October 31, 2023
The pharmaceutical sector is slowing down nationally, Phapros prepares a strategy to continue growing throughout 2023.
JAKARTA, October 31, 2023 – The national pharmaceutical market has not fully recovered in the post-Covid-19 pandemic era. According to data from the National Pharmaceutical Market in the second quarter of 2023, there has been a growth slowdown of 7.2% compared to the fourth quarter of 2022 and 0.2% compared to the same period the previous year.
Some pharmaceutical product categories affected by this growth slowdown include over-the-counter drugs and prescription drugs, with growth slowdowns of 8.3% and 1.1%, respectively. In the over-the-counter drugs segment, multivitamin products are the most affected, with a 25.2% growth slowdown.
Acting CEO of PT Phapros Tbk, David Sidjabat, stated that the unstable condition of the national pharmaceutical market in the post-Covid-19 pandemic era has also affected the company's performance. "We have many multivitamin product variants, and their performance is currently slowing down compared to during the Covid-19 pandemic. Consumer behavior has also changed, with nearly 50% of them preferring self-medication, including traditional or herbal remedies," he said.
David added that the number of patient visits to hospitals for treatment has not shown significant growth, affecting the performance of the company's prescription drug segment. This is reflected in the correction of performance growth up to Year-To-Date (YTD) in the third quarter of 2023 in the over-the-counter drug sector at 21.5% and prescription drugs at 16%. On the other hand, although this situation significantly affects the company's performance, Phapros has proven its ability to survive and adapt, thereby reducing the slowdown to only 11%.
By the end of 2023, the management ensures that the company will continue to move forward positively, with Phapros committed to growing in the fourth quarter of 2023 and beyond by implementing other strategies to anticipate the unstable pharmaceutical market conditions. These strategies include product portfolio management, maintaining stocks of their flagship product, Antimo, for the year-end holiday season, and other products prepared to boost the company's growth.
Despite the current slowdown in the national pharmaceutical market, Wisnu Prambudi Wibowo, Head of Research at FAC Sekuritas, stated that the healthcare sector has good long-term prospects because it is a priority sector with various innovations being developed for public health needs.
"The Omnibus Health Law has a positive impact due to regulations reducing the import of health equipment and medicines, benefiting the domestic healthcare industry. If you want to invest, choose a sector that is not too crowded but has good future prospects, such as the healthcare sector. The issuers can come from the pharmaceutical industry, medical equipment industry, and hospitals," he said.