Kimia Farma raises branded medical drugs by 10-15 pct

Jakarta (ANTARA News) - State pharmaceutical company PT Kimia Farma Tbk planned to raise the prices of its branded medical drugs by 10 to 15 percent, following the fuel oil price hikes by an average of 30 percent, which would raise operational cost, and which would in turn adversely affect operational performance.

"The price increases are aimed to cover the salary increase of employees by 30 percent, increase in electricity rates, and obviously in view of the fuel oil price increases," Financial Director of Kimia Farma, Rusdi Rosman said in Jakarta Tuesday.

Rusdi said the management is still estimating the impact of the 30 percent increase in fuel oil prices on the company.

With regard to the prices of generic medical drugs, Rusdi said it depends on the government, as the company had already raised prices of its generic drugs by 20 percent in February 2008.

Sixty five percent of the company`s sales consisted of generic medical drugs, and the remaining 35 percent branded medical drugs, Rusdi said.

A general shareholders meeting of the company in Jakarta on Tuesday decided that the company will distribute Rp 2.8 per share in dividend of the 2007 book year starting in July 2008.

In 2008 the company projected its sales to increase by 14 percent and a net profit of 18 percent.(*) end