PT Kalbe Farma Tbk : Optimism in the Midst of a Pandemic

Optimism in the Midst of a Pandemic

The COVID-19 Pandemic causing a worldwide health and economic crisis. Entering the year 2021, I am sure our country, Indonesia, is capable of getting up and make numerous innovation (President Joko Widodo, 2020 Year-End Speech)

Innovation is the key that is also believed by PT Kalbe Farma Tbk (Kalbe) to assist the government and people of Indonesia to get up and overcome the Covid-19 Pandemic. Kalbe as a health company of Indonesia continues to encourage innovation through products and services as part of our contribution to the health of the people of Indonesia.

Since the Covid-19 started on March 19, 2020, the government and people have experienced issues in drug provisions, medical devices, and personal protective equipment related to the handling of the Covid-19 Pandemic. Kalbe also took part in donating these needs. Kalbe's donation of Rp 52 billion has been channeled to meet the needs of medicine and PPE to 432 hospitals in 30 provinces in Indonesia, including the provision of RT PCR tests by Kalbe's laboratories.

'Together Make the Nation Healthy is the pillar of Kalbe's sustainability, and we are ready to support the Indonesian government in overcoming the Covid-19 outbreak,' said Vidjongtius, President Director of PT Kalbe Farma Tbk.

Kalbe does not stop at just donations, Kalbe is also developing products related to the Covid-19 handling. Kalbe in collaboration with the Indonesian Institute of Science (LIPI) has conducted the clinical trial phase for immunomodulator products, i.e. H2 Cordyseps and Fatigon Promuno that have been appointed by President Joko Widodo as Indonesia Innovation Products. A number of supplements and vitamin products that are needed by the people through the Covid-19 Pandemic were also launched, among which are Hevit-C, Prove C and Prove D3 (Vitamin D), Joss C-100, Bejo Jahe Merah, and Sujamer (Herbal). Through nutritional products that are already available in the market, Kalbe ensures the availability for the public, including the needs of pregnant and breastfeeding mothers (Prenagen and Lovamil), as well as nutritions for illnesses that are co-morbidities of Covid-19 such as Diabetasol for diabetic patients, Nephrisol for patients with kidney problems, Pulmosol for patients with breathing problems, and other products.

The increasing mortality rate of Covid-19 also pushes Kalbe to provide specialty medications for Covid-19 handling. Through a collaboration with Hetero, an Indian pharmaceutical company, Kalbe markets the Covifor (Remdesivir) product, a drug that helps delay virus replication in critical Covid-19 patients. There are definitely other antiviral drugs produced by Kalbe for Covid-19 patients.

Innovation keeps rolling. As we are wont to do researches and production of biologic drugs through our subsidiary, KGBio, Kalbe collaborated with Genexine, South Korea, to research and develop the GX-19 Vaccine. With the same basics as developing biological drugx, GX-19 - the name of the vaccine developed by Kalbe and Genexine - started its phase 1 clinical trials in South Korea by end of May 2020. Kalbe is also a part of the consortium of vaccine development in Indonesia.

OPTIMISM OF THE YEAR 2021
Regardless of year 2020 being a year filled with challenges, Kalbe's performance still shines hope. The four lines of businesses owned by Kalbe; from the prescription medicine line, Consumer Health business line, and distribution & logistics business line; are still recording positive growth with only a slight decrease in the prescription medicine division. Referring to the September 2020 YTD, the growth of each of Kalbe's line of businesses are the growth of 3.7% in the distribution & logistics line, growth of 1.9% in the nutritions business line, growth of 4.6% of the consumer health products, and growth of -3.7% of the prescription medicines line.

Furthermore, while the government is hard at work to handle the Covid-19 Pandemic with vaccination programs being one of it, Kalbe through its subsidiary, Enseval Putra Megatrading that has distribution infrastructure and network throughout Indonesia; is ready to support the needs of national vaccines from the government throughout Indonesia. In addition, the growth of the Distribution & Logistics line is also supported by the marketing of health equipment under Enseval Medika Prima and Renalmed Tiara Utama which includes the pharmacy outlet, Mitrasana. The addition of a new principal in the distribution and logistics line will also increase the year 2021 performance.

On the other hand, Kalbe is also developing the GX-19 vaccine that is currently entering the phase 2 clinical trial that is planned to start in February or March 2021. Should the process run smoothly, an approval for emergency use (Emergency Used Authorization) from BPOM is expected to be issued by the third or fourth quarter (Q3 or Q4) of 2021. With the availability of production infrastructures through the subsidiaries Kalbio Global Medika, Kalbe can conduct the fill and finish processes of the GX-19 vaccine.

Kalbe also continues to innovate by developing the Covid-19 medication, GX-17. The Covid-19 drug that is developed by the subsidiary KGBio is intended to protect the elderly and has acquired the BPOM approval to continue into the Phase 2 Clinical Trials.

The development of Covid-19 vaccines and drugs can encourage growth in the prescription drugs or pharma lines of businesses. However, the prescription medicine portfolio will also still be supported to increase its performance, such as for cancer drugs, generic drugs through the subsidiary Hexpharm Jaya, antibiotics, medical nutrition, etc.

Kalbe is also optimistic about the growth of consumer health products line in the year 2021. Through the construction of new factories for the Consumer Health products through PT Saka Farma and Bintang Toedjoe, Kalbe can increase the corporate performance through supplement and vitamin products. The launch of Hevit-C Plus product (Vitamin C with iron supplement product) is hoped to add to Kalbe's product portfolio.

The Nutritionals business line that presented 29% of Kalbe's performance (YTD September 2020) has the same growth optimism as Kalbe's other business lines. The Portfolio of Nutrition products has a range of consumers ranging from pregnant women (Prenagen), nursing mothers (Prenagen and Lovamil), toddler (Morinaga), teen (Zee) and adult (Entrasol), as well as adults with the needs of healthy and special nutrients (Diabetasol, Nutrieve Benecol, Fitbar, Hepatosol, Nephrisol, and others), have the immense potential to grow. The trend of Indonesian people being aware of healthy lifestyle specifically during the pandemic became a strong reason for the nutritional business line to have positive growth.

The optimism to grow through product innovation and services also encourages Kalbe to continue conducting Research and Development. Through the ABG (Academics, Business, Government) synergy, Kalbe continues to collaborate to produce products and services that can be utilized by the people (product downstream) and can contribute to Kalbe's business performance. On the other hand, Kalbe is open to collaboration with various parties, whether in the form of a joint-venture, acquisition, or any other form of business cooperation.

As President Joko Widodo has said, the economic recovery will happen in 2021 given Kalbe the optimism to face 2021 with a number of innovations through products and services that Kalbe has.

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