Kalbe Acquires Aventis to Boost Prescription Drug Business

PT Kalbe Farma Tbk (KLBF) acquires PT Aventis Pharma from Sanofi Aventis Participations and Hoechst GMBH (Sanofi). The Share Purchase Agreement or SPA was signed on July 22, 2022, between Sanofi Aventis Participations and Hoechst GMBH (Sanofi) as the seller and PT Kalbe Farma Tbk as the buyer. Through the agreement, Sanofi will transfer its majority stake in PT Aventis Pharma to Kalbe in the fourth quarter of 2022 after all the requirements in the SPA are met.

Kalbe acquires an 80 percent stake in Aventis Pharma, including a production facility located in Jakarta, assets and distribution rights, and marketing of Sanofi's prescription drugs and vaccines in Indonesia. The acquisition will also ensure continued production and supply of products to the Indonesian market through a long-term commitment in all aspects of distribution and licensing between Kalbe and Sanofi.

Kalbe said that the strategic move would bring products in line with Kalbe's portfolio, particularly in the focus therapy classes, such as diabetes and cardiovascular, and access to vaccines as part of Kalbe's growth strategy. "We estimate that around October 2022 [the transaction] will be completed. The source of funds is internal cash or bank loans," PT Kalbe Farma Tbk President Director Vidjongtius said on Monday.