Dear stakeholders,


In a period of growing fluctuations in the global economy, adapting to new developments in the world and shaping our business strategies accordingly has become all the more important. In 2015, we felt the adverse effects of devaluation of the Turkish currency, and this was a key determinant of our business strategy. But despite the formidable challenges of the pharmaceutical landscape, we have managed to successfully close the year in second place with 6% market share in volume, according to IMS Health data.


At DEVA, it is our main priority to manufacture every product locally in Turkey, whenever we can, and make those products available to patients. In 2015, we consolidated our product portfolio even further with innovative equivalent products in the oncology, cardiology and respiratory therapy areas. In ophthalmology, which we stepped into for the first time in 2013, we have grown rapidly, introducing a number of new products for use by the medical community.


Thanks to our vertical integration strategy, we are now the owner of one of the most comprehensive manufacturing facilities in Turkey, covering processing steps from the raw material to the finished product. The output growth we registered last year has been most welcome. We have begun manufacturing several new types of products, like solutions, on our lyophilized products and BFS manufacturing lines. Our facilities underwent inspections by various national and international health authorities; in particular, Çerkezköy II and Kartepe sites were inspected by the U.S. Food and Drug Administration, perhaps the most important official authority setting the standards for pharmaceutical manufacturing, which made this particular inspection crucially important to us. We are currently waiting for the final outcome of this inspection, which we believe will bring us one step closer to our goals.


The pharmaceutical sector is currently viewed as a driver of trade deficit due to imports far exceeding exports, but still, we believe it is possible to transform pharmaceuticals to an industry that contributes positively to the balance of trade with growing R&D investments, the use of advanced technology, and ability to drive exports. At DEVA, we are making an important contribution toward that end with our expertise in local manufacturing and export operations. Recognizing that access to health is a fundamental right, we are collaborating with business partners around the world to bring DEVA products to patients. Accordingly, we have implemented a two-pronged global growth strategy based on entering new markets and consolidating our position in current markets with new approvals. Throughout 2015, we had 216 filings in 33 countries, and gained a total of 82 approvals in 18 of them. Also, in Germany, we have established a new subsidiary, Devatis GmbH, after receiving certification of GMP compliance and manufacturing authorization, and  we are getting ready to bid in public tenders. We will be reaping the rewards of these efforts in the years ahead.


We recognize the strategic value of R&D for the pharmaceutical industry, and we continue to invest in this area at a growing rate. While the annual R&D investments by the Turkish pharmaceutical industry is negligible compared to global benchmarks, in 2015 we allocated 7 percent of our sales to R&D. We believe that our investments in this area create value for DEVA, and we are exploring opportunities for joint projects with TÜBİTAK in biotechnology and other areas. Our achievements in R&D brought us two important recognitions in 2015: the Ministry of Science, Industry and Technology named DEVA as having the best R&D center in the pharmaceutical industry during the 4th Private Sector R&D Centers Summit, and Eczacı Magazine recognized DEVA as the best R&D company for “manufacturing active substances for the treatment of high blood pressure,” during the 6th Golden Mortar Awards, which recognizes outstanding individuals and organizations in pharmaceuticals and pharmacy. It makes us very proud that our accomplishments in R&D are enriched by these important awards, and they support our ambitions. We are excited to do even better in this area.


We recognize that a healthy society is key to having a healthy future, and this motivates us to conduct awareness campaigns of certain diseases. We continue supporting our national diver Şahika Ercümen who makes us all proud as the holder of the world record in free diving, despite her living with allergic asthma since early childhood. We also continue offering scholarships to outstanding medical students, and work with non-governmental organizations like Çocukları Kurtaralım (Save the Children) and the Turkish Red Crescent Organization on projects serving the public interest.


We are aware that all of our achievements ultimately rest on the dedication of our associates, whom we appreciate and develop in the understanding that they will propel our company higher still.


At DEVA, we are creating value for our country and  for a healthier future since 1958, and we will continue doing our part with passion and dedication in recognition of our responsibilities as a pharmaceutical company.


Very truly and respectfully yours,


Philipp Haas


Chairman & CEO