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PROPOSAL for PHARMACEUTICAL

CONTRACT MANUFACTURING

FACILITY


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Contents

Goverment Incentives

Pharma Market in Turkey

Pharmaceutical Production in Turkey Proposed Facility

Market Projection


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There are 12 sectors eligble for the new Goverment

incentives which is available for certain cities/towns in 4

regions.

Pharmacuetical Production facilities having an

invetsment of at least 100 mio TL is among the

incentivized sectors and classified as Major Project.

Level of incentives varries through these 4 regions andthe size of the project. Region 3 & 4 are the best suitable

regions for a pharma plant.

Goverment Incentives


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Incentive Regions:

Region 3

Zonguldak, Karabk, BartnManisa, Afyonkarahisar, Ktahya, Uak

Konya, Karaman, Gaziantep, Adyaman, Kilis

Hatay, Kahramanmara, Osmaniye, Kayseri, Sivas,

Yozgat, Krkkale, Aksaray, Nide, Nevehir, Krehir,Samsun, Tokat, orum, Amasya.

Goverment Incentives (cont.)


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Incentive Regions:

Region 4

Trabzon, Ordu, Giresun, Rize, Artvin, GmhaneMalatya, Elaz, Bingl, Tunceli, Kastamonu, ankr,

Sinop, Erzurum, Erzincan, Bayburt

anlurfa, Diyarbakr, Mardin, Batman, rnak, Siirt

Ar, Kars, Idr, Ardahan, Van, Mu, Bitlis, Hakkari,anakkale (Bozcada ve Gkeada).



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Incentive Types:

1. Reduced Corporate Tax

2. VAT Exemption

3. Customs Duties Exemption4. Interest Support

5. Payment of Social Security Premium payments of the

investor by Treasury

6. Free land for the invetsment

7. Support for Bank Loans (co-signing by the Treasury)

8. Indirect Financing of the project (reduced corp.tax

upto 70% of the invetsment amount)



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Incentive Details for REGION 3


Regional/Sectorial Project Major Project

>100 mio TL

1. Indirect Financing 40% 50%2. Corp. Tax 4% 4%

3. S.S. Premiums 5 yrs 5 yrs

4. Land yes ye

5. Interest 3 points none

6. VAT exempt exempt

7. Customs Duty exempt exempt


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Incentive Details for REGION 4


Regional/Sectorial Project Major Project

>100 mio TL

1. Indirect Financing 60% 70%2. Corp. Tax 2% 2%

3. S.S. Premiums 7 yrs 7 yrs

4. Land yes ye

5. Interest none non

6. VAT exempt exempt

7. Customs Duty exempt exempt


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There are further details and limits for some of the

insentives, such as, max 500K TL for interest

contribution and custom duty exemptions for machinery

and equipment only.



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There are 362 Pharma companies registered in Turkey.

54 of these are foreign companies. However, 50 of them

have the market share of 93%. 150 of these companies

have either no sales or less than 50K TL sales in 2009.

Turkish market is 12th biggets in the world and 5th

biggets in Europe in terms of sales. World Pharma

market is more than 450 bio USD and Turkish market is

about 10 bio USD.

Turkish Pharma Market is expected to be one of the 10

biggest markets in the world by 2020.

Pharmaceutical Market in Turkey


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There are 43 production facilities in Turkey 14 of which

belongs to multinational companies. Rest of the

companies are either importing or getting a contract

manufacturing services from the others including theircompetitors.

Pharma market is about 1.5 bio boxes in terms of units.

80% of which produced in Turkey and 20% is imported.

However, 50% of the sales (amount) is due to theimported units.

Pharmaceutical Production in Turkey


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Although there are 43 production sites available in

Turkey they do not have all the process lines needed or

all relevant approvals required by European or US

authorities. This limited and selective capacity do notmeet the entire production demand. Furthermore, there

are only 2 companies (one is ampules only) provide

contract manufacturing who dont have any marketing

activities or its own registered drugs.

Pharmaceutical Production in Turkey


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Proposed Facility - Required Process

Areas RECEIVING & SAMPLING

RAW & PACKAGING MATERIAL WAREHOUSE

PRODUCTION BUILDING

SHIPPING, PRICE PRINTING AND SECONDARY PACKAGING

UNDERGROUND SOLVENT STORE

UTILITY BUILDING

EMERGENCY RESPONSE & FIRE FIGHTING MATERIALS

WASTE WATER TREATMENT

LAB CHEMICALS & WASTES

UNDERGDOUND WATER TANK

ADMINISTARTION SITE

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