Innobic (Asia), the life science arm of national oil and gas conglomerate PTT Plc, expects to earn first-year profit of more than 100 million baht, driven in particular by its medicine business.
Buranin Rattanasombat, PTT's senior executive vice-president and chairman of Innobic (Asia), said the returns are based on the 2022 performance of businesses, following investments of more than 10 billion baht that the company has made in recent years.
Innobic was established to help PTT earn money from non-oil businesses and drive its future growth.
According to Mr Buranin, the profit will largely come from Innobic's business in the pharmaceutical sector.
The company acquired Alvogen Emerging Market Holdings, a major shareholder in Lotus Pharmaceutical, which is a leading generic drug manufacturing company, as well as Adalvo, a business-to-business pharmaceutical firm based in Malta.
Taiwan-based Lotus Pharmaceutical makes drugs to treat nervous system disorders, cancers, diabetes, vascular diseases, heart diseases and women's health diseases.
"Our investment in Lotus Pharmaceutical serves as a contributor to help Innobic gain access to both domestic and overseas pharmaceutical markets, especially in Asean," said Mr Buranin.
Auttapol Rerkpiboon, president and chief executive of PTT, said earlier that the acquisition will reinforce Lotus Pharmaceutical's plan to market its products in Asean through cooperation with Innobic, and will eventually help strengthen Thailand's health sector.
Innobic and its business partner, Iceland-based Aztiq HK Co, jointly acquired Alvogen Emerging Market Holdings in May last year.
The investment made Innobic a major shareholder in Lotus Pharmaceutical and Adalvo, with stakes of 37% and 60%, respectively.
Innobic and Nove Foods Co, a subsidiary of SET-listed NR Instant Produce, a producer of vegetarian and plant-based food, also formed a joint venture named NRPT, to make what Innobic calls "future food".
NRPT aims to produce alternative plant-based protein.
Its factory, which is located in Ayutthaya, has a production capacity of 3,000 tonnes per year. The facility will serve as a production base and a distribution hub for the Asean market.
The plant is scheduled for commercial operations by the middle of this year.
Plant-based protein is seen as future food, and is expected to be in high demand. This business is in line with PTT's new direction.
Mr Buranin said Innobic plans to launch two new products in the fields of medical nutrition and food supplements.
"Ageing societies have emerged in many countries, driving demand for food that can restore and strengthen health," he said.
