Indonesian pharmaceutical firm, PT Pyridam Farma Tbk (IDX: PYFA) to release five years' bond with total amount of Rp300 billion (US$21 million) to support its business expansion - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian pharmaceutical firm, PT Pyridam Farma Tbk (IDX: PYFA) to release five years’ bond with total amount of Rp300 billion (US$21 million) to support its business expansion, the management said in this week. The issuer plans to use the proceeds for the development of health products, capital expenditures, and for business development.

The company owned by Singapore-based Rejuve Global Investment Ptd. Ltd., (47.61 percent), Pyridam International (29.96 percent), PT Starindo Kencana Sejahtera (6.24 percent), and public (16.19 percent). Based on the prospectus issued by the company, the bond has received Single A rating from PT Kredit Rating Indonesia.

Pyridam also has appointed PT Aldicitra Sekuritas Indonesia and PT Sinarmas Sekuritas Indonesia as a joint lead underwriters for the issuance. Pyridam set the initial public offering period on Dec. 17 to 23. Then, public offering period is on Jan. 4 – 8, 2021, and listing on Jan. 15, 2021.

Currently, the manufacturer distributed its products throughout Indonesia through 53 distributors and also markets its products to Hong Kong and the Philippines. The medicine producer was founded in 1976 by Sarkri Kosasih. The company then gained the trust from the ministry of agriculture to become a partner in 1994.

In 1985, he established a pharmaceutical division that was growing rapidly and allowed Pyridam to build a new production plant on a 35,000 square meter land in Cianjur, West Java. The plant began operations in April 2001. Since the outbreak of the coronavirus around the world the potential of pharmaceutical companies is growing very rapidly. Many countries are competing to make new vaccines to overcome the deadly virus.

According to GlobalData, the Indonesian pharmaceutical market is the largest market in the Southeast Asian region and is expected to reach a value of $10.11 billion in 2021. Investment in the pharmaceutical sector is expected to reach $19.8 billion over the period until 2025.

This calculation assumes that the average annual growth is 10 percent. According to the Econmark Mandiri Group Research Report, there are three factors driving the growth of the domestic pharmaceutical market, namely the large population and the growth of the middle class, which is a potential market for health products.

Then, increasing per capita income as the economy grow makes people more concerned with health, said the report. Third, the existence of a government health insurance program will also increase demand for health products.

US$1: Rp14,100

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