INVESTMENT ANALYSIS OF HEXAVALENT VACCINE DEVELOPMENT PROJECT (A CASE STUDY OF BIO FARMA)
Combined Inactivated Polio Vaccine (IPV) and Oral Polio Vaccine (OPV) immunization approach in the polio eradication program by WHO requires that at least one dose of IPV is introduced in the routine vaccination program in each country. Successful application of IPV in worldwide polio eradication...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/49685 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Combined Inactivated Polio Vaccine (IPV) and Oral Polio Vaccine (OPV) immunization approach in
the polio eradication program by WHO requires that at least one dose of IPV is introduced in the routine
vaccination program in each country. Successful application of IPV in worldwide polio eradication
program, particularly in developing countries including Indonesia, will depend on the availability of
effective vaccines at affordable price. Hexavalent vaccine represents one of the potential approaches to
introduce IPV at a relatively low price through a combination vaccine. Moreover, it can simplify
complex routine immunization schedules, reduce delivery and injection costs, and improve compliance.
As a state-owned company that manufactures and supplies vaccine needs in the Indonesian mandatory
immunization program, Bio Farma intends to develop hexavalent vaccine as an effort to introduce a
combination vaccine containing IPV in compulsory immunization program for Indonesian infants and
toddlers. The objective of the study is to assess the financial feasibility of hexavalent vaccine
development project. External and internal environmental analysis is conducted to picture the business
situations in formulating strategies to address the business issue. The study emphasizes capital
budgeting techniques to evaluate the investment project. The result of the study shows that the
development project of hexavalent vaccine is financially feasible due to its positive net present value
(Rp 209,308,155,779), a shorter payback period (9.03 years) than the project period (20 years), and an
internal rate of return (30.60%) that is higher than the weighted average cost of capital (18.52%).
Sensitivity analysis discloses that sales price is the most influential parameter on the net present value
of the project. Insufficient number of available human resources is the risk with the highest handling
priority level based on risk assessment. Several actions can be considered to mitigate this risk, such as
improving work efficiency, providing an incentive system, and the readiness of supervisor and manager
to take part in technical activities if needed. |
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