The Indonesian government controls more than 90 percent stake in Kimia Farma and more than 80 percent in Indofarma
Singapore: Many analysts have estimated that Indonesia is one of the fastest growing emerging markets in Asia. The Indonesian government, in its bid to consolidate and strengthen the pharma sector has initiated merger of two major pharma firms in the country Indofarma and the Kimia Farma.
The Indonesian government controls more than 90 percent stake in Kimia Farma and more than 80 percent in Indofarma, Reuters reported. Many foreign players like Pfizer, Merck have expanded plants in the country in recent years.
Mr Adrianus Bias Prasuryo, a senior analyst at Ciptadana Securities, told Reuters that Indofarma has a stronger manufacturing operation, while Kimia brings a broader distribution network to the table. Together they will make a more "robust" company.
Earlier this year, Pfizer had invested $4 million to its plant in Pasar Rebo, East Jakarta, so that production could reach about 300 million pills a year, up from about 170 million. The company exports about 20 percent of the production to other countries, including South Korea, Hong Kong, Thailand and Vietnam.
Fresenius Kabi, market leader for IV generics in Indonesia, acquired the controlling interest in the generics division of the Indonesian drugmaker Ethica Industri Farmasi from Soho Global Healthcare. They are working on a $60 million plant to make IV generic drugs and infusion solutions.
(With inputs from Reuters)
