Kalbe Farma eyes bird flu drug production licence

Kalbe Farma eyes bird flu drug production licence

Anissa S. Febrina, The Jakarta Post, Jakarta

Pharmaceutical company Kalbe Farma is vying to produce the H5N1
avian influenza drug oseltamivir here as bird flu cases in the
region continue to rise.

"Of course, we are interested (in producing oseltamivir).
Although we have not received an offer (to do so) from the
government, we are ready to produce the drug if we can obtain a
license," company corporate secretary Vidjongtius said on
Wednesday at a seminar on the firm's performance.

The company said it was ready to produce between 100,000 and
200,000 pills a month of the drug.

Currently, Swiss pharmaceutical firm Roche Holding AG is the
sole producer of oseltamivir under the brand name Tamiflu, which
has shown to be effective in treating avian flu in humans.

Tamiflu is designed to inhibit reproduction of the flu virus
after it infects the body, with the goal of reducing the severity
of symptoms and the duration of the illness.

By mid 2006, Roche will have to increase its capacity to
produce Tamiflu by eight to 10 times, the company said earlier.

Recent research has also shown that a similar drug from
London-based GlaxoSmithKline Plc. called Relenza -- an inhaled
version of anti-viral -- could also be useful in treating avian
flu.

Although avian flu cases are rising, the Indonesian government
has only allowed 44 state hospitals nationwide to distribute its
limited supplies of Tamiflu.

Pharmaceutical firm Kimia Farma had earlier requested the
government allow the firm to distribute Tamiflu through its 320
retail outlets.

Demand for Tamiflu in Indonesia is already high, with many
Jakarta-based foreign companies stockpiling the drug for their
staff in case the bird flu turns into a human pandemic.

"We have the capacity to produce the drugs, but we will have
to wait for an official proposal," Vidjongtius said.

Kalbe Farma is currently operating six pharmaceutical
manufacturing sites here and controls 14 percent of the total
domestic market with about 400 products.

The firm reported its sales rose by 30 percent in the first
nine months of 2005, amounting to Rp 3.32 trillion (US$330.35
million) as against Rp 2.55 trillion during the same period last
year.

Its net profit rose to Rp 435 billion from Rp 334 billion last
year on lower currency losses through a gradual payment of its
foreign currency debt.

About 8 percent of its total sales came from the company's
regional sales through its eight representative offices in
Southeast Asian countries.

Planning to maintain sales growth at between 18 percent and 20
percent next year, Kalbe Farma said regional sales were expected
to rise by up to 10 percent.

The company reported its merger proposal with Enseval and
Dankos Laboratories should be approved by Dec. 30. Currently, the
Capital Market Supervisory Body is evaluating the process.

The merger will raise the company's market capitalization to
more than US$1 billion from the current $700 million, taking the
company into the top three in the Southeast Asia pharmaceutical
market.