Turkish Pharmaceutical Industry Increased Exports by 27% in 2020

Turkey's pharmaceutical industry maintained its investments despite the pandemic beginning in 2020, demonstrating its production strength and capacity. Turkish pharmaceutical exports increased by 27% in 2020 compared to the previous year. The Covid-19 pandemic, which affected the entire world, once again emphasized the importance of the domestic pharmaceutical sector. The established Turkish pharmaceutical industry passed an important test during this process, which began in March 2020 and continues to this day. From the outset of the pandemic, work demonstrating the sector's current strength and dynamic structure capable of quickly resolving different problems also clearly revealed the technology, experience, knowledge accumulation and expert workforce that the Turkish pharmaceutical industry possesses. In his assessment of the process, Savaş Malkoç, Secretary General of the Pharmaceutical Industry Employers' Association, stated: "The Covid-19 pandemic reminded us once again of the vital importance of the domestic pharmaceutical industry and Turkey's self-sufficiency in pharmaceuticals.

During this period we faced significant challenges including raw material procurement, logistical disruptions, rising costs, fluctuations in our sales and difficult conditions created by infection risk, while maintaining uninterrupted operations at our production facilities.

At every stage we acted with awareness of our social responsibility towards our country. We pushed the limits with all our strength, connections and accumulated knowledge and thereby continued uninterrupted access to medicines for our people and healthcare workers. In addition to current production, we rapidly began producing medicines included in the Covid-19 treatment protocol. Today our industry meets 88% of our country's pharmaceutical needs through domestic production. This is a source of pride and satisfaction for us," he said. The Pharmaceutical Industry Employers' Association, as it does every year, prepared a report on sector data from the past year. According to the report, the pharmaceutical market declined by 7% in unit volume to 2.2 billion units during the Covid-19 pandemic process due to reduced doctor and hospital visits and suspension of treatments other than emergency care.

The industry continued to increase investments and production despite the difficult conditions of the period. The pharmaceutical industry, which has experienced a brilliant period in exports over the last 3 years, continued its momentum in 2020. Turkish pharmaceutical industry exported to 177 countries in 2020, including primarily European Union, Commonwealth of Independent States, North African and Middle East countries.

Covid-19, a global health problem, underscored the importance of medicine and consequently the pharmaceutical industry for public health. According to the report prepared by the Pharmaceutical Industry Employers' Association, the Turkish pharmaceutical industry continued to serve public health in 2020 with 96 medicines produced at international standards, 11 raw material production facilities and 40 thousand employees. Approximately three-quarters of the 680 companies that make up Turkey's pharmaceutical and medical health products market consist of domestically capitalized firms.

Savaş Malkoç: "Turkish pharmaceutical industry exports will exceed $2 billion in 2021"

Commenting on the 2020 export figures, Savaş Malkoç, Secretary General of the Pharmaceutical Industry Employers' Association: "Our pharmaceutical export growth is occurring above Turkey's average. In 2019, our exports grew by 10% compared to the previous year, reaching a figure above $1.4 billion. At the end of 2020, our exports reached $1.84 billion with a 27.3% increase. With this increase in our exports, in 2020 we exceeded 1% share in Turkey's total exports for the first time. This breakthrough in high value-added, R&D-intensive pharmaceutical industry exports also brought the export-to-import coverage ratio to its historic highest level. When examining pharmaceutical raw material imports and finished pharmaceutical exports, the contribution of the pharmaceutical industry to the country's economy becomes more evident. In 2020, against raw material imports of $815 million, exports totaling $1.79 billion were realized. The export-favorable balance in this field grows increasingly larger. When the need for finished products in pharmaceutical imports is met through domestic production capabilities, our industry will increase its exports and contribution to reducing the trade deficit. For this, the localization policy in pharmaceuticals needs to restart from where it left off and particularly legislation and support mechanisms to revive biotechnology pharmaceutical production must be implemented. In 2021, despite the adverse conditions created by the pandemic, we expect our exports to grow above 10% and exceed $2 billion," he said.

Covid-19 concerns led to record sales of immunity-boosting medicines and supplements in 2020

2020 witnessed growth in the health products market. The market consisting of Ministry of Health-approved traditional herbal medicinal products, biocidal products, certain medical devices in pharmaceutical form, cosmetic and dermocosmetic products found in pharmaceutical companies' portfolios, and vitamins and food supplements approved by the Ministry of Agriculture and Forestry, reached record production and sales figures in 2020 due to the Covid-19 pandemic. During the Covid-19 pandemic, reduced access to doctors and hospitals and the circulation of information about strengthening immunity through many communication channels had a major impact on market growth. In 2020, as a result of these effects, the health products market, consisting of over 70% of vitamin and food supplement products, grew by 34.3% in units to 80 million units and by 56.6% in value to TRY 2.87 billion. In 2020, imported products in the health products market reached TRY 1.8 billion with 44.8% growth in value and 37.3 million units with 25.2% growth in units. When examining manufactured products, value increased by 80.2% to TRY 1.1 billion and units increased by 43.5% to 42.5 million units, surpassing the imported product market for the first time. Growth in the market is expected to continue in 2021 as a result of continued interest in immunity-boosting medicines and supplements.