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ublicly listed Merck, the local unit of a German-based pharmaceutical giant, expects double-digit growth in total sales this year after seeing a slump in sales in 2015.

Merck last year saw net sales drop 18 percent to Rp 983 billion (US$73.7 million) from Rp 1.2 trillion in 2014. However, the company managed to book a 2.3 percent increase in net profits to Rp 179.6 billion last year from Rp 175.4 billion in 2014.

Merck finance director Bambang Nurcahyo said that the sales decline was caused by a 2012 change in a Trade Ministry regulation that prohibited the company from selling imported chemical products in Indonesia.

'€œThe trade minister decree hindered Merck from selling imported chemical products in Indonesia. Thus, we discontinued our chemical business,'€ Bambang said Tuesday.

Although a sales slump was seen in the chemical business, Merck recorded double-digit growth in its healthcare business last year. The biopharma business, for example, rose by 14.5 percent, above the industry average of 8 to 9 percent. Meanwhile, the consumer health business soared by up to 16 percent in 2015.

As part of efforts to achieve double-digit growth in net sales, Merck will launch two new products under the Sangobion and Neurobion brands, said Merck director Evie Yulin.

The company will also strengthen its current strategy of maintaining partnerships with both private and government organizations, she said.

'€œThis year, our objective is to grow [sales] above the market. The focus will be on strengthening our public-private partnership activities,'€ Evie said.

Through the implementation of public-private partnerships, Merck will expand public awareness about health issues, encourage public acceptance and broaden market access for Merck'€™s pharmaceutical products, which in the end will contribute to an increase in sales.

Merck has been partnering with the Health Ministry by giving education, public seminars and talk shows to raise awareness about thyroid disease for healthcare practitioners and the public.

Other than that, Merck has cooperated with the Jakarta Administration since last year to raise awareness of the importance of the early detection and prevention of diabetes. In the partnership, Merck provides free screening and education programs to community members across the Greater Jakarta area to encourage people to be aware of the disease.

Merck is also currently expanding the production capacity of its factory in TB Simatupang, South Jakarta, to further boost future sales. The plant capacity improvement has been divided into four stages from 2015 until 2018. Last year, the company started the first stage and this will be followed by the second stage this year.
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'€œThis year, our objective is to grow [sales] above the market. The focus will be on strengthening our public-private partnership activities.'€

Merck, headquartered in Darmstadt, Germany, is a leading multinational company that manufactures popular pharmaceutical products such as Neurobion, Sangobion, Iliadin, Concor and Euthyrox.

Currently, the Merck Group of Germany holds a 73.99 percent stake in Merck'€™s Indonesian arm, which was established in October 1970. The local company went public in 1981 and was among the first companies to list their shares on the Indonesia Stock Exchange.

Shares in Merck traded at Rp 7,000 apiece on Tuesday, unchanged from the previous day. The stocks have risen 3.3 percent so far this year, in line with the broader benchmark Jakarta Composite Index'€™s (JCI) 4.1 percent gain.