Kalbe’s 2021 Business Expansion Strategy
The optimism to grow through product innovation and services also encourages PT Kalbe Farma Tbk (“Kalbe”) to continue conducting products and services innovation. Kalbe continues to collaborate to produce products and services that can be utilized by the people and can contribute to Kalbe's business performance.
Kalbe has launched new products in the health division and prescription drugs division. During the week, the company has launched two new products, Hevit-Plus, and Fluvir. Hevit-Plus is a multivitamin and Zinc supplement that can help to maintain the stamina of the body, especially during the COVID-19 pandemic. Whereas Fluvir is one of the anti-viral drugs included in COVID-19 therapy. Kalbe is collaborating with PT Amarox Global Pharma (Amarox) in marketing Fluvir (Oseltamivir). Kalbe has previously collaborated with Amarox in the marketing of Remdesivir (Covifor) which is also used for Covid-19 therapy.
Through the Covid-19 pandemic, the company also made innovations and launched numerous other products, among which are Fatigon Promuno - designated as National Innovation Product; H2 Cordyceps followed by Hevit-C supplement, Prove-C 1000, and Prove D3-1000 (Vitamin D), vitamins Joss C-1000, Bejo Jahe Merah, and Sujamer (herbal), etc.
Starting from last year, Kalbe through its subsidiary PT Kalbe Genexine Biologics ("KGBio") also has been collaborating with Genexine South Korea in developing the Covid-19 vaccine that is presently undertaking the Phase 2 Clinical Trial. In addition, with strong distribution infrastructures and extensive network, the company through the subsidiary PT Enseval Putera Megatrading has contributed in distributing the national vaccine to support the government's program of nationwide vaccination.
Other important strategy is organizational restructuring within Kalbe that can lead to positive growth. For instance, Kalbe has restructured KGBio, presently the holding company of Innogene Kalbiotech ("Innogene") and holds the controlling shares of Kalbio Global Medika ("Kalbio"). Innogene is a company with a biosimilar product platform; i.e. four medicines of monoclonal antibodies (Rituximab, Nimotuzumab, Trastuzumab dan Bevacizumab). Whereas Kalbio is the manufacturing facility of biological products with the capacity of bioreactors for mammalian cellular lines.
The palpable exponential potential of the market for biological medicines has encouraged Kalbe to collaborate with other strategic partners. Last January, Kalbe is also collaborating with General Atlantic (GA), a global financial investor from the United States of America. General Atlantic will invest the amount of USD 55 million as the primary capital in KGBio.
Kalbe also has a range of consumers ranging from pregnant women (Prenagen), nursing mothers (Prenagen and Lovamil), toddler (Morinaga), teen (Zee) and adult (Entrasol), as well as adults with the needs of healthy and special nutrients (Diabetasol, Nutrieve Benecol, Fitbar, Hepatosol, Nephrisol, etc), which it believes have the immense potential to grow. The trend of Indonesian people being aware of a healthy lifestyle specifically during the pandemic is the main reason for the nutrition business to have positive growth.
The impact of COVID-19 pandemic has brought about unprecedented challenges to the lives of Indonesian people. As a company in the health sector, Kalbe is compelled to contribute to the health and well-being of Indonesians in various ways by participating in drug development, drug and vaccine distribution as well as continuing to provide health and nutritional products. Kalbe plans to continue to implement strategic initiatives to grow its business in the near and medium term. Such initiatives may include launching new health and nutritional products in light of increasing consumer health awareness resulting from the COVID-19 pandemic and continuing to implement alternative marketing strategies as a result of the pandemic and seeking potential fundraising options which may include capital market transactions by certain subsidiaries of Kalbe, including an initial public offering of its nutritionals division subsidiary PT Sanghiang Perkasa. Kalbe and/or its relevant subsidiaries are still considering the initiatives mentioned and there is no certainty or assurance that such initiatives will be implemented. This information shall not be considered/deemed an invitation to purchase any securities of Kalbe or its subsidiaries.
Kalbe believes that collaboration is a strategic move to accelerate growth and expansion of the company's businesses. Therefore the chance of joint venture or collaboration with other strategic partners is open for Kalbe and its subsidiaries.