Jakarta Kalbe Farma, Indonesia’s largest listed pharmaceutical business by income, is set to perform human trial for a Covid-19 vaccine next month with aid from the business’s South Korean biotechnology partner, Genexine.
Kalbe and Genexine have currently signed a memorandum of understanding to hold the human trial for GX-19, a coronavirus vaccine established by the latter and South Korean drugmaker Binex, the International Vaccine Institute (IVI), Daegu-based biotech firm GenNBio, the Korea Advanced Institute of Science & Technology (Kaist) and Pohang University of Science & Technology (Postech).
” Kalbe hopes research and advancement for the Covid-19 vaccine [in Indonesia] might rapidly obtain outcomes so we can ensure its local accessibility,” Kalbe Farma Director Sie Djohan stated in a declaration on Thursday.
The consortium has already evaluated the vaccine on primates where it was apparently able to produce antibodies efficient in neutralizing SARS-CoV-2, the scientific name of the coronavirus.
Sie stated Kalbe Farma will consider forming collaborations with federal government agencies to establish the Covid-19 vaccine.
Kalbe Farma and Genexine have a long history together. The business established a joint venture business called Kalbe Genexine Biologics in 2015 to develop factories, including one to manufacture basic materials for pharmaceutical drugs in Cikarang, West Java.
According to Kalbe Farma President Director Vidjongtius, the business has actually decided to keep more of its 2019 revenues to get ready for unpredictable times ahead as the Covid-19 pandemic continues to wreak havoc on the economy.
The business distributed only 37 percent of its Rp 937.5 billion ($637 million) earnings from 2019 to investors, the equivalent of Rp 20 per share.
In 2015, the company distributed 50 percent of its earnings as dividends.
Stock Prospects
Experts state Kalbe Farma’s financial performance has actually been strengthening amid the pandemic. The outbreak has in fact increased sales of the company’s pharmaceutical drugs and medical gadgets.
Danareksa Sekuritas forecasted Kalbe Farma’s sales value would increase to Rp 242 trillion this year, up 6.9 percent from Rp 22.63 trillion in 2015. Its net income would increase by 0.4 percent to Rp 2.52 trillion from Rp 2.51 trillion.
Danareksa Sekuritas expert Natalia Sutanto stated need for the company’s products is expected to increase the longer the Covid-19 pandemic lasts.
” The increase in need is expected to continue till completion of this year. This will have a positive impact on the company’s financial performance,” Natalia said.
The government’s plan to cut corporate earnings tax from 25 percent to 22 percent would likewise supply an additional increase for Kalbe Farma’s financial resources, with the business set to delight in a 4.7 percent bump up in earnings if it goes on.
Danareksa Sekuritas has maintained its “purchase” recommendation for Kalbe Farma shares and lifted the share price target from Rp 1,500 per share to Rp 1,700
Kalbe Farma shares were traded at Rp 1,435 per share at 10 a.m. on Friday.
