TOKYO -- Taisho Pharmaceutical has acquired a 24.5% stake in Vietnam's largest drugmaker, looking to use the local company's distribution network to expand sales there.
The purchase, announced Tuesday, makes the Taisho Pharmaceutical Holdings unit the second-largest shareholder of Duoc Hau Giang Pharmaceutical, trailing only State Capital Investment Corp., the government fund that invests in Vietnamese state-owned enterprises. The Japanese company is thought to have spent around 10 billion yen ($98.4 million) on the deal.
Taisho Pharmaceutical has a plant in Vietnam that produces Lipovitan brand products, so strengthening the sales network in the country has been a priority. Vietnam's pharmaceutical market is projected to rise more than 10% annually, one of the highest growth rates in Southeast Asia, and is expected to exceed 400 billion yen in 2019.