Novo Nordisk is partnering with Indonesia’s Bio Pharma to package insulin locally, a partnership that could make Indonesia more attractive to global pharmaceutical companies, but it faces challenges including complex regulations, counterfeit medicines and a high reliance on imports.
Novo Nordisk teams up with Biopharma
Danish pharmaceutical giant Novo Nordisk has signed an agreement with Indonesian state-owned Bio Pharma to package insulin locally. Novo Nordisk, which produces half of the world’s insulin, will use its production expertise, while Bio Pharma will use local manufacturing facilities. The partnership aims to increase the availability and affordability of insulin in Indonesia.
Further investment potential
If successful, this partnership could position Indonesia as a magnet for global pharmaceutical companies looking to expand into Southeast Asia. Effective execution of this mega project will boost Indonesia’s reputation and attract additional investment in biopharmaceutical research and development, thereby positioning Indonesia as a major player in the regional pharmaceutical industry.
Indonesia’s promising pharmaceutical industry
Despite its potential, Indonesia’s pharmaceutical industry faces significant challenges, including complex regulatory hurdles and the prevalence of counterfeit medicines, which account for 10-15 percent of the market. The industry is also heavily dependent on imported raw materials, about 90 percent of which are sourced overseas, mainly from China and India. This dependency increases vulnerability to supply chain disruptions and price fluctuations. To mitigate these risks, the Indonesian government is focused on promoting local production of raw materials.
Danish pharmaceutical company Novo Nordisk has signed a deal with Indonesia’s state-owned pharmaceutical company Bio Farma to package insulin in the country. Novo Nordisk produces 50% of the world’s insulin.
Through this collaboration, Novo Nordisk will provide its insulin production expertise and BioPharma will provide a local manufacturing facility.
If successful, this partnership could make Indonesia an attractive destination for other global pharmaceutical companies looking to expand in Southeast Asia. Demonstrating an ability to successfully collaborate on large-scale pharmaceutical projects could boost Indonesia’s reputation and attract further investment in biopharmaceutical research and development.
Read the original article: Indonesia strengthens pharmaceutical division with partnership with Novo Nordisk
This article was first published in ASEAN Briefing, a publication by Desan Shira & Associates. The firm assists foreign investors across Asia from offices around the world, including China, Hong Kong, Vietnam, Singapore, India and Russia. Readers should also read: [email protected].
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