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Pandemic doesn't spell windfall for Indonesia's pharma industry
Uneven sales growth across product segments and among pharmaceuticals, even SOEs, indicates that the pandemic has not brought fortune to the domestic industry as a whole.
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A woman holds up bottles of hand sanitizer she purchased on March 5, 2020 from a pharmacy in Bangkok. (AFP/Lillian SUWANRUMPHA)
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s Indonesia continues to see record numbers of new COVID-19 infections in recent days, some local pharmaceuticals are enjoying a windfall this year, but not all companies have been able to cash in on the “pandemic boom”.
PT Kalbe Farma, which claims to be the largest publicly listed pharmaceutical company in Southeast Asia, has seen vitamin and supplement sales grow between 10 and 20 percent annually as consumers seek ways to boost their immune system.
While these products contribute only 3 to 5 percent to overall sales, the company has seen drug sales grow 4 to 5 percent to date to contribute 15 to 20 percent to overall sales. This, Kalbe said, was primarily because consumers had become more confident lately about visiting hospitals for treatment unrelated to the coronavirus.
In addition, Kalbe Farma has expanded its business to COVID-19 therapeutics, drugs and health services, which now contributes between 6 and 7 percent of total sales and is expected to see significant growth this year.
Kalbe Farma finance and accounting director Bernadus Karmin Winata told The Jakarta Post on June 17 that the company had revised up this year’s sales growth target on the back of first-quarter sales that surpassed a conservative initial forecast.
“We see Kalbe's achievement for this year beating our initial estimate. Previously, we estimated 5 to 6 percent [sales growth], but we are now seeing growth of 7 to 9 percent,” he said.
Bernadus added that this year’s revenue could grow even faster if its COVID-19 vaccine, developed in cooperation with South Korea’s Genexine, were granted emergency use authorization (EUA) by the fourth quarter.
