JAKARTA (TheInsiderStories) – A global equity firm, General Atlantic, invested US$55 million in Kalbe Genexine Biologics (KGBio), the unit of drug-maker, PT Kalbe Farma Tbk (IDX: KBLF), the companies announced today (01/27). The company’ ambition is to play a leading role in increasing biological and biosimilar drug availability in the Southeast Asia region.
It said, the investment to support the integrated biologics holding company focused on the in-licensing, clinical development, and manufacturing of novel biologicals and biosimilar molecules’ ongoing clinical development and commercialization needs, asset acquisition plan, and production capacity expansion efforts.
Earlier, president director of the issuer, Vidjongtius revealed KGBio will conduct phase 2 clinical trials for the vaccine in the fourth quarter of 2020 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.
Founded as a joint venture between Kalbe Farma and Genexine (KOSDAQ: 095700), a clinical-stage biotechnology company from South Korea, KGBio is positioned for strategic growth. A combination of factors, including affordability constraints and lack of local manufacturing capabilities, have slowed the penetration of biologicals in the region.
Chairman of Kalbe Farma, Irawaty Setiady, and Sandeep Naik, managing director and Head of India & Southeast Asia at General Atlantic, commented, the partnering between the two parties to help their vision become the market leader in the Southeast Asia and beyond.
Sie Djohan, director of Kalbe Farma and CEO of KGBio, said, “Having made considerable progress in the clinical development, regulatory approvals and commercialization of our novel and biosimilar molecules, we aim to further expand our portfolio and reach with the support of Genexine and General Atlantic as our partners.
For this year, Kalbe Farma prepared an investment of Rp1 trillion to produces COVID-19 vaccines around 50 million doses. Beside with Genexine and General Atlantic, the company has collaborated 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.
The manufacturer 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.
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.
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