Kimia Farma Collaborates With Sinopharm To Develop Health Industry

JAKARTA - Pharmaceutical business company (BUMN) PT Kimia Farma Tbk is collaborating with Sinopharm International to develop the potential of the health industry, particularly related to Drug Baku Materials (BBO), Traditional Chinese Medicine (TCM), and Project Platform TB.

The signing of the memorandum of understanding (MoU) was carried out by Kimia Farma President Director David Utama and Sinopharm International President Zhou Song, witnessed directly by the President Director of Bio Farma Group Honesti Basyir and Chairman of Sinopharm Liu Jingzhen, as stated by the company's official statement in Jakarta, Thursday, April 13.

This agreement is a continuation of the collaboration between Kimia Farma and Sinopharm which has been well established during the handling of COVID-19. Kimia Farma supports national health resilience, one of which is by strengthening and accelerating Drug Baku Materials (BBO). Currently Kimia Farma has produced 14 BBOs and we will continue to improve," said KAEF President Director David Utama.

Furthermore, he said that this agreement is a form of bilateral relations between the two countries to improve and encourage the transformation of the health industry

"KAEF is committed to providing the best health products and services. We will follow up on this memorandum of understanding to support government programs in the health sector, and improve the health of the Indonesian people," said David, quoted by Antara.

His party explained that the issuer coded KAEF shares pocketed sales of IDR 9.60 trillion in 2022, or a decrease of 25.28 percent from the previous IDR 12.85 trillion in 2021.

Domestic sales decreased 25.15 percent yoy to Rp9.47 trillion, while export sales decreased 33.46 percent yoy from Rp200.35 billion to Rp133.30 billion in 2022.

However, he explained that throughout 2022 KAEF managed to reduce operating expenses by 5.41 percent yoy or Rp189 billion compared to 2021.

"Efficiency in operating expenses is carried out in terms of operational load efficiency, namely optimizing distribution costs for all products," said David.

In addition, the state-owned pharmaceutical holding company recorded a financial burden that fell 14.21 percent yoy compared to the previous year, supported by banking support through lower interest rates and investment loans and refinancing.

Furthermore, the company posted a positive cash flow at the end of 2022 with cash and cash equivalents recorded an increase to Rp2.15 trillion, from the previous 2021 value of Rp748 billion, supported by funds from the open-lock corporate action of KAEF's subsidiary, namely PT Kimia Farma Apotek (KFA).

Meanwhile, Sinopharm International is one of the top three pharmaceutical giants in Asia Pacific, which posted revenues of 453.82 billion yuan, equivalent to US$70.2 billion in 2021.