Local pharma firm expands production
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Hürriyet Daily News
Oluşturulma Tarihi: Mayıs 28, 2009 00:00
ISTANBUL - Deva Holding, which is planning to improve its Çerkezköy facilities, has also invested 5 million euros in new machinery. The pharmaceutical company’s plans also include steering toward Europe and the United States to increase exports. Deva believes such a strategy will be more rewarding over the long term
Deva Holding, a Turkish pharmaceutical company, plans to redirect the focus of its exports from emerging markets to Europe and the United States, the company’s chairman said Wednesday.
The company is also planning to expand its Çerkezköy facilities and has invested 5 million euros in new machinery, Deva chairman Philipp D. Haas said in a news conference. "Whereas before we have focused on emerging markets around Turkey, we now have become more selective in terms of the countries we operate in," Haas told reporters. "We have decided to orient our exports toward the United States and Europe, which we believe to be more rewarding in the future than emerging markets that are more risky and tend to have payment problems."
While the firm is building the regulatory infrastructure necessary to enter the U.S. and European markets, it also expects business coming from the Commonwealth of Independent States, including Russia, Ukraine and Georgia, to expand, Haas added.
"In the short term, these markets will continue to be our main export targets," he said. "Last year, some 3 percent of our products were exported to these markets; this year, we expect this figure to reach 5 percent."
Deva Holding currently has an approximately 5.2 percent share of the Turkish pharmaceuticals market. Last year, the firm’s turnover was 500 million Turkish Liras. Over the first quarter of 2009, Deva’s sales volume in liras increased by 18 percent and Haas said he believes the pharmaceuticals sector will grow even more worldwide. "Generic pharmaceuticals is one sector of the economy that will continue to do very well," he said. "Worldwide patents are expiring and the generic industry has even more possibilities to grow."
Rising raw material prices
However, the recent hike in raw-material prices poses a major challenge for the firm, Haas added. "We were given permission to increase prices by some 8 percent in April, but raw-material prices have already been increasing by some 20 to 25 percent since last year," he said. "Although we are still facing pressure from this discrepancy, we can expect a small improvement in profit margins in the future."
The 5 million euro investment in new machinery at Çerkezköy aims to break up some of the company’s bottlenecks in production and strengthen the firm’s ability to compete in the local pharmaceuticals market, Haas said, noting, "Market competition in this sector is very fierce and this is definitely a challenge for us."
Deva is also in the process of adding two new facilities at the site and expanding its team with some 87 new appointments, including ones to its research and development team, Haas said: "We are very happy to say we are among the very few firms still hiring people."
The company is also planning to expand its Çerkezköy facilities and has invested 5 million euros in new machinery, Deva chairman Philipp D. Haas said in a news conference. "Whereas before we have focused on emerging markets around Turkey, we now have become more selective in terms of the countries we operate in," Haas told reporters. "We have decided to orient our exports toward the United States and Europe, which we believe to be more rewarding in the future than emerging markets that are more risky and tend to have payment problems."
While the firm is building the regulatory infrastructure necessary to enter the U.S. and European markets, it also expects business coming from the Commonwealth of Independent States, including Russia, Ukraine and Georgia, to expand, Haas added.
"In the short term, these markets will continue to be our main export targets," he said. "Last year, some 3 percent of our products were exported to these markets; this year, we expect this figure to reach 5 percent."
Deva Holding currently has an approximately 5.2 percent share of the Turkish pharmaceuticals market. Last year, the firm’s turnover was 500 million Turkish Liras. Over the first quarter of 2009, Deva’s sales volume in liras increased by 18 percent and Haas said he believes the pharmaceuticals sector will grow even more worldwide. "Generic pharmaceuticals is one sector of the economy that will continue to do very well," he said. "Worldwide patents are expiring and the generic industry has even more possibilities to grow."
Rising raw material prices
However, the recent hike in raw-material prices poses a major challenge for the firm, Haas added. "We were given permission to increase prices by some 8 percent in April, but raw-material prices have already been increasing by some 20 to 25 percent since last year," he said. "Although we are still facing pressure from this discrepancy, we can expect a small improvement in profit margins in the future."
The 5 million euro investment in new machinery at Çerkezköy aims to break up some of the company’s bottlenecks in production and strengthen the firm’s ability to compete in the local pharmaceuticals market, Haas said, noting, "Market competition in this sector is very fierce and this is definitely a challenge for us."
Deva is also in the process of adding two new facilities at the site and expanding its team with some 87 new appointments, including ones to its research and development team, Haas said: "We are very happy to say we are among the very few firms still hiring people."