Hanoi (VNS/VNA) - As the COVID-19 pandemic continues to spreadnationwide and is gradually being considered an endemic disease that could betreated at home, demand for drugs has increased sharply.

Pharmaceuticalenterprises are expected to benefit from the situation.

SSIResearch expects healthcare demand will recover and grow 13 percentyear-on-year in 2022.

“Weestimate that domestic health spending will return to normal levels in 2022 associal distancing measures are eased,” SSI wrote in a report for the healthcareindustry.

Theimpact from the pandemic will be less severe and even bring some positivebenefits for the pharmaceutical enterprises, it added.

With70 percent of the Vietnamese population already fully vaccinated with twodoses, and new coronavirus variants that may be less dangerous with lowerhospitalisation rates, the healthcare demand in 2022 is forecast to soonsurpass pre-pandemic levels with hospital visits recovering to normal levels.And the pharmaceutical group will have significant additional revenue fromfever reducers and vitamins that are used to treat mild COVID-19 symptoms.

Moreover,many Vietnamese pharmaceutical companies have received formulas for theproduction of COVID-19 medicines which are transferred by Pfizer and MSD, andmay soon be commercialised in 2022.

OnFebruary 17, Mekophar Chemical Pharmaceutical JSC (MKP) was licensed by theMinistry of Health to circulate COVID-19 treatment medicine Movinavir with acontent of 200mg.

Thecompany’s main markets are in HCM City, accounting for 63 percent, and Hanoi(25 percent), while the rest are other provinces and cities.

Mekorpharis one of three companies licensed to circulate medicine to treat the disease.The other two companies are Stellapharm Joint Venture Company Limited andBoston Vietnam Pharmaceutical JSC.

According to SSI’s report, profits for healthcare companies are likely to growstrongly in 2022, with prices for medical services and medicines expected torise slightly.

“Weestimate healthcare companies' profits to grow 15 percent year-on-year, drivenby 12 percent revenue growth and an expected 4-6 percent increase in prices forboth medicine and medical services,” said SSI.

“Theprice increase is inevitable as pharmaceutical companies have had to cope withhigher prices of raw materials, while hospitals have faced many expensiveoperating costs in the past two years during the outbreak of COVID-19.”

TraphacoJSC (TRA) is not a manufacturer or distributor of medicine to treat COVID-19but attracts investors with the advantage of producing product lines to supportcoronavirus treatment such as saline solution, T-B antibacterial mouthwash andmedicine to enhance immunity to protect lungs and nasal drops.

The PhuHung Securities Corporation believes that Traphaco will continue to maintainits number one position in the traditional medicine industry, focusing oninvesting in developing traditional medicines as growth momentum in the newperiod.

Theadvantage of Traphaco is the extensive distribution system throughout thecountry and high brand awareness that will help TRA maintain the advantage oftraditional medicines on the over the counter (OTC) channel.

Currently,the company has more than 27,000 customers with 28 branches nationwide.

Therefore,pharmaceutical companies are expected to record high growth for the whole of2022, while the hospital group will achieve high growth in the second half ofthe year, SSI said. 

“Forpharmaceutical companies, we believe that business results may be positive inthe first half of 2022, as people stockpile medicine for the new Omicronvariant of COVID-19, while the group of hospitals must wait for a recovery inthe second half of this year, when Vietnam can cope with the new variant andease travel restrictions,” the securities firm added.

Onthe stock market, with the positive profit growth prospect, SSI expects stocksof pharmaceutical companies continue to be attractive during the pandemicperiod.

LeXuan, a senior trader, said that pharmaceutical stocks are defensive stocks, asthey are not affected by macro factors, but by people's demand for healthexamination and treatment.

"In 2022, the industry's potential is quite good thanks to risingdemand for health check and treatment," said Xuan./.