This pool could grow quickly starting this year, as universal healthcare is implemented. Western diseases, such as hypertension and diabetes, are also increasingly common -- meaning increased opportunities for foreign drug companies that already produce medications to treat these diseases.
Indonesia’s Kalbe Farma, founded in 1966, has a market capitalization of $7 billion and is the largest listed drug company in the Association of Southeast Asian Nations (ASEAN). The firm focuses on production of prescription drugs, nutritionals and consumer health products.
In 2013, Kalbe’s sales increased by almost 20%, and it has a 2014 sales target of 15%. In anticipation of the universal healthcare scheme’s increased demands for generics, the company invested $12 million to build a new factory in West Java with a monthly capacity of 87 million tablets.
In cooperation with local sub-distributors, Kalbe is able to reach over 1 million Indonesian outlets, and covers all hospitals and pharmacies in the generics and prescription drugs market, as well as the majority of doctors. Kalbe is also strong in Southeast Asia and Africa.
Sanofi’s Indonesian subsidiary has a tiered price-volume strategy, providing different types of a drug -- like insulin -- to different population tiers. The company launched a diabetes training program for local doctors in partnership with the Indonesian government and the American Diabetes Association in 2012. Sanofi is focusing on expanding outside Jakarta into tier 2 and 3 Indonesian cities.
Novartis Indonesia has a 20% growth rate and concentrates on primary care and, increasingly, specialty care. The company has focused its primary care products in the diabetes and cardiovascular areas. While Novartis previously sold drugs through Indonesian third parties, the company is increasingly promoting its own pharmaceuticals in Indonesia. Novartis also runs a public affairs and communication healthcare program and collaborates with the government on various projects.
Foreign companies are also expanding their facilities in Indonesia. For example, Mitsubishi Tanabe Pharma announced in September 2013 that its Indonesian subsidiary would build a new production facility to expand capability and meet new GMP standards. Merck opened an Indonesian packaging plant in 2012. Fresenius Kabi bought a 51% share of Indonesian pharmaceutical manufacturer PT Ethica Industri Farmasi (EIF) for a reported $200 million in August 2013.
Fresenius Kabi and the other stakeholder of EIP, PT Soho Global Healthcare (SGH), will together construct a $60 million IV generic drug and infusion solutions plant in Indonesia. Fresenius Kabi and SGH also plan to invest about $40 million in two new antibiotic plants.
Related Articles:
1) Indonesia Pharma Market 2014 Review
2) Healthcare Policy in Indonesia
3) Drug Registration in Indonesia
4) Pharmaceutical Company in Indonesia
5) Challenges for Drug Companies in Indonesia
