Citi Pharma partners with Mersi Farma to boost API manufacturing

December 03, 2024 (MLN): Citi Pharma Limited (PSX: CPHL) has forged a strategic partnership with Mersi Farma, an Indonesia-based Based Leading Pharmaceutical Company, to Advance Active Pharmaceutical Ingredient (API) Manufacturing and Expand the Nutraceutical Market in Indonesia.

The company has signed a Memorandum of Understanding (MoU) with Mersi Farma, marking a transformative collaboration to establish API  manufacturing facilities and expand nutraceutical product accessibility in Indonesia.

Key Provisions of the Partnership:

1. Development of Advanced API Manufacturing Facilities

• Paracetamol API Plant: A state-of-the-art facility with an annual production capacity of 10,000 metric tons per annum.
• Amoxicillin API Plant: A high-capacity plant with an annual production capacity of 1,800 metric tons per annum. These facilities will meet Pharmaceutical Inspection Co-operation Scheme (PICTS) compliance standards, ensuring the highest quality production processes.

The Paracetamol and Amoxicillin plants will be the first large-scale API manufacturing facilities in Indonesia, significantly reducing the country's dependence on imported APIs.

This strategic initiative aims to bolster local production capacity, enhance self-reliance and contribute to Indonesia's healthcare infrastructure.

2. Joint Investment and Expertise Deployment

• Citi Pharma Limited will provide substantial capital investment and integrate state-of-the-art technology to establish world-class production capabilities.
• Mersi Farma will co-invest and utilize its extensive operational network within Indonesia to oversee operations and optimize market distribution for APIs.

3. Nutraceutical Market Penetration in Indonesia

• Citi Pharma Limited will introduce its premium nutraceutical product range, catering to the growing demand for health and wellness solutions.
• Mersi Farma will manage the marketing, sales and distribution of these products through its robust and well-established local distribution framework.

4. Strategic Implications

This partnership is a cornerstone of shared efforts to:

• Drive innovation in the pharmaceutical and nutraceutical sectors.
• Enhance regional healthcare accessibility through localized and high-quality API manufacturing.
• Promote economic sustainability by reducing Indonesia's reliance on API imports and fostering local industrial growth.

With the first bulk API manufacturing plant in Indonesia, this collaboration represents a pivotal shift toward self-sufficiency and technological advancement in the country's healthcare landscape.

Looking Ahead

Citi Pharma Limited and Mersi Farina are dedicated to making this partnership a model of excellence in pharmaceutical production and distribution.

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