BUSINESS ESTABLISHMENT IN BIOPHARMACEUTICAL PRODUCTS THROUGH A STRATEGIC ALLIANCE STRATEGY TO CAPTURE THE VACCINE INDUSTRY MARKET IN INDONESIA

• Main Author: Rifki Kurniawan - 29116230, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29336
• Institution: Institut Teknologi Bandung

ABSTRACT <br /> <br /> <br /> The biopharmaceutical industry is a vast and growing industry in Indonesia. One of the fast growing products in biopharmaceutical industry is the vaccine product. Vaccine market industry in Indonesia has market value of 1.4 Trillion IDR and projected to grow at 5 to 6 Trillion IDR in the next five years. The development of the vaccine sector in Indonesia was encouraged by Indonesia government which has a mission in providing affordable vaccines to Indonesia society. <br /> <br /> PT. ZIF Indonesia is one of the private Companies in Indonesia that operates in the vaccine industry in Indonesia. It collaborated with China Company, Fanrong Changsheng China Co., Ltd., and Indonesia State-Owned Company, PT. Elang Indonesia planned to support the government’s mission and capture vaccine industry market in Indonesia by establishing joint venture Company, PT. XYZ. The company will establish a biopharmaceutical factory in Indonesia with a start by operating a downstream process. The vaccine factory expected to produce around 11 Million units per year. <br /> <br /> <br /> The main objective of the consortium is to create high competitive advantage in the industry both in the market and in the supply side for PT. XYZ by a strategic alliance strategy. PT XYZ will be divided into three ownership which are PT Elang Nusantara which will provide the captive market from government and strengthen the distribution sector, Fanrong Changsheng China Company will back up the research & development side while provide Active Pharmaceutical Ingredients (API), and PT. ZIF Indonesia as the lead consortium will be responsible in the main operation and distribution. <br /> <br /> <br /> The financial feasibility study in this final project will conclude whether the project is acceptable or rejected. The financial feasibility will be based on Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. The results of financial feasibility study for financial projection about 5 years for the most likely scenario with cash payment term case are the Net present value at Rp 1,893,156,060,159 with payback period in 5 years and 4 months. And the IRR of the project is 45%, higher than the required rate of return which at 9.61%. The calculation of 3-months credit term will reduce the financing needed around 344 Billion IDR, generate higher value of NPV and IRR, and make faster payback period. And based on scenario analysis, all of the parameters in pessimist scenario for both of cases are above the standards. So it is concluded that the project is good to go even in the pessimist scenario. <br /> <br /> <br /> Keywords: Strategic Alliance Strategy, Joint Venture, Feasibility Study, Business Establishment, Biopharmaceutical Products, Vaccine, Scenario Analysis.