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Binh Dinh Pharmaceutical and Medical Equipment (DBD VN) – 9M 2025 – Hospital Channel Strengthens on Policy Tailwinds
Summary of 9M 2025 results and outlook of Binh Dinh Pharmaceutical and Medical Equipment JSC (DBD VN)
- Net revenue rose 8.5% y/y to VND1,355bn, driven by self-produced product sales, which accounted for 98.1% of total revenue. In Hospital channel: Revenue increased by 11.7% y/y to VND891bn, led by strong sales of key products including oncology drugs (chemotherapy for ovarian, breast, lung, bladder, and colorectal treatments), dialysis solutions (hemodialysis and peritoneal dialysis), and injectable antibiotics for surgical infections. As Vietnam’s leading oncology drug producer, DBD continues to benefit from the Ministry of Health’s policy prioritizing locally produced drug in hospital tenders. In addition, the expansion of the National Health Insurance reimbursement list across all hospital levels and streamlined administrative processes have enhanced patient access and supported rising pharmaceutical demand. In Pharmacy channel: Net sales grew 5% y/y to VND413bn. Although stricter tax and reporting requirements weighed on traditional pharmacies, DBD’s expansion into modern chains helped offset the impact.
- Net profit grew 7.9% y/y to VND231bn. Gross margin declined slightly to 48.5% (-80bps y/y) due to higher input material costs (APIs) for oncology drugs and rising depreciation from new facilities at Nhon Hoi oncology plant. However, disciplined operating cost control helped maintain an operating margin of 19.6%, while higher net financial income from larger deposit balances and lower borrowing costs further supported earnings growth.
- For Q4/2025: The hospital channel is expected to be driven by oncology and dialysis tenders across public hospitals. The pharmacy channel is forecast to be led by selective expansion into modern chains and stronger consumer trust following stricter counterfeit regulations. With stable gross margin and the absence of Q3’s one-off science and development fund allocation, full-year net profit is expected to increase year-on-year.
- 2026 Outlook: In Vietnam, lifestyle-related illnesses are becoming more prevalent among younger populations, driven by imbalanced diets, sedentary habits, and exposure to environmental pollution. Local pharmaceutical market is expected to grow at a CAGR of 8.5% (2025–2029). The growth is driven by treatment demand for chronic diseases like diabetes and common oncology (breast, liver, lung, colorectal, stomach), expanded national insurance coverage, improved patient access to specialized medicines. DBD is as the leading local producer of specialized drugs, well positioned to meet rising demand for specialized and affordable treatments.
Interested in DBD? Click here to read more of our previous analysis on DBD’s quarterly earnings.
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