Natco Pharma to set up subsidiary in Indonesia with investment of $3 mn

Natco Pharma Ltd said on Thursday that its board of directors has approved setting up a subsidiary in Indonesia with an investment of up to US$3 million (roughly Rs. 25 crore) to sell pharmaceutical products in that country.

The new subsidiary – PT. Natco Lotus Pharma – It will be a joint venture with Natco owning 51 per cent and the remaining 49 per cent stake by PT. The company said in a regulatory filing that Mitra Medics Exim (MME), part of Mitra Jaya Group, a 40-year-old diversified conglomerate, was named as the co-promoter.

The company’s board of directors approved the proposal at its meeting held on Thursday.

NATCO added that it will initially invest $1 million in return for a 51 percent stake as an equity contribution and the balance will be invested when the subsidiary company requests funds.

PT. She added that NATCO Lotus Farma will operate in the sale of pharmaceutical products in Indonesia.

MME is engaged in the distribution of active pharmaceutical ingredients and excipients to end users in Indonesia.

On the rationale behind the move, Natco said, “(The goal) is to enter new geographies for growth and increased profitability.

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First published: April 20 2023 | 1:10 p.m ist