DCL has recently reached an agreement with JW pharmaceutical Corporation, a leading Korean pharmaceutical corporation to transfer all of DCL’s equity in Euvipharm n August 30, 2019
This can be said to be a deal that benefits many parties, including sellers, buyers and opens a bright future for Euvipharm. JW pharmaceutical Corporation is the leading pharmaceutical corporation in Korea with audited owners’ equity of more than US $ 517 million in 2017. This corporation has a worldwide network of research teams, owns various special products, especially is a pioneer in researching new generation antibiotics. On the way to implement their expansion strategy in investment and production to Southeast Asia, JW has known about Euvipharm and DCL through AWR Lloyd consulting (the leading Asia Pacific M&A consultant with more than 8 representative offices in the world which successfully advised to sell 99.4% of CK Maritime Bank Company to KB of Korea). On the other side, divesting from Euvipharm brought Cuu Long Pharmaceutical many regrets because DCL had officially acquired 90% of Euvipharm in early 2017 with the hope of increasing the power of DCL based on the factory of GMP-WHO standard with modern equipped factories, especially the air treatment system (HVAC) up to 5 million USD.
Divestment at Euvipharm can be said to come from many reasons which are mainly from the dispersion of resources, leading to negative business results in the past 2 years of both DCL and EVP. With this divestment, DCL can focus on exploiting resources at the Factory in Vinh Long, researching and developing new products and promoting Benovas Oncology project – distributing and manufacturing cancer drugs. This project is expected to make a breakthrough for DCL. Simultaneously, DCL can be confident to build a new pharmaceutical factory with GMP-EU standards. Let’s wait for DCL to take off in Q4/2019 and beyond.
