Recently, Livzon Pharmaceutical announced that its wholly-owned overseas subsidiary LIAN SGP signed an agreement with the sellers (SK, Sunrise and KBA) to acquire 64.81% of the shares of Imexpharm Corporation (IMP), a Vietnamese listed company held by the sellers, at a purchase price of 573.08 billion Vietnamese dong (approximately RMB 1.587 billion).

Public information shows that IMP is a leading pharmaceutical company in Vietnam, founded in 1977 and listed on the Ho Chi Minh City Stock Exchange in 2006. According to the list of the top ten well-known pharmaceutical companies in 2024 published by Vietnam Report Joint Stock Company (Vietnam Report), IMP ranked third.

Imexpharm is mainly engaged in the research and development, production and sales of drugs, and its products mainly include antibiotics, cardiovascular and cerebrovascular drugs, etc. At present, Imexpharm has 4 factories and 25 retail branches in various provinces and cities in Vietnam. In terms of market position, IMP ranks first in the antibiotic field in Vietnam and fifth in the cardiovascular and cerebrovascular drug market, covering more than 80% of medical institutions across the country.

Imexpharm's products are not only sold domestically, but also exported to overseas markets such as the Middle East and Africa. In addition, Imexpharm is also a production partner for large pharmaceutical companies such as Sandoz Group AG, Pharmascience Inc (Canada) and Sanofi SA.

Financial data shows that IMP achieved operating income of 696 million yuan and 185 million yuan in 2024 and the first quarter of 2025, respectively, and net profits of 88.8302 million yuan and 20.6144 million yuan, respectively, demonstrating good profitability.

As a leading company in China's pharmaceutical industry, Livzon Pharmaceutical's products cover many pharmaceutical sub-sectors, from raw materials, intermediates, to finished products and then to diagnostics, including digestive system, assisted reproduction, psychiatric and neurological, infection, metabolism and other disease areas.

In 2024, Livzon Pharmaceutical maintained steady operations, achieving revenue of RMB 11.812 billion and net profit attributable to the parent company of RMB 2.061 billion. In addition, the company had RMB 10.8 billion in cash at the end of the period, and the abundant cash flow provided sufficient ammunition for acquisitions.

Livzon Pharmaceuticals believes that IMP has high synergy with its existing products. This acquisition lays a solid foundation for the group to further expand overseas markets and supports its long-term strategy of internationalization and sustainable development in the pharmaceutical field. After the transaction is completed, Imexpharm will become its subsidiary and its operating results will be incorporated into the financial statements.

Conclusion

Currently, the global pharmaceutical industry is accelerating its integration, and it has become the norm for Chinese pharmaceutical companies to achieve technological upgrades and market expansion through mergers and acquisitions.

By acquiring IMP, Livzon Pharmaceutical can quickly enter the Vietnamese market and use it as a springboard to further expand into the global market. As a manufacturing hub in Southeast Asia, Vietnam's low-cost advantages and tariff reductions brought about by regional trade agreements will provide strong support for Livzon Pharmaceutical's global layout.

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