Jakarta. Phapros, a unit of state-owned Rajawali Nusantara Indonesia, established a joint venture with pharmaceutical giant Medi Myanmar Group to establish a non-antibiotic drug factory in Myanmar for an undisclosed investment amount.
The two companies signed a memorandum of understanding in Yangon, Myanmar, on Thursday (21/12).
"We are currently preparing for the establishment of a factory. Meanwhile, we are also looking at potential exports of over-the-counter medicines, or medicines dispensed without a doctor's prescription," Phapros president director Barokah "Emmy" Sri Utami said in a statement.
Medi Myanmar Group was established in 1991, with its main business involving the importation, marketing and distribution of pharmaceutical products.
Emmy said the joint venture will focus on the development of a drug factory on a 2-hectare area in the Yangon Industrial Estate.
The factory will initially produce capsules or non-antibiotic medicines before gradually expanding to intravenous medicines.
Phapros has strengthened its presence in Southeast Asia with its entry into the Myanmar market. The company also has a presence in Cambodia, the Philippines and Vietnam, while it is currently expanding to Central Asia and Africa.
Myanmar currently imports 90 percent of its pharmaceutical requirements, with around 45 percent of it from India, 35 percent from Thailand and the remainder from Pakistan and Bangladesh.
Emmy said Phapros is exploring an option to export its products to Myanmar in a bid to expand the company's distribution area. The company is also seeking partnerships with other pharmaceutical firms in that country.
Southeast Asia has vast potential for pharmaceutical products. According to data compiled by global consulting firm Boston Consulting Group, the region is expected to generate around $40 billion in pharmaceutical sales in 2020.
Meanwhile, the total value of Indonesia's market for pharmaceutical products amounts to $4.7 billion annually, which accounts for 27 percent of the total pharmaceutical market in Southeast Asia.