Pandemic Could Be Turned Into an Opportunity for the Chemical Industry

Santa Farma Board Chairman Erol Kiresepi indicated that the crisis caused by the pandemic should be evaluated as an opportunity for the sector and that serious work is needed, stating: "This crisis is truly unprecedented in world history. Unfortunately, it does not appear to be easily overcome. However, our company has weathered many crises over 77 years and has managed to overcome all of them. Let us stand together and continue to provide healthy services to health" he conveyed his message. The Santa Farma Family came together at the 2020 year-end evaluation meeting conducted online. At the meeting, where the targets for 2021 were also discussed, Santa Farma Board Chairman Erol Kiresepi, addressing the Santa Farma Family, delivered important messages about sector expectations globally and particularly in Turkey due to the pandemic. Kiresepi emphasized that the most important lesson drawn from the pandemic is the understanding that public interest should come before individual interest, adding: "Another socio-economic issue that needs to be addressed due to the epidemic is ensuring the fair distribution of vaccines found and potential treatment drugs among people."

Sector showed 21 percent growth

Kiresepi noted that the Turkish pharmaceutical market grew approximately 21 percent by value in 2020 compared to 2019, reaching TRY 49.8 billion from TRY 41 billion, while production by unit declined 2.8 percent compared to 2019, falling from 2.21 billion units to 2.15 billion units. Highlighting that a decline was seen by unit and an increase by value in the sector, Kiresepi explained the reason as follows: "The decline in production is clearly related to pandemic conditions. The most important reason for the increases in value is the rise in prices. However, the shift of product demand in the market to higher-priced and newly launched products could also be another reason for the increase in value. There has been an increase in value without an increase in production in the sector. This has no relation to market share growth. It is entirely an effect of the adverse conditions being experienced in the Turkish economy due to the pandemic. What is important is to expand the Turkish pharmaceutical market and to raise our position in the global pharmaceutical market. As stated in all strategic management, it is to turn threats into opportunities and to make ourselves visible." Emphasizing that the global pharmaceutical sector's market value as of 2020 stood at USD 1.25 trillion, Kiresepi stated: "While the market is expected to reach USD 1.3 trillion in 2021, the pandemic appears to be affecting the global pharmaceutical market. Experts predict that the market will reach USD 1.6 trillion by 2023."

"Serious structural changes await the sector"

Kiresepi made the following remarks about sector expectations: "Like all sectors, the pharmaceutical sector faces serious structural changes due to technological, demographic and climate change. On this matter, we can summarize what futurists predict as follows; due to high costs, it is predicted that major manufacturers will shift only to molecule development and active pharmaceutical ingredient production, gradually leaving drug production to generic drug manufacturers. This means that generic markets will increase in the near future. The sector, like all other sectors, must follow digital technology, implement Industry 4.0 and must certainly develop R&D investments. Undoubtedly, investments related to this matter will increase. The age of digital therapy will begin; the patient, doctor, diagnosis, treatment and drug cycle will largely be provided in a digital environment through the internet. Treatments will no longer be conducted in hospital and clinic settings but at home. We are entering an era where only surgeries will be performed in hospitals and clinics. Climate change will cause unknown viruses to emerge. Research on vaccines and treatment drugs will continue to increase. In this case, the pharmaceutical sector's portfolio related to hereditary chronic diseases will naturally change. In the coming years, the pharmaceutical sector will serve health in every field from birth to death."

The business world is being recoded

Kiresepi also emphasized that radical changes are being seen in business and social life due to the pandemic, which has been ongoing for a long time and its duration is uncertain: "In the new business model, routine tasks are gradually being replaced by artificial intelligence. Other employees are expected to be experts in their work and to work on a project basis. As a result, the need for educated, skilled workers is increasing. In the new normal, the emergence of new professions and jobs in the business world is undoubtedly expected; but there are also concerns about a wave of unemployment. The International Organisation of Employers (IOE) and International Labour Organization (ILO) are conducting comprehensive studies on potential unemployment and the growing migration issue. Companies during this period are in a struggle for survival rather than profit. For this reason, in the new reality, quality work among companies rather than quantity becomes the rising star. Company reliability and continuity take precedence over high profit-making targets. In short, the business world is being recoded" he concluded.