Jakarta (ANTARA News) - Indonesian pharmaceutical company PT. Phapros Tbk, a subsidiary of PT Rajawali Nusantara Indonesia (RNI), and Myanmar`s pharmaceutical firm Medi Myanmar Group have established a joint venture to develop the business of pharmaceuticals and medical devices.
According to a statement from PT. Phapros Tbk received by ANTARA here on Friday, the cooperation was marked by the signing of a memorandum of understanding between Phapros` Executive Director Barokah Sri Utami and Medi Myanmar Group Founder Win Si Thu on December 21, 2017, in Yangon, Myanmar.
The signing event was attended by Indonesian Ambassador to Myanmar Ito Sumardi, Director of Finance of PT. RNI, who is also commissioner of PT. Phapros Tbk M. Yana Aditya, and Commissioner of PT. RNI Aditya Dhanwantara.
The cooperation strengthens the presence of Phapros in the Association of Southeast Asian Nations (ASEAN) market after having earlier successfully ventured in the Cambodian, Philippine, and Vietnamese markets.
According to Barokah, the joint venture will be focused on establishing factories. In the early stages, the plant is ready to produce non-antibiotic tablets and capsules and will then develop parenteral products.
Parenteral drug administration means any non-oral means of administration but is generally interpreted as relating to injecting directly into the body, bypassing the skin and mucous membranes.
"We are conducting a study. While awaiting the plant to become operational, we will explore the opportunity of exporting OTC or over-the-counter drugs that can be sold without a doctor`s prescription," she explained.
Medi Myanmar Group is one of the leading pharmaceutical companies in Myanmar that was established in 1991, with its main business being import, marketing, and distribution of pharmaceutical products from reputable companies.
Medi Myanmar Group has successfully registered 530 ethical or OTC products in compliance with the Myanmar Food and Drug Administration guidelines and the ASEAN Common Technical Dossier.
The company has 20 branches in various cities in Myanmar. It has set aside a land measuring two hectares in the Yangon Industrial Estate.
"The land is for the factory for which we have established cooperation," Barokah noted.
She added that Phapros is also exploring cooperation with several business partners and other pharmaceutical companies from Myanmar.
"We are striving to explore export cooperation with Myanmar to expand the scope of distribution of Phapros that had earlier penetrated markets in Southeast Asian countries, Central Asia, and Africa," Barokah noted.
Meanwhile, according to Aditya, through this partnership, Phapros and Medi Myanmar Group will work in the pharmaceutical and medical devices industry in Myanmar, which is currently growing at a rapid pace.
"Currently, 90 percent of the pharmaceutical products circulating in Myanmar are imported, of which 45 percent are from India, 35 percent from Thailand, and 10 percent from Bangladesh and Pakistan," he pointed out.
Yana believed that with the opening of the pharmaceutical market in the ASEAN, especially in Myanmar, both parties could collaborate in several strategic fields, such as manufacturing, transfer of technology, development of human resources in the pharmaceutical sector, and export-import.
According to Yana, the pharmaceutical market in the ASEAN is still wide open. According to data obtained from the Indonesian Ministry of Industry, the ASEAN pharmaceutical market is valued at US$17.4 billion. In comparison, in 2017, the market value of pharmaceutical products in Indonesia is around $4.7 billion, or 27 percent of the total pharmaceutical market in the ASEAN.
Ambassador Sumardi stated that the cooperation built by Phapros is a positive step, as Myanmar had recorded the highest economic growth in the ASEAN in 2016, at 6.5 percent, due to which it has enormous potential to be an investment destination.
According to a World Bank report, Myanmar`s economy is forecast to rise by 6.9 percent in 2017 and by 7.2 percent in 2018. This is in line with the increase in infrastructure spending and structural reforms that are capable of attracting significant foreign investment.
Meanwhile, until the third quarter of 2017, Phapros had recorded a net profit of Rp72 billion (some $5.04 million), or grew 38 percent, over the same period last year.
The net profit growth is in line with the increase in sales by 16.6 percent during the Jan-June 2017 period.
The sales growth covers the entire portfolio of Phapros drug products: OTC, generic, and ethical. This year, Phapros is targeting Rp1 trillion (some $70 million) in revenue and net profit of up to Rp100 billion (some $7 million).