Indofarma farms out drug production

JAKARTA: Publicly listed pharmaceutical firm PT Indofarma has signed an agreement with drug maker PT Dexa Medica to produce 20 million pills per month.

In a release on Saturday, Dexa Medica will use Indofarma's production unit to manufacture the pills, Indofarma said in a statement on Saturday.

With the contract, Indofarma can maximize the installed capacity of its production units and as such reduce the units's fixed costs. Eventually, the scheme will improve its margin.--JP