ASEAN KEY DESTINATIONS
Phapros aims for Rp 620 billion in sales this year
Drugmaker PT Phapros aims to book Rp 620 billion (US$51.6 million) in sales this year, primarily supported by government purchases amounting to 20 percent of the company’s total sales.
Phapros president director Iswanto said the company had received a purchasing order from the government to support its health services, which will be managed under the Social Security Management Agency (BPJS).
“We are targeting a 20 percent increase in sales from the Rp 521 billion we posted in 2013. Net profits are estimated to grow by 50 percent from Rp 43 billion last year,” Iswanto said.
According to him, the company recorded positive performance during the first half of this year, with sales growth hitting 12 percent. With predicted higher growth in the year’s second half, Iswanto said he was confident the 20 percent sales growth target for the year could be achieved.
He added that tighter competition in the pharmaceutical industry had driven the Semarang, Central Java-based company to diversify its products. “In the next five years, Phapros will develop products such as implants, biosimilars and herbal products. We will most likely focus on agromedicine-herbal products in the future,” Iswanto said.
The state-run pharmaceutical company, which was founded in 1954, employs 450 marketing staff in 43 branch offices nationwide.
Phapros plans to start developing generic implants in 2016. So far, the company imports implants to meet domestic demand.
“We have inked a memorandum of understanding [MoU] with a Korean company to market its implant products. In the first phase, we will market the products in a limited volume. Next year, we will increase the volume before we start producing them ourselves in 2016,” he added.
Further product diversification by the company includes the production of stem cells. Phapros decided to produce stem cells after realizing the size of the market but where supply is limited.
In Indonesia, Iswanto said, only two companies produced stem cells, namely Kalbe Farma and Prodia.
“In the near future, we will sign an MoU with doctors from the Soetomo Hospital in Surabaya. They will conduct the research and we will take care of the production. We will start that in 2015 or 2016,” he said.
Iswanto also said that the company was continually developing various products with the support of an integrated multicenter, which has helped Phapros become a pioneer in producing standardized but good quality herbal medicine under its agromedicine division.
“These agromedicine products are expected to become one of the company’s growth engines. We aim to produce around 85 kinds of herbal medicine per year. The plan’s realization, however, will be gradual,” he added.
So far, with only a single factory (Plant I), which stands on 3 hectares of land, Phapros produces more than 230 products that are divided into four categories: over the counter (OTC), ethical, generic and agromedicine.
The firm’s production director, Barokah Sri Utami, said Phapros would produce new drugs from its new plant, the construction of which will begin in October. The new plant is expected to help the company meet growing demand.
The new plant, which will also be located in Semarang, will occupy 10 hectares of land and will cost Rp 330 billion to build.
“The new plant will incorporate the whole manufacturing process in one building, from production on the top floor through packaging on the first floor,” Sri Utami added.
Financial director Budi Ruseno, meanwhile, said he expected the rupiah to perform better in the coming months.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below