We see research and development as one of the key factors supporting our growth strategy. As part of the implementation of this strategy, we intend to make new investments in our research and development with a view of creating new proprietary technologies to be initially used at our own facilities and ultimately to be licensed to third parties

Our research and development organization has a staff of 27 employees who work in three groups: pharmaceutical technology, documentation and analytical chemistry. In 2006, our research and development expenditures were approximately US$765 thousand, which corresponds to the average Turkish level for generic pharmaceutical companies.

Our pharmaceutical technology group is responsible for the formulation development of new products on laboratory level, manufacturing pilot scaled products for in-vivo BE study, and improvement of the registered products. Our analytical chemistry group is responsible for analytical method development of new products and performing the suitability tests on formulation development. Our research and development documentation department is responsible for compilation of registration and variation dossiers with the regulatory affairs department, replying to technical question of the Ministry of Health, and forwarding the amendments from the Ministry of Health to the our quality operation management.

During the next few years, we expect to expand and accelerate our research and development activities to support the shift in the focus of our future product range and the widening of our product portfolio. We also seek to create our own proprietary technologies with a view of ultimately out-licensing know-how and technology. In order to be able achieve these goals, we expect to expand our research and development activities and plan to spend up to 5% of our annual sales on research and development within the next three years.