KLBF – New pharmaceutical products to boost performance

KLBF – New pharmaceutical products to boost performance Kalbe Farma (KLBF)’ performance will be supported by new products, especially from the pharmaceutical segment and biological and oncology potential in the long term. KLBF will produce 15-20 new products, including 7 medical devices and several generic medicines that are widely used by BPJS services. KLBF also took advantage of many sporting events to launch EJ Sports Gel which has scored increasing sales of 26% yoy in the last year. Note that, the contribution of affordable products such as Chil-Go has recorded an increase in sales by 25% yoy in 2023, so that KLBF continues to innovate in ready-to-drink entresol sterilized milk products at higher prices. This is also in line with lower input costs so that it has the potential to get an increased net profit this year. Sales in 4Q23 are expected to start to pick up, although 2023 net profit estimates are declining due to the impact of the covid-19 base effect. KLBF also still relied on imports of raw materials last year. This year, KLBF targets sales growth of around 6-7% yoy with net profit growth of around 13-15% yoy. The pharmaceutical segment is expected to remain a major contributor to revenue, due to biological ingredients with biosimilars sales expected to increase. It is estimated that the transformation of the BPJS e-catalog procurement system and the implementation of the BPJS Kesehatan Omnibus Law will have a positive impact and result in higher stock storage units, increased sales volume and higher average selling prices. (Source : Kontan)