BUSINESS STRATEGY FORMULATION OF BIOSIMILAR PRODUCTS FOR BIO FARMA

• Main Author: Kasih Susanty, Danur
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75242
• Institution: Institut Teknologi Bandung

Biological products are made or derived from a biological source therefore have complex molecules, with inherent variability in their structure. Biological products include a wide range of products such as vaccines, blood products, gene therapy, and recombinant therapeutic proteins. Biosimilar is a biological medicine which is highly similar to the licensed biological product (originator) in term of quality, safety, and efficacy based on a comprehensive comparability study. Biosimilar market size in Asia Pacific is expected to grow from 1.26 billion in 2022. This value is expected to grow to USD 4.99 billion by 2027. Biosimilars are recognized as one of the most significant markets in the industry health care and is seen as an affordable and economical treatment option with rising health care costs. Bio Farma is a world-class life science company with global competitiveness which has a role to provide and develop International standard Life science Products to Improve Quality of Life. Transformation from world-class vaccine and antisera manufacturer into world-class life science company has prompted Bio Farma to diversify its products, such as biosimilar products. The purpose of this study was to to find the right business strategy for PT Bio Farma to initiate development of Biosimilar products, by knowing threats, opportunities, strengths, and weaknesses are owned by Bio Farma in the face of global competition. This study used qualitative research methods by analyzing the current business situation. The external environment analysis consist of of the general environment, industry environment with Porter's five, and competitor environment analysis. The internal analysis carried out includes resources and value chain activity as a basis for capabilities and core competencies in achieving competitive advantage. The author also analyze the Business Model of Bio Farma using Business Model Canvas (BMC) framework to describe the rationale of how an organization creates, delivers, and capture value. Based on External Factor Evaluation (EFEM) and Internal Factor Evaluation (IFEM), then analyze SWOT to obtain SWOT matrix in order to develop business strategy. It is obtained scores of 2.45 and 3.25, this means that Bio Farma is in quadrant I in SWOT matrix where the company has the strength to take advantage of available opportunities. According to the strategy analysis result, SO strategy is the most appropriate way, accompanied by a development approach in various aspects of its business. The above analysis has been conducted, it is concluded that business strategy formulation of Biosimilar products for Bio Farma is to implement a growth strategy (aggressive strategy) in quadrant 1 by strengthening its presence in the life sciences industry through increasing the role of research and development to launch Biosimilars as new products and efficiency in all areas.