- New 3 year MSA signed with leading Indonesian pharma Company PT Combiphar
- Extension of both product authentication and consumer engagement solutions
- Covers expansion to additional SKUs beyond cough syrup currently covered
- Life-of-contract revenues expected to be circa A$1m
Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) has signed a new three year Master Supply Agreement with leading Indonesian pharmaceutical and wellness Company PT Combiphar.
Combiphar has been an important YPB client since September 2016 and the leading user of YPB’s ProtectCodeTM product authentication solution. The new MSA allows for the extension of product coverage from the present to others in Combiphar’s 170 SKU product portfolio.
The new MSA anticipates broader product coverage and given the planned SKUs, volumes and pricing under the new MSA, YPB expects revenues over its three year life to be circa A$1million based on:
continued application of ProtectCodesTM on Combiphar’s cough syrup;
increased volumes from broader SKU coverage; and new YPB Connect SaaS platform and support fees.
YPB and Combiphar are presently developing plans for the rollout of coverage to further products. YPB will inform the market when new SKUs are activated.
YPB’s first informed ASX of its relationship with Combiphar on 9 September 2016. That ASX release stated that YPB expected revenues of A$1million over the 3 year life of that agreement. YPB confirms that only around half that revenue originally anticipated was achieved due to a slow initial take-up of the solution in the first 18 months, and only 1 product line has been covered so far.
Founded in West Java in 1971, Combiphar produces more than 170 product lines across the prescription and over-the-counter segments including OBH Combi cough syrup, Insto eye-care solution and JointFit gel-based relief for joints. It also acts as a contract manufacturer for global pharm giants including GlaxoSmithKline (GSK), Sanofi and Abbott, and has obtained Therapeutic Goods Administration (TGA) certification to allow the export of certain products to Australia.
YPB Group CEO John Houston said: “Our refreshed strategy has health products as a key vertical market of focus and we are delighted to extend and expand our close collaboration with Combiphar. We anticipate our solutions enhancing Combiphar’s engagement with greater numbers of its consumers by assuring the authenticity of a broader range of its products.”
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