Our company’s main area of operation is to carry out the purchase and sale, import and export, production and marketing, contracting works, representation and agency of chemical substances diagnostic reagents, radioactive diagnostic kits, pharmacy and hospital perch used in the medical and pharmaceutical industries and purchase and sale, import and export, production and marketing, contracting works, representation and agency of medicinal products and preparations for treatment and diagnosis purposes used in medicine and veterinary medicine. Detailed information on our areas of operation can be found in article 3 of our articles of association.
What is the Business Model of GEN?
In general, GEN operates in three main areas:
The first drugs are classified in the NPP (Named Patient Program) group, detailed below.
The second area is the sales and distribution of registered imported drugs, which are produced by drug companies abroad and registered in our country for GEN.
The third group is the sales and distribution of the drugs produced in GEN’s production facility and registered for GEN in Türkiye and abroad.
GEN operates in all these fields to improve solutions for rare diseases.
What is the operation system of NPP (Named Patient Program)?
Drugs prescribed by doctors for the treatment of diseases and import permission is given by the Republic of Türkiye Ministry of Health but not registered in Türkiye, and import can be imported through the Turkish Pharmacists Association (TEB), Türkiye Social Security Agency (SGK) and USHAŞ (Internations Health Services Inc.). The name of this import of drugs and delivery of the patients model is NPP (Named Patient Program)
Drugs in this category and their producers are represented in our country with an exclusive distributorship agreement. The main difference between registered imported drugs and these drugs is that sales are not made in pharmaceutical warehouses but in TEB, SGK, and USHAŞ, and the sales price is determined in foreign currency.
What is the difference between imported and produced drugs?
Registered imported drugs are product portfolios to which GEN has rights according to the exclusive distributorship agreement with foreign producer companies. These drugs are registered by the Republic of Türkiye Ministry of Health. Registrations are made for our company.
Registered (Equivalent) drugs are produced in our company’s production facility, and registrations are made for GEN.
What strategy does GEN follow for its financial investments?
Financial investments are made using the strategy of investing in ventures that have the potential to develop innovative health products and have priority rights on the products developed by these ventures.
What are the expected contributions of financial investments and subsidiaries?
The main contribution expected from financial investments and subsidiaries is improving the company’s product diversity and expanding its sales and distribution network through priority rights on products developed by our financial investments and subsidiaries.
What is a projection of GEN in terms of increased share of production in total sales?
The production facility, established in 2017, contributes to GEN’s total sales, which is around 2% of the current situation. However, considering strict regulations on drug production areas and regulatory authorities’ approval obligation of production facilities, it can be said that our production facility started to operate only a short time ago.
On the other hand, each product produced in the production facility will be sold as a commercial product. Before it is sold, it must be registered by the regulatory authorities.
The production facility is new, and the registration process takes a long time because the share of products produced in our production facility in total sales could be higher. In the next five years, it is aimed that the share of production will gradually increase with the increase in the number of developed products and increase in the number of registered products, and it is aimed that the share of output in total sales will reach 60%-65%.
What is the management strategy for the company’s foreign currency risk?
Even though a significant part of the company’s total sales are based on imported products, our company does not carry severe foreign currency risk. Purchasing and selling drugs within the scope of NPP (Named Patient Program) is the most significant constituent of our total sales made in foreign currency due to agreements made between our company and counterparties, so our company does not have foreign currency risk in this field.
For imported registered drugs, the second largest constituent of our total sales, a significant portion of the foreign currency risk is mitigated through agreements with business partners. Our company, which has successfully eliminated foreign currency risk on many of its sales, further minimises the risk through proactive financial management.
Is there any risk in the supply of imported products?
Contracts protect supply for most of our imported products, so no such risk is anticipated.
How is participation in annual meetings ensured?
The general assembly documents are available on our company’s website under the title of the General Assembly three weeks before the general assembly date.
What is a strategy for dividend distribution?
Generally, our company aims to distribute at least 1/3 of its distributable profit as dividends as much as is affordable from resources available in our legal records, considering the general economic situation, investment strategies, and profitability. Our company’s dividend distribution policy is on its corporate website, Corporate Governance Documents.
Why are sales discounts so high?
Sales discounts applied by our company are general in the drug sales and distribution sector. Within this framework, 11% of blood products, 28% of generic drugs (depending on the product), and 41% of imported products (depending on the product) are legal discounts.
Applied discounts are managed to keep the company’s interests at the highest level and in compliance with sectoral dynamics.
How can I get the most accurate information about the company?
You can reach the most accurate information about our company through
Our corporate website: https://en.genilac.com.tr/
Our company’s page on the Public Disclosure Platform:
You can also forward all your questions, comments and suggestions to the [email protected] e-mail address.
