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In the United States, the policies and implications that Joe Biden will implement with his election as president are a matter of curiosity. In the report prepared by Econix research on the expected change in drug policy in the United States and its possible repercussions on Turkey, experts note that while they expect changes in Turkey's drug prices with possible regulations, significant opportunities will arise that will increase drug exports.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - Following the conclusion of the presidential elections in the United States, policies that will affect Turkey in the new era continue to be discussed. One of the policies among these is the drug policies expected to change. In this context, Econix Research published a detailed report with the title “United States Presidential Election Results Expected by Drug Policy Changes and Possible Repercussions of Turkey”. Regarding the effort to reduce high drug prices in the USA, which constitutes 48% of the world pharmaceutical market, according to the report; International reference pricing (IRP) and drug imports are expected to be addressed by the new president, Biden, in the near future. of amendments to the country who wants to be a pioneer in drug production in terms of Turkey's pharmaceutical exports it is expected to lead to significant effects. 

“The export figure of $ 1.4 billion may increase rapidly”

In his statement regarding the report, research team lead Dr. Güvenç Koçkaya said, “The USA, the world's largest market for pharmaceutical and medical equipment companies, is also the country with the highest pricing in terms of average drug prices in the world. Therefore, the necessity of regulations is quite clear. In this context, in September 2020, the Trump administration legalized a framework that allows it to import certain drugs from Canada. In his campaign, Biden offered to allow "safe prescription drugs" to be purchased from other countries. With the election of Biden, changes in drug policy are expected in terms of international reference pricing, more transparency and direct drug imports to the US. This change of date for Turkey on behalf of the US export drugs to say that a threshold. exports of the pharmaceutical industry, which in 2019 at 1.4 billion US dollars, Turkey, in case the proper steps to take in 2019 may increase the import coverage ratio of exports reached 32%, can rise to the desired level, and maybe a country that more exports of the drug.”

Pharmaceutical exports have two formulas

The report notes that if the United States goes down the path of allowing the import of products with patent protection removed, it will be of great importance for Turkey, which wants to be a leading country in pharmaceutical production. Currently, Turkey, which has facilities capable of producing quality products that can export to developed countries such as Switzerland and Germany, is expected to create an important export opportunity for established pharmaceutical companies. In order for this to happen, it is emphasized that established pharmaceutical companies in Turkey must prove that they can produce quality products with documents that they will receive from institutions such as the American food and Drug Administration (FDA) and the European Drug Agency (EMA). In this context, it is envisaged that incentives may be given to plan the export of products produced in Turkey to the United States. Another method is to ensure indirect access to the U.S. market by licensing products produced in Turkey within Canada, which are already authorized to export to the United States. For this, it is mentioned that the private sector may need to make deals with brokerage companies in Canada, create companies or buy companies.

“It lies in Turkey's hands to use the opportunity with the arrangements to be made”

As a result of the report they prepared as ECONiX, they observed that Turkey has a great responsibility to turn the repercussions of expected drug policies in the United States into an opportunity. Dr. Gülpembe Oğuzhan said, " meeting the demand for medicines that will occur if the export of medicines to the United States with possible new regulations will create problems for established producers in Turkey in the current situation. In order for this not to happen, the public authority, especially the established pharmaceutical companies in Turkey, must make the necessary planning and take action. Otherwise, the window of opportunity will be used by other countries and Turkey will have difficulty achieving the goals it has set in pharmaceutical exports. In order to turn the repercussions of expected drug policies in the United States into opportunities, it is necessary to develop new methods in drug pricing, distribution and reimbursement processes. In order to facilitate the export of medicines from Turkey to the United States, it is important to encourage not only domestic companies, but also international companies based in Turkey. Because these companies are already companies that can sell products to the United States. At this point, we can say that it is up to Turkey to turn the easing of pharmaceutical exports into an opportunity.”

Ministry of Health and SSI have great responsibility

According to ECONiX Research's report, Turkey, which has all of the world's 10 largest drug manufacturers with established companies and products on the market, reached 40.7 billion Turkish lira in value in 2019 and 2.37 billion boxes on the box scale, reaching the highest volume of drugs between 2010 and 2019. If drug prices rise in OECD countries with the adoption of international reference pricing policies of the United States, it will also have implications for Turkey. Turkey, which will use these countries as a reference, is also expected to improve its profitability in terms of the pharmaceutical sector due to its long-term low drug pricing policies, with an increase in possible drug prices. But it is also forecast that this will lead to an increase in the budget for medicines for the public.

Part of the research team, Professor Dr. Zafer Çalışkan said, “Despite the possible drug price increase with the influence of the USA, it may be beneficial for the SSI to put Alternative Reimbursement Agreements on the agenda for generic products in the upcoming period, or the Health Market application initiated by the Ministry of Health to be implemented for drugs as soon as possible.”