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.