Pharmaceutical Executive Europe - October 2008 - (Page EC8)

Business Focus: Turkey Review l l Eczaclbasl: The post-generics pioneer Pharma executives in Turkey reacted with shock when in July 2007 Eczaclbasl sold 75% of its generics division to Czech giant Zentiva, a sign that a local leader had abandoned an industry it helped pioneer. But the move was a shift in emphasis that allows the 66-year-old manufacturer to focus on distributing imported finished products through licensing agreements with multinationals like Amgen and to continue investing in healthcare advances for the Turkish market. With the sale, Zentiva gains access to a vast portfolio of products in cardiovascular, CNS and anti-infective areas and to the massive Lüleburgaz production site, a facility with an annual capacity of 380 million packs that received FDA approval in 2007. For coming years, Eczaclbasl–Zentiva (EZ) has “shifted our whole portfolio strategy toward chronic treatments” and this year has “created a significant franchise in diabetes,” says Elif Çelik, general manager EZ. In July, Eczaclbasl Holding, a prominent industrial group of 42 companies with a $3.2 billion turnover in 2007, reaffirmed its commitment to pharmaceuticals with a 50% acquisition of the Turkish radiopharmaceuticals maker, Monrol. It continues to invest in its hospital supplies joint venture, Eczaclbasl-Baxter, and in Eczaclbasl-Corridor, Turkey’s first home health care services company. Yet the group sees the most growth out of Eczaclbasl Pharmaceuticals Marketing, a division concentrating on niche therapeutics, including biotech products for oncology. Sales from this company could reach $135 million this year, up 35% from 2007. Biofarma: Setting global benchmarks Since its acquisition in 2006 by Citigroup and the Austrian financial group, Pils, Biofarma has been riding a giant wave of growth that seems yet to have reached its crest. Sales in 2007 exceeded $130 million, catapulting the Istanbul-based company from a turnover ranking of 32nd to 21st in Turkey. It has reached this healthy positioning with products covering more than 20 therapeutic areas, including cardiovascular, pain management and diabetes, a sales team of 550 and exports to 14 countries, including the UK, Italy and Spain. It also contract-manufactures for major multinationals and local drugmakers. For the future, Biofarma has a lofty set of benchmarks: 15 product launches/year; 13 new export countries by the end of 2009; and a top 10 revenue ranking in Turkey in 2013. Within 5 years, it hopes to sell 100 million boxes and earn $50 million in exports through added territories in North Africa, the Middle East and CIS countries. It will be introducing new products in niche sectors such as antidepressants and hormones and in 2009, it will begin construction on a new production site for oncologicals. “What we are trying to do is maintain a high-value product in the niche market,” says Umur Südekan, Biofarma’s general manager. “As there is less competition, it is easier to become the number one or two player.” Adeka: Ready for any challenge Within a year of its establishment as a local family company in 1956, Adeka was already forging partnerships with international pharmaceutical companies licensing in, registering, importing/manufacturing and actively distributing to the Turkish market. It’s the hallmark of a company that has utilized its outward thinking to become one of the 15 largest Turkish pharmaceutical companies in 52 years, with sales last year reaching $100 million. Adeka produces its own line of generics and also represents 11 companies in exclusive licensing deals, both from Europe and the US. Its product portfolio focuses on cardiology, gynecology, dermatology, pediatrics and CNS — a strategy that helps it rely on niche therapeutics and stay away from intensely competitive generics areas. Success in such concentration commence from diversity of ADEKA products. Looking forward, Adeka has created a mid-term vision that accepts industry realities and confronts all competitive threats, those within Turkey and from booming generics markets such as India and China. Ali Cüneyt Arpacloglu, Adeka’s CEO and President, says the company is “going to be stronger in the current fields,” increasing the number of ‘value-added’ products in dermatology, gynecology and pediatrics, and it will be launching as many as four new combinations in cardiology. Recently, ADEKA has penetrated nutraceuticals and the self-medication market with distinctive products, where there are more to follow. 8 OCTOBER 2008 PHARMACEUTICAL EXECUTIVE EUROPE

Table of Contents for the Digital Edition of Pharmaceutical Executive Europe - October 2008

Pharmaceutical Executive Europe - October 2008
Contents
News and Analysis
Calendar
BioFutures
Strategy Fundamentals
Executive Recruitment: Small Company, Big Career
Executive Recruitment: Instant Pharma
Named Patient Programmes
Executive Review: Turkey

Pharmaceutical Executive Europe - October 2008