JAKARTA (TheInsiderStories) - Indonesia’s pharmacy PT Kalbe Farma Tbk (IDX: KAEF) and Australian Blackmores set up a joint venture to supply eight products in Indonesia and will have 25 products by the end of the year, said the company’s chief executive (CEO).
Blackmores CEO Christine Holgate said the company had chosen to partner with Kalbe as it was a major supplier of pharmaceutical products and has an institute to train people in natural health care products.
Kalbe has started the development of its biological drug factory, PT Kalbio Global Medika in Cikarang, Bekasi on Jan. 27 of this year, with an investment of around US$35 million. The factory, which is built on a 10,000 meters square land, is predicted to begin production activity in Q2 2016.
CEO of Kalbe Farma Irawati Setiady said, the development of the biological drug factory is to support the creation of an integrated pharmaceutical industry, from raw material, technology control, and attempt to increase export.
The factory is built based on a joint-effort between Kalbe and a South Korean pharmaceutical company Genexine Inc. under a joint venture company PT Kalbe-Genexine Biologics. Kalbe owns 40 percent of the company’s share, while the rest is owned by Genexine.
The factory will manufacture various biological drugs including vaccine, protein, and anti-body with an annual production capacity of 10.5 million syringe.
Kalbe Farma and subsidiaries announced its first semester 2016 results. Net sales grew by 9.6 percent to Rp 9.56 trillion from Rp 8,72 trillion in the same period in 2015. Sales growth was mostly driven by stronger volume in general, while limited price increase was conducted only to certain products.
Gross profit was up 8.5 percent to Rp 4,66 trillion while the gross margin decreased to 48.8 percent from 49.3 percent in the first semester last year. This was mostly due to Rupiah depreciation compared to 2015 and changes in the company’s business mix.
The net profit increased by 7.8 percent to Rp 1,15 trillion from a year ago Rp 1,06 trillion mostly supported by better operating income and as well as higher interest income.
Kalbe Farma allocates capital expenditure up to Rp 1.5 trillion, mostly for production and distribution capacity expansion. Until June, the company has spent less than half of its capital expenditure Rp400 billion.
Kalbe finance director and corporate secretary Vidjongtius revealed that the majority of the capex spent was used for construction of the company’s milk factory in Cikampek and Sukabumi in West Java and a factory in Bima, West Nusa Tenggara, as well as supplying additional factory machines in Cikarang, West Java.
