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Feasibility Study for The Development of Bioavailability/Bioequivalent (BA/BE) Laboratory at Pharmaceutical ABC Company

Andra Wahyu Purnomo, Ahmad Danu Prasetyo

Abstract


Abstract. ABC Company is one of the largest pharmaceutical companies in Indonesia. At present, ABC Company is trying to develop new services for business sector diversification because there is a related to maximizing need to solve problems within the company revenue and the existence of promising market growth opportunities and chance enter the industry of Contract Research Organization (CRO), one of the effort is through the development of Bio Availability and Bio Equivalent (BA / BE) laboratory facilities. ABC companies have a total of 58 types of products that are required to conduct a BA / BE test in accordance with the rules by “Badan Pengawas Obat dan Makanan” (BPOM) that each copy of the drug must be registered and re-registered. So far, the ABC company has conducted outsourced testing that caused expenditure for each of these tests. The number of drugs in the Indonesian market around 13,666 products brands with the potential market of BA / BE test industry in Indonesia is Rp. 3.5 trillion. This has not been added with ASEAN market and international markets. In development BA / BE testing laboratory it is necessary to pay attention to various aspects including location and environment, technological aspects, competitor aspects, and customer aspects. In addition to this aspect, there are financial aspects that are very important in determining the feasibility of developing a BA / BE test laboratory. The financial feasibility of this investment plan is carried out by looking at the Net Present Value (NPV) parameters, Internal Rate of Return (IRR), and Payback Period (PP). Based on the positive value of net present value (NPV) of Rp. 120.120.131.785 and the internal rate of return (IRR) value of 28,89% that is greater than the weighted average cost of capital (WACC) of 8,33% and the investment payback for 4.53 years, it can be concluded that the project is financially feasible to be carried and consider the risks management.

Keywords: feasibility; financial; laboratory; bioavailability; bioequivalent; investment; cost of capital; cash flow; capital budgeting analysis; risk management

 


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