Turkish Pharmaceutical Industry Expects Update in Pharmaceutical Rate

Turkish Pharmaceutical Industry Expects Update in Pharmaceutical Rate
Turkish Pharmaceutical Industry Expects Update in Pharmaceutical Rate

The big difference between the drug Euro rate, which is used to determine drug prices, and the current market rate, creates problems in the production of the industry and also causes problems in the access of the society to drugs. Pharmaceutical Industry Employers' Association expresses the expectation of a second exchange rate update during the year due to the exchange rate change.

Thanks to its deep-rooted history, the Turkish pharmaceutical industry, which continues its efforts for the access of the society to drugs, despite the increasing production costs and global supply problems in the Covid-19 pandemic, which has taken the whole world under its influence, is experiencing difficult times due to the drug rate. The increase in global energy prices, the continuation of the global problems in supply and logistics, the increases in the prices of active pharmaceutical ingredients, excipients, packaging materials and transportation carry the burden on the industry to an unbearable level. As a matter of fact, as of the end of 2021, the average cost increases in the pharmaceutical industry were 99% in active pharmaceuticals, 118% in excipients, 122,6% in energy, 228% in transportation and 103% in packaging materials. With all these cost increases, drug manufacturers are going through a difficult process due to the drug Euro exchange rate, which was announced as 2022 TL in February 6,2925. This figure, which is used to determine drug prices and which corresponds to only 40% of the current Euro exchange rate, is at an all-time low. For this reason, while there are problems in the production and supply of drugs, the pharmaceutical industry draws attention to the issue. Savaş Malkoç, General Secretary of the Pharmaceutical Industry Employers' Union, said the following on the subject; “The 2022 drug rate was determined as 6,2925 TL in February. The rate in question corresponds to only 40% of the current Euro rate, which is at an all-time low. Unfortunately, the drug rate is determined according to the average of the previous year, not the current year. This leaves the sector completely unprotected against the exchange rate risk that will be experienced in the current current year. As the Turkish pharmaceutical industry, our priority has always been the health of our country and people. With the awareness of our responsibility, we are working day and night to ensure that the pharmaceutical supply continues without interruption, even under these difficult economic conditions. However, we think that more than one update should be made in the drug rate during the year, starting this year, so that our industry does not suffer great losses and the society does not experience more problems in accessing drugs in the future.”

Savaş Malkoç also mentioned that the sector has long-term losses due to the low exchange rate; “The problem of drug dryness, which has been going on for many years, has now reached the point where it threatens the existence and development of our industry. As an industry, we have contributed with great sacrifices to the effort of our state to offer all kinds of drugs to our nation at affordable prices. In this context, we have long agreed to lower rates of increase in the drug exchange rate than specified in the legislation. Only in the last 5 years, the sector's exchange rate sacrifice has been 68%. However, the industry no longer has the strength to withstand it.” said.

In the continuation of Malkoç; “We believe that it is necessary for our industry, which has been trying to survive in the face of ever-increasing losses for many years, to return the pharmaceutical valuation rate to 70%. In addition, the discount rates and scales applied by the SSI must be reviewed this year. We think that this is very important in terms of both drug supply security in our country and to have a domestic and national pharmaceutical industry with high competitive power.” he said.

“Localization is indispensable for a domestic and national pharmaceutical industry”

Stating that localization is one of the most important moves in strengthening the sector, Savaş Malkoç, General Secretary of the Pharmaceutical Industry Employers' Union; “The benefits of the localization policy to the development of our Turkish pharmaceutical industry and to our country's economy are undeniable. Localization is indispensable for a domestic and national pharmaceutical industry, to which our President also attaches strategic importance. We know that our state is sensitive to this issue, and we wholeheartedly support all the steps taken. We expect our public institutions to act even faster to compensate for the time lost in this regard. The pandemic period has clearly shown us how important it is for countries to have a strong pharmaceutical industry of their own. As pharmaceutical manufacturers, we are ready for any task in order to contribute more to the process.”

“We are ready to become a global power in biosimilar medicine”

Mentioning the issue of biosimilar drugs, which will support the development of the industry and bring our country to a much more assertive position in the global arena in medicine, Pharmaceutical Industry Employers' Union General Secretary Savaş Malkoç said, “We must now focus on the future of our industry and our development in the field of biosimilars by solving the chronic price problem. We are in the age of biotechnology in medicine. In terms of our country's national interests and public health, we cannot miss this train. As the pharmaceutical industry, we have invested heavily in this area. We are poised to become a global force in biosimilar medicine. We expect our public authorities to demonstrate a will to pave the way for the development of our industry in the field of biosimilars, and to support biosimilar drugs developed and produced in our country with legislation, reimbursement and appropriate incentive policies. In this regard, I would like to express that we, as the pharmaceutical industry, are ready to give all kinds of support to our state, as we have done so far.”

“We expect the support of our President”

Emphasizing the domestic and national industry vision of our President, Malkoç said, “We had a request for an appointment from him in order to present the problems and issues of the Turkish pharmaceutical industry, especially drug rates and discount rates, to our President himself. We know that our President will not spare his support for our sector, whose strategic importance is clearly understood in this period, as he has done so far.” said.

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