Fresenius Kabi will focus on intravenous generics and infusion solutions as it acquires a 51 percent stake in an Indonesian pharma company.
The Germany-headquartered generic maker will become the majority owner of Ethica Industri Farmasi (EIP), a subsidiary of Soho Global Health, and will gain access to a market expected to double to €7.1bn ($9.5bn) by 2018, the company said in a statement yesterday.
The “venture brings us valuable local manufacturing capabilities and a strong market presence,” said Mats Henriksson, Chairman of the Management Board of Fresenius Kabi. “At the same time, we will establish a strong hub for further expanding our business in the Southeast Asian region.”
The focus will be on producing intravenous generics and infusion solutions for the local industry the company said, but would not divulge any further details to this publication.
EIP currently has an injectable plant outside of Jakarta but an additional $60m facility is to be built in Jababeka Industrial Park, West Java, to support the deal with two further facilities producing antibiotics to follow, according to Soho’s CEO Marcus Pitt, the Jakarta Globe reported yesterday.
Pitt said the first facility will be running by 2015 and the overall venture will employ over 1,000 people.“Our ambition is to become the largest [pharmaceutical company] in Indonesia.”
Financial details of the acquisition were not disclosed but an anonymous source told the Wall Street Journal it could be worth $200m.
“Very Lucrative Market”
With a population of around 245m, Fresenius Kabi may be excused from seeing Indonesia as a tempting platform for the future.
In April 2012, Malaysian pharma firm Pharmaniaga described Indonesia as “a very lucrative market” to in-Pharmatechnologist.com as it looked to buy a local API (active pharmaceutical ingredient) facility.
“Indonesia is the only country among the pharmerging countries that has registered a double digit growth,” said Dato Farshila Emran – Pharmaniaga managing director said at the time.
On the contracting side too, there is a growing number of CROs exploring Indonesia with Quintiles conducting its first trial in the country last October, and a number of other companies establishing a base there in recent years.