kursad duman · 2017-10-30 · north america 39.2% europe 29.5% pharmerging 13.6% japan 10.5% rest...
TRANSCRIPT
Kursad DumanInvestor Relations and Capital Markets Manager
Some of the Some of the information in this presentation is not historical in nature and may constitute
forward-looking statements, which are made pursuant to the safe harbor provisions of Code of Capital
Markets of Turkey. These statements may be identified by the use of forward-looking terminology such as
“believes,” “expects,” “anticipates,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,”
“estimates,” or the negative of these words or other comparable terminology. The discussion of financial
trends, strategy, plans or intentions may also include forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual results to differ materially from those
projected, anticipated or implied by such statements. Although it is not possible to predict or identify all such
risks and uncertainties, they may include, but are not limited to, those described in the Company’s annual,
quarterly and current reports as filed and furnished with the regulations of Capital Markets Board of
Turkey (CMB). You are cautioned not to place undue reliance on any such forward-looking statements,
which speak only as of the date such statements were first made. To the degree financial information is
included in this presentation, it is in summary form only and must be considered in the
context of the full details provided in the Company’s most recent annual, quarterly or current report as
filed or furnished with the CMB. The Company’s IFRS reports are available at www.selcukecza.com.tr
under the “Investors” tab. Except to the extent required by law, the Company undertakes no obligation to
publicly release the result of any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
Forward-Looking Statements
2All rights reserved by Selcuk Ecza Deposu A.S.®
USSize: US$295-305bn
Growth Forecast: 3.0-5.0%
Top 5 EuropeSize: US$162-172bn
Growth Forecast: 3-4%
JapanSize: US$85-90bn
Growth Forecast: 4-5%
“Pharmerging” MarketsSize: US$110-115bn
Growth Forecast: 12-14%
Rest of WorldSize: US$165-170bn
Growth Forecast: 8-9%
Global MarketSize: US$825-850bn
Growth Forecast: 4.0-6.0%
Source: IMS 2010 Global Pharmaceutical Market Forecast Announcement –October 7,2009
“Pharmerging” markets include: China, Brazil, India, S.Korea, Mexico, Turkey and Russia
Prospects 2010: “Pharmerging” still continues to lead the growth...
3
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North America39.2%
Europe29.5%
Pharmerging13.6%
Japan10.5%
Rest of the World7.2%
2010 Forecasted Global Market Shares by Region (%)
Top 5 Europe19.8%
U.S. 36.1%
2010 Forecasted Global Market Shares
Source: IMS 2010 Global Pharmaceutical Market Forecast Announcement –October 7,2009
4All rights reserved by Selcuk Ecza Deposu A.S.®
5
Total (Public + Private) Health Expenditure per capita, OECD Countries, 200461
02
50
89
40
77
39
66
33
31
31
65
31
59
31
24
30
44
30
41
30
05
28
81
28
76
28
25
25
96
25
50
25
46
23
92
22
49
22
35
21
62
20
94
20
83
18
13
13
61
13
23
11
49
80
5
77
7
66
2
58
0
0
1000
2000
3000
4000
5000
6000
7000
U.S
.
Luxe
nbou
rg
Switze
rlan
d
Nor
way
Icel
and
Can
ada
Fran
ce
Aus
tria
Bel
gium
Net
her
land
s
Ger
man
y
Den
mar
k
Aus
tral
ia
Swed
en
Irel
and
OECD
U.K
.
Italy
Japan
Finl
and
Gre
ece
Spa
in
New
Zea
land
Por
tugal
Cze
ch R
ep.
Hun
gar
y
Kor
ea
Pol
and
Slo
vak
Rep
.
Mex
ico
Turk
ey
US
$ P
PP
Demographic Advantage of Turkey
All rights reserved by Selcuk Ecza Deposu A.S.®
19.0%20.0%
22.0%
24.0%
26.0%
0%
5%
10%
15%
20%
25%
30%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Population Over 50 Years Old in Turkey
50+ years age (mn people) 50+years age (% of total population)
Source: Turkstat (TUIK)
6
Total (Public + Private) Health Expenditure per capita, OECD Countries, 200461
02
50
89
40
77
39
66
33
31
31
65
31
59
31
24
30
44
30
41
30
05
28
81
28
76
28
25
25
96
25
50
25
46
23
92
22
49
22
35
21
62
20
94
20
83
18
13
13
61
13
23
11
49
80
5
77
7
66
2
58
0
0
1000
2000
3000
4000
5000
6000
7000
U.S
.
Luxe
nbou
rg
Switze
rlan
d
Nor
way
Icel
and
Can
ada
Fran
ce
Aus
tria
Bel
gium
Net
her
land
s
Ger
man
y
Den
mar
k
Aus
tral
ia
Swed
en
Irel
and
OECD
U.K
.
Italy
Japan
Finl
and
Gre
ece
Spa
in
New
Zea
land
Por
tugal
Cze
ch R
ep.
Hun
gar
y
Kor
ea
Pol
and
Slo
vak
Rep
.
Mex
ico
Turk
ey
US
$ P
PP
Source: OECD Source: OECD
Healthcare Expenditures in Turkey
All rights reserved by Selcuk Ecza Deposu A.S.®
16
1110 10 10 10 9 9 9
8 8 7 7 76 6
9
6
0
2
4
6
8
10
12
14
16
18
US
Fran
ce
Ge
rman
y
Au
stri
a
Gre
ece
Swed
en
No
rway
Ital
y
Spai
n
UK
Slo
vak
Rep
.
Hu
nga
ry
Cze
ch R
ep.
Ko
rea
Po
lan
d
Mex
ico
OEC
D a
vg.
Tu
rke
y
Total Expenditure on Health % of GDP (2007)
6,558
4,3013,472
3,348
3,303
2,9582,693
2,536
2,352
2,2671,455
1,411
1,296
1,139857
724
2,707
618
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
US
No
rway
Au
stri
a
Ger
man
y
Fran
ce
Swed
en
UK
Ital
y
Gre
ece
Spai
n
Cze
ch R
ep
.
Hu
nga
ry
Ko
rea
Slo
vak
Rep
.
Po
lan
d
Mex
ico
OEC
D a
vg.
Turk
ey
Per Capita Expenditure on Health, USD, PPP (2005)
7
Total (Public + Private) Health Expenditure per capita, OECD Countries, 200461
02
50
89
40
77
39
66
33
31
31
65
31
59
31
24
30
44
30
41
30
05
28
81
28
76
28
25
25
96
25
50
25
46
23
92
22
49
22
35
21
62
20
94
20
83
18
13
13
61
13
23
11
49
80
5
77
7
66
2
58
0
0
1000
2000
3000
4000
5000
6000
7000
U.S
.
Luxe
nbou
rg
Switze
rlan
d
Nor
way
Icel
and
Can
ada
Fran
ce
Aus
tria
Bel
gium
Net
her
land
s
Ger
man
y
Den
mar
k
Aus
tral
ia
Swed
en
Irel
and
OECD
U.K
.
Italy
Japan
Finl
and
Gre
ece
Spa
in
New
Zea
land
Por
tugal
Cze
ch R
ep.
Hun
gar
y
Kor
ea
Pol
and
Slo
vak
Rep
.
Mex
ico
Turk
ey
US
$ P
PP
Source: OECD, Worldbank Stats Source: OECD, Pharmaceutical Manufacturers
Association of Turkey (IEIS)
Pharmaceutical Expenditures in Turkey
All rights reserved by Selcuk Ecza Deposu A.S.®
136
161
335
381
384
398
404
424
449
514
519
533
567
639
951
0 200 400 600 800 1000
Turkey*
Poland
Netherlands
Italy
UK
Australia
Spain
Portugal
Germany
Japan
Belgium
Canada
Greece
France
US
Per Capita Pharmaceutical Consumption in 2007 (USD)
3128
25 25 25 24 2221
19 1816 16 15 14 14 13 13 12 11 10 10 9 8
17
41
0
5
10
15
20
25
30
35
40
45
Hu
nga
rySl
ova
k R
ep
.G
ree
ceK
ore
aP
ola
nd
M
exi
coC
zech
Re
p.
Spai
nIt
aly
Can
ada
Fran
ceB
elg
ium
Ge
rman
yFi
nla
nd
Ice
lan
dSw
ed
en
A
ust
ria
US
Ne
the
rlan
ds
Swit
zerl
and
N. Z
eal
and
De
nm
ark
No
rway
OEC
D a
vg.
Turk
ey
Pharmaceutical Expenditure % of Total Expenditure on Health (2007)
* 2008 figure
9.0%
10.9%
16.1%
7.5%
10.2%
5.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
600
700
800
900
1,000
1,100
1,200
1,300
1,400
2002 2003 2004 2005 2006 2007 2008
G
r
o
w
t
h
R
a
t
e
s
(
%)
Boxes (Million)
Prescription Drugs Market in Turkey
31.1%
23.5%
10.2%
11.5%
17.1%
9.1%
0%
5%
10%
15%
20%
25%
30%
35%
4
5
6
7
8
9
10
11
12
13
2002 2003 2004 2005 2006 2007 2008
G
r
o
w
t
h
R
a
t
e
s
(
%)
Value (Billion TL)
Sustainable growth...IMS anticipates typically annual 6-7% growth rate in volume for Turkish market≈US$10 bn. market size with 17% growth in terms of amount and 4% in volume in 2009
8All rights reserved by Selcuk Ecza Deposu A.S.®
Source: Pharmaceutical Manufacturers Association of
Turkey (IEIS), IMS
Originals vs. Generics in Turkish Market
9All rights reserved by Selcuk Ecza Deposu A.S.®
Source: Pharmaceutical Manufacturers Association of
Turkey (IEIS), IMS
51.5%
49.5% 49.6%
48.6%
49.3%
48.3%48.6%48.5%
50.5% 50.4%
51.4%
50.7%
51.7%51.4%
45%
47%
49%
51%
53%
2002 2003 2004 2005 2006 2007 2008
Volume
Original Generics
69.5%67.8%
65.6% 65.3%67.2% 66.6% 65.4%
30.5%32.2% 34.4% 34.7%
32.8% 33.4% 34.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2002 2003 2004 2005 2006 2007 2008
Value (TL)
Original Generics
300 Companies
42 Manufacturers28 Domestic14 Multinational
12 Raw Mat. Producers 30 Importers
Fragmented market: Largest player with a market share of 7%Top 10 market share: 50%No original product development, local firmsdevelop their own generics, manufacture licensed products and subcontract from international firms
Top 10 Manufacturers ( as of 1Q06)
SANOFI-AVENTIS
ABDI IBRAHIM
NOVARTIS
ECZACIBASI
GSK
ASTRA ZENECA SANOVEL
ROCHE
BILIM
PFIZER
Others
263 Domestic37 Multinationals
Market Structure - Suppliers
Source: Merril Lynch, IMS
10All rights reserved by Selcuk Ecza Deposu A.S.®
MultinationalsNational
CompaniesRegional
CompaniesCooperatives
Hedef-Alliance Group
Hedef
Selcuk Group
Selcuk, As
Nevzat
Galenos, Sıhhat
ISTKOP, EDAK,...
•App. 300 Distributors ;15 of which economically meaningful size.
•Small distributors little room to increase their market share, given the financial strength and economies of scale of the large players.
•High Barriers for New Entrants.
•Top 2 have approximately 70% market share
Market Structure - Distributors
11All rights reserved by Selcuk Ecza Deposu A.S.®
12
Market Structure – Retailers: Pharmacies
• ~ 24,000 pharmacies across the Country– 1 per 2.980 population– 5.000 in Istanbul, 1.700 in Izmir– ~ 500 new every year
• Owned and run by pharmacists• Pharmacy chains NOT allowed • OTC drugs can NOT be sold through other retail
channels• Rely on wholesalers for financing• Typically works with 2 or 3 distributors• Substitution by the pharmacists allowed
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A Short Reminder on the Regulatory FrameworkMark-ups, Pricing & Reimbursement
13All rights reserved by Selcuk Ecza Deposu A.S.®
• Reference Pricing Mechanism: Prices determined according to (5 to 10) EU member reference countries determined by the Ministry of Health.
• 2 months official notice for change (Changed from previous 4 months valid since Oct.1, 2009)• Reference Countries for 2010: France, Italy, Spain, Portugal, Greece (Not Changed)
• Prices in TL terms adjusted if the change at 90-day moving average of official €/TRL exchange rateannounced by CBT exceeds +/-5% of the offical range, of which the floor of the range is the available reference €/TRL currency (current reference exchange rate: 1€ = 1.9595 TL valid since April 2, 2009)
• Price change effective after 5 days. (Decreased from 45 days to 5 working days, valid since Dec. 4, 2009)• Prices adjusted upwards on February 1; new prices effective as of April 2, 2009• Price ratio of Generic to Original 66% (Max.) (Valid since December 4, 2009)
Original Price = Reference Price x 1 (If its generic substitute does not exist in the market); Original Price = Reference Price x 0.66 (If its generic substitute exists in the market); Generic= Reference Price x 0.66
• Reimbursable margin for generics between the cheapest and the most expensive one in a given bioequivalence group is 15%
1.15 X the lowest priced brand is the ceiling for reimbursement• Patient contribution 20% (pensioner 10%)• Pharmacies directly reimbursed by the Government (Social Security Institution-SGK)
Distributor
Mark-up
Pharmacy
Mark-up
A = 0-10 9% Aa = A x 1.09 25% Aaa = Aa x 1.25 Aaaa = Aaa x 1.08
B = 10-50 8% Bb = B x 1.08 25% Bbb = Bb x 1.25 Aaaa = Bbb x 1.08
C = 50-100 7% Cc = C x 1.07 25% Ccc = Cc x 1.25 Aaaa = Ccc x 1.08
D = 100-200 4% Dd = D x 1.04 16% Ddd = Dd x 1.16 Aaaa = Ddd x 1.08E = 200-X 2% Ee = E x 1.02 12% Eee = Ee x 1.12 Aaaa = Eee x 1.08
Producer
Price
Distributor
Price
Retail
Price (incld. VAT)
Pharmacy
Price (excld.VAT)
Attractive marketsDemographics drive long-term demandPublic policy agenda supports greater access and improved efficiency
Well-positioned businessesSolid operating profit and cash flow strength from distribution segmentNationwide network built over mutual commercial interests
Steady track record of delivering results and a balanced approach to capital deployment
Strong balance sheet and solid liquidity position
Experienced and tenured management team
Selcuk Ecza: A precious link to sustainable value creation
14All rights reserved by Selcuk Ecza Deposu A.S.®
Selcuk Ecza - Over 50 years being a milestone in Turkish pharmaceutical market...
Selcuk Ecza was established as a small local company for distributing pharmaceuticals to its small neighborhood in Konya province - 1958
Selcuk Ecza, started to take orders by phone calls which drives the business to even very small locations - 1960
Selcuk Ecza improved its technology and network and started to serve in many locations in the western side of Turkey - 1970
Selcuk Ecza established its first branch in the business center of Turkey, Istanbul - 1975
Selcuk Ecza’s sister company AS Ecza was established - 1987
Selcuk Ecza went public by a free-floating rate of 20%. Became the first publicly-owned company in its sector - 2006
Selcuk Ecza celebrated its 50th anniversary - 2008
15All rights reserved by Selcuk Ecza Deposu A.S.®
Abdi Ibrahim
Novartis
Sanofi-Aventis
Eczacibasi
Bilim
…
…
Selcuk Ecza (36.1% as of FY09 )
Hedef-Alliance
Co-operatives
Nevzat
…
…
•>App. 24,000 pharmacies across the countryowned and run by pharmacists
•Pharmacy chains not allowed
•OTC drugs cannot be sold through other retailchannels
•Rely on wholesalers for financing
Top 2 wholesalers control approximately 70% of the distribution market. (Top 3 > 80%)
Top 10 drug manufacturers approximately 50% of the market.
App. 24,000 pharmacies throughout Turkey.
A pharmacy typically works with 2 or 3 distributors (Differentiation: quality and speed of service, close follow-up,payment terms and product campaigns)
Over 20,000 clients countrywide (as of FY09)
107 (27 main + 80 regional) warehouses with a total storage area over 120,000 m2.
Can reach 75% of customers within 30 minutes, and 95% within 90 minutes.
Value Chain- Selcuk Ecza: A strong link...
16All rights reserved by Selcuk Ecza Deposu A.S.®
Drug
ManufacturersPharma
WholesalersPharmacies
...that paves the way for strengthening the market leader position
Permanently gaining a market share that has reached 36.1% in monetary terms in the domestic market according to IMS Figures in FY09
Strengthening the leadership position by efficiency in costs, ways of distribution and storage
Seizing opportunities of entering new businesses under the core business of whosale pharmaceutical distriubution
Serving over 20.000 pharmacies all around Turkey and hence support them as an ever lasting business partner
Formed a big family consists of employees, pharmacies and the producers under the vision of its founder
17All rights reserved by Selcuk Ecza Deposu A.S.®
Solid results in fiscal year 2009
18All rights reserved by Selcuk Ecza Deposu A.S.®
(TL in millions except EPS)As of Dec. 31,
2009 2008 ChgRevenues 5,028.77 4,046.51 24.27%
Gross Margin 9.06% 8.73% 0.33 pts
EBITDA Margin 5.31% 4.34% 0.97 pts
Net Income 231.72 160.67 44.22%
Net Income Margin 4.61% 3.97% 0.64 pts
EPS 0.448 0.310 44.52%
We have a track record of strong revenue growth...
19All rights reserved by Selcuk Ecza Deposu A.S.®
2.763.15
3.634.05
5.03
2005 2006 2007 2008 2009
TL Billions
...That We Have Leveraged into higher Income
20All rights reserved by Selcuk Ecza Deposu A.S.®
93.97 97.29
164.41 160.67
231.70
2005 2006 2007 2008 2009
TL millions
All rights reserved by Selcuk Ecza Deposu A.S.®21
Stable growth to Market Leader Position...
32.90% 33.80% 33.40% 34.40% 36.09%
2005 2006 2007 2008 2009
Market Share (%)
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Working Capital Developments
FY05 FY06 FY07 FY08 FY09
A/R 1,064 1,209 1,303 1,502 1,538
INVENTORIES 300 346 387 469 404
A/P 876 929 1,043 1,234 1,228
WC 488 626 647 737 714
WC/REVENUE17.70% 19.88% 17.83% 18.21% 14.20%
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Op-Ex Improvement
FY05 FY06 FY07 FY08 FY09
Revenue 2,756 3,151 3,628 4,047 5,029
# of WHs 91 98 100 100 107
# of Employees 4,926 4,694 4,554 4,600 4,893
Op-ex / Sales 4.85% 4.84% 4.49% 4.57% 3.93%
Personnel / Sales 2.76% 2.86% 2.69% 2.64% 2.39%
Employee per WH 54 48 46 46 46
Revenue per Employee (TL)559,539 671,241 796,743 879,676 1,027,748
Nationwide network that covers all regions across Turkey by over 100 branches
24All rights reserved by Selcuk Ecza Deposu A.S.®
Main Warehouses Regional Warehouses Total
Selçuk Ecza 18 61 79As Ecza 9 19 28Group Total 27 80 107
Fundamental Operational Statistics -1-
25All rights reserved by Selcuk Ecza Deposu A.S.®
1 2 3 4 5 6 710
15 1721 22 23
41
53
91
98 100100
107
19
58
19
75
19
77
19
88
19
93
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Number of Branches
198 240 315
462 511
715
895
1,074
1,282
1,483
2,037 2,030
1,970 1,948
2,049
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Number of Vehicles
Fundamental Operational Statistics -2-
26All rights reserved by Selcuk Ecza Deposu A.S.®
857 1,020
1,224
1,738 1,836
2,584 2,825
3,043
3,432
3,917
4,926 4,694
4,554 4,600
4,893
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Number of Employees
10
12.6
14.7
19.5
25.9
29.831.7 32 31.7
31.2
32.933.8
33.434.4
36.09
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Market Share (%)
Shareholding Structure
Selcuk Ecza Deposu Ticaret ve Sanayi A.S.
As Ecza
Selcuk Ecza Holding A.S. Free Float Gurgen Family
Ahmet Kelesoglu39.20%
Nezahat Kelesoglu
9.80%
77.32%
0.51x0.7732
= 39.43%
0.3920x0.7732
= 30.31%2.67%
99.99%
Ahmet & Nezahat
Kelesoglu Foundation 51%
20.01%
0.0980x0.7732
= 7.58%
27All rights reserved by Selcuk Ecza Deposu A.S.®
All rights reserved by Selcuk Ecza Deposu A.S.®28
Entering A New Segment: Toiletry Products
Selcuk Ecza has started to sell/distribute toiletry products (personal care products, cosmetics etc.) by June 1, 2009 from 9 of its 27 main warehouses
The market size in Turkey for toiletry products is approximately as of US$2 bn.
Selcuk Ecza estimates an additional turnover of 3-4% for 2010 for this segment amounting to 150-200 mn. TL; and almost 75 mn. TL for the remaining half of 2009
Using the same distribution network; while using the same regional staff and warehouses means no extra costs
Higher gross margin around 10% with respect to 8-9% from pharma segment
Strategy to expand business all around Turkey until the end of the year.
All rights reserved by Selcuk Ecza Deposu A.S.®29
One step ahead by 2010...
The price ceiling for original drugs has been reduced to 66% of the reference price, which is determined according to lowest price in the five reference EU member countries (France, Italy, Spain, Portugal, Greece), if the original drug has a generic substitute in the market, although the price ceiling remained at 100% for original drugs that do not have generic substitutes.
The price ceiling for generics has also been lowered from 80% to 66% of the reference price.
The drugs which stay on the market more than 20 years and with a price lower than TL6.79, all drugs with prices lower than TL3.56, OTC drugs (without prescription), blood products, infant food, radiopharmaceutical products, enteral feeding products, and all other products that are not stated in public reimbursement list will not be priced according to this new regulation.
The exchange rate mechanism used to determine drug prices has also been changed. According to the new mechanism, the exchange rate may only be revised if the 90-day moving average of EUR/TRL exchange rate exceeds/falls below the periodic EURO value band by +/-5%; while the upper end of thisband is estimated as 10% higher of the EUR/TRL exchange rate in effect for calculation of drug prices.(The offical EUR/TRL rate is 1.9595 since April 2009)
The Notice period for amending the “Reference Countries List” by the MoH has been reduced from 4 months to 2 months.
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The New Regulation-Major Regulatory Changes
Attractive marketsDemographics drive long-term demandPublic policy agenda supports greater access and improved efficiency
Well-positioned businessesSolid operating profit and cash flow strength from distribution segmentNationwide network built over mutual commercial interests
Steady track record of delivering results and a balanced approach to capital deployment
Strong balance sheet and solid liquidity position
Experienced and tenured management team
Selcuk Ecza: A precious link to sustainable value creation
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All rights reserved by Selcuk Ecza Deposu A.S.®32
Max
60 DaysFirst Day
of Month
Last Day
of Month
Application
to SSI
15th of the
Following
Month
Reimbursement
Average
15 Days
15
Days
REIMBURSEMENT to PHARMACIES by THE SSI
Dispensing
Appendix-1: Reimbursement Schedule
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Reference
Countries
France
Italy
Spain
Portugal
Greece
1.00
Generic Drugs in the Same
Bioequivalence Group
15% higher
than the
cheapest price*
x
q
z
y
j
t
n
p100% = Original Price (If
its generic does not exist
in the market)
66% = Generic Price
p & n NOT reimbursed
REIMBURSEMENT
66% = Original Price (If its
generic exists in the market
Appendix-2: Reference Pricing Scheme
** The government recently lowered the price ceiling from 22% to 15% for the
reimbursement price of generic drugs (which is applied over the lowest
price of the generic product in the market; the lower 15% limit came into
force from August 1, 2009).
*The government has changed
the regulation on the reference
pricing mechanism and lowered
the ratio of both originals and
generics to 66% of the reference
price on Sept.16, 2009 which is
valid since Dec.4, 2009.
Kursad DumanInvestor Relations and Capital Markets Manager