Inovax postpones PT Ponco purchase<\/p>\n
PERTH (Reuters): Australian drug developer and distributor
\nInovax Ltd said it would postpone the purchase of Indonesian drug
\nmaker PT Ponco for A$94.6 million due to Southeast Asia's
\neconomic turmoil.<\/p>\n
\"Due to the recent volatility in economic conditions in SE
\nAsia and in particular the significant devaluation of the
\nIndonesian rupiah, Inovax has decided to defer its proposed
\nacquisition of the Indonesian pharmaceutical manufacturer PT
\nPonco which it announced on July 14, 1997,\" Inovax said.<\/p>\n
Inovax said it remained committed to an expansion into drug
\nmaking to complement distribution and product development.<\/p>\n
But it believed that current economic conditions may now allow
\nthis to be achieved on more attractive terms.<\/p>\n
\"The present economic conditions in Indonesia, whilst
\ndifficult for many sectors of the economy have not had any major
\nadverse impact on sales in our Indonesian operations during the
\npast few months\", Inovax chief executive officer Tony Fitzgerald
\nsaid in a statement.<\/p>\n
\"Consumption of pharmaceuticals, particularly prescription
\ndrugs in an emerging market tends to be relatively immune to
\neconomic downturns and in Indonesia has demonstrated a
\nconsistently strong growth trend over the past decade,\" he said.<\/p>\n
\"Inovax believes these growth rates are likely to continue
\nnotwithstanding the present economic volatility,\" Fitzgerald
\nadded.<\/p>\n
The proposed vendor of Ponco was the Saputra family, Inovax
\nsaid in July.<\/p>\n
Indonesia's Bakrie Group had been expected to help finance the
\nacquisition and to gain majority control of Inovax once the deal
\nwas completed.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inovax-postpones-pt-ponco-purchase-1447893297",
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"sponsor": "Okusi Associates",
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