Pharmaceutical retail in TurkeyDr.Ali TAHA

Headings

Introduction

General information

Pricing policy

Purchasing and delivery

Reimbursement system

Payments

Conditions and costs to open a pharmacy

Pharmacy types

General practice of the pharmacies

Summary

ECZANE

General information

Number of the pharmaceutical companies nearly 300

Mostly local companies

Most of the products (nearly 90 %) are registered as Rx.

Vitamins and like products are registered as intermediate (or in other words OTC).

Herbal products are regarded as food supplements.

General information

Number of the pharmacies nearly 23.800

Average number of population for each pharmacy 3.000-3.300 person.

Turkish pharmaceutical market size 10.000.000.000 USD

The main client for the pharmacies is the Social Security Institution.

Pricing is under the control of the ministry of health.

Pharmacies are under the control of the Turkish Pharmacist Union.

Pricing policy

Under the control of the ministry of health.

Reference pricing

Prices are in Euro

Minimum 5 maximum 10 EU member countries

The sales price of the original product to the distributor after discount.

lowest price among the reference countries

If the original product is manufactured or imported from a country other than the reference and the price is lower then that price will be considered.

Pricing policy

The products receive the percent of the reference pricing as follow: (Sales to the distributor)

Original products without generics will receive 100%Original products with generics will receive 60%Generic products without original will receive 60%All generics will not be more than 60% of the price of the original product.If the reference price will change to be less than the 60% limit then all the pricing will be rearranged to have 100% of the new price(original and generics)Generics could not have a price more than the original.If the original product is 20 years and older and have a price more than 6.79 TL then it can have maximum 80 % of the reference.

If there is no reference product then the price of these originals will be taken as reference price.

Pricing policyManufacturer

Distributor

Pharmacy

Patient

Profit % changing upon the price of the medicine

Pricing policy (profits)

Based on the manufacturer price of the product

Step Price TL% profit of

Distributor

% profit of

Pharmacy

Step 1 10 9 25

Step 2 50 8 25

Step 3 100 7 25

Step 4 200 4 16

Step 5 Over 200 2 12

1 USD = 1.8 TL

Putting all these in mind!

Purchasing and delivery

Main big 2 distributors

Pharmacist make purchasing by;

Sales staff of distributor

Online

Call center

Distributor calls

Pharmacist calls

Purchasing and delivery

3-4 deliveries a day

Urgent purchasings are delivered within 15-30 min (some times 10-12 deliveries a day).

Reimbursement system

Pharmaceuticals Tracing System

Barcode

Quick Response Code

Manufacture Sanovel

Distributor ?

Pharmacy ?

Patient ?

Manufacture name Sanovel

Distributor name Galenos

Pharmacy name Derman

Patient name Ali TAHA

Benefits of this system

Illegal drugs and drug counterfeiting has ended

Reduced the unnecessary use of medicine

Reimbursement system

Social Security Institution will cover the medicines which have a price maximum 15 % more over the cheapest bioequivalent (the price of the unit dose.

The cost over that 15 % will be paid by the patient.

Reimbursement system

The patient will pay a % of the total sum of the mediciene,

Pensioner 10% (taken otomaticly from the sallary)

Others 20% (taken in the pharmacy)

Those who have medical report will pay 0% (within the limits of the 15%)

Payment

Pharmacies receive their money from nearly after 30-90 days from the Social Security Institution.

Distributors suggest minimum 60 days maximum 180 days delay of payment.

Prepayment is not available.

Usually pharmacies receive bonus products for their purchasing upon the payment timing. (there is no direct discount in the price of the product)

Conditions and Costs to open a pharmacy

A pharmacistApproval from the Turkish Pharmacist UnionPlace to open

Height not less than 2.4mArea not less than 35 square metersLaboratory

Upon the law number 6197 for the regulation of the pharmacists and pharmacies it is completely forbidden to open chain pharmacies.Opening a pharmacy costs nearly 40-50.000 USD

Pharmacy types

Standart

Pharmacy types

High quality

General practice of the pharmacies

Bioequivalent generic products

Purchasing medicines and cosmetics

Supplying extra services for free

Measuring blood pressure

Measuring the blood glucose and cholesterol

Pharmacist recommends medicines

Follow the report patients and call them. (90 days medicine)

General practcies of pharmacies

In summary

Single and chain

Main client is patient.

Pricing under the market conditions.

Only single

Main client is Social Security Institution + Patient.

Pricing under the control of ministry.

Thank you for your attention

Thank you for your attention