July 27, 2023
Phapros records a growth of 14.9 percent in the Branded Pharmaceutical Products sector in the first half of 2023.
JAKARTA, July 27, 2023 - PT Phapros Tbk, which is a part of the State-Owned Pharmaceutical Holding, continues to target this year's performance to maintain growth. Some business lines that have been optimized this year are the sales of branded prescription drugs and exports. This is in line with the company's grand strategy and its plan to reorganize its product portfolio. In the future, the publicly traded company with stock code PEHA will continue to enrich its range of branded drug products.
Hadi Kardoko, the CEO of Phapros, stated that the growth of Phapros' branded prescription drugs in the first half of 2023 reached 14.9 percent compared to the previous year. "The biggest contributions came from products like Dextamine, which grew by 38.9 percent compared to the same period last year, and Pro TB, which grew by 53.2 percent," he said.
Hadi hopes that by the end of 2023, the company's performance will continue to grow, especially with the launch of new products from various therapeutic classes, particularly in the branded drugs segment. "Growth in the branded drugs segment is one of our strategies, so that by the end of 2023, Phapros' new product portfolio will consist of more than 60 percent branded drugs and the rest will be generics."
In addition to the Ethical segment, the revenue contribution from the export business has also increased by 45.2 percent, with Cambodia and the Philippines being the destination countries.
"The export market still offers significant opportunities for products such as multivitamins, antibiotics, analgesics, products for travel comfort, antihistamines, and even antituberculosis drugs. This is not yet including products from other therapeutic classes and medical devices produced by Phapros in collaboration with domestic research institutions and universities. We are optimistic that we can increase net sales growth by the end of 2023, as there are still many other countries that Phapros will target, and we remain optimistic about achieving our 2023 targets," Hadi explained.
"To continuously improve performance until the end of the year, the company has prepared several strategies, including commercial excellence, operational excellence, organizational excellence, as well as digitization and enhancement of human resource competencies. By implementing these strategies, we hope to sustain Phapros' growth," Hadi concluded.
Analysts from the stock advisory company Emtrade stated that the pharmaceutical sector has a relatively better prospect in 2023 due to the reduced burden of costs following commodity price declines and a strengthening rupiah.
According to Emtrade's presentation, the Indonesian government adjusted the INA-CBG tariff by 9.5% at the beginning of the year. This marks the first increase since 2016, resulting in higher costs for BPJS customers, including higher drug expenses. This adjustment is expected to support hospital profitability, which will subsequently increase the profitability of pharmaceutical companies due to the sale of premium drugs throughout 2023.
The pharmaceutical sector in Indonesia is attractive due to the relatively high Human Development Index (HDI) or life expectancy rate of 72.91 in 2022 (>50). With an increasing population, the demand for pharmaceutical and medical needs in the community is also expected to be high.
In their analysis of PT Phapros Tbk (PEHA) stock, Emtrade notes that PEHA's revenue comes from its production and trading business, which includes both export and import of drugs, medical devices, supplements, and functional food products. The company, founded by Ellen May, recommends collecting PEHA stock for trading when the timing is right.