Operating in Turkey since 1955, Sandoz contributes to the development of the pharmaceutical sector and adds value to the country's economy. We spoke with Cengiz Zaim, Sandoz Turkey Country Head, about the company's past, present, and outlook for the sector's future.
Could you introduce yourself briefly? Can you tell us about your education and professional background?
I am a graduate of Boğaziçi University's Department of International Trade. For over 20 years, I have had the opportunity to take on leadership roles in the healthcare sector across various regions of the world. Before my position at Sandoz Turkey, I was responsible for strategy, portfolio, and business development for markets outside Europe and the Americas at Sandoz's headquarters in Switzerland. Working on opportunities, challenges, and market dynamics in countries ranging from Brazil to Japan, I gained diverse experience. Coming to Turkey with this accumulated knowledge and experience gave me the ability to think more broadly and beyond borders. I have been serving as Sandoz Turkey Country Head for two and a half years and am also functionally leading Sandoz Russia operations.
Sandoz is an established company with a long history. Could you tell us about Sandoz's history and the stages it has gone through since its founding? When did Sandoz begin operating in Turkey? What products and services does it offer?
Sandoz has been operating in Turkey since 1955 and has maintained its commitment to our country for approximately 70 years. By contributing to the development of Turkey's pharmaceutical sector, we add value to the country's economy and ensure patients' access to quality medicines. We currently have over 80 products in Turkey and continue our operations with over 750 employees. Additionally, our employment figures in Turkey rank 10th among Sandoz countries. In 2023, Sandoz Turkey products reached 34 million patients.
Sandoz Turkey generates approximately 10% of Turkey's pharmaceutical exports. The biosimilar products we export fall into the high-technology product category. Since 2005, we have consistently ranked among Turkey's pharmaceutical export champions and work each year to increase our export volume. Our exports in 2022 amounted to approximately USD 65 million, and by the end of 2023, our export figures had risen to approximately double that amount, or USD 115 million. Our local partnerships are evidence of our efforts to contribute to the local market as a global company. Thanks to our partners and factory in Turkey, we produce 98% of the products in our Turkey portfolio domestically.
In how many countries does Sandoz operate and what are its main therapeutic focus areas?
Founded in 1886, Sandoz Global is a company known throughout its rich history for its firsts. Looking at Sandoz's history, we see a record of achievements including the first medicine used to treat calcium deficiency (1926), the first oral penicillin (1951), and the introduction of Europe's first (2006) and the U.S.'s first (2015) biosimilar medicines to the market. Since October 2023, we have continued our journey as an independent company listed on the Swiss stock exchange. We currently operate in over 100 countries with over 22,000 employees.
We conduct important work in priority areas such as biosimilar medicines, diabetes, oncology, respiratory, antibiotic medicines, and cardiology. We hold a leading global position in biosimilar medicines. Sandoz medicines reach over 500 million people annually and create a social impact of over USD 180 billion globally per year.
Biosimilar medicines are among the most discussed products in recent times. First, what are biosimilar medicines? Could you summarize Sandoz's work and approach on biosimilar medicines?
Biosimilar medicines are products developed as equivalents to biological medicines. These medicines offer the same efficacy and safety profile as the original biological medicines. As Sandoz, we have a strong portfolio in biosimilar medicines. Particularly after the pandemic, as reimbursement institutions' need for cost savings increased, demand for biosimilar medicines also rose. However, product development and manufacturing costs in this area are considerably higher compared to chemical products. For this reason, we see that competition in biosimilar products is less intense compared to conventional products.
We are the leaders in this field with 9 existing biosimilar medicines globally and 25 new biosimilar medicines planned for market. Following our independence as a company, we have a factory project with investment exceeding USD 400 million that is Europe-focused, vertically integrated unique manufacturing network aimed at ensuring uninterrupted medicine access. We have also made additional investments exceeding USD 100 million with Just-Evotec, an Austrian-based company, to further advance our product development capabilities. Over the past few years, our production line capacity has tripled, and through this, we have been able to double the production of our medicine used in growth hormone treatment in children where supply problems from different manufacturers have been experienced, thus enabling the growth of children in our country dealing with this problem.
Could you tell us about Sandoz Turkey's work on R&D, innovation, and sustainability?
As Sandoz Turkey, we place great importance on R&D, innovation, and sustainability. Our manufacturing facility in Gebze is one of Sandoz's three largest facilities globally and currently has an annual production capacity of 10 billion tablets. Products manufactured at this facility to Sandoz standards are exported to over 55 countries from Canada to the United Kingdom. To provide access to more patients, our ongoing USD 30 million investments at the factory will be completed within 2 years.
At the same time, we are taking important steps in sustainability. Our Gebze factory holds the "Zero Waste Certificate" and My Green Lab Certification. Additionally, it provides energy savings through 2,550 solar panels and we are making significant improvements in waste management. In addition to our current 2,550 solar panels, by adding 706 new solar panels to our facility, we will add 388kW to our installed solar capacity of 825kW.
What is Sandoz's approach and work regarding medicine accessibility?
As an institution, patient access to healthcare is our top priority. We focus on increasing access to make a difference for patients, and while working, we always keep patients at the forefront and do this very openly. Our biosimilar and equivalent medicines reduce costs on healthcare systems while increasing access to treatment. For example, we are currently developing biosimilars of two critical cancer treatment medicines that are not reimbursed in Turkey and conducting clinical trials in Turkey to enable access to these medicines. Following the registration process, we will include them in the reimbursement system to enable more cancer patients to access these medicines.
How do you currently assess the state of Turkey's pharmaceutical sector? What are your outlooks for the sector's future? What are Sandoz's targets for 2025?
Turkey's pharmaceutical sector is undergoing significant transformation, with localization and sustainability coming to the forefront during this process. In 2025, as Sandoz Turkey, we aim to reach more patients with our existing and newly launched medicines, maintain our leading position in equivalent medicines in our therapeutic areas, and become the fastest-growing foreign pharmaceutical company. On the other hand, we plan to increase the production capacity of our Gebze factory and further expand our biosimilar medicine portfolio. Finally, we aim to maintain pharmaceutical export championship by increasing and diversifying our export volume.
Finally, a question outside your business life. We know you love traveling very much. What is the chemistry of a good trip, what is essential for you?
I truly love traveling and the chemistry of a good trip is exploration and gaining new experiences. Seeing new places, learning about different cultures and cuisines, feeling yourself as part of that culture, and most importantly, accumulating good memories are the most beautiful aspects of traveling. To date, I have had the opportunity to travel to over 50 countries for work. When we have the chance outside of work, we try to travel with our family to discover different destinations and cultures.
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