Kalbe Farma aims at acquisitions to strengthen production

Indonesian pharma major Kalbe Farma is looking for acquisitions with an aim to strengthen its production capacity and cater to the increased demand and tougher competition.

Currently Kalbe is in advanced talks with four to five acquisition negotiations which are not likely to be completed by the year end, thejakartapost.com reported.

Kalbe Farma director Vidjongtius said that the firm plans to acquire drug and nutritional producers over distribution-based companies.

"However, we are open to any acquisition possibilities in the over-the-counter (OTC) market, consumer health or prescribed drugs," said Vidjongtius.

The firm which is flexible in terms of the size of the company it would acquire, said that it would continue to prioritize the domestic market along with opportunities to enter other Southeast Asia region markets.

Kalbe Farma’s product portfolio includes prescribed medicines, OTC pharmaceuticals, energy drinks and nutritional products.

Kalbe also is increasing its OTC medicines production capacity to 200 million tablets per month in Cikarang, West Java with capacity upgrade likely to be completed by the year-end and factories to begin operations early next year.

The firm added that it is also developing a plant to produce prescribed medicines and is focusing on new customers and sustaining its supply and distribution chain.

The company claims that it benefited from the increasing sales in 2011, due to the contribution of 91.75% stake in subsidiary Enseval Putera Megatrading, which distributed its products.