MESSAGE FROM THE CEO

Chairman & CEO 

 

Dear Stakeholders,

2021 was a year with a main theme of supply and demand-driven inflation across the globe. Supply chain troubles and rising energy prices were key factors that drove upward inflationary pressure around the world. The Turkish economy was, however, impacted also by wild exchange rate fluctuations on top of rising inflation. The impact of growing costs and exchange rate volatility was massive on the pharmaceutical industry, as the inputs are mostly in foreign currency. Despite the challenging industry conditions, DEVA Holding was able to close 2021, ranking in 2nd place with a market share of 5.0% in terms of units, and in 6th place with a market share of 2.7% in terms of values, according to IQVIA data.

At DEVA, we have been working for more than 60 years to provide treatments in areas where a need exists, expanding our therapy areas by enhancing our portfolio with new products every year. In year 2021, we introduced several new products and pharmaceutical forms for use by the medical community across respiratory, cardiology, ophthalmology, hematology and oncology therapy areas. We launched a new reorganization initiative to focus more intensively on our therapy areas by reviewing our business models. As an indigenous pharmaceutical company, we continue working hard to make a positive contribution to the health economy with value-adding generic products which we offer cost-effective treatments in many therapy areas.

On this point, it is our priority to be able to offer affordable treatments not only in Turkey but across the globe. Exports are vital for sustainable growth; and in recognition of that fact, we further intensified our focus on exports in order to increase brand awareness of DEVA in international markets. As of year 2021, the number of our approved products neared 930 in over 60 countries across international markets. We launched new products in German and Swiss markets under our Devatis brand. As a result of our resolute efforts on this front, DEVA has been admitted to Turquality, a branding program sponsored by the Ministry of Economy. We are proud to be expanding our presence in international markets by the day and moving rapidly toward becoming a brand of choice on a global scale.

During this time of product supply troubles due to the pandemic, we have prioritized our manufacturing and supply operations to ensure uninterrupted access to our treatments for patients who need them. At this point, our vertical integration mindset has been a major strength, making us stand out from other pharmaceutical companies. We have been able to carry out our supply operation without interruption, thanks to some of our products which we manufacture at our own facilities across all stages of the manufacturing process, from raw material to finished product. As one of Turkey’s most powerful manufacturers, we continue expanding our investment in our manufacturing capabilities. Our manufacturing facilities, which have an annual output capacity of 578 million units, are subject to inspection by national and international health authorities. We take utmost care in fulfilling the requirements that result from those inspections, which serve to certify in each case the safety and quality of our products.

R&D is crucially important to sustaining our success and competitive edge. We continue investing in this area to reinforce our portfolio and develop innovative products. Our R&D teams, who are experts in their respective fields, are developing innovative new forms and products at our state-of-the-art laboratories, and collaborating with reputable universities. Last year, we reinvested approximately 8% of our sales in R&D. As the year before, this year DEVA again ranked in the 1st place among top pharmaceutical investors in R&D (*Ar-GE 250, 2020). We are confident that our R&D efforts will help us move even further.

At DEVA, we strive to use our resources in the most efficient manner possible, recognizing our responsibility to the environment, while working and manufacturing our products for a healthier future. We believe it is important to be able to sustainably pass on to future generations the value that we create today. And toward that end, we identify our sustainability priorities and continue focusing on them moving forward.

Dear Stakeholders,

In a rapidly changing and evolving world, we continue making a difference with our strong product portfolio, our competent work force of approximately 2500 professionals, our flexible way of working and our innovative projects. Guided by our vision to become a global pharmaceutical company, we work hard to excel across all areas, primarily R&D, exports and manufacturing. As we have been over the past 63 years, we will continue working with passion and devotion to offer solutions that meet the needs of patients and patient relatives, recognizing our responsibility as a pharmaceutical company.

 

Yours Sincerely,

 

Philipp Haas

Chairman of the Board of Directors & CEO