PT Kalbe Farma Tbk (IDX: KLBF) spent Rp19 billion (US$1.29 million) to take over the laboratory clinic business line, PT Innolab Sains Internasional from PT Kalbio Global Medika - Photo by the Company

JAKARTA (TheInsiderStories) – Drug-maker, PT Kalbe Farma Tbk (IDX: KLBF) spent Rp19 billion (US$1.29 million) to take over 60 percent the laboratory clinic firm, PT Innolab Sains Internasional (Kalgen Innolab) shares from PT Kalbio Global Medika. The sale and purchase agreement was signed on Oct. 12 with the subsidiary.

Kalgen Innolab was a joint venture company between Health Science Research Institute Incorporation and Toyota Tsusho Corporation to provides clinical laboratory examination services. Both parties have an ownerships 20 percent at the lab.

Previously, the management of Kalbe Farma has planned to take its subsidiary to enter the stock market through an initial public offering (IPO) mechanism. TOne of the subsidiary ready to go IPO is PT Sanghiang Perkasa also known as the KALBE Nutritionals brand.

According to finance director, Bernadus Karmin Winata, the company open with various scheme to expand the unit, like set up joint venture firm, merger and acquisitions, or get loan facilities and strategic partners. Rumors in the stock market, Sanghiang is expected to raises US$500 million from the IPO.

Recently, Kalbe Farma has sold 70 percent shares of PT Kalbe Morinaga Indonesia to PT Sanghiang Perkasa for Rp265.1 billion ($18.03 million). Both companies are subsidiaries of the issuer, directly and indirectly.

“This transaction is the company’ step in grouping the our business units into similar divisions,” said President Director of Kalbe Farma Vidjongtius on Oct. 2.

Earlier, Kalbe Farma was reported list the KALBE Nutritionals producer shares through an initial public offering scheme at the end of last August. The company aims to raises fresh funds of US$500 million from the corporate action at that time.

Beside listing, said the finance director, Bernadus Karmin Winata, in a virtual public presentation, Sanghiang Perkasa also open for a strategic partners, merger and acquisitions, or looking loan facility from banks.

On Oct. 1, Kalbe Farma officially announced a collaboration in marketing and distribution of the antiviral drug Covifor or Remdesivir with the Indian company Hetero, PT Amarox Pharma Global in an effort to treat critical stage COVID-19 patients in Indonesia.

For this year, the manufacturer prepared an investment of Rp1 trillion to produces COVID-19 vaccines around 50 million doses. Beside with Hetero, the issuer collaborated with Genexine Inc., a biologic drug producer from South Korea, and has form PT Kalbe Genexine Biologic (KGBio) to develop and making raw materials for biotechnology drugs in Indonesia.

The company also set up a consortium with other South Korea institutions like Binex, International Vaccine Institute, Genbio, the Korea Advanced Institute of Science & Technology, and Pohang University of Science & Technology. The vaccine candidate being developed was named GX-19.

Vidjongtius revealed KGBio will conduct phase 2 clinical trials for the vaccine in the fourth quarter of this year after being declared successful in the phase 1 clinical trial in South Korea. He emphasized that the vaccine production will be ready to circulate commercially as early as mid-2021.

The 2020′ investments is used to complete two factories in Cikarang, West Java, used for over-the-counter drugs. During the six-month of this year, Kalbe Farma reported a net sales grow 3.8 percent compared to 2019 to Rp11.60 trillion. While, the net profit increased by 10.3 percent to Rp1.38 trillion as of June 30, 2020.

US$1: Rp14,700

Written by Editorial Staff, Email: theinsiderstories@gmail.com