Traphaco Joint Stock : The kick-off technology transfer phase 2 between Traphaco and Daewoong

On August 19, 2021, Traphaco JSC and Daewoong Pharmaceutical Group, Korea held the Kick-off Ceremony to launch the second phase of technology transfer project (via online).

The Annual General Meeting of Shareholders of Traphaco JSC (Traphaco) on March 31, 2021 has set a 5-year development orientation for the Company for the period 2021-2025, with the CAGR goals for total revenue and profit, for manufactured products and 3rd-party products; including the important activity of enhancing technology transfer in phase 2 with Daewoong.

Determining the importance of the project, right after the General Meeting of Shareholders, the Non-herbal Sub-Committee was established, focusing on four areas: technology transfer products, western products at Traphaco Hung Yen, 3rd-party products, ETC products. Since coming into operation, the Sub-Committee has prioritized and focused resources on the Technology Transfer Project, coordinated with stakeholders, and generated many positive results.

At the kick-off ceremony, Ms. Dao Thuy Ha - COO of Traphaco, Co-Head of the Non-herbal Sub-Committee - presented an overview report on the working results of the Non-herbal Sub-Committee. Accordingly, the goal of the project is to increase the proportion of ETC revenue, contributing to fulfilling the goal of total revenue growth through the diversification of Traphaco's product portfolio; Increase the proportion of western medicines with high scientific content such as First Generic and Invention Drugs; Increase the number of highly competitive western medicines when participating in drug tenders at public health facilities, with the cooperation and support from Daewoong partner.

Mr. Lee Tae Yon - Co-Head of Non-hebal Sub-Committee - presented the execution plan after the kick-off session. It is expected that 12 products will be technology transferred during this period. The new features of the technology transfer phase 2 are: Products are selected based on sales forecasts and cost estimates to ensure the effectiveness; many products have good market capacity, high efficiency potential.

Regarding the implementation, both parties will carry out joint research and direct transfer at the commercial-to-market stage, contributing to speeding up the implementation and reducing costs. Daewoong will accompany Traphaco's R&D department to ensure trial production and drug registration, thereby enhancing Traphaco's capacity. Total 5-year revenue since commercialization of products is expected to be USD 26 million.

Speaking at the ceremony, Mr. Tran Tuc Ma - CEO of the Company said that the technology transfer process is very important for the Company's goals and development orientation. Mr. Tran Tuc Ma - on behalf of the Board of Management - committed to create the most favorable conditions for the technology transfer process to take place according to the planned schedule.

Mr. Nguyen Anh Tuan - Vice Chairman of Traphaco's Board of Directors - assessed the implementation of the technology transfer project in line with the Company's development orientation for the period of 2021-2025; approved by the General Meeting of Shareholders on March 31, 2021. Mr. Tuan shared the confidence of the Board of Directors, acknowledged the active efforts of the Non-herbal Sub-Committee and highly appreciated the achieved results of the cooperation of the two sides. The project will bring important values to Traphaco: on revenue growth, financial efficiency and distribution channels, creating a good product portfolio with drug groups with large market demand, new and different technologies - matching trends, improving capacity research and production of western medicines. He also emphasized the need to work closely with Daewoong in the coming time and committed to creating favorable conditions for both sides through the coordinating role of the Board of Directors.

Previously, in March 2019, the Kick-off Ceremony of the Technology Transfer Project phase 1 between Traphaco and Daewoong took place. Right after the kick-off ceremony, the transfer team of both sides developed and implemented a specific execution plan for well-transfer.

The technology transfer project between Traphaco and Daewoong opens up many opportunities and tightens the cooperation relationship between the two parties, contributing to the realization of Traphaco's sustainable development orientations.