Istanbul, October …, 2009. The pharma sector prepares for a difficult period following a restrictive set of measures announced in the pricing decree of September 18, 2009 which was issued by a Government who seeks ways to further save on health expenditures. A survey of senior executives of members companies of the Association of Research-Based Pharmaceutical Companies (AİFD), an association of 40 research-based pharmaceutical companies, disclosed that new investments in the pharmaceutical industry were put to risk by these measures.

New investment difficulties

84% of the survey respondents stated that they did not expect their companies to invest further in capital or manufacturing, while 36% said that divesting was an option.

When inquired on R&D investments, 92% of the respondents said the new legislation could adversely impact new R&D investments in Turkey and predicted a retreat in this category of investments.

The survey also disclosed sector executives’ concerns that they were not engaged in constructive dialog. 68% of the respondents expressed sentiment that their views were not valued and underlined their displeasure of the sector being excluded from the decision making process.

AİFD to continue constructive collaboration

The current position of the pharmaceutical and health-care sector, which the Government listed among strategic sectors, is worrying, said Vice-Chairperson Engin Güner of the AİFD, and remarked:

“The new legislation entails the risk of distressing both patients and the industry. From the industry perspective, we predict serious problems in our production capabilities and new investments, which is confirmed by the recent survey of our members.”

Güner also said:

“We have met with the Government and SGK many times and presented them with a number of proposals through which we demonstrated areas where substantial savings could be achieved in the context of the cost-cutting effort. At this point, what we need is to focus on solution proposals that would not impede access of patients to drugs, not disrupt the national production chain and sectoral balance, and not jeopardize our national R&D and investment capabilities. AİFD shall continue to work with sector representatives and authorities to that end.”