Indofarma sees sales up 40%<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Ailing state-owned pharmaceutical company PT Indofarma said on
\nMonday that it would be back in the black this year on an
\nexpected 40 percent increase in sales, as it strives to
\nrestructure its business and sales strategy.<\/p>\n
Indofarma president Dani Pratomo said sales were projected to
\nincrease to about Rp 700 billion (US$82.3 million) this year from
\nRp 498 billion last year, and a profit of around Rp 35 billion
\nfrom a loss of Rp 129 billion in 2003.<\/p>\n
\"We are optimistic that we will make a profit this year
\ndespite tougher competition in the country's already competitive
\npharmaceutical industry,\" said Dani during a press conference.<\/p>\n
He explained that the company would increase its sales by
\noffering discounts on generic medicine of between 5 percent to 50
\npercent, as it had no other choice than to offer such discounts
\ndue to the competition.<\/p>\n
\"I expect demand for generic medicine to increase,\" he said.<\/p>\n
About 85 percent of Indofarma's sales still rely on generic
\nmedicine.<\/p>\n
Indofarma was under scrutiny by the Jakarta Stock Exchange
\n(JSX) earlier this month due to the company's poor performance.
\nThe JSX has continued, to this day, the suspension of Indofarma's
\nshares, pending clarification from the company.<\/p>\n
Indofarma recorded a loss of Rp 129 billion last year from Rp
\n59.8 billion in 2002, after it previously said it would obtain a
\nprofit.<\/p>\n
Indofarma financial director Soedibyo said that the loss was
\nmainly caused by the company's decision to write off Rp 55.8
\nbillion in expired medicine and unsold medical tools belonging to
\nits subsidiary PT Indofarma Global Medika (IGM).<\/p>\n
IGM contributed around 60 percent to Indofarma's total loss.<\/p>\n
Soedibyo also said that huge borrowing interests, which amount
\nin total of Rp 40.9 billion, also worsened the company's
\nfinancial burden. Indofarma had around Rp 235 billion in debts
\nlast year owed to Bank Mandiri, Bank Central Asia and Bank
\nBukopin.<\/p>\n
Due to the bad performance of IGM, Indofarma plans to sell the
\ncompany, which engages in the distribution of pharmaceutical
\nproducts, food and beverages, in an effort to allow the company
\nto concentrate on its core business of manufacturing generic
\nmedicine.<\/p>\n
\"We are continuing to look for strategic investors,\" Dani
\nsaid.<\/p>\n
At the moment, publicly listed pharmaceutical firm PT Tempo
\nScan Pacific and distribution company PT Tiga Raksa Satria are
\nthe investors which have openly expressed interest in IGM.<\/p>\n
The government is also planning to merge Indofarma with a
\nrelatively healthier state-owned pharmaceutical company, PT Kimia
\nFarma, before being proposed to private investors for sale.<\/p>",
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"sponsor": "Okusi Associates",
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