Business description
Traphaco is a vertically-integrated pharmaceutical company specializing in the development, marketing and distribution of Vietnamese traditional medicines. The company is the clear leader in the Vietnamese traditional medicine sector and the second largest pharmaceutical manufacturer in Vietnam in terms of revenue and net profit. The company owns a strong brand, 2 GMP-WHO manufacturing factories and a nationwide distribution network, with 23 distribution branches.

Vision and long term strategy
By 2020, Traphaco aims to become a vertically integrated economic group, which engages in the research & development, manufacturing and trading of traditional pharmaceutical products.

Traphaco will develop a team of international expertise, built upon a local core culture, which takes pride in the quality of their products and their contribution to the health of the community.

Traphaco will have 4 manufacturing factories, 1 global distribution network, 1 research and development institute, 1 medical and pharmaceutical vocational training facility, and 1 health service center.

Results
Since the Fund first invested in Traphaco, the company has achieved a consistently high net profit annual growth rate of 21%. Traphaco has also aggressively expanded its distribution network through increasing the number of branches from 4 to 23. At the same time, Traphaco also acquired a majority stake in CNC, the partially-owned manufacturing subsidiary, which was also the major source of corporate governance concerns and major stakes in two formerly state-owned provincial distributors.



Traphaco Case Study