JAKARTA, Indonesia, Feb. 22, 2017 /PRNewswire/ -- In one month's time, from March 22-24, CPhI SEA is set to open its doors at Jakarta International Expo, offering to over 260 exhibitors the only dedicated pharma trading platform for the region. Sign up today!
In fact, there are more than 200 drug makers in Indonesia, most of which produce only low-margin generics. While they control 95% of the market by volume, they only have a combined 75% share in value terms. At the same time, a much smaller number of companies operating in the country has been able to capture more profits by investing in innovative R&D and the development of higher-value products, often in partnership with international companies, in particular from Korea, Japan, and China.
An example is Kalbe Farma, Indonesia's largest pharmaceutical company, which is shifting from being a maker of generic drugs to a high-tech pharma developer. Last year Kalbe agreed to establish a 60:40 joint venture with South Korean biotechnology company Genexine and initially invest 130 billion rupiah ($9.1 million) to develop biopharmaceutical products. Significantly, a lack of generic substitutes in these fields in Indonesia implies no government-set price ceilings, and therefore these products offer higher margins.
GP Farmasi, the Indonesian industry association, projects investment in the pharmacy sector to reach Rp 215 trillion (US$15.34 billion) by 2025. The sector itself had potentials worth up to Rp 700 trillion, which consisted of Rp 450 trillion for the domestic market and Rp 250 trillion in exports, by 2025.
IPMG members - including Novartis, Merck, Bayer, Boehringer Ingelheim, and Pfizer - have invested more than USD $1 billion in Indonesia's pharmaceutical industry over the past few years, particularity for the construction of factories and clinical research (source: AmCham Indonesia).
One of their members, Bayer, in 2016 alone invested EUR8.1 million in the expansion of its factory in Cimanggis (West Java). This factory produces multivitamins and medicines, about 75% of which is exported to 26 countries.
Such activities are taking place while Indonesian President Joko Widodo is pushing its universal health care program to cover the country's projected population of 270 million by 2019, a leap from the 170 million currently covered. This year for the first time, government expenditures on health care reached the legally mandated 5% of the state budget. Health care spending is expected to grow 12% every year through 2020.
Tailored to suit this fast changing industry, the 6th edition of CPhI South East Asia taking place during 22-24 March 2017 in Jakarta provides the must-attend trade exhibition where the regional pharma industry meets to leverage connections, knowledge and insight to spur business.
Government supporters: Ministry of Health, Ministry of Industry, Indonesia Investment Coordinating Board, National Agency for Drug and Food Control
Trade and Professional Organization Supporters : Indonesian Pharmaceutical Association (GP Farmasi Indonesia), Pharma Materials Management Club (PMMC), International Pharmaceutical Manufacturers Group (IPMG), International Society for Pharmaceutical Engineering (ISPE), Indonesian Pharmacists Association (IAI)
Regional Supporters: Pharmaceutical Society of Singapore (PSS), Pharmaceutical Research and Manufacturers Association (PReMA) -- Thailand, Malaysian Association of Pharmaceutical Suppliers.
The CPhI series of events drives growth and innovation in the global pharmaceutical industry, with leading exhibitions and online communities covering every step of the supply chain from drug discovery to finished dosage.
More than 100,000 visitors meet over 6,000 exhibitors at events in Europe, China, India, Japan, South East Asia, Russia, Brazil, Istanbul and Korea every year to exchange ideas, form alliances and conduct business on an international scale.
Contact:
Ivan Ferrari
Phone: +62-21-2930-5959
Email: ivan.ferrari@ubm.com
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