Dear Stakeholders,

2020 was a difficult year for the whole world, particularly in terms of healthcare and economy. Combating COVID-19, including the anti-COVID actions and efforts, was the top issue on the global agenda. Reduced mobility in the society and the lock-downs that the countries have been putting in place time to time to prevent proliferation of the outbreak have taken a serious toll on the global economy. Throughout the year, many industries, in particular the services industry, have ground to a halt. In the final quarter of the year, we have begun seeing revival of economic activity in the manufacturing industry. On this point, we can say that the pharmaceutical industry has diverged positively in general. Despite uncertainty around industry-specific dynamics, such as the exchange rates and pricing issues, DEVA managed to have a successful year overall. According to IQVIA data, we maintained our second place in the marketplace with 5.7% market share in unit terms, and ranked in seventh place with a market share of 2.7%, sales-wise, in 2020.

As a healthcare company, we felt that a greater responsibility has fallen upon us and prioritized manufacturing and supply operations to ensure uninterrupted access to treatment for patients. Despite the pandemic, we managed to expand our product portfolio. In particular, we added several new products into our portfolio in respiratory and ophthalmology therapy areas, and broadened options for physicians by offering new forms of our products that add value in niche segments, such as hematology.

At DEVA, we have been creating value in both sustainable and long-term employment and in manufacturing, making a contribution to our national economy for over 60 years. We operate with a workforce of nearly 2500 professionals and comprehensive production facilities. Our production output grows by the year, while we continue our investments in a diverse portfolio of products and product forms. This time of pandemic also marked our rediscovery of the value of local production and being self-sufficient as a nation. It is crucially important to be able to manufacture in our own territory the treatments that we need and the raw materials needed to manufacture them. We take pride in our ability to manufacture many treatments and the raw materials of some of our products with our vertical integration approach.

We have accelerated our efforts in international markets, guided by our vision of becoming a global brand and making DEVA products accessible to patients around the world. As of yearend 2020, we have over 800 approved products in more than 60 countries across international markets. We have expanded our business operations in regulated markets, such as Germany and Switzerland. We took collaboration opportunities using various business models with new business partners in international markets as part of our business development efforts.

The strength of our sustainable growth is mainly founded on our investments in R&D and innovation. Last year, we invested about 7% of our sales in R&D. Like the year before, DEVA was named 23rd company investing in R&D in Turkey, according to the “R&D Top 250, 250 Highest R&D Spenders in Turkey” list maintained by Turkish Time. In the pharmaceutical industry, DEVA ranked in 1st place among companies investing highest in R&D (*R&D 250, 2019). Accordingly, we will continue investing in and generating new projects that fuel our innovative capabilities in the future, as we are doing today.

 While working for a healthier tomorrow, we believe that sustainability is a social and even global responsibility to our world, which we all must embrace. We therefore believe it is important protect the environment, avoid disrupting the ecological balance, help reduce carbon footprint and emissions as key drivers of global warming, and encourage and raise public awareness of the importance using natural resources efficiently.

Dear Stakeholders,

As a global pharmaceutical company, we aspire to become Turkish brand of global preference by manufacturing all products in Turkey where possible and offer them to patients around the world. At DEVA, our ways of working are shaped by our guiding corporate principles of teamwork, people-focus, openness to change and improvement, taking responsibility and perseverance in the face of adversity. We set the bar high as a company and strive to surmount it. We would like to thank you for your trust in us in this journey.

Yours Sincerely,

Philipp Haas

Chairman of the Board of Directors & CEO