Baxter acquires Kalbe Farma unit

JAKARTA (JP): Baxter International, a major worldwide manufacturer and marketer of health-care products, has acquired 51 percent of Kalbe Farma's subsidiary, PT Pfrimmer Infusol Indonesia, for US$3.4 million.

"Through this acquisition, we expect a growth of 30 percent in our sales and profits this year," Kalbe Farma's president, Budhi Dharma, told a press conference yesterday.

The Jakarta-based Pfrimmer Infusol produces a number of pharmaceutical and nutritional products, such as Amino Fusin L600 (Amino acid solution), Triofusin 500 (carbohydrate solution), Aminofusin Hepar (Hepar solution), Tutofusin Ops (Electrolite solution), Plasmafusin 4% (Plasma solution), Intralipid 10% (Essential fat solution). For these products, it claims to have a local market share of 65 percent.

Kalbe Farma, which claims to be the biggest pharmaceutical company in Indonesia, is listed on the Jakarta Stock Exchange.

Budhi Dharma pointed out that last year Pfrimmer Infusol alone posted a profit of more than Rp 65 billion (US$27.66 million) from its total sales of about Rp 300 billion.

He said that Pfrimmer Infusol will expand its manufacturing capacity by producing standard intravenous solutions in Baxter Viaflex containers.

The chairman and chief executive officer of Baxter International, Vernon R. Loucks Jr, who also addressed the press conference, said that his company's investment in Pfrimmer Infusol supports Baxter's expansion strategy in the Far East, where the company expects its sales to increase from about $100 million to $500 million by the year 2000.

He said that Baxter now sells its products through Pfrimmer Infusol.

"We also plan to manufacture some of our products here. But I think it will take some time," he said.

In Indonesia, Baxter offers a wide range of products in the blood therapy and cardiovascular fields. One of them is CAPD (Continuous Ambulatory Peritoneal Dialysis), which was introduced into the country five years ago for kidney/blood disease treatment. (13)