INDONESIA

PHARMACY
GRID

Group 6

A r i W i d i a s t u t i
P r a t i s y a r a P u s p a W . N . M
A r u m W i d y a L a k s m i P .
M u h a m m a d K e v i n A .
 SCP
Analysis
• Structure
• Market Share, Market Structure
• Conduct
• Price, Production, Distribution,
Promotion
• Performance
• Price Cost Margin,
MARKET SHARE

206 Companies :
4 state-owned
enterprises
24 MNC
178 national private

73% market share is

dominated by national
company
 MARKET STRUCTURE
• Concentration Ratio • HHI Index
FY 2020 FY 2020
Rank Company Net Sales Rank Company Net Sales
%Market Share %Market Share HHI
(in Bn) (in Bn)
1 Dexa Medica 4,719 5.58 1 Dexa Medica 4,719 5.58 31.14
2 Sanbe 4,615 5.46 2 Sanbe 4,615 5.46 29.81
3 Biofarma 4,013 4.74 3 Biofarma 4,013 4.74 22.47
4 Kalbe Farma 3,848 4.55 4 Kalbe Farma 3,848 4.55 20.70
5 Kimia Farma 2,664 3.15 5 Kimia Farma 2,664 3.15 9.92
6 Novell Pharm 2,501 2.96 6 Novell Pharm 2,501 2.96 8.76
7 Novartis 2,164 2.56 7 Novartis 2,164 2.56 6.55
8 Sanofi 1,970 2.33 8 Sanofi 1,970 2.33 5.43

Total Sales Pharmacy Industri 84,591

4 8

𝐶𝑅4 = ෍ 𝑆𝑖 𝐶𝑅8 = ෍ 𝑆𝑖 HHI = σ4𝑖=1 𝑀𝑆 2

2 2 2 2
𝑖=1 𝑖=1 HHI = 5.58 + 5.46 + 4.74 + 4.55
𝐶𝑅4 = 20,33% 𝐶𝑅8 = 31,33% HHI = 104,12
CR4 < 35% Market Share
HHI < 1000
CR8 < 45% Market Share
Loose oligopoly
Low grade oligopoly
 MARKET CONDUCT

Price Distribution
Pricing between Patent Drug, Determined by government
Branded Generic, Generic with PP No. 72/98; Permenkes
logo No.918/93; Permenkes
(Pricing behavior) No.1191/02

Production Promotion
Required to comply with the Differentiate promotion
requirements for between ethical and non-
Manufacturing Method of ethical
Drugs Good (GMP)*

*Cara Pembuatan Obat yang Baik (CPOB)

 MARKET PERFORMANCE

Price Cost Margin Indicator of Market Power

01
Company to improve price above the cost
of production

Describe the pharmaceutical industry has

Efficiency-X (Xeff) 02 been managed properly or not
 Non-price competition characteristic

Marketing How
PROto PREMIUM
The Idea
Strategy differentiate

Differentiate its product ● Quality of Service To convince customers

or service from similar ● Distribution that they should buy
product on the basis of ● Customer focus products not only
attributes such as ● Another because the cheaper
product design and competitive price but also it have to
performance.
advantages outside offer somethings better,
of price even something new in
term of products or
services
ETHICAL DRUG

Prescribed by doctor

Although the market is competitive, it’s

distorted by the role of doctors that cause a
competition mechanism doesn’t work
optimally

A doctor has a dominant role in

determining the choice of drugs. It’s
suspected that there’s a transactional
relation between doctor and
pharmaceutical company in the making of
prescriptions
 REGULATION IN PHARMACEUTICAL
INDUSTRY

Relevant with Supervisory

function Synergistics
current situation

Private Sector
Non restrictive
Regulations
 THANKS!!

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