JAKARTA Jan 10 Indonesian state-owned
pharmaceutical companies Kimia Farma and Indofarma
expect the country's new national healthcare scheme to
lift demand for generic drugs, pushing up overall sales this
year by 15 percent.
Southeast Asia's biggest economy launched the scheme on Jan.
1 to provide free and subsidized services to its 240 million
people by 2019.
Generic drugs are near copies of drugs whose patents have
expired. They are often cheaper, making them attractive to
state-run hospitals and clinics.
"The national healthcare program will lead to a rise in the
generic drugs market," Kimia Farma President Director Rusdi
Rosman told reporters on Thursday.
Kimia Farma expects sales of around 5.3 trillion rupiah
($434.8 million) from 4.6 trillion rupiah last year, and aims to
increase its number of clinics to 1,000 over the next few years
from 200 at present, Rosman said.
Indofarma projects overall sales of around 1.4 trillion
rupiah from 1.2 trillion rupiah, Finance Director John Sebayang
told Reuters on Friday.
"We have a 20 percent market share in the sale of generic
drugs, so even though the margins are small, the high volume
will make our income bigger."
Kimia Farma and Indofarma are likely to benefit most from
the new healthcare scheme as generic drug production at Kalbe
Farma, Tempo Scan Pacific and others is
relatively low, said Bahana Securities Head of Research Harry
Shares of Kimia Farma and Indofarma have jumped around 18
percent and 7 percent respectively since the start of the year.
The benchmark index has fallen 1 percent.
($1 = 12,190.00 Indonesian rupiah)
(Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata;
Editing by Christopher Cushing)