strategy have its brand and share market in foreign markets and transfer technology into the domestic market. However, many other companies have had difficulties in Vietnamese market because they did not have right estimation of domestic demand and taste.

So, franchise and product transfer strategy sometimes became a trap for companies. According to Mr. Dung, to reduce risks in developing new products with franchise and transfer in Vietnam, DVD only chooses products with high creativeness, low competition or products with volunteer in medicine formula and technology; as well as has deep research to have effective transfer steps. 

Recently, many Vietnamese companies paid attention to the new that Ahn Gook Pharm (Korea) cancelled its contract with ICA Pharmaceutical Company to buy Tobicom brand. Mr.Dung said that DVD is trying to negotiate related terms and conditions to buy the brand from Ahn Gook Pharm.

“Although there are difficulties because of legal conflicts between ICA dna Ahn Gook Pharm, we believe that we can handle all issues soon according to law’s process and regulation. Buying a strong brand like Tobicom will develop the company’s distribution channel and improve the stability and maintenance of the brand“ – stated Mr. Dung.

Franchise and technology transfer strategy is determined to be the right key and important strategy for the company’s development. According to DVD, with the strategy, the company can shorten time for having a new product from two years to six months; as well as shorten time for building a strong brand successfully from five years to two years. This also helps the company reduce the expense for creating successful brands two or three times less than the traditional way. With the strategy, the company now builds over ten strong brands successfully and becomes the leader of the market in only five years.

The strategy also completes and promote DVD’s top advantage – its distribution channel. DVD has invested to develop the leading profressional distribution system in Vietnam, to ensure not only the distribution of its products but also the exclusive distribution of many big partners like BBRAUN (German), ORASURE Technology (USA), Sopharma (Bulgaria) or PHIL International, GL Rapha (Korea). The strong distribution channel helps franchised products of the company maintain its stability after being transferred into new markets and develop their current brand advantage easily.

Bá Thư

According to Stock Investment, 21/7/2010