Medigen Vaccine Biologics is expected to swing from a loss to a profit for the full year on the back of higher shipment volumes to the Vietnamese market — good news for shareholders and investors.

• The market expects a sharp increase in enterovirus vaccine shipments to Vietnam in the second half of the year, driving the share price up by more than 8% at one point in early trading.
• The company had already posted a profit in its second-quarter results, swinging to a profit for the quarter.
• Drug approval in Vietnam was obtained in March this year, with the first batch shipped in early August. Vaccinations could begin as early as late September or early October, initially through the self-paid market.
• Vietnam has 1.4 million newborns a year and a target population of more than 9 million children aged six months to six years. The company is targeting high-income families and hopes to reach a penetration rate of 10%.
• Existing annual capacity of 1 million doses is already fully utilised. Applications for drug approval in Malaysia, Thailand and the Philippines are under way simultaneously, and a new production line is being pushed to come online next year.

Outlook: The pace of the vaccine rollout in Vietnam and whether the new production line can start production on schedule will determine whether next year's results can sustain their growth momentum.