BUMN Pharmaceuticals

Consolidation of state-owned enterprises to become Pharmaceuticals solution to overcome the problem of providing raw materials while the price of drugs.

The price of drugs are still expensive. That is the classic problems of this state, which applies both to non-generic medicines and generic drugs berlogo, and patent medicines produced in Indonesia. One of the causes of this industry is the dependence on imported raw materials. Consequently, if the stronger U.S. dollar, the price of drugs it picked up.

During this national pharmaceutical industry still needs to import 90% of raw materials, with the value reaching U.S. $ 300 million per year. Most (67%) of raw material is imported from China, India and the rest of Europe. The high value of imports is not comparable to export the new U.S. $ 100 million per year. Indeed, at this time, several large pharmaceutical companies trying to make the raw materials of drugs, but the problem is still a high investment constraints.

Another problem is beredarnya medicines and counterfeit drugs sold in the black market. Product patents abroad that the origin of many outstanding with prices far below production price of Indonesia. Still high price of drugs produced in Indonesia triggered the emergence of black market. In addition, sales of drugs in pharmacies often still above the standard Pharmacies Selling Price (HJA). The reason, to cover the operational costs of a pharmacy.

Result of all the problems, Anthony Ch. Sunarjo, general chairman of Joint Pharmaceutical Company Indonesia, the estimate of this year pharmaceutical industry will still be experiencing negative growth, the same as 2007, which is minus 4%. Moreover, new investment in the pharmaceutical industry are not practical for 2007. Actually, in 2006 the pharmaceutical industry still grew 8%. The weak purchasing power of people suspected of consecutive growth of the industry is pressing in 2008. ? So, still a minus growth will continue in 2008,? he said.

Consolidation

Face many problems, the government tried to force three state-owned enterprises mengonsolidasikan his pharmacy, namely PT Kimia Farma Tbk. PT Indofarma Tbk., Phapros Tbk and PT., Becoming one body business. Meanwhile, PT BioFarma still left standing alone (stand alone). According to the president director of PT Kimia Farma Tbk., M. Sjamsul Arifin, consolidation is one solution to the high prices of drugs. During this, because each of the state-owned pharmaceutical standing alone, the provision of raw materials has not been maximum. ? If we become one, the raw material needs can be covered at the same time, so that they can push the price of drugs on the market,? Sjamsul said.

Director of finance of PT Kimia Farma Tbk., Rusdi Rosman, menimpali, consolidation is based on the conviction that the appreciation in the market will be larger. "Because we are the same market. So, after dikonsolidasikan not need any more competition and slash the price-rattle," said Rusdi.

Consolidation of the state-owned pharmacy also improve their competitiveness against private pharmaceutical companies and multinationals. Bergabungnya Kimia Farma and the Indo Farma is intended to increase their market share to be 4.24%, or up to the rank 4th nationally. Kimia Farma market of only 3.8%, and ranks 9th nationally. If Phapros can join, the third in market share will increase again to 6.42%, or up to the sequence to-3. Currently, the ruler of the national pharmaceutical industry market is still PT Kalbe Farma Tbk. segment with 6.51%.

Consolidation of the state-owned pharmacy is one of business deals that should be seen during 2008, primarily related to the efforts of the government to press the selling price of drugs. However, unfortunately, the idea of consolidation is not yet fully accepted by minority shareholders Phapros. Still, the Ministry of State Owned Enterprises to ensure the consolidation plan will be continued. Approval to shareholders at the AGM will be held in February 2008, and next month the process of consolidation is completed targeted.