Some Western drugmakers have built plants in Indonesia to tap a market with a growing population and expanding national health coverage. But a new report suggests that the better entré for local production might be to buy a facility from a domestic producer.
Indonesia drugmakers expect to emerge from a long period of a depressed currency to almost double industry sales this year, according to one of the pharma leaders.
Indonesia's new and ambitious healthcare program has done little to infuse new money into the country's pharmaceutical industry, partly because of a long-term weakness in the nation's currency, the rupiah, according a review of company reports.
Indonesia could be the new darling of healthcare industry investors, many of whom are already taking advantage of opportunities afforded by a new national health plan initiated at the beginning of last year.
Indonesia has long been active in providing vaccines to other developing countries, but now finds itself in a bind and turning to its state-owned and century-old pharmaceutical company, Bio Farma, to solve the nation's own growing need for vaccines.
Kalbe Farma said it has ordered a recall two of its drugs in Indonesia, an anesthetic and cardiovascular treatment, but did not identify the problem other than to say it was a quality control procedure.
Indonesia is one of those emerging markets that has pressured outside companies to produce locally and companies like Pfizer, Merck and Fresenius Kabi have all built or expanded plants there in recent years. But the government, which controls some of the players, is taking steps to improve efficiency in the domestic market, pushing for a merger that ties the manufacturing expertise of one company to the supply chain strength of another.
Indonesia is one of the rapidly growing markets that drugmakers are trying to tap to boost sales, and GlaxoSmithKline is upping its bet. The U.K.-based drugmaker said today it will buy full control of its consumer health unit there.
Pfizer, which boosted production at its plant in Indonesia in 2012, is expanding there again.
The generics division of the German healthcare company has bought controlling interest in Indonesian drugmaker PT Ethica Industri Farmasi from PT Soho Global Healthcare. The two will build a $60 million plant to make IV generic drugs and infusion solutions and make Fresenius Kabi the market leader in IV generics in Indonesia.