Fresenius Kabi Enters Joint Venture With PT Soho Global Health
Fresenius Kabi has formed a joint venture with PT Soho Global Health, a leading Indonesian pharmaceutical company, acquiring a 51% stake in its PT Ethica Industri Farmasi (EIP) subsidiary. This joint venture will focus on IV generic drugs and infusion solutions, and make Fresenius Kabi the market leader in IV generics in Indonesia. The parties agreed not to disclose the purchase price. Closing of the transaction is expected in the third quarter of 2013.
Founded in 1946, EIP was the first manufacturer of injectable drugs in Indonesia. The company has a broad product portfolio and extensive experience and expertise in the production and marketing of generic drugs in the Indonesian market. EIP operates a production plant in Jakarta. The product portfolio of the future joint venture generated sales of more than €40 million last year.
Demand for healthcare in Indonesia has been growing steadily and is expected to accelerate in the coming years due to the implementation of a universal healthcare program, starting in 2014. As a result, almost the entire Indonesian population, about 245 million, is set to have access to modern healthcare by 2019, with the country’s pharmaceutical market expected to double to €7.1 billion by 2018. The joint venture therefore provides an attractive platform for Fresenius Kabi’s future growth in one of the fastest-growing emerging economies in Southeast Asia.
“Entering the joint venture brings us valuable local manufacturing capabilities and a strong market presence to provide patients and healthcare professionals in Indonesia with immediate access to high-quality, affordable drugs,” said Mats Henriksson, Chairman of Fresenius Kabi. “At the same time, we will establish a strong hub for further expanding our business in the Southeast Asian region. Our partner has many years of experience and a very good reputation serving the Indonesian healthcare market.”
Tan Eng Liang, President Commissioner of PT Soho Global Health, added, “We are excited to be cooperating with Fresenius Kabi because of the perfect fit between the companies. This joint venture gives us the possibility of strengthening our leading position in our home market as well as capturing the growth opportunities in the region in a fast and sustainable way. Together, we can boost the product pipeline with numerous launches in 2014 and beyond.” For more information, visit www.fresenius.com.
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