2015

TURKISHPHARMACEUTICAL

MARKET

TUR

RKISSH PHHARM

MAC

201

May, 20

www.ieis.o

EUTI

5

016

org.tr

ICAL

L MARRKETT

Copyright 2016 © Pharmaceutical Manufacturers Association of Turkey

This report is the property of Pharmaceutical Manufacturers Association of Turkey and all rights regarding this report is reserved and protected within the scope of the provisions of

the Law of Intellectual Property Rights and the Turkish Criminal Law.

The contents of this report cannot be used unduly and cannot be copied, reproduced, distributed and published either totally or partially without any reference for any purpose.

1

Table of Contents

INTRODUCTION

1. Turkish Medicinal Products Market .................................................................... 4

a. New Product Entries on the Market .............................................................. 5 b. Average Prices ............................................................................................. 5

1.1. Turkish Drugs Market ............................................................................. 6

1.1.1. Market Distribution ............................................................................. 7

a. Originator-Generic Drugs ................................................................... 7 b. Import-Local Drugs ............................................................................ 9 c. Biotechnological Drugs ....................................................................... 10 d. New Drug Entries on the Market ...................................................... 12 e. Treatment Groups .............................................................................. 13

1.1.2. Drug Prices ...................................................................................... 14 a. Pharmaceutical Price Legislation ..................................................... 14 b. Average Prices ................................................................................ 15 c. Retail Price Ranges ......................................................................... 16

1.2. Non-Pharmaceutical Products ............................................................ 18

2. Production ........................................................................................................... 19

3. Research & Development .................................................................................. 20

4. Foreign Trade ...................................................................................................... 20

5. Financial Results ................................................................................................ 23

6. Conclusion and Assessment ............................................................................. 25

2

List of Charts Chart 1- Turkish Medicinal Products Market ....................................................................... 4 Chart 2- Turkish Drugs Market ............................................................................................. 6 Chart 3- Sources Of Growth ................................................................................................. 7 Chart 4- Originator-Generic Drugs (Value) .......................................................................... 8 Chart 5- Originator-Generic Drugs (Volume) ....................................................................... 8 Chart 6- Market Share Of Originator-Generic Drugs (Value) .............................................. 8 Chart 7- Market Share Of Originator-Generic Drugs (Volume) .......................................... 8 Chart 8- Import-Local Drugs (Value) ..................................................................................... 9 Chart 9- Import-Local Drugs (Volume) ................................................................................. 9 Chart 10- Market Share Of Import-Local Drugs (Value) .................................................... 10 Chart 11- Market Share Of Import-Local Drugs (Volume) ................................................. 10 Chart 12- Biotechnological Drugs (Value) ......................................................................... 11 Chart 13- Biotechnological Drugs (Volume) ...................................................................... 11 Chart 14- Market Share Of Reference-Biosimilar Drugs (Value) ...................................... 11 Chart 15- Market Share Of Reference-Biosimilar Drugs (Volume) .................................. 11 Chart 16- Therapeutic Groups (Value) ................................................................................ 13 Chart 17- Therapeutic Groups (Volume) ............................................................................ 13 Chart 18- Retail Price Distribution ..................................................................................... 16 Chart 19- Price Distribution Of Originator Products ......................................................... 17 Chart 20- Price Distribution Of Generic Products ............................................................ 17 Chart 21- Price Distribution Of Import Products .............................................................. 18 Chart 22- Price Distribution Of Local Products ................................................................ 18 Chart 23- Non-Pharmaceutical Products .......................................................................... 19 Chart 24- Industrial Production Index Change (2009-2015) ............................................ 19 Chart 25- Pharmaceutical R&D Spending ......................................................................... 20 Chart 26- Pharmaceutical Industry Within Turkish Foreign Trade ................................. 21 Chart 27- Reel Change In Net Sales (2009-2014) .............................................................. 23 Chart 28- Operating Profitability/Net Sales ....................................................................... 23 Chart 29- Net Profitability/ Equity ...................................................................................... 24 Chart 30- Reel Change In Equity (2009-2014) ................................................................... 24 Chart 31- Property Plant And Equipment (2009-2014) ...................................................... 25 Chart 32- Exchange Rates .................................................................................................. 26

List Of Tables Table 1- Overall Market Sub Distributions .......................................................................... 5 Table 2- Quantitative Distribution Of The Products In The Market ................................... 5 Table 3- Average Price Distribution ..................................................................................... 5 Table 4- Average Price Change ............................................................................................ 6 Table 5- Sub Distributions Of Originator-Generic Drugs .................................................. 9 Table 6- Sub Distributions Of Import-Local Drugs ........................................................... 10 Table 7- Biotechnological Drugs ....................................................................................... 12 Table 8- Quantitative Distribution Of The Drugs In The Market ...................................... 12 Table 9- Reference Price Ratios ......................................................................................... 14 Table 10- Discount Rates .................................................................................................... 15 Table 11- Drug Average Price Distribution (TL) ................................................................ 16 Table 12- Drug Average Price Change .............................................................................. 16 Table 13- Import And Export Of Pharmaceutical Products (Million USD) ....................... 21 Table 14- Export Value Per Kg (USD) ................................................................................. 22 Table 15- Export On Basis Of Countries (Million USD) ..................................................... 22 Table 16- Import On Basis Of Countries (Million USD) ..................................................... 22

3

INTRODUCTION Pharmaceutical manufacturing, with its direct implications in the quality of human life, its high added value and cutting-edge technology, its experienced workforce and export potential, has been named a strategically important industry for its social and economic impacts. Growing in tandem with the expansion of the country’s medical needs, the landscape of the Turkish pharmaceutical industry has changed quickly following the reform of the country’s healthcare sector under the Turkish Ministry of Health’s Health Transformation Program. The Turkish pharmaceutical industry provides more than 11 thousand products to the service of our people produced at 67 facilities at international standards by approximately 300 companies and 31 thousand employees. The operational capabilities of the Turkish pharmaceutical manufacturer are based on decades of production experience which have engendered an industry strongly committed to upholding international quality standards. On par with products manufactured in developed markets and owing to the quality of Turkey’s human capital as well as state-of-the-art technology, the industry’s footprint now extends to 160 countries, including European Union (EU) members, the Commonwealth of Independent States (CIS), North Africa and the Middle East. Established in 1964, the Pharmaceutical Manufacturers Association of Turkey (IEIS) is committed to improving business conditions of its members and contributing to the development of healthcare policies within Turkey. The core of the 52 IEIS members consists of pharmaceutical producers including local and multinational companies. IEIS provides services to the pharmaceutical firms that are active in widespread and different working areas, ranging from production and imports of originator products to branded generics, active ingredients as well as contract manufacturing. It closely follows the interests of all segments of the pharmaceutical industry in seeking to realize the organization’s larger goal of furthering the global presence of an industry strongly focused on both export-led growth and the production of higher value-added products especially biotechnologicals through extensive R&D activities. Turkey’s medicinal products market consists of pharmaceuticals and non-pharmaceuticals. Non-pharmaceutical products include biocidal products; some medical devices in pharmaceutical form; foods for special medicinal purposes; cosmetic and dermocosmetic products licensed by the Ministry of Health; and the vitamins, food supplements, and baby formulas approved by the Ministry of Food, Agriculture, and Livestock. This report prepared by IEIS scrutinizes the prescription and non-prescription drugs market and non-pharmaceutical products over the course of the past six years, which was the execution of the global budget period. Turkish pharmaceutical has been evaluated in the categories of prescription, originator-generic, import-local, and biotechnological drugs. The analyses of production, R&D, and foreign trade of pharmaceutical sector are other significant sections of the report.

1. Tu The TuHealth reachesales ro

In viewmarket27.7% compoagainst In the sfrom 1.4.5%, aageing improve In termoperati100 locfirms rescale hother hthe totacontrol When observewhile tattractsyears.

6

8

10

12

14

16

18TL

Source

rkish M

urkish medand non-pd 16.86 bose by 6.7

w of the st has increa

growth raund growtt wholesale

same perio49 billion b

and such inpopulatio

ement in p

ms of the cng in the Tcal firms aeached 33has declinehand, markal market this same

breakdowed that thethat of thes attention

13.20

1.49

2009

(billion)

e: IMS, IEIS

Medicina

dicinal prodpharmaceuillion Turk% over the

six-year gloased from ate in 201th rate (CAe inflation o

od, the secboxes in 20ncrease is

on in Turkepublic healt

concentratiTurkish maaccessed t7 in 2015.

ed by one pket concen

for pharm proportion

wns of thee share of e non-phans is that

13.06

1.57

2010

Tota

Chart

al Produ

ducts marutical mediish Liras (e same pe

obal budgthe level o

15. This gAGR) and over this s

ctor sold 1009. Annuthe growth

ey, increath services

on on the arket increathe marke Hence, thpoint for thntration intemaceuticalsn, 70% of w

e entire mthe presc

rmaceuticanon-reimb

13.32

1.72

2011

al Sales Val

1 - Turkish

4

ucts Ma

ket, includcinal prod(TL) with ariod, reach

et period of 13.2 billgrowth me

a decline ix-year pe

.94 billional growth rh of deman

ase in aves and drugs

entire maased from t in the re

he market he last six yensified. Ws in 2009,which are m

medicinal pcription andal productursed prod

12.68

1.77

2012

lue

h Medicinal

arket

ding drugs ucts, attaina growth rhing 1.94 b

between ion TL in 2

eans an aof 16% in

riod.

boxes, corate on comnds stemmrage life es.

arket, the n73 in 2009

espective pshare of foyears to be

While 45 c, six yearsmultination

product md non-press has incrducts have

13.41

1.77

2013

Total

Products

licensed bned doublerate of 15.billion units

2009 and 2009 to 16nnual 4.2%n real term

onstituting mpound ba

ming from thexpectancy

number of 9 to 118 in period; theoreign firmecome 67%ompanies s later, 60nals.

market arescription drreased. Ae grown w

14.60

1.82

2014

Sales Volum

Market

by the Mine-digit grow5% in 201

s.

2015, the6.86 billion % rise in

ms when w

a 30.3% inasis in unithe increasy, and sig

f the foreig2015. In a

e number ms within th

% in 2015.made up

0 compani

e examinerugs has d

Another isswithin the

16.86

1.94

2015

me

Box (

nistry of wth and 15. Unit

e entire TL with annual

weighed

ncrease t term is sing and gnificant

gn firms addition, of local

he value On the 90% of es now

d, it is declined sue that last six

0,8

1,0

1,2

1,4

1,6

1,8

2,0billion)

5

Table 1- Overall Market Sub Distributions 2009 2015 Value

(Billion TL) Share Value

(Billion TL) Share Medicinal Products Market 13.20 100% 16.86 100% Drugs 12.71 96.3% 15.87 94.1% Prescription Drugs 12.60 95.5% 15.82 93.8% Reimbursed 12.35 93.6% 14.67 87.0%

Non- reimbursed 0.25 1.9% 1.15 6.8% Non- prescription Drugs 0.10 0.8% 0.04 0.3% Reimbursed 0.10 0.8% 0.02 0.1%

Non- reimbursed 0.00 0.0% 0.03 0.2% Non- pharmaceutical Drugs 0.49 3.7% 0.99 5.9% Reimbursed 0.04 0.3% 0.00 0.0%

Non- reimbursed 0.46 3.5% 0.99 5.9% Source: IMS, IEIS a. New Product Entries on the Market

A total of 552 new products were launched on the medical product market in 2015, of which 358 were licensed drugs and 194 were non-pharmaceutical products such as food supplements. The number of the products reimbursed as of 2015 was 8,104, and 292 of the products added to the market were included on the reimbursement list.

Table 2- Quantitative Distribution of the Products in the Market 2015

Market Total 11,233 Entries 552 Drugs 358 Non- pharmaceutical Drugs 194 Reimbursement List 8,104 Entries 292 Withdrawals 532

Source: IEIS b. Average Prices

While prices of non-pharmaceutical products increased between the years 2009 and 2015, the prices of drugs declined. Average price on the medicinal products market was approximately 9 TL, which was 8.5 TL in drugs and 14 TL in non-pharmaceutical products.

Table 3- Average Price Distribution Years Medicinal Products Drugs Non- pharmaceutical products2009 8.84 8.85 8.53 2010 8.33 8.31 8.63 2011 7.75 7.66 9.51 2012 7.17 7.05 9.71 2013 7.56 7.38 12.18 2014 8.01 7.83 12.78 2015 8.67 8.47 14.03

Table 4C

2020

Source: 1.1.

Turkeyby 15.6reachin

Regardcontribthe curdistribu In this million that in Avolumeforemoresultedtime in million marketprovide

1

1

1

1

1

Source

TL

4- AverageChange 009-2015 014-2015 IMS, IEIS

Turkish

y’s pharma6% from tng 1.87 bill

ding the soute to growrrent portfoution.

context, 2TL) on theApril and J

e increase ost contribud from inc 2015 conTL). How

t, i.e. the ed 4.17 per

12.71

1.44

6

8

0

2

4

6

8

2009

e: IMS, IEIS

L (Billion)

e Price ChMed

Drugs M

ceuticals mhe previouion units.

ources of wth in the olio, new

2.84 percene pharmacJuly 2015, in the currution to mcreases in ntributed towever, chan

change ircentage p

12.30

1.48

2010Tota

hange dicinal Pro

-1.9% 8.2%

Market

market reaus year. U

growth onvalue scalproduct e

ntage poinceuticals mthere was

rent producmarket grow

volume ano the grownges in thn sales v

points (572

12.49

1.63

2011al Sales Val

Chart 2-

6

ducts D-

ached a sizUnit sales r

n the marle. These antries into

nts (390 mmarket resu

a total incct portfoliowth. 5.8 pnd the pro

wth of the mhe sales dvolume tow2 million TL

11.87

1.68

2012ue

Turkish Dr

Drugs No-4.4% 8.2%

ze of 15.87rose by 6.

rket, there are the vo

o the portf

million TL) oulted from crease of 6 was the m

pp (792 moducts entemarket by istribution ward expe

L) of contrib

12.62

1.71

2013Total Sales

rugs Marke

on- pharma6

7 billion TL.8% over t

are four lume and olio, and c

of the 15.6price incre.08% in the

main factorillion TL) ered the m2.8 percenof current

ensive or bution to g

13.73

1.75

2014Volume

et

aceutical pr64.5% 9.8%

L in 2015, gthis same

main factoprice increchanges i

6% growthease. It is e Euro valr that proviin market

market for ntage point products cheap pr

rowth.

15.87

1.87

0

1

1

1

1

1

2

2015

Box (billio

roducts

growing period,

ors that eases in n sales

h (2.140 notable ue. The ded the growth

the first nts (386

on the roducts,

0,8

,0

,2

,4

,6

,8

2,0on)

Betweebillion Tyear pe 1.1.1. a. Orig The ori11.11 bwas prgrew bmarket In unit followinhighestgrew by Due tobetweedetermlegislatgenericincreasfolloweoriginat

Sale

Sou

en 2009 aTL in 2009eriod, reac

Marke

ginator - G

iginator drubillion TL iimarily spu

by 16.6%. t in 2015, r

terms, thng increaset level of iy 5% and 8

o the factoen 2009 a

mines the dtion, and tc drugs forsed in totaled a slight tor drugs a

es Distribut

New Produ

Volu

Pr

urce: IMS, IE

and 2015, 9 to 15.87 hing 1.87 b

et Distrib

Generic Dr

ug market,in 2015. Aurred by inGenerics eaching 4.

he growth es by 11%ncrease s8%.

ors like theand 2015, drug priceshe increasr the initial by 25.3%increase

and 30.9%

0,0%

ion

cts

me

rice

EIS

the pharmbillion TL billion units

bution

rugs

which stoAn increasencreased sin Turkey .76 billion T

of origina% and 10%ince 2012

e cost oriethe omiss

s, despite se of the d 5 years h and 23.9%in the Eurin generic

2,0%

Chart

7

maceuticalsin 2015. Us.

ood at a vae of 15.3%

sales of imachieved

TL with a 1

ator and g% respectiv

. The orig

ented pricesion of Eu

the fulfillmdiscount rahave taken% in value,ro value in

c drugs in t

2.81 pp

2.84 pp

4,0%

3- Sources

s market gUnit sales r

alue of 9.63% from theported origa growth

16.4% incr

generic drvely. In 20inator and

e policies uro value ment of thates, the gn place in l, respectivn 2015. Uthe same p

4.17 pp

5

6,0%

s of Growth

grew by 2rose by 30

3 billion TLe previous ginator druabove theease.

rugs was 015, this g generic d

implemenin determ

he conditiogrowth in timited ratiely, due tonit sales r

period.

.77 pp

% 8,0

h

24.9% from0.6% over t

L in 2014, ryear, this

ugs, which e pharmac

dormant igrowth reacdrugs resp

nted in theining upda

ons soughthe originaos and the

o the recovrose by 30

0%

m 12.71 this six-

reached growth in itself euticals

n 2011 ched its

pectively

e period ate that t in the

ator and ey have very that 0.2% in

On thechangereceive

When observedrugs timporteHealth

8.

3

6

9

12

2

TL (bil

Source

0%

25%

50%

75%

100%

Source

Chart 4-

Chart 6-

e entire me significaned 48% of t

the imported that thetoward loced generichave been

.868.43 8.4

3.84 3.86

2009 2010 2Origin

llion)

e: IMS, IEIS

30.2%

69.8%

2009

e: IMS, IEIS

- Originato

- Market ShDru

arket, the ntly over tthe total m

t-local diste shifting tcal producc drugs, thn effective.

43 8.018.7

6 4.07 3.87

011 2012 20ator Ge

30.0

70.0

201

or-Generic D

hare of Oriugs (Value

market sthe course

market shar

tinction of tendency oction is one abroad .

759.63

11.1

3.87 4.09

013 2014 20eneric

0%

0%

15

Origina

Generic

Drugs (Val

ginator-Ge)

8

shares of ge of the pre but com

the originof originatongoing. It GMP insp

11

4.76

0150,60,70,70,70,80,80,90,90,91,0Bo

So

ator

c

0%

25%

50%

75%

100%

Sour

ue) Cha

eneric Ch

generic anpast six-yeprised 70%

nator-generor drugs tois thought

pections ca

0.70 0.70.74

0

66707478828690949802

2009 20Ori

ox (billion)

ource: IMS, I

51.4%

48.6%

2009rce: IMS, IEIS

art 5- Origi

hart 7- Mar

nd originatar period.

% of total m

ric drugs ioward impot that in tharried out b

71

0.78 0.81

0.77

0.85 0

010 2011 20ginatorEIS

% 5

% 4

9 2S

nator-Gene

ket Share oDrugs (V

tor drugs Originato

market valu

is examineort and of he downsby the Min

1 0.83 0.860.87 0.87 0

012 2013 20Generic

51.6%

48.4%

2015

Origin

Gene

eric Drugs

of OriginatVolume)

did not or drugs ue.

ed, it is generic izing of nistry of

6

0.91 0.89

0.97

14 2015

nator

eric

(Volume)

tor- Genericc

Table 5

Box (mn)

TL (mn)

Source: b. Impo The groover ththroughperiod. line witbillion b Neverth22.5% realizedperiod.

7.1

5

4

6

8

10

200

TL (bil

Source

Ch

5- Sub DisO

20Import 37% 258 75% 6,644

IMS, IEIS

ort-Local

owth in imhe last thrh 16% gro By volumth the incboxes thro

heless, draggregated, and a vo

2 7.17 7.2

5.59 5.89 6

09 2010 201Import

llion)

e: IMS, IEIS

hart 8- Imp

stributionsORIGINATO09

Local 63% 439 25% 2,220

Drugs

mport drugsree years.

owth; they me, the imp

rease in dugh 55.7%

ugs manuely to reacholume of 1

7

6.32 7.0

6.05 5.56

11 2012 201l

port-Local D

s of OriginOR DRUGS

201Import 49% 445 79% 8,797

s, stagnant In 2015, have prov

ported drugdemand fo

% increase

factured loh 6.85 billio.4 billion b

1

7.77

9.02

5.61 5.96

6

13 2014 201local

Drugs (Valu

9

nator-GenS 15

Local 51% 462 21% 2,309

t until 2012 imported

vided totallygs, which

or pharmain 2015.

ocally havon TL. In uboxes was

2

6.85

15

0

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

Box

Sou

ue) Cha

eric DrugsG

2009Import

6% 46

12% 472

2, has stardrug sale

y 26.7% ohad 0.33 ceuticals,

ve increaseunit terms,

attained th

0.30 0.41 0.

1.13 1.16

2009 2010 2Import

x (billion)

urce: IMS, IE

rt 9- Impor

s GENERIC D9

Local 94% 692 88% 3,371

rted to exhes reacheof growth wbillion-boxreached a

ed in the a total of 2hroughout

46 0.39 0.4

1.26 1.29

2011 2012 2t

EIS

rt-Local Dru

DRUGS 2015

Import 3% 27 5% 232

hibit a risind 9.02 bil

within the sx sales in a volume

last six ye23.8% growthe global

42 0.44 0

1.29 1.32

2013 2014 2Local

ugs (Volum

Local 97% 939 95% 4,530

ng trend llion TL six-year 2009 in of 0.47

ears by wth was budget

0.47

1.40

2015

me)

The im

Almost to haveTurkey pharma Table 6

Box (mn)

TL (mn)

Source: c. Biot

183 repharmaproducdrugs w The ref2014, gprescri In Turkalpha, been lsubstanthe numthe exp

0%

25%

50%

75%

100%

Char

Source

mported dru

t all importe a smalley in valueaceuticals.

6- Sub-Dis

20Ori. 85% 258 93% 6,644

IMS, IEIS

technolog

ference biaceutical m

ced in ourwith 2.57 b

ference biogrew by 19ption drugs

key, biosimerythropoieicensed ances of enmber of biopiry of the p

44.0%

56.0%

2009

rt 10- MarkDr

e: IMS, IEIS

ugs marke

ed producr share in e terms

stributionsImport

009 Gen. 15% 46 7% 472

ical Drugs

iotechnolomarket andr country. billion TL in

otechnolog9.4% in 20s market in

milar prodetin, erythr

and, amonnoxaparin osimilar propatent peri

%

%

et Share ofrugs (Value

et continue

ts were colocal prodand 67%

s of ImporDrugs

201Ori. 94% 445 97% 8,797

s

gical andd the prodBiotechno

n 2015.

gical pharm015 to totalncreased to

ucts contaropoietin a

ng them, tsodium, eoducts williods of the

43.2%

56.8%

2015

Imp

Loc

f Import-Loe)

10

es to incre

onstituted bduction. In

% of drug

rt-Local D

15 Gen. 6% 27 3% 232

38 biosimduction of ological dr

maceuticall 2.5 billiono 16.6% in

aining abcalpha, filgrathose propoetin alpl increase

e reference

port

cal

ocal

0%

25%

50%

75%

100%

C

Sou

ease its sh

by originat2015, 66%

gs in volu

rugs

200Ori. 39% 439 40% 2,220

milar drugs13 (34%)

rugs const

l market, wn TL. The sn 2015.

ciximab, eastim, inflixduced inha, and inrapidly in t

e biotechno

78.8

21.2

%

%

%

%

%

200

Chart 11- MLoca

urce: IMS, IE

hare partic

or drugs, a% of drugsume term

Local D09

Gen. 61% 692 60% 3,371

s are avail) of the btituted 17%

which was share of th

noxaparin ximab, andTurkey cofliximab. Itthe forthcoological dru

8% 7

2% 2

09

Market Shal Drugs (Vo

EIS

cularly by v

and they cs manufac

ms were

rugs 2015

Ori. 33% 462 34% 2,309

lable on Tiosimilar d% of pres

2.09 billiohese drugs

sodium, d somatropontain thet is expect

oming periougs.

74.7%

25.3%

2015

Imp

Loc

re of Impoolume)

volume.

continue tured in generic

5 Gen. 67% 939 66% 4,530

Turkey’s drugs is scription

on TL in s on the

epoetin pin have e active ted that od upon

port

cal

rt-

Biosim

In 2009their sh

When appearproportbiotechtheir aantineodrugs.

1

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2

TL (b

Ch

S

0%

20%

40%

60%

80%

100%

Source

Chart

ilar drugs m

9, biosimilahare becam

biotechnolrs that antition amonhnological analogs aroplastic dru These gro

.19 1.38 1

0 0 0

009 2010 20

Referenc

billion)

hart 12- Bio

Source: IMS,

100%

0%

2009e: IMS, IEIS

14- MarketBiosimilar

market inc

ar drugs wme 3% in te

logical proianemic prg biosimilaproduct mre at the ugs have toups are n

.30 1.43 1.7

.01 0.02 0.0

011 2012 20

ce Biosim

otechnolog(Value)

IEIS

97%

3%

2015

t Share of Rr Drugs (Va

reased by

ere hardlyerms of va

oducts are reparationsar product

market, theforefront.

the share ot present

73 2.09

2.4

04

0.05

0.0

13 2014 201

milar

gical Drugs

%

5

Referen

Biosimila

Reference-alue)

11

59.3% to

y present aalue and 7%

classified s and antitts significa

e immunom. The insof 26% anwithin the

49

07

15

s

4

9

14

19

24

2

Box

C

nce

ar

0%

20%

40%

60%

80%

100%

Sou

- Cha

reach 73.6

among the % in terms

on the bathromboticantly in si

modulator aulin group

nd 10% resbiosimilar

8.72 10.53 1

0 0.02

0

2009 2010 2

Refere

(million)

Chart 13- B

Source: IM

100%

0%

%

%

%

%

%

%

2009rce: IMS, IE

rt 15- MarkBiosimila

6 million TL

biotechnolof boxes i

asis of thedrugs hav

x years. Oagents, insps and thspectively products g

1.99 13.92

1

0.09 0.30

0

2011 2012 2

nce Bios

Biotechnolo(Volume)

S, IEIS

% 93

7

9 20IS

ket Share oar Drugs (V

L in 2015.

logical drun 2015.

e ATC 2 gve increasOn the resulin grou

heir analoamong re

group.

5.91 17.84

1

0.90 0.97

1

2013 2014 2

similar

ogical Drug)

3%

7%

015

Refer

Biosim

of ReferencVolume)

ugs, and

group, it ed their

eference ps, and gs and

eference

9.68

1.46

2015

gs

rence

milar

ce-

12

Table 7- Biotechnological Drugs Box Value 2009 2015 2009 2015 Biosimilar 100% 100% 100% 100% Antianemic Preparations 0% 14% 0% 39% Antithrombotic Drugs 0% 75% 0% 27% Immunomodulator Agents 100% 8% 100% 22% Pituitary and Hypothalamus Hormones and Analogues 0% 4% 0% 12% Reference 100% 100% 100% 100% Immunomodulator Agents 8% 7% 34% 32% Insulin and Analogues 62% 61% 25% 26% Antineoplastic Drugs 2% 1% 15% 10% Ophthalmologics 0% 1% 1% 7% Digestive System and Metabolism 0% 0% 2% 5% Vitamine K and other hemostatics 0% 1% 1% 5% Antianemic Preparations 4% 2% 10% 3% Antithrombotic Drugs 17% 20% 3% 3% Sex hormones and Genital System Modulators 2% 2% 4% 3% Pituitary and Hypothalamus Hormones and Analogues 3% 4% 4% 3% Other systemic drugs for obstructive airway diseases 0% 0% 0% 2% Serum Immune Globulins 0% 0% 1% 1% Source: IMS, IEIS d. New Drug Entries on the Market The treatment group that has the highest proportion on quantity basis among the 358 drugs newly launched on the market has been the drugs for nervous system. 47 nervous system drugs, 42 antirheumatic drugs, 39 antibiotic drugs, 34 common cold medications and cough medicines, 27 vitamins and minerals, and 26 oncology drugs have entered the market during the last year. A total of 76 pieces of originator products, 2 of which were biotechnological and 74 chemical, entered the market in 2015. 65 (86%) of the products in question do not have a generic competitor; only 2are produced in Turkey. The average price of the 65 products is 81 TL. 282 generic drugs newly accessed the market, of which only 16 are imported. The average price of these 282 drugs is 8.5 TL.

Table 8- Quantitative Distribution of Drugs in the Market 2015

Market Total 11,233 Entries 552 Drugs 358 Original 76 With Generics 11

Without Generics 65 Generic 282 Import 16 Local 266

Source: IEIS

13

e. Treatment Groups A scrutiny of the market in terms of treatment groups will demonstrate that oncology and blood products have tended to increase, but antibiotics and antirheumatics have been prone to decrease in the last six years. The group that had the highest share on the market was the oncology products group with 11.1% proportion in 2015. The group that increased most in 2015 was the cardiovascular products group with a 54% increase.

In unit terms, antibiotics continued their tendency to decrease in 2015 as well and became the second most widely consumed treatment group with 10.5% proportion. The antirheumatic product group continued to increase its market share as it maintained its position in the top rank. The product group that exhibited the highest level of increase in 2015 by volume became the cardiovascular drugs.

8.4%

11.11%12.6%

8.0%

13.3%

4.2%

5.0%

8.1%6.2%

3%

5%

7%

9%

11%

13%

15%

2009 2010 2011 2012 2013 2014 2015

Oncology

Antibiotics

Cardiovascular

Blood Products

Antidiabetics

Antirheumatics

Market Share

13.8%12.1%

14.4%

10.5%

8.2%8.7%

9.4%

8.1%

7.5% 7.2%

5.3%5.8%

4%

6%

8%

10%

12%

14%

16%

2009 2010 2011 2012 2013 2014 2015

Antirheumatics

Antibiotics

Cardiovascular

Caugh and ColdMedicines

Anelgesics

Digestive SystemMedicines

Chart 16- Therapeutic Groups (Value)

Source: IMS, IEIS

Chart 17- Therapeutic Groups (Volume)Market Share

Source: IMS, IEIS

14

1.1.2. Drug Prices a. Pharmaceutical Price Legislation Price reference system was first introduced in 2004 in Turkey with the intent of checking governmental healthcare expenditures through associating the price of pharmaceuticals to the lowest price at which a similar pharmaceutical product is produced within a basket of five European nations (France, Greece, Italy, Portugal and Spain). Whichever region produces a specified pharmaceutical at the lowest price, that price is taken to be the reference price for producer prices in Turkey. Once a reference price has been set, official prices of products in different categories are established based on a fraction of the reference price. For example, while an originator product with no generic competitor may have the right to receive 100% of the reference price, an originator and generic product that compete against one another are subject to 60% of the reference price. In effect, the result of this is that as soon as a generic drug that competes against an originator product is introduced on the local market, the price of the originator product falls by 40%. Since the source prices are traced in Euro currency, a fixed foreign currency exchange rate in Euro is determined by the Price Assessment Commission to convert them into TL. This value is determined as 70% of the Euro average of the previous year. For 2016, the conversion Euro value is 2.1166 TL. Table 9- Reference Price Ratios

Producer Price (TL)

2009 2010

-2011

2012-

2014 Producer Price (TL) 2015

Producer Price (TL) 2016

Originator

3.55 and below 100 100 100

3.62 and below 100

3.83 and below 100

3.56- 6.78 100 100 100 3.63- 6.92 100 3.84-7.32 100

6.79 and over 100 100 100

6.93 and over 100

7.33 and over 100

Originator with

Generic and the Generic Product

3.55 and below 100 100 100

3.62 and below 100

3.83 and below 100

3.56- 6.78 80 66 60 3.63- 6.92 60 3.84-7.32 60 6.79 and over 80 66 60

6.93 and over 60

7.33 and over 60

Twenty Years

3.55 and below 100 100 100

3.62 and below 100

3.83 and below 100

3.56- 6.78 100 100 100 3.63- 6.92 100 3.84-7.32 100

6.79 and over 100 100 80

6.93 and over 80

7.33 and over 80

Once a producer price is established by the Ministry of Health, discount rates are applied by the Social Security Institution (SSI) for granting reimbursement status. The following table shows discount rates applied for different product groups.

Source: TİTCK (Ministry of Health, Medicines and Medical Devices Agency of Turkey)

15

The discount thresholds have been updated in parallel with the exchange rate increase in order to be valid from February 22, 2016, and the discount ratios in some product groups have been reduced as well. Additionally, price increases between 10% and 20% were applied gradually to the low-price products whose retail sales price was 5.63 TL and below. Likewise, a 3% price increase was applied to the twenty-year-old products whose price range was between 5.64 and 10.77 TL. The recent changes in our sector are promising. Such developments will pave the way for our country to be a more powerful producer and exporter of pharmaceuticals. Table 10- Discount Rates

Producer Price(TL): 2009 2010 2011 2012 2013

-2014

2015

2016

Originator

3.55 and below

4 4 4 4 0

3.62 and below

0 3.83

and below

0

3.56- 6.78

24 23 32,5 41 20 3.63- 6.92 20 3.84-

7.32 10

6.79 and over

24 23 32,5 41 41 6.93 and over

41

7.33-11.02 31

11.03 and over

41

Originator with

Generic and the Generic Product

3.55 and below

4 4 4 4 0

3.62 and below

0 3.83

and below

0

3.56- 6.78

11 11 20,5 28 20 3.63- 6.92 20 3.84-

7.32 10

6.79 and over

11 11 20,5 28 28 6.93 and over

28

7.33-11.02 18

11.03 and over

28

Twenty Years

3.55 and below

4 4 4 4 0

3.62 and below

0

7.32 and below

0 3.56- 6.78

11 11 11 11 7 3.63- 6.92 7

6.79 -10.21

Local - - - 28 20

6.93 -10.42

20

7.33-11.02

10 Reference price available

11 11 20,5 28 20 20

10

No reference price

24 23 32,5 40 20 20

10

10.22 and

over

Local - - - 28 28

10.43 and over

28

11.03 and over

28 Reference price available

11 11 20,5 28 28 28

28

No reference price

24 23 32,5 40 40 40

40

Source: SSI Communique on Healthcare Practices b. Average Prices The highest level of decrease in the average prices between 2009 and 2015 took place in the imported drugs. In 2015, the average price was approximately 8.5 TL on

16

the prescription market, 12 TL on the originator drugs market, 19 TL on the imported drugs market, and approximately 5 TL on the generic drugs market. Table 11- Drug Average Price Distribution (TL)

Av. Price Drug RX Originator Generic Import Local 2009 8.85 9.16 12.71 5.21 23.38 4.94 2010 8.31 8.43 11.96 4.99 17.56 5.08 2011 7.66 7.76 10.77 4.79 15.71 4.82 2012 7.05 7.05 9.85 4.44 16.18 4.29 2013 7.38 7.38 10.48 4.43 16.65 4.36 2014 7.83 7.83 11.19 4.58 17.76 4.52 2015 8.47 8.47 12.24 4.93 19.03 4.89

Source: IMS, IEIS Table 12- Drug Average Price Change

Change Drug RX Originator Generic Import Local 2009-2015 -4.4% -7.6% -3.7% -5.4% -18.6% -1.0% 2014-2015 8.2% 8.2% 9.4% 7.5% 7.1% 8.2%

Source: IMS, IEIS c. Retail Price Ranges As of the end of 2015, the retail price distribution of drugs on the pharmaceutical market is as follows. The products under 5 TL constitute 13% of the total number of drugs on the market and the products above 250 TL constitute 8% of the market. 61% of the entire market consists of products priced below 25 TL.

Drugs above 250 TL and between 0 and 10 TL have increased their shares, whereas there has been a decline in the share of drugs priced in the 25-250 TL range on quantity basis within the originator drugs over the last six years. Drugs priced under 25 TL constitute half of this product group.

0-10 TL33%

10-25 TL28%

25-50 TL13%

50-100 TL10%

100-250 TL8%

>250 TL8%

Source: TİTCK, IEIS

2015

Chart 18- Retail Price Distribution

17

When the price ranges of generic drugs are examined, it is observed that generic drugs within 0-10 TL increased their share by 21 percentage points (pp) compared with 2009 and reached 38% as of 2015. A concentration on the 0-10 TL price range of generic products in the last six years is apparent.

The highest share in 2015 was in the product groups between 10 and 25 TL with 24% and above 250 TL with 20%. In comparison with 2009, the products above 250 TL increased by 11 pp and the products between 0 and 10 TL by 6 pp; the products between 25 and 50 TL declined by 12 pp.

0-10 TL15%

10-25 TL

25%

25-50 TL

25%

50-100 TL

17%

100-250 TL

12%

over 250 TL

6%

2009

0-10 TL24%

10-25 TL

26%25-50 TL

13%

50-100 TL

11%

100-250 TL

10%

over 250 TL

16%

2015

0-10 TL17%

10-25 TL

31%25-50

TL25%

50-100 TL

15%

100-250 TL

10%

over 250 TL

2%

2009

Source: TİTCK, IEIS

0-10 TL38%

10-25 TL

29%

25-50 TL

13%

50-100 TL

10%

100-250 TL7%

over 250 TL

3%

2015

Source: TİTCK, IEIS

Chart 19- Price Distribution of Originator Products

Chart 20 – Price Distribution of Generic Products

Source: TİTCK, IEIS Source: TİTCK, IEIS

18

A similar situation manifests within the local products, as most of them are generics. The product group that has the highest proportion is the 0-10 TL product group with a ratio of 42%. This group has increased its shares by 23 pp since 2009. Products under 25 TL constitute 72% of local products.

1.2. Non-pharmaceutical Products

Products available within the portfolios of pharmaceutical companies but which are non-pharmaceuticals include biocidal products licensed from the Ministry of Health, some medical devices in pharmaceutical form, medical formulas, cosmetics and

0-10 TL8%

10-25 TL

23%

25-50 TL

28%

50-100 TL

17%

100-250 TL

15%

over 250 TL

9%

Source: TİTCK, IEIS

2009

0-10 TL14%

10-25 TL

24%

25-50 TL

16%

50-100 TL

14%

100-250 TL

12%

over 250 TL

20%

Source: TİTCK, IEIS

2015

0-10 TL19%

10-25 TL

32%

25-50 TL

24%

50-100 TL

15%

100-250 TL9%

over 250 TL

1%

Source: TİTCK, IEIS

2009

0-10 TL42%

10-25 TL

30%

25-50 TL

12%

50-100 TL8%

100-250 TL6%

over 250 TL

2%

Source: TİTCK, IEIS

2015

Chart 21 - Price Distribution of Import Products

Chart 22 - Price Distribution of Local Products

dermocMinistryTurkish4% gro

2. Pro The indemonmanufapharmain suppheadingStrategAccordforthco

1

1

So

0%

13%

26%

39%

52%

65%

Source

cosmetic py of Foodh Liras in vowth in term

oductio

ndustry prstrates thacturing aaceutical inport of locag of “Impr

gic and Lingly, it isming years

-

200

400

600

800

.000

.200

2

ource: IMS, I

TL (Million

Man

Cha

e: TurkStat

products, , Agricultuvalue throums of boxe

on

roduction hat, in coand chemindustry baal productsoving the Local Dru expecteds.

492 7

58

8

2009 20T

IEIS

n)

43%

nufacturing

rt 24- Indu

food suppure, and Lugh 14% g

es in 2015.

index datomparison ical which

ased on higs has resuReimbursegs” in ththat local

764 83

89 8

010 20otal Sales V

Chart 23- N

strial Prod

19

plements Livestock. growth and

ta for theto mid-le

h grew bgh level teulted in onement, Prihe Turkishl productio

31 80

87 83

11 201Value

Non-pharm

47%

Chemist

uction Inde

and baby These prod 71 millio

e period evel techny 43% a

echnologyngoing acticing, and h governmon will incr

6 792

3

65

2 2013Total

maceutical

try

ex Change

formulas oducts reaon boxes o

between nology indnd 47% grew by 6vities carrLicensing ment’s 20rease in o

871

68

3 2014Sales Volu

Products

Pharm

e (2009-201

licensed ached 995of volume

2009 anddustries srespective

61%. Publiried out un

Processes016 actionur industry

995

71

2015me

Box

61%

maceuticals

5)

by the 5 million through

d 2015 uch as

ely, the c policy

nder the s of the n plan. y in the

- 10 20 30 40 50 60 70 80 90 100

(Million)

3. Re The phsignificcentersThrougsignific Pharma219.2 compoagainst

4. Fo The ind(EU), MTurkey9.1% The ex2009, isame pharmathe Tupharma On the six yeafrom 20US doldollars 20% w

25

50

75

100

125

150

175

200

225

Source

esearch

harmaceutantly to ths, 892 empgh the progant produc

aceutical Rmillion TLund growtt wholesale

oreign T

dustry’s exMENA and

y’s total ex

xport of phncreased period, Tuaceutical inrkey’s expaceuticals

other hanars; growth013 to 201lars. As a in 2015, a

ithin six ye

91.8

2009e: TurkStat

& Deve

tical indushe industriployees, 4gress in thects which w

R&D expeL in 2014.th rate (Ce inflation o

Trade

xport of pd CIS, acports decli

harmaceutiin six year

urkey’s totndustry, export increadecreased

d, pharmah rate has4, they droresult, the and exportears.

92.1

2010

Chart

elopmen

stry is oneal transfor32 complee field of Rwe are imp

nditure inc. This inc

CAGR) andover that fi

roducts tocceleratedined by 8.7

cals, whicrs by 96%tal exportsxporting neased from d by 6.9%.

ceutical im become

opped to thforeign tra-import co

194

201

25- Pharm

20

nt

e of the rmation ofeted and 3R&D, it willport depend

creased 13crease med a rise oive-year pe

o 160 counsignifican

7%, while

ch was at to reach

s grew byearly twice0.46% to

mports haveaggregatehe level of ade deficit overage rat

4.2 1

11 2

maceutical R

primary sf Turkey, w316 ongoinl be possibdent.

38% from eans an aof 66% in eriod.

ntries, largntly in 201

pharmace

the level o921 million

y 41%. The as mucho 0.64%. T

e not increly 4.1%. 2.7% in 20declined totio has inc

91.5

2012

R&D Spend

sectors thawith its 13ng projectsble to prod

91.8 millioannual 19%

real term

gely in the 5. During

eutical exp

of 474 milln US dollahus the co

as total nThe foreig

eased signiWhile imp

015 and beo the level reased by

210.3

2013

ding

at will co3 accredites, and 94 pduce in Tur

on TL in 2% rise in

ms when w

Europeang the samports increa

lion US doars in 2015ontributionnational exgn trade d

ificantly in ports did inecame 4.6of 3.68 bi9 points t

219.2

2014

ontribute ed R&D patents. rkey the

2009 to annual

weighed

n Union e year, ased by

ollars in 5. In the of the

xports,to eficit in

the last ncrease 1 billion llion US o reach

Table 1

Year

2015201420132012201120102009

Source: When tTurkeytotal traat the industrybeen e  

 We hopharmaproducindustryworld bachieveproblemcountrieemerge The lowin low eother cto accecountryprices o

0%

3%

6%

9%

12%

Source:

13- Import

r Exp

5 924 843 802 701 610 609 47TurkStat

the contriby’s total forade deficit level of 1y’s increasffective.

ope that aceutical in

cts with higy to be onbut there aed by ovems experiees, and poe as the m

w price poexport valu

countries toess and cy. In this caon the exp

0,46%

3,1%

10,2%

2009PharmacePharmace

Cha

TurkStat

t and Expo

port Cha

21 9.45 5.00 1209 1610 1.03 2870 1.

bution of threign trade

resulted f0.2% in 2sing expor

parallel tndustry wi

gher addedne of the leare still soercoming enced in Golitical andost compli

licies appliue. Adaptao which wecompete inase, our p

port market

0,53%

2,6%

5,8%

2010eutical Exporteutical Deficit

art 26- Pha

ort of Pha

ange Ex

.1% 4,6

.6% 4,72.9% 4,46.2% 4,3.2% 5,08.3% 4,7.4% 4,4

he foreign e deficit is from the p2009. In thrts and pu

to these ll reduce t

d-value it weading prome impedsuch imp

GMP inspecd economicated obst

ied in Turkation of thee export mn a marketroducers mts where th

0,45%

2,1%

4,2%

2011t/Overall Expt/Overall Def

rmaceutica

21

armaceutic

port Cha

605 -2.731 5.6482 3.2342 -14074 6.3773 7.9425 -6.

trade defianalyzed, harmaceuthe rapid dublic secto

positive dthe foreignwill producoducers animents to

pediments. ctions andic setbacktacles to in

key constite drug pric

makes it dift with suitmay preferhe possibil

0,46%1,8%

4,3%

2012portficit

al Industry

cal Produc

ange Exp

7% 6% 2%

4.4% 3% 9% 5%

icit of the it is obse

tical indusdecline of or policies

developmen trade dee. It is oned exporterit. The tar Low dr

licensing s encount

ncreasing p

ute one ofces in our fficult for Ttable pricer contract pity of produ

0,53%1,8%

3,7%

2013Pharm

within Tur

cts (Millio

ort/Import

20.0% 17.9% 17.8% 16.3% 12.0% 12.6% 10.6%

pharmaceurved that 5try. Howevthe sharefor reduc

ents in foeficit of Ture of the bars of pharmrgets of therug pricesprocessesered on thpharmaceu

f the most country as

Turkish phaes for the production uction is av

% 0,54%2,0%

4,6%

2014maceutical Im

rkish Foreig

n USD) Foreign Trade Deficit -3.684 -3.887 -3.682 -3.633 -4.464 -4.171 -3.955

uticals ind5.8% of thver, this rae in questicing import

oreign trarkey by exasic targetsmaceuticale industry

s in our cs in the reshe target mutical expo

significants source parmaceuticconditions to receivevailable.

% 0,64% 2,2

%5,8

4 201mport/Overall

gn Trade

Change

-5.2% 5.6% 1.3%

-18.6% 7.0% 5.4% -7.4%

ustry to he 2015 atio was ion, the ts have

de our xporting s of our s in the can be

country, spective markets rts.

t factors prices in cal firms s of the e higher

4%

%

%

15 Import

22

In addition, also for the same reason, export value per kilogram is declining on an annual basis. Our exports grow in terms of quantity, but such increase is not reflected into value. Hence, since 2010 such value has decreased by 16% to 27.2 US dollars from 32.3 US dollars. Table 14- Export Value per Kg (USD)

2001-2005 2006-2010 2011-2014 32.5 32.3 27.2

Source:International Trade Center One of the setbacks to overcome for increasing and facilitating the export of pharmaceuticals is that the GMP certificates granted to our production facilities by Turkey are not recognized by some health authorities in foreign markets. Currently, re-performance of inspection and reissuance of a GMP certificate by the recipient country inflict significant expenses and loss of labor and time. South Korea, the U.S.A., Iraq, Germany, Switzerland, and Azerbaijan were the countries to which the sector exported most in 2015. The most important import markets are Germany, U.S.A., Switzerland, France, and the United Kingdom. Table 15- Export on Basis of Countries (Million USD) Country 2015 2014 2015-2014 (%) South Korea 225 110 104% U.S.A. 53 45 18% Iraq 52 48 8% Germany 50 58 -13% Switzerland 48 60 -20% Azerbaijan 31 29 6% Russian Federation 27 32 -18% TRNC 26 29 -8% Iran 25 44 -43% Slovenia 21 18 18%

Source: TurkStat Table 16- Import on Basis of Countries (Million USD) Country 2015 2014 2015-2014 (%) Germany 817 883 -7% U.S.A. 557 598 -7% Switzerland 421 429 -2% France 389 450 -14% England 306 298 3% Ireland 301 281 7% Italy 298 326 -9% South Korea 225 137 64% Denmark 164 160 2% Spain 164 135 22%

Source: TurkStat

5. Fin The prinegativAccord2015 athe phadeclinebehind These contrasis obvioindustr2009 aand 57

These profitabsame p

-30%-20%-10%

0%10%20%30%40%50%60%70%

Source

0%1%2%3%4%5%6%7%8%9%

Source:

nancial

ice-orienteve impact ing to datas part of tharmaceutice in net sa

the manuf

declines st to other ous when ies. While nd 2014, n.5% respe

declines bility of theperiod, it fe

52

Manu

e: Ministry of

5.8%

Manuf

: Ministry of S

Results

ed policies on the

a publisheheir “Entrecal industryales and afacturing a

have beemanufactupharmacenet pharm

net sales inctively.

are also e entire mell by 2 poin

2.4%

facturing

Chart 27

f Science, Ind

6.1%

facturing

Chart

Science, Ind

s

made undfinancial d by the Mpreneurs Iy decreaseasset gen

and chemic

en unique uring induseuticals aremaceuticaln manufac

observed anufacturinnts in phar

- Real Cha

dustry and T

2009

28- Operat

ustry and Te

23

er the globperforman

Ministry of nformationed betweeeration. T

cal industri

to the pstries that ae compare sales dec

cturing and

in operatng and chrmaceutica

57.5%

Chemistry

ange in Net

echnology

7.2% 7.5

Chemistry

ting Profita

echnology

bal budgetnce of thScience, I

n System,”n 2009 anThe pharmes.

pharmaceuare less teced to the mclined by 2

d the chem

ting profitahemical indal industry.

Sales (200

5%

y2014

ability/Net S

applicatioe pharmandustry, athe opera

nd 2014, mmaceutical

utical induchnologica

manufactur23% in reaical indust

ability. Whdustries inc

-23.0%

Pharmaceu

09-2014)

8.5%

Pharm4

Sales

on inevitablaceuticals and Technoating profitamarked by

sector re

ustry, stanally intensivring and cal terms btry grew by

hile the opcreased o

%

uticals

%6.6%

maceutical

ly had a sector.

ology in ability of a steep

emained

ding in ve. This hemical

between y 52.4%

perating ver this

The sitsector. to increwhich 2009.

Due topharmaand chsupporto deveforeign

0%2%4%6%8%

10%12%14%16%18%

Sour

0%

5%

10%

15%

20%

25%

Sou

uation wasAlso in 20

ease theiroperates

o such naceutical semical ind

rt the sectoelop new p markets th

6.0%

Manuf

rce: Ministry

1

Manu

rce: Ministry

s negative 014, the mar net profiin an adv

egative dsector natudustries on or and propproducts whrough the

10.2%

facturing

C

of Science, I

7.2%

facturing

Chart 3

y of Science,

also in teranufacturintability comanced tec

evelopmenurally did n

real basispel it on pawith highere allocation

2009

hart 29- Ne

Industry and

30- Real Ch

Industry and

24

rms of netng and chempared to

chnology c

nts in pronot grow as. This sateace with ter added van of sufficie

7.1%

15

Chemistr20

et Profitabi

Technology

22.7%

Chemistry

hange in Eq

d Technology

t profitabilitemical induo 2009. Tclass, rem

ofitability, as much ae of the eqechnologicalue that went resourc

.8%

ry014

lity/ Equity

y

quity (2009

y

ty within thustries founThe pharmained belo

the equits that of tquity capitacal developwill create ces for R&D

10.8%

Pharm

y

6.1%

Pharmaceu

-2014)

he pharmand the opp

maceutical ow the fig

ty capital the manufaal is insuffipments nedifferenceD in the m

%8.0%

maceutical

%

uticals

ceutical portunity

sector, gures of

of the

acturing icient to cessary

e on the idterm.

Scrutinremainits 9% g

6. Co Subseq2009, purposexpansquality Prograwere dbudget In addivalue unot updthe puindustrypharmacurrencadapta The unrate hapositiontake the

0%

5%

10%

15%

20%

25%

30%

35%

Sou

y of the med behindgrowth on

onclusio

quent to ththe publice of prov

sion occurand accesm. Throug

decreased t overrun fo

ition, despused for thdated fromrpose of y for the uaceutical scy annountion of 70%

nderstandinas brought n on econoe average

2

Manu

C

rce: Ministry

aterial fixe the increareal basis

on and A

he global cc authority viding savrred on thss to phys

gh inaccuraconstantly

or the phar

pite the fulfe conversi

m April 2009controllingupdate of tsector. Upnced first a% of the pr

ng of pricinthe pharmomic and cof the prev

24%

facturing

Chart 31- P

y of Science,

ed asset invase in the .

Assess

crisis and started to

vings on pe pharma

sicians withate interprey and SGKrmaceutica

fillment of on of the r9 to May 2 pharmacthe curren

pon the obas 2 TL wevious yea

ng that wasaceutical icommerciavious year

Property Pla

Industry and

25

vestmentschemical

sment

economico implemepharmaceu

aceutical mhin the fraetation of tK discounals.

conditionsreference 2015 and kceutical exncy was cobjection ra

was then dar’s Euro a

s far from ndustry intal groundsr rather tha

30%

Chemistry

ant and Eq

d Technology

shows thaand manu

c downturnent a globutical expmarket in mework ofthis conditt rates we

s required prices of pkept fixed axpendituresoncluded inised by thetermined

average as

the progreto an unpre

s. In this fraan 70% into

quipment (2

y

at the pharufacturing

experiencbal budgetenditures. line with f the Healtion, the prere increas

in the legpharmaceuat the leves. The lawn April 201he industry

as 2.1166the conve

ess of the edictable aamework, o account.

9%

Pharmaceu

2009-2014)

rmaceuticaindustries

ced at thet practice

Howeverimproved th Transforices of mesed by rea

gislation, thuticals into el of 1.9595wsuit filed 15 in favoy, the con6 TL for 2

ersion curre

current exand unsustit is neces

uticals

al sector despite

e end of for the

r, some service

ormation edicines ason of

he Euro TL was 5 TL for by the

r of the nversion 2016 by ency.

xchange tainable ssary to

In the pbut decsame ploses bconvers

1,82,02,22,42,62,83,03,23,4

3,6

Sou

period betwclined to 1period, whbetween 20sion rate in

802468024

6

04-0

906

-09

08-0

910

-09

12-0

9

Euro/TL

urce: Central

ween 20096% in real

hich was a009 and 20n 2015 but

1209

02-1

004

-10

06-1

008

-10

10-1

012

-10

I Bank of Tur

9 and 2015l terms adj

at the leve014 demot it still shri

1210

02-1

104

-11

06-1

108

-11

10-1

112

-11

mplementatrkey

C

26

5, the marjusted for

el of 52%. nstrated snking on re

12-1

102

-12

04-1

206

-12

08-1

210

-12

1212

tion

Chart 32- E

rket grew bthe manufThe mark

mall recoveal basis.

12-1

202

-13

04-1

306

-13

08-1

310

-13

1213

Ac

xchange R

by nominalfacturer priket that recvery with th

12-1

302

-14

04-1

406

-14

08-1

410

-14

1214

ctual

Rates

l growth ofice inflatiocorded sighe increase

1.9592

12-1

402

-15

04-1

506

-15

08-1

510

-15

1215

f 27.7% n in the

gnificant e of the

52.0787

2.1166

3.2688

12-1

502

-16