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Healing power of the changing worldAbdi İbrahim’s socio-economic

impact in TurkeySeptember 2021

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Healing power of the changing world | Abdi İbrahim’s socio-economic impact in Turkey

Important NoticeThis report (the “Report”) has been prepared by Deloitte Danışmanlık A.Ş. (“Deloitte”) for Abdi İbrahim İlaç Sanayi ve Ticaret A.Ş. (“Abdi İbrahim”) on the basis of the scope and limitations set out below.

The Report has been prepared solely for the purposes of analyzing economic and social impacts of Abdi İbrahim in Turkey. It should not be used for any other purpose or in any other context, and Deloitte accepts no responsibility for its use in either regard including its use by Abdi İbrahim for decision making or reporting to third parties.

The Report is provided exclusively for Abdi İbrahim’s use under the terms of the contract between Deloitte and Abdi İbrahim. No party other than Abdi İbrahim is entitled to rely on the Report for any purpose whatsoever and Deloitte accepts no responsibility or liability or duty of care to any party other than Abdi İbrahim in respect of the Report and/or any of its contents.

The scope of our work has been limited by the time, information and explanations made available to us. The information contained in the Report has been obtained from Abdi İbrahim and third-party sources that are explicitly referenced in the appropriate sections of the Report. Deloitte has neither sought to corroborate this information nor to review its overall reasonableness. Further, any results from the analysis contained in the Report are reliant on the information available at the time of writing the Report and should not be relied upon in subsequent periods.

Accordingly, no representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of Deloitte or Abdi İbrahim or by any of their respective partners, employees or agents or any other person as to accuracy, completeness or correctness of the information contained in this document or any oral information made available and any such liability is expressly disclaimed.

All copyright and other proprietary rights in the Report remain the property of Deloitte and/or Abdi İbrahim and any rights not expressly granted in these terms are reserved.

This Report and its contents do not constitute financial or other professional advice, and specific advice should be sought about your specific circumstances. In particular, the Report does not constitute a recommendation or endorsement by Deloitte or Abdi İbrahim to invest or participate in, exit, or otherwise use any of the markets or companies referred to in it. To the fullest extent possible, both Deloitte and Abdi İbrahim disclaim any liability arising out of the use (or non-use) of the Report and its contents, including any action or decision taken as a result of such use (or non-use).

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Report Highlights 4

Our Objective 5

Abdi İbrahim At A Glance 10

2025 Vision Impact Strategy 16

Economic Development 18

Holistic Healthcare 26

Disruptive Innovation 36

Public Commitment 44

End-to-End Sustainability 50

Future Aspirations 58

Contents

Scan the QR code to accessthe digital report.

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Carbon neutrality by

2030

15Mhealthy life years and

$155bn productivity gains in the next

25-years by the patients who benefited from selected

products in 2020

$645M Gross value

added across the supply

chain

#1 in sustainability

according to doctors, pharmacists, and

press

Production capabilities of

mRNA & inactive vaccines in the AbdiBio

facility

20K employment

creation across the value chain

$70M export volume

$25M tax contribution

in 2020Report Highlights

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Our ObjectiveSince its foundation in 1912, Abdi İbrahim has a

long history of accomplishments in sustainability-

driven engagements to address Turkey’s most

significant challenges in public healthcare and

economic development. The firm has been

sharing this agenda in its annual sustainability

reports both to increase awareness among the

local life sciences ecosystem and to establish

transparency and accountability towards its

patients and value chain partners.

For this year, Abdi İbrahim has decided to take

another step forward as a part of its Vision 2025

Strategy and launch a comprehensive socio-

economic impact report in partnership with

Deloitte. As one of the first publicly accessible

studies in the industry that specifically focuses

on the Turkish society, the report represents a

milestone for Turkey’s national pharmaceutical

industry and its growing role in the future

wellbeing of the country, considering the

foreseeable challenges in the post-pandemic

global environment.

Throughout the examination process, Deloitte

has utilized both quantitative and qualitative

methodologies in impact determination to better

capture wider societal and economical contributions

of the firm’s local activities.

First, the narrow economic impact of the firm’s

local operations is calculated in terms of gross

value added (GVA) and employment contribution.

Based on the quantified benefits, Deloitte has

performed a qualitative analysis of Abdi İbrahim’s

activities to highlight wider impacts regarding

economic development, holistic healthcare,

disruptive innovation, public commitment and

end-to-end sustainability, in line with the United

Nation’s Sustainable Development Goals (SDGs).

In conclusion, the report underlines the future

aspirations of Abdi İbrahim based on Deloitte’s

2025 predictions for the global healthcare and life

sciences industry and ends with Abdi İbrahim’s

2030 Commitment.

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A Message from Abdi İbrahim

DR.Süha TaşpolatoğluCEO

Established in a small pharmacy in 1912 by pharmacist Abdi Nadir İbrahim Bey in the Küçükmustafapaşa District of Istanbul, Abdi İbrahim continues to serve humanity with a relentless passion for healing. Thanks to our founders’ far-reaching visions, our company has become a healing force of the changing world, growing by the day and aiming to make its over a century-long successful journey sustainable.

As Abdi İbrahim, we do not merely produce medications, but we also strive to present millions of people with a better and healthier life each day. We take steps that will shape the future with the strength of our deeply-rooted and innovative structure. We make R&D, technology and production facility investments for both our industry and public health, we increase our production, we expand our export territories and contribute to employment. By strengthening all of our activities in all governance, environmental and social areas, we wish to add constancy to the contribution we make to our country and humanity.

Even though the pandemic we are currently facing has brought with it unusual challenges in the year 2020, we have acted in a responsible and efficient manner and have proved the resilience of our business model. By ensuring business continuity, we have continued to supply critical medications to our society even in the darkest times of the crisis. As Turkey’s ’healing force’, we have efficiently contributed to the fight against the COVID-19 pandemic that is threatening the whole world. One of the most important topics in the fight against the pandemic was vaccination. As Abdi İbrahim, we have worked in close collaboration with domestic and international companies since the beginning of the pandemic to produce vaccines. We have obtained authorization for production which proves our capacity for production at the highest internationally-accepted standards of mRNA-based and inactive COVID-19 vaccines, and we have also obtained our license from the Ministry of Health for vaccine production.

The challenges brought on by 2020 did not prevent us from reaching our main goals. Abdi İbrahim continues to support Turkey’s economic growth by increasing national gross value added in an industry that is extremely dependent on foreign sources.

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Our total economic activity in 2020 created 645 million USD worth of gross value added, with 45% of which is Abdi İbrahim’s supply chain expenses and increased employee remuneration. We aim at expanding our impact in Turkey through localization activities in our supply chain. Our product portfolio diversified with a global production capacity of 520 million units per year, and our advanced production methods make us one of the leading production centres of the region. By increasing our production capacity to approximately 750 million units per year, we aim to double Abdi İbrahim’s annual impact by 2023. Abdi İbrahim, a company that motivates a diversified workforce by creating job opportunities for the community, Abdi İbrahim employs a total of 4,452 employees worldwide, 3,918 of which are in Turkey. In 2020, through our impact on our supply chain, we have supported a total employment of 20 thousand people in the industry.

We are an international pharmaceutical company that exports to six continents. While operating in 15 countries with our own sales employees, we export to more than 60 countries through our distributors or via license agreements.


DR.Süha TaşpolatoğluCEO

Our exports constitute 16% of Abdi İbrahim’s total revenue and thus meet 5% of Turkey’s total exports in the life sciences industry. Consequently, despite the destructive effects of COVID-19 on the life sciences value chain, we are delighted that Abdi İbrahim has continued to increase its export volume.

We have announced our VISION 2025 strategy in a period when the whole world was focused on the fight against the COVID-19 pandemic. Our long-term goal is to become one of the largest 100 pharmaceutical companies in the world by leveraging ourselves on our consistent focus on our global supply chain and on innovation, and through our unique value offerings and our strong brand penetration in international markets.

That is why one of the greatest requirements of our VISION 2025 strategy is to become Turkey’s leading biosimilar-product company in production and sales by forging global partnerships and investing in our technological capacity through R&D. By concentrating on additional investments and talent development, we take all necessary steps to develop our own biosimilar products.

To reach that goal, we have launched 45 ventures with digital transformation and an R&D investment of 8 million USD. To enlarge and diversify our AbdiBio biosimilar product portfolio, we have invested in OM Pharma, one of the leading Swiss biotechnological pharmaceutical companies.

As Abdi İbrahim we work with the belief that the ultimate purpose of our strategic goals is to provide benefit to people, society and the world as a whole. We believe that the data we analyze and share with the public will carry us further into the future and encourage us to do better, and our “Socio-Economic Impact Report” – a first in the pharmaceutical industry – is a product of this line of thought. I hope that this report detailing the activities of Abdi İbrahim and its impacts on the surrounding ecosystem will serve as an inspiration to our sector and the Turkish business world as a whole.

Best regards.


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A Message from Abdi İbrahim

In this day and age we are becoming more aware that it is no longer a matter of choice, but an obligation for organizations to work toward what is good in the world. Contributing to the global targets set by the United Nations and other international organizations with a view to creating a better world is regarded by Abdi İbrahim as a primary responsibility, being a company with more than 100 years of experience in the provision of healthcare services. In line with our pledge to work in harmony with the UN Sustainable Development Goals, we are happy to share with you the Abdi İbrahim Socio-Economic Impact Report, which we have prepared to measure the impact of all of the activities in which we are engaged with the mission of ‘healing life’ and discovering the sociological impact of our activities, and with a view to extending the positive impacts of what we do further by acting in accordance with the results.

Acting with a passion for healing and an awareness for social responsibility since the day we were founded, as Abdi İbrahim we focus on integrating sustainability into all the links of our value chain. We shape all of our actions around an ESG (Environmental, Social, Governance) perspective. We see sustainability as a principal area of guarantee for our work and our lives. As a company dedicated to the healing of lives, we are aware of the responsibility we carry for a healthier society and a more livable world. We consider the protection of the environment, the efficient use of natural resources, the reduction and sorting of waste at its origin and its recycling in all of our activities as the pillar of our environmental policy and of our goal to heal the future. We also wish to strengthen our activities in the social domain, to consolidate our steps towards the future and to contribute as much as possible to our country in this respect.

M. Oğuzcan Bülbül, PhDPublic Affairs & Corporate Comunications Director


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Seeing sustainability as our main umbrella in our journey to healing the future, we have developed social investment programmes that will contribute to that umbrella under the categories of ‘health and sports’, ‘social innovation’, ‘raising scientific awareness in youth’ and ‘volunteering projects for social needs’. We have started developing and implementing projects under each programme. On the governance side, we work towards building and maintaining relationships that are fair, that are based on the rule of law, that protect personal data, that are founded on the principles of ethics and transparency, that comply with corporate governance principles and all legislative regulation in force, and in which all reciprocal feedback processes are respected.

We have the important target of becoming carbon neutral by 2030. We aim at reaching zero carbon footprint in all processes from acquisition to production, logistics to marketing and delivery of products to end customers. We are proud to be sharing the results of the survey we have carried out on the perception of corporate sustainability in Turkey in 2021. According to this survey, Abdi İbrahim ranks first based on the opinions of medical specialists, general practitioners and members of the press. We uninterruptedly pursue our investments by trusting in the potential of the Turkish pharmaceutical industry whose establishment we contributed to, and in our country’s power and future. As a passionate ‘family’ that pursues big goals and ideals, we continue to carry our ‘healing journey’ into the future. Aspiring to that mission, we are determined to shape Turkey’s sustainable welfare with our ‘2030 Impact Goals’ today and tomorrow.

We are proud to be presenting the Abdi İbrahim Socio-Economic Impact Report which assesses the economic, social, cultural and environmental impact that Abdi İbrahim has on the Turkish economy using scientific methodology and data. We as Abdi İbrahim will continue to heal lives and the future with determination.

Best regards,

M. Oğuzcan Bülbül, PhDPublic Affairs & Corporate Comunications Director

ABDİ İBRAHİMAT A GLANCE

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Abdi İbrahim’s Global Performance in 2020

As the leading pharmaceutical company in Turkey, Abdi İbrahim works with a guiding mission to heal the lives it touches through its strong global presence, established partnership network, trusted corporate identity and diverse treatment portfolio, all driven by the company’s constant innovation and sustainability focus.

With a history of 109 years and as the local market leader for the last 19 years, Abdi İbrahim aims to support communities with its holistic healthcare approach and diverse product portfolio that primarily focuses on the most challenging scientific fields such as immunology, oncology, neuroscience, cardiology and many others.

Through its export operation to more than 60 countries and global supply chain network, Abdi İbrahim is an international market player with an objective to become a lifetime healthcare partner for consumers and to provide advanced treatment alternatives wherever needed.

With courage, passion and accountability at the core of its values and mission to become «the healing power of the changing world», Abdi İbrahim aims to lead Turkey’s national pharmaceutical industry’s growing role within the global ecosystem today and in the future.

4,400+Employes

520MAnnual Unit Production Capacity

$622MTurnover

30+International Licensing Partners

3Countries with Manufacturing Facilities

15Countries with Abdi İbrahim Teams

60+Export Markets


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Abdi İbrahim’s Global Performance in 2020

Abdi İbrahim is an international pharmaceutical company with operations and exports spreading over 6 continents. While Abdi İbrahim operates with its own salesforce in 15 countries, the firm also exports to more than 60 countries either through distributors or out-licensing agreements. In total, its export operation represents 16% of Abdi İbrahim’s revenues, generating 5% of Turkey’s total exports in the life sciences industry.

Global Sales and Production Network

Abdi İbrahim’s long-term objective is to be among the top 100 global pharmaceutical firms by developing unique value propositions and achieving strong brand penetration in international markets, supported by its global supply chain network, established value chain partnerships and constant innovation focus.

Abdi İbrahim is also recognized with its globally distributed production capacity with a total of 7 facilities in 3 countries. As a part of its supply chain strategy, the firm aims to accelerate its partnerships in advanced material procurement and R&D, by collaborating with companies operating in fast growing markets.

As the leading raw material suppliers in the global market, China and India come forward among Abdi İbrahim’s strategic partners. Additionally, South Korea is another key supply chain partner with its globally recognized firms in semi-finished product manufacturing.

© 2021. For information, contact Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited.

© Australian Bureau of Statistics, GeoNames, Microsoft, Navinfo, TomTom, WikipediaPowered by Bing

LocalAbdi İbrahimoperations

Key supplychainpartners

Globalsalesnetwork1


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Diverse Product PortfolioWith more than 600 medicines in 15 treatment areas, Abdi İbrahim’s product portfolio focuses on curative, symptomatic and preventive treatments to provide alternative solutions to consumers.

Abdi İbrahim's broad product portfolio includes a wide range of OTC and symptom-relieving medicines, as well as more complicated medicines used in the treatment of serious medical conditions such as Parkinson's disease, blood clotting or cancer. Abdi İbrahim's diverse OTC portfolio includes supplements, dermo-cosmetics and medical devices.

50%Abdi İbrahim

Medicines

Curative treatments50% of Abdi İbrahim’s products are categorized as curative treatments which are used once a patient getsdiagnosed with a disease or a condition, and aim to return the patient back to their full health.

Symptomatic treatmentsSuch treatments relieve symptoms without necessarily curing the patient.26% of Abdi İbrahim’s medicines fall under this category.

Preventive treatmentsSuch treatments focus on ensuring sustainable health before the consumer catches a disease or suffers from any conditions. 24% of Abdi İbrahim’s portfolio consists of preventive treatments.

26%

24%


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Production LandscapeWith its 520-million-unit global production capacity, Abdi İbrahim is one of the leading production hubs in the region with its diversified portfolio and advanced manufacturing capabilities. Moreover, Abdi İbrahim’s continuous efforts in obtaining globally accepted quality certifications establish the firm’s high reputation among global pharmaceutical partners.

Abdi İbrahimEsenyurt FacilityWith an annual capacity of 450 million units and more than 1,000 personnel, the Esenyurt facility is at the core of Abdi İbrahim’s manufacturing operations. Established on an area of 83 thousand square meters and with an initial investment of $100 million, the Esenyurt facility is operational since 1999.

AbdiBioSince 2018, the facility continues its production with an annual capacity of 22 million cartridges, 11 million vials, 9 million syringes and 1 million lyophilized vials. AbdiBio has also received the approval of Ministry of Health to formulate mRNA-based and inactive vaccines.

Hormone Production FacilityThe facility is Turkey's first EU-approved hormone production factory, operational since 2017.

Sterile Ophthalmology & Sterile Inhalation FacilityEstablished in 2017, the facility produces sterile BFS monodose2 for inhalation and ophthalmology and sterile multiple dose for ophthalmology.

Sterile Injectable & Oncology Production FacilityStarting production in 2023, the facility will manufacture OTC products, oncology injectables and other sterile products.

More than 90% of Abdi İbrahim’s global production capacity is located in Turkey, distributed in 5 facilities with distinct manufacturing capabilities.

İstanbul, Turkey

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Abdi İbrahim Global Pharm As the country’s first modern production facility in the industry, AIGP produces a wide range of products including diabetic care, antiviral, central nervous system and cardiovascular system focused medicines with a capacity of 24 million units.

Abdi İbrahim Remede Pharma With a production capacity of 51 million units, AIRP manufactures products in many therapeutic areas including urology, central nervous system, respiratory, metabolism and iron deficiency.

Almaty, Kazakhstan Algiers, Algeria


2025 VISIONIMPACT

STRATEGY

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Abdi İbrahim’s Vision 2025 Impact StrategyAs the leading Turkish pharmaceutical firm, Abdi İbrahim defines its impact agenda with a guiding principle of «healing lives and future» and the firm is committed to focus its socio-economic efforts under 4 impact pillars. Abdi İbrahim understands its responsibility towards the Turkish society and through its 2025 objectives, the firm aims to contribute to the country’s wellbeing today while collaborating with its partners to build a more sustainable and accessible healthcare ecosystem in the future.

TO BECOME THE HEALING POWER OF THE CHANGING WORLD

END-TO-END SUSTAINABILITY

ABDİ İBRAHİM’S IMPACT MISSION

IMPACT PILLARS KEY DRIVERS VISION 2025 OBJECTIVES

Value-added industrial output

Employment contribution

Balanced government budget

Wellness focused lifestyle

Healthcare accessibility

Treatment effectiveness

Aggressive digital transformation

Leadership in biotechnology

Partnership and knowledge network

Keeping the environmental mindset

Public health and education

Value chain focused social innovation

Become an economic powerhouse of Turkey with value-added production, increasing export volume and growing foreign direct investment

for consumers to maximize their healthy life years with digitally-enabled care and personalized treatments

Become a lifetime healthcare partner

in the region by focusing on innovation and building local expertise in biotechnology through partnerships

Become a digital transformation leader

by building bridges between industry stakeholders, NGOs, regulatory bodies and the people in need to improve lives

Become a health equity ambassador

ECONOMICDEVELOPMENT

HOLISTICHEALTHCARE

DISRUPTIVEINNOVATION

PUBLIC COMMITMENT

ECONOMICDEVELOPMENT

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Defining the ImpactAbdi İbrahim is an economic powerhouse within Turkey’s national pharmaceutical industry as a significant contributor to the gross value added and employment through its local activities regarding advanced manufacturing, export, foreign direct investment and value chain localization.

The narrow economic impacts indicate Abdi İbrahim’s measurable contributions to the Turkish economy through its local commercial and operational activities.3

These narrow economic impacts on Turkey are analyzed under two primary dimensions: additional gross value added (GVA) and employment contribution.

Under the primary dimensions, Abdi İbrahim’s overall tax contribution, export volume and the attracted foreign direct investment (FDI) are critical financial drivers that are additionally highlighted to better capture the firm’s overall contribution to the Turkish economy with a multi-dimensional perspective.

GVA

Tax

FDI

Employment

Exports

Direct impacts include Abdi İbrahim’s financial profit, expenditure on employee wages and contributionin public taxes

Additional to its impact through operationaloutputs and direct

activities, Abdi İbrahim also generates a significant

economic value through its supply chain partners and

the wages paid to employees, creatingindirect and induced impacts across the

value chain.

Direct impact

Indirect impacts include Abdi İbrahim’s expenditure on suppliers and their expenditure through subsequent tiers of the supply chain

Indirect impact

Induced impacts include personal expenditure by employees of Abdi İbrahim and its suppliers with their wages

Induced impact

GVA Tax FDI

Exports

Employment


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Economic Contribution from Local Activities in 2020

Abdi İbrahim supports Turkey’s economic growth by increasing national gross value added in a highly import dependent industry.Abdi İbrahim’s economic activity totals to $645 million GVA in 2020. 45% of total GVA impact is created directly by Abdi İbrahim’s supply chain expenditures and increase in the compensation of employees. Abdi İbrahim’s supply chain localization efforts aims to further extend these impacts generated in Turkey. With Abdi İbrahim’s plan to increase its capacity to nearly 750 million units, the annual impact of the firm is expected to double by 2023.4

While the economic impacts modelled only include Abdi İbrahim’s operations in Turkey, the firm’s global presence in more than 60 countries has a significant multiplying affect on the size of its actual economic impact which further underlines Abdi İbrahim’s international role within the global life sciences ecosystem.

$645M Gross Value Added

Total impact across the supply chain

Abdi İbrahim creates sustainable job opportunities for the local community and promotes a diverse workforce with future-ready capabilities.

Abdi İbrahim globally employs 4,452 personnel, of which 3,918 in Turkey only. Women employees represent 31% of direct employment and 37% of the managerial team in Turkey. Including the impacts across the supply chain, Abdi İbrahim supports a total of 20k employment. Moreover, Abdi İbrahim’s approach to talent highly prioritizes the hiring and promoting people coming from advanced STEM5 backgrounds.

20K Employment

Total impact across the supply chain

$25M Direct Tax Contribution

$70MExport Volume*

*Although Abdi İbrahim's export volume directly from Turkey is calculated as $70M, the total export volume of the company increases up to $100M when the sales from international subsidiaries are included. (such as Abdi İbrahim companies in Kazakhistan and Algeria)


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Leadership in Commerce and Manufacturing

Abdi İbrahim exports to more than 60 countries either through its own salesforce, distributor network or out-licensing partnerships.

Regarding the international market growth, Abdi İbrahim’s primary objective is to expand with its own brand to establish a stronger market presence. Therefore, the firm prefers to test new markets through out-licensing partnerships and eventually introduce its brand through local distributors or with its own salesforce in strategic markets.

The company’s export markets are mostly concentrated in North Africa, Central Asia, Europe, Middle East and Caucasus. At the top of the its export portfolio, there are 15 countries that are selected as Abdi İbrahim’s strategic markets where the firm has a local salesforce operation and uses its own brand: Turkey, Germany, Albania, Azerbaijan, United Arab Emirates, Bosnia and Herzegovina, Algeria, Georgia, Iraq, Kazakhstan, Kosovo, North Macedonia, Portugal, Saudi Arabia, Tunisia.

Behind Abdi İbrahim’s exponentially growing export performance is the rapid adaptation to the Industry 4.0 technologies in its supply chain, remote marketing capabilities to reach out to international partners and consumers, as well as its value focused treatment approach. As a result, Abdi İbrahim’s export volume has continued to grow even in the face of COVID-19’s disruptive impact on the life sciences value chain.

Compared to Turkey’s overall export profile as a country, Abdi İbrahim's portfolio stands out with its value-added product focus rather than unit volume. With its upcoming products, Abdi İbrahim’s strategic priority is to reach a larger international market with targeted value propositions in the near future.Export to more than 60

countries

Operations with Abdi İbrahim brand in 15 markets

$70 million export volume from Turkey

Abdi İbrahim is solely responsible for 5% of the total exports of the $1.3 billion pharmaceutical industry in Turkey.

Source: Foreign Trade Statistics, Ministry of Commerce, 2020

In partnership with more than 15 global market leaders, such as Pfizer, GSK, MSD and Servier, the manufacturing services business is Abdi İbrahim’s one of the key strategic priorities which serves to several key economic impact dimensions: foreign direct investment, know-how transfer and global export potential.

37% of units produced are focused on global manufacturing services

$68 million revenue generated through manufacturing services7

$70M Foreign direct investment

$30M Production value-added

While manufacturing services can be considered as a support function to efficiently manage factory capacity in a volatile market environment, Abdi İbrahim has a wider viewpoint as the company prioritizes technology know-how transfer by closely working with its long-term partners. Moreover, trusted relationships with firms such as Abbvie, GSK, AstraZeneca and Boehringer Ingelheim eventually lead to strategic investment partnerships that increase foreign direct investments to Turkey, as well as the country’s competitiveness in the global export market.

However, attracting global players

to choose Turkey as a production hub and investment partner requires proven expertise and continuous transparency. In the recent years, Abdi İbrahim’s production facilities have received globally accepted quality certifications from multiple authorities, such as EU GMP6, which supported the firm’s objective to establish trust and reputation in the global markets.

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Abdi İbrahim’s manufacturing services business model is a key driver in attracting value-added foreign direct investment.

$70M Foreign direct investment

$30M Production value-added

Foreign Direct Investment

Know-How Transfer

Global Export Potential

INVESTMENT PARTNERSHIPS8

Partnership with Allergan in advanced products and manufacturing technologies

Allergan, recently acquired by AbbVie, is one of the leading American pharmaceutical companies with a significant global presence. The firm first started its local operations in 1990 in close partnership with Abdi İbrahim through sales and distribution services and later opened its local office in 2010. Since then, both firms have closely collaborated in knowledge transfer in advanced manufacturing technologies. Recently, they have developed a partnership for the implementation of sterile manufacturing processes in one of the Abdi İbrahim’s facilities to produce Allergan’s next-generation products.

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SPOTLIGHTSaving Impact by the Introduction of the First Generics

One of the key missions of Abdi İbrahim is to launch

the first generics in the Turkish market to provide

alternative treatment solutions to consumers and

healthcare professionals.

The introduction of first generics for the original

prescription medicines have multiple positive

impacts on the public health budget. Firstly, the

price of the original product rapidly decreases

due to the regulatory directions and changing

competitive market dynamics. In addition, the newly

introduced generics product has to be offered with

a reduced price which indirectly increases the total

savings realized.

Eventually, the prices for all the available

prescription medicines for a particular treatment

field automatically drop with the introduction of the

first generics medicine, without any additional effort

needed by the consumers or the government.

In the example case presented below, the total

savings gained is estimated by analyzing the price

and volume trends of the selected original and

generics medicines. Assuming the consumption

growth is not affected by new product launches,

Abdi İbrahim’s 3 medicines have resulted in an

estimated total saving of $45 millions in the public

health budget since 2019, through a significant

reduction in market prices only.

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MEDICINE #2

Launch date October, 2019

Treatment areaFungal infections

MEDICINE #3

Launch date December, 2020Treatment area

Blood clots

2019 2020 2021

A total of

$45Msavings in 3 years by the

end of 2021

MEDICINE #1

Launch date December, 2015Treatment area

Parkinson’s disease

9

Estimated cumulative saving impact of selected Abdi İbrahim products


Source: IQVIA Database

HOLISTICHEALTHCARE

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A Holistic Approach to HealthcareDriven by its strong market position, trusted corporate identity and licensing agreements with more than 30 firms, Abdi İbrahim is a pioneer in the Turkish life sciences ecosystem with its holistic care approach and aims to provide treatment alternatives to the Turkish community to improve the collective wellbeing.

Abdi İbrahim frames its holistic care approach to operate in a new consumer-centric environment through digital technologies in order to ensure lifetime wellbeing.

Dimensions of virtual health and

consumer centricity

Scientific and technological

progress

Increased insights with interoperable

data

Empoweringpeople to takecontrol of their

own health

Cultural change to promote wellbeing

Scaled data sharing across

health systems

Holistic care through virtual health and consumer centricity

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Key Holistic Healthcare Trends

Preventive care methods

Constant health monitoring

Personalized care pathways

Easier mental health checks

Owning your healthcare

People understand that they are responsible for their own health and how nutrition and exercise affect their immune health, resulting in healthier lifestyle choices.

People use supplements to prevent diseases and ensure healthy ageing as they understand their genetic profile and how to improve their immune health.

Individuals no longer request intermittent healthcare checks when feeling unwell; instead they deploy continuous health monitoring through their own portable devices.

Healthcare services and clinical pathways have been redesigned with and around the needs of specific groups to deliver seamlessly integrated care.

Mental health needs are identified through multiple channels such as facial recognition technology and via mobile apps on sleep patterns and moods.

Source: Predicting the Future of Healthcare and Life Sciences in 2025, Deloitte, 2020Pharma and the Connected Patient, Deloitte, 201728

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PHYSICAL AND MENTAL WELLNESS

Wellbeing-First MindsetIn line with its holistic care approach, Abdi İbrahim invests in its preventive healthcare offerings through a broad over-the-counter (OTC) product portfolio to support people’s physical and mental wellness.

Selected OTC portfolio to sustain and augment personal wellness10

Immune System Support

Probiotics & Digestive Health

Vitamins & Minerals

Selected causes of deaths in Turkey, 2019 (figures in thousands)

The leading causes of such diseases include the following lifestyle related behavioral factors:

Ischemic heart

disease

Stress and anxiety

Physical inactivity

High blood pressure

Poor diet & overweight

Smoking

Trachea, bronchus,

lung cancers

Chronic obstructive pulmonary

disease

Diabetes mellitus

More than 30% of total deaths in Turkey in 2019 were caused by primarily lifestyle-related conditions

Abdi İbrahim promotes physical and mental wellness through its social awareness programmes and OTC product portfolio to support preventive care and behavioral health.

Source: Turkstat, World Health Organization


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Pursuit for Accessible Care

Abdi İbrahim focuses on increasing treatment alternatives offered to the community through making global licensing agreements and building long-lasting relationships with consumers and ecosystem partners, based on mutual trust and shared values.

As the local market leader, Abdi İbrahim is the most preferred pharmaceutical firm both by consumers and healthcare professionals.

Abdi İbrahim has a 9.3% market share in units sold and 6.1% in revenue generated in the Turkish pharmaceutical market, making the firm the market leader with a significant margin. As a result of Abdi İbrahim’s diversified treatment portfolio and established distribution network across the country, Turkish consumers have benefitted from 199 million units of Abdi İbrahim medicines in 2020 only.

The firm values its corporate identity and relationships among industry stakeholders and as a result, Abdi İbrahim is selected as one of the top 5 most reputable Turkish brands11. Moreover, the majority of consumers and stakeholders agree that Abdi İbrahim is known as a lifetime wellbeing partner due to its relatable and ethical approach in treatment support as well as its national brand identity as a firm.

Long-term licensing partnerships with global firms is essential to guarantee healthcare accessibility by supplying original medicines.

Abdi İbrahim has long-lasting relationships with global market leaders in original medicines through licensing agreements. As many of such licensors do not have local operations yet, Abdi İbrahim has an indispensable role as the exclusive liaison so that critical original medicines can be imported and distributed through Abdi İbrahim’s local channels and supplied to consumers in need of treatment.

Abdi İbrahim Otsuka

Abdi İbrahim Otsuka is the first and only Turkish-Japanese joint venture in the pharmaceutical industry aiming to further expand Abdi İbrahim’s product portfolio to increase the firm’s treatment offerings to consumers.

Otsuka, established in 1921, is one of three largest firms operating in the psychiatry field with a specific R&D focus on neurology and nephrology. The firm has local operations in 31 markets with its 47,000 employees.

Established in 2012

Head Office in İstanbul

Sales in Turkey, Singapore, Tunisia

Otsuka Pharmaceutical


31

Turkey’s import dependency in value-added raw material supply

Abdi İbrahim aims to further elevate its efforts on value chain localization to improve the resiliency of the national supply chain, preventing country-wide shortages in critical treatment areas.

Pharmaceutical supply chains create inherent resilience risks for corporations and governments alike. As seen in the COVID-19 pandemic, infectious diseases that spread from one individual to another can cause serious disruption to supply chains. Therefore, localization is one of the top priorities of Turkey’s public health agenda as well as Abdi İbrahim’s, to guarantee timely access to healthcare. With strong manufacturing services partnerships, advanced production capabilities and value chain collaboration. Eventually, Abdi İbrahim aims to build a self-sufficient manufacturing base in the country to make sure Turkey’s pharmaceutical supply chain is resilient against major disruptions in the future.

Although Turkey’s national pharmaceutical industry has a strong manufacturing know-how, the ratio of exports to imports in 2020 is realized as 33% only, due to the local ecosystem’s limited competitive advantage against the global market leaders. According to the Ministry of Industry and Technology, one of the prioritized improvement areas for the industry is the localization of raw material supply, especially in active pharmaceutical ingredients (API), which constitute the value-added and essential base for the majority of medicines. This trend can also be seen in Abdi İbrahim’s procurement portfolio. While 68% of the firm’s total suppliers are local companies, they can only get a 27% share of Abdi İbrahim’s total procurement expenditure.

Abdi İbrahim encourages industry stakeholders to have a strategic localization approach in API production that only focuses on a limited but strategically significant product selection and promote Industry 4.0 adaptation among raw material manufacturers to compete against low-cost suppliers such as China. In parallel, it is Abdi İbrahim’s priority to further collaborate with its ecosystem partners to develop Turkey’s national molecule development capabilities.

Abdi İbrahim’s procurement expenditure to local suppliers in 2020

Ratio of number of local suppliers to total suppliers Abdi İbrahim works with12

MARKET LEADERSHIP IN TURKEY

9.3%Abdi İbrahim

5.2%Eastphama

5.2%Bilim

6.1%Abdi İbrahim

5.2%Novartis

4.4%Pfizer

9.3%Abdi İbrahim

5.2%Eastphama

5.2%Bilim

6.1%Abdi İbrahim

5.2%Novartis

4.4%Pfizer

Market share, USD %, 2020

Market share, Unit %, 2020

$100M

68%

Source: IQVIA DatabaseSource: Turkstat, İEİS


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Potential risk factors in treatment accessibility due to supply chain disruptions

Macro riskNegative impact to entire

industrial chain due to macro changes

External supply chainRisks in upstream and

downstream supply chain network

Internal riskPotential risks from

internal supply chain organization

Geopolitical change

Exchange rate

fluctuations

Environmental protection

policies

Operational incidents

Insufficient / excess capacity

Production safetyInaccurate demand forecastProduct development delay

High transportation costLong delivery cycle

Equipment malfunctionCold chain logistics

Technical bottlenecks

Unstable IT systems

Competition

Cybersecurity

Bankruptcy / financial

risks

High defect rate

Trade secret leaks

Quality risks

Trade barrier change

Large-scale strikes

Pandemicoutbreak

Covid-19

Extreme weather

conditions

Terrorism / largescale civil strife

Waste management

Labor law

Source: Intelligent Drug Supply Chains, Deloitte, 2020


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Tackling the Challenging Fields

Abdi İbrahim’s diverse treatment portfolio addresses the most challenging treatment fields through its effective solutions to improve people’s long-term wellbeing both by increasing their total lifespan as well as the quality of lives lived.

people

of all deaths

3% of all

deaths

of all deaths

CORE TREATMENT AREAS

Treatment areas are selected to represent the majority of Abdi

İbrahim’s core portfolio.

IN TURKEYQuick facts on the

prevelance of select-ed diseases in Turkey

of all deaths

of adults

37%

727

5% 7%

Oncologyis a branch of medicine that deals with the prevention, diagnosis, and treatment of cancer

Blood and Blood Forming Organ Diseasesinclude any illnesses in-volving blood cells, tissues in which blood cells are formed or bleeding and blood clotting.

Cardiovascular System Diseases

primarily affect the heart and blood vessels.

Such diseases include heart attacks, heart

failures, heart muscle diseases etc.

Systemic Anti-Infectives are medicines that inhibits

the spread of infectious organisms such as

bacteria, viruses, fungi or parasites.

Central Nervous System Diseases

range from a variety of disorders including

Alzheimer’s, epilepsy or Parkinson’s disease.

Source: Turkey’s Ministry of Health, Turkstat


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Selected Abdi İbrahim medicines and their estimated impact on patients13

Oncology

Blood and Blood Forming Organs

Cardiovascular System

Central Nervous System

Systemic Anti-Infectives

Impact over the next 25 years by the use of selected medicines in 2020

15MTotal Healthy Life

Years Gained

$155bn Total Productivity Gained

Deloitte conducted a quality-adjusted life year (QALY) analysis in order to quantify the impact of Abdi İbrahim’s medicines and their effectiveness. QALY measures the effect of medicines on prolonging the patient's life and improving the quality of the life lived. QALYs are referred to as healthy life years gained in this report.

Deloitte determined the in-scope therapeutic areas and medicines based on the significance of their impact on people’s lives and prioritized medicines that improve the patient’s life drastically compared to the ones that offer temporary relieves such as pain killers.

As more than 2.5 million patients have been treated by Abdi İbrahim’s selected medicines in 2020, 15 million healthy life years and $155 billion total productivity are estimated to be gained over the next 25 years.

As a result, Deloitte selected a total of 10 medicines in the selected therapeutic areas to conduct the healthy life years gained analysis.

To collect the necessary data to perform the analysis, Deloitte conducted a literature search to gather scientific findings on healthy life year estimations for selected medicines. Abdi İbrahim provided the number of patients treated with these medicines in 2020.

The total healthy life year estimation represents the impact of the medication use that has started within 2020 and its impact over the next 25 years. In parallel, the productivity gains are resulting economic value from the healthy life years gained which accounts for each patient’s GVA contribution.

SPOTLIGHT Impact on Breast Cancer PatientsBreast cancer is a top priority in Turkey’s public health agenda due to its growing patient base in younger population.

Breast cancer is one of the most common and lethal cancer types in women both in Turkey and worldwide where the early diagnosis and effective treatment are essential to improve healthy life years of patients.

In 2020 only, more than 18,000 women were diagnosed with breast cancer in Turkey, making the disease a challenging field that requires investment and collaboration to further widen treatment accessibility and social awareness. Approximately every 1 in 8 women encounters with breast cancer in her lifetime and the probability of diagnosis has doubled for Turkish women in the last 20 years. Notably, the average diagnoses age in Turkey is also relatively young as 1 in 5 breast cancer patients is younger than 40 years old, which is a concerning ratio compared to the other developed countries.

In 2020 alone, more than 18,000 women were diagnosed with breast cancer in Turkey

Since 2000, the probability of breast cancer diagnosis for women has doubled in Turkey

With one of the first biosimilars in Turkey, Abdi İbrahim offers an effective alternative to improve prognosis for breast cancer patients.

First launched in 1998, the original medicine is a monoclonal antibody used to treat breast and stomach cancers. From 2003 until 2018, there was only one monoclonal antibody medicine available in Turkey where 90% of units were sold through hospitals with a tender-based procurement model.

In February 2018, Abdi İbrahim introduced its biosimilar breast cancer medicine to the Turkish healthcare community as the first locally available biosimilar of the original product. Since then, the new product became one of the most preferred breast cancer treatments in Turkey with a total of 4,500 units sold since 2018. Additionally, Abdi İbrahim has indirectly resulted an estimated $35 million savings in the public health budget in two years only, by increasing the number of alternatives in the market.

ABDİ İBRAHİM's IMPACT

Average life years gained by breast cancer patients13

4.15Volume sold to treat breast cancer patients

4,500Savings realized in the public health budget

$35M

Source: Turkey’s Ministry of Health, IQVIA Database 35

DISRUPTIVEINNOVATION

36


37

Innovation Driven Culture

Since opening Turkey’s first and largest accredited pharmaceutical R&D center in 2008, Abdi İbrahim has been a leader of innovation within the Turkish life sciences ecosystem. The firm aims to accelerate its efforts to localize necessary expertise to launch advanced products and services to eventually become a regional market leader.

For Abdi İbrahim, R&D is considered a core competency that is needed to make a direct impact on people by offering locally sourced advanced treatments. With this mission in mind, the firm has an R&D portfolio that deals with a combination of practical and advanced scientific fields aiming to address both the imminent challenges of consumers and future public health agenda.

Developing and manufacturing innovative treatments require significant talent and digitally enabled infrastructure. Since 2018, Abdi İbrahim’s R&D Center is the focal point of the company’s innovation agenda. Located in an area of 13,600 square meters, the center is the first and largest pharmaceutical R&D center in Turkey with an initial investment of $40 million.

The center is equipped with the latest digital platforms and nanotechnology assets used in formulation development labs. Recently, the center has achieved significant success in bioequivalence studies and production methods to be used in AbdiBio.

Abdi İbrahim’s R&D efforts are focused on biotechnology and advanced manufacturing technologies, supported by a comprehensive digital transformation programme.

+47Abdi İbrahim has added an additional 47 products to its portfolio since 2016, driven by successful R&D commercialization and increased global partnerships.

PRODUCT INNOVATION FOCUS

356 products 403 products

new products


38

Abdi İbrahim aims to accelerate its R&D initiatives through establishing global and local partnerships and developing in-house expertise.

The firm has a notable M&A strategy to grow its global presence as well as diversifying its product and R&D portfolio. One of the examples of this approach is the company’s recently announced investment in OM Pharma.

According to the agreement, Abdi İbrahim has acquired 28.5% of the Swiss-based biotech company OM Pharma in 2020, making Abdi İbrahim the first and only Turkish pharmaceutical firm to form a strategic partnership with a European counterpart. With the acquisition, two

firms aim to collaborate in developing biotech medicines and molecule research with a 250 million Swiss franc budget (appx. ₺2,1 million). Additionally, Abdi İbrahim has plans to benefit from OM Pharma’s sales distribution network, primarily in China and in the United States, to further expand in international markets.

Abdi İbrahim has an established research and innovation culture with a significant success rate.

R&D AT A GLANCE

$9MR&D expenditure

in 2020

14.6%Annual R&D

expenditure growth since 2016

35 of 193Patents approved in total

applications at the end of 202014


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Collaboration with universities

Abdi İbrahim has an established research network with leading Turkish academic institutions to collaborate in new product development. Recently, Abdi İbrahim’s R&D team and academicians from Ege University co-developed an advanced medical plaster that accelerates the healing process for chronic wounds caused by advanced diabetes.

The new plaster has a unique value proposition to treat patients with wounds that can potentially lead to amputation. After a 7-year long R&D process and an involvement of an additional 40 scientists in the last 3 years, The product is now patented in 41 countries and new applications are still pending. Abdi İbrahim plans to launch the product in Turkey in 2021 with an export focused roll-out plan.

In parallel to OM Pharma, Abdi İbrahim also has investments in Ocugen, a United States based biopharma startup with a focus on gene therapies to cure blindness and new generation vaccines.

Abdi İbrahim has co-led Ocugen’s Serie B funding round in 2017 to further support the startup’s efforts in clinical trials. Since 2019, Ocugen’s market value has increased by 280% as the company has promising initiatives on developing its own COVID-19 vaccine in partnership with Bharat Biotech.

In line with its corporate partnerships and acquisitions, Abdi İbrahim also values sustaining a strong R&D team under its corporate umbrella. With 127 scientists, the firm’s R&D team is highly connected with the Turkish academic institutions and globally recognized R&D establishments, especially from India and Europe.

Abdi İbrahim has investments in OM Pharma and Ocugen with a focus on biopharma

127 scientists are employed under Abdi İbrahim’s R&D functions


40

Time to Look Ahead, Biotech’s ComingIn 2018, Abdi İbrahim opened Turkey’s largest biopharma manufacturing facility with an initial investment of $100 million under its AbdiBio Project, driven by the company’s mission to reduce Turkey’s almost entirely import dependent biotech pharmaceutical needs in the short-term and to eventually support the country’s goals to become a biotechnology hub in the region.

As the center of innovation for the pharmaceuticals industry, the global biotech sector attracts significant investment from global market leaders.

While many sectors have struggled during COVID-19, the biotech industry has continued to grow and attract high investment in a global perspective. By the summer of 2020, 37 biotech companies raised a total of $6.7 billion through U.S. IPOs, compared to $5 billion in all of 2019 across 51 IPOs. The Nasdaq biotechnology index rose to a five-year high in December 2020 – up more than 25% since the start of the year. Biotech’s presence in biopharma R&D has also been increasing in recent years. In 2019, the number of biotech products in the R&D pipeline increased by 14% from a year earlier – from 4,751 products to 5,422. In particular, more than 300 next-generation therapies, such as gene and cell therapies, are currently in biotech’s late-stage pipeline, three times more than in 2009, and between 2018 and 2019 the number of these therapies in pipelines rose by more than 20%. In addition, biotech companies continue to play a leading role in developing, alone or in collaboration with other players, COVID-19 vaccines or treatments.

Biotech companies are responsible for

~70% of clinical trials globally (of which

42% are in partnership).

The number of biotech products in R&D pipelines increased by

14% between 2018 and 2019.

37 biotech companies raised a total of

$6.7bn by the summer of 2020.

~40% of COVID-19 vaccine efforts involve a biotech firm, demonstrating biotech’s continued R&D efforts.

GLOBAL BIOTECH OUTLOOK

Source: Realising A Biotech’s Potential, Deloitte, 2020


41

Abdi İbrahim’s biotech efforts aim to reduce Turkey’s import dependency while increasing the value-added export potential.

Biotech medicines has constituted 46% of total medicine imports of Turkey in 2020 making biotech one of the primary categories that drives Turkey’s import dependency in pharmaceuticals consumption.

Biotech medicines’ share in the local pharmaceutical market is expected to grow from the current 20% penetration to 30-35% in the next couple years. The expectation of 41 additional biotech medicine launches by 2024 is also one of the indicators that Turkey’s biopharma needs will exponentially grow in the mid-term which will more likely be supplied through import agreements.

Therefore, local market leadership in biosimilar production and sales is one of the key strategic imperatives in Abdi İbrahim’s Vision 2025 Strategy due to its impact potential on the country’s trade balance. Additionally, biotech’s proven effectiveness on challenging treatment areas with much reduced side effects also serves as a key incentive for Abdi İbrahim to prioritize its investments on the field to guarantee advanced healthcare accessibility for local consumers in need of specific treatments.

“Becoming the leading biosimilar firm in Turkey by building global partnerships and investing in our R&D and technology capabilities.”

Abdi İbrahim’s Vision 2025Strategic Objectives

ABDI İBRAHIM’S 3-STEP BIOTECH STRATEGY

Fill and Finish Biosimilar Production Own the ProductThe firm will be involved in

the basic components of the production, such as filling

packaging, starting in 2021

The firm will start producing other firms’ biotech medicines,

covering the end-to-end manufacturing process

The firm will develop and manufacture its own biosimilar

products from cell lines, supported with additional investment and talent development by 2025

Source: Pharmaceuticals and Biopharmaceuticals Turkey, IEIS, 2020


AbdiBio Project is the firm’s leading initiative to realize its leadership ambitions in the Turkish biosimilar market.

Under the AbdiBio Project, Abdi İbrahim opened its biopharma production facility sprawling over an area of 13,500 square meters. The facility has a current annual production capacity of 11 million flacons, 9 million syringes, 22 million cartridges and 1 million lyophilized products, with an additional underutilized space to potentially double the production capacity in the mid-term.

Furthermore, the new facility is designed to include all the necessary infrastructure and certifications to produce mRNA-based, inactive adenovirus vector and gamma-irradiated vaccines which are expected to have an essential role in Turkey’s post-COVID-19 recovery. Moreover, the firm has licenses to conduct phase I and II placebo-controled clinical trials.

Based on the firm’s biotechnology strategy, the capacity is currently used for manufacturing services contracts and it is the mid-term plan to increase the share of Abdi İbrahim’s own products within this capacity. Eventually, Abdi İbrahim aims to decrease Turkey’s import dependency in the biotech field, increase locally sourced treatment alternatives and eventually realize Turkey’s potential to become a biotech hub both in capacity and expertise.

AbdiBio targets 8 therapy areas that cannot be completely treated with chemically produced medicines. Moreover, new generation biotech medicines have a much-reduced side effects due to their targeted treatment capabilities.

ABDİBİO’S MANUFACTURING PROFILE

1 Oncology

2 Rheumatology

3 Endocrinology

4 Dermatology

5 Hematology

6 Immunology

Neurology78 Ophthalmology

42


43

AbdiBio FACTORYİSTANBUL, TURKEY

mAbdi #2 Biosimilar Development Project

With the release of its initial biotech products through manufacturing services and licensing, Abdi İbrahim is now working on developing its own biosimilar product line over the next 5 years. While the firm has multiple ongoing projects within its pipeline, one of the key initiatives is called mAbdi #2.

Under mAbdi #2, the firm targets one of the top 5 best performing biopharma medicines in the international market and currently develops its biosimilar. With this ambitious project, Abdi İbrahim aims to launch one of the first biosimilars of the original product, making the firm a significant global player in a market with an estimated size of $50 billion by 2026.

PUBLICCOMMITMENT

44


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Objective 2030: Carbon NeutralityDriven by science and innovation, Abdi İbrahim’s environmental mission is to leave a better world for the next generations and therefore committed to reach carbon neutrality by 2030.

Abdi İbrahim manages its environmental sustainability programme under 5 pillars: waste, energy, water, wastewater and GHG emissions15.

Abdi İbrahim enhances its environmental performance by managing its responsibilities under ISO 1400116 standard and bases its environmental actions on materiality analysis. The company also follows both national and international regulations to prevent pollution and to continuously improve its environmental performance.

Abdi İbrahim is aware of its interdependence to its stakeholders while managing its environmental performance, therefore enlarges the boundaries of its impact monitoring and committed to lead the low carbon transformation of the Turkish pharmaceutical industry.

QUICK FACTS

$110KTotal environment-related

expenditure in 202017

114 hrsEnvironmental

awareness training in 2020

WASTE MANAGEMENT

-19.2%Household waste, 2019-20

1.5M mtPaper recovered

48K m3Water saved, 2012-20

-1.9%Water usage, 2019-20

WATER MANAGEMENT

Abdi İbrahim acts in waste management in accordance with the Regulation on the Control of Packaging Wastes of the Environmental Legislation18. According to the Waste Management Procedure, Abdi İbrahim separates all waste generated during its activities at its source and aims to decrease the amount of waste generated by the operations and improve the recycling rate. In 2019 the recycling rate of packaging realized as 3.2% and in 2020, the rate has increased to 3.4%. The firm has saved 1,484,111 metric tons of paper and 32,847 metric tons of plastic in 2020.

Abdi İbrahim is a signatory of a United Nations Global Compact Initiative: CEO Water Mandate and the firm is committed to be aligned with the international water conservation policies. Therefore, the WRI’s (World Resources Institute) methodology19 is followed for the basin water risk assessment of the region. Additional to multiple water-saving initiatives, the firm uses rainwater, backwash water and treated water generated by the operation, in its garden irrigation. As a result, the firm has saved 47,962 m3 of water between 2012 and 2020.

WASTEWATER MANAGEMENT

-29.4%Wastewater, 2019-20

167 mg/LCOD value

35%Annual energy saving

1.5K mtTEP energy saving

ENERGY MANAGEMENT

As an environmentally friendly technology, MBR (Membrane Bio Reactor)20 is used in the company’s water treatment operations. The amount of waste sludge in the sewage sludge was eliminated, and the effluent quality was improved by 50 percent and decreased far below the discharge standards thanks to the MBR technology. Additionally, the water quality of the facility delivered to the receiving environment is monitored daily through the laboratory established within the wastewater treatment facility. The BOD5 value21 calculated was 17 mg/L and the COD value22 167 mg/L in 2020.

Abdi İbrahim has been developing energy efficiency projects since 2000 and as a result, a saved 35% of its annual energy consumption which in total annually which in total equals 1,460 mt of TEP energy23 has been achieved. Using world-class environmentally friendly technologies in the production process, Abdi İbrahim took an important step and decided to use completely renewable energy sources. As of January 1, 2020, the company started to use all its electricity needs from renewable energy sources, including wind and solar, in its facilities such as HQ office, AbdiBio R&D center and techno-logistics center.

8.9K mtAnnual carbon emission

by 2030Carbon neutral objective

GHG EMISSION MANAGEMENT

Abdi İbrahim conducts a carbon footprint study in order to monitor and reduce CO2 emissions caused by its activities and disclose publicly the results of its efforts and progress to mitigate climate change under CDP – Carbon Disclosure Project24. Recently, Abdi İbrahim became also a Science Based Targets Initiative25 Signatory. The actual carbon emission resulting from the use of natural gas at Abdi İbrahim production facilities is calculated as 6,676 metric tons per year for 2019 and 8,855 metric tons per year for 2020.

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Heal the Future Action Plan

Abdi İbrahim aims to grow its social responsibility footprint in the next 5 years through its Heal the Future Action Plan.

SPORTS & WELLBEING

SELECTED INITIATIVES

Sponsor the internationally award-winning Turkish national swimmer Emre Sakcı The firm is committed to provide financial and marketing support to the athlete for 4 years, starting from 2021 Tokyo to 2024 Paris Olympics.

Support to fight against COVID-19 through medicine donationsAbdi İbrahim produced and donated 1.6 million tablets of chloroquine-phosphate-based medicines to the Ministry of Health.

Raising public awareness on irrational use of medicine via Rational Medicine Usage Project The project highlights the requirement of using medicines with the dose and duration prescribed by physicians, in consultation with pharmacists.

SCIENCE AWARENESS


Promote and support high education on biotechnology, R&D and advanced geneticsAbdi İbrahim offers financial assistance and career opportunities for young scholars who want to focus and work on the most ambitious scientific fields.

Introduce new engineering programmes in technical high schoolsThe firm collaborates with public instititutions to desing new biotechnology programs for technical high schools in Turkey.

Design a national programme to increase scientific interest among women and youthAbdi İbrahim’s initiative aims to work with schools to modernize labs and introduce new projects to increase women’s engagement in scientific fields.

Abdi İbrahim is the most appreciated company by the local healthcare practitioners in the fight against the pandemic, ranked higher than the global vaccine producers.7

COVID-19

BIOTECHNOLOGYThe company's biotechnology efforts and its acquisition of OM Pharma is among the top 5 most valued activities of Abdi İbrahim by the public.

Source: Sustainability Survey, ERA, 2021. The questions referred on this page are: "Which pharmaceutical company do you most appreciate for its public contribution through the pandemic?" and "Which are the top 3 attributes associated with Abdi İbrahim do you most appreaciate?" Please refer to the Abdi İbrahim Sustainability Report (2020) to access detailed analysis of the survey results.

47


48

EMRE SAKCI TURKISH NATIONAL OLYMPIC SWIMMER


49

SOCIAL INNOVATION


Kick-off a comprehensive incubator programme to aid local life sciences startupsAbdi İbrahim has initiated its own incubator programme, in partnership with local ecosystem to accelerate early-stage startups’ development.

Initiate a corporate social innovation plan to incentivize sustainability-focused projectsThe firm’s corporate social innovation plan aims to encourage internal imagination and creativity to further boost sustainability initiatives.

Assist local suppliers’ digital transformation and capability improvement plansAbdi İbrahim collaborates with its local supply chain partners to further support Turkish life sciences industry’s localization efforts.

VOLUNTEERING


Multiple initiatives to increase environmental aware-ness among employees Abdi İbrahim aims to increase the firm’s recycle efforts in its office buildings and prevent unnecessary waste.

Establish a systematic corporate volunteering network for employees and partners By developing a nation-wide volunteering network, the firm plans to encourage its large employee base and partnered NGOs to further collaborate.

Determine Abdi İbrahim’s sustainability ambassadors to promote its long-term agendaAbdi İbrahim plans to determine sustainability ambassadors that will further promote the firm’s end-to-end sustainability programme.

Abdi İbrahim's national identity and its driver role within its ecosystem is among the top 2 most liked attributes of the firm by the public.

CORPORATE ROLE

ZERO – WASTE The projects to reduce plastic consumption are the top 3 most valued topics by the public regarding sustainability in pharma.

Source: Sustainability Survey, ERA, 2021. The questions referred on this page are: "Which are the top 3 attributes associated with Abdi İbrahim do you most appreciate?" and "What are the top 3 topics that you value most regarding sustainability in pharma?" Please refer to the Abdi İbrahim Sustainability Report to access detailed analysis of the survey results.

END-TO-ENDSUSTAINABILITY

50


51

Contributions to the Sustainable Development Goals

Abdi İbrahim’s Vision 2025 Impact Strategy and its action plan is directly linked to the firm’s core sustainable development missions.

ECO

NO

MIC

DEV

ELO

PMEN

T

$645M total gross value added

20K total employment contribution

$25M direct tax contribution

$70M export to 60+ countries

$70M foreign direct investment attracted

$45M public savings through first generics8

HO

LIST

IC H

EALT

HC

AR

E

Preventive care focus with 21 products

Licensing partnerships with 30+ firms

Accessibility through value chain localization

128 treatment fields addressed

15M healthy life years gained13

HUMAN DEVELOPMENT

Socio-Economic Contributions

RESOURCE USAGE

GOVERNANCE & INFRASTRUCTURE


52

DIS

RU

PTIV

E IN

NO

VATI

ON

45 initiatives driven by digital transformation

$9M R&D expenditure with 127 scientists

Investments in OM Pharma and Ocugen

Partnerships with local & global institutions

AbdiBio with biosimilar product portfolio

mRNA and inactive vaccine production capabilities

PUB

LIC

CO

MM

ITM

ENT

Objective to become carbon neutral by 2030

Promoting individual wellbeing

Science awareness initiatives

Social innovation programmes

Volunteering activities


53

Contributions to the Sustainable Development Goals

SDG FOCUSED SUB-TARGETS ABDİ İBRAHİM’S CONTRIBUTION

3.3By 2030, end preventable deaths of newborns and children under 5 years of age

• Abdi İbrahim started to produce an HIV medication as a service to GSK.

• Abdi İbrahim also has an HBVision project for the treatment of hepatitis.

3.4By 2030, reduce premature mortality from non-communicable diseases through prevention and treatment; promote mental health and well-being

• Abdi İbrahim Foundation increases health awareness and provides aid to patients in need.

3.6By 2020, halve the number of global deaths and injuries from road traffic accidents

• Internally, the fatalities due to traffic accidents is 0% at Abdi İbrahim.

3.7By 2030, ensure universal access to sexual and reproductive health-care services

• Abdi İbrahim increases sexual health awareness through social media and Onaiyibak platform.

3.8

Achieve universal health coverage, including financial risk protection, access to quality essential health-care services to safe, effective, quality and affordable essential medicines and vaccines for all

• The introduction of first biosimilar / generics for the original prescription medicines have multiple positive impacts on the public health budget. Abdi İbrahim’s 3 generics medicines have resulted in an estimated total saving of $45 million in the public health budget since 2019.

3.cSubstantially increase health financing and the recruitment, development, training and retention of the health workforce

• All countries where Abdi İbrahim is present are developing countries. Abdi İbrahim’s operational and sales teams work to improve health in these regions.

4.4By 2030, increase the number of people who have relevant skills for employment, decent jobs and entrepreneurship

• Abdi İbrahim has introduced new engineering programmes in technical high schools.

4.bBy 2020, expand the number of scholarships available to developing countries

• Abdi İbrahim offers scholarships for young scientists working on advance fields.


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5.5

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

• Women employees represent 31% of direct employment and the proportion of women in the managerial team is %37 in Turkey.

5.6Ensure universal access to sexual and reproductive health and reproductive rights

• Abdi İbrahim raises awareness on women’s sexual health with the ertesigun.com platform.

8.1Sustain per capita economic growth in accordance with national circumstances

• GVA generated as a result of Abdi İbrahim’s economic activity totals to $645 million.

8.2Achieve higher levels of economic productivity through diversification, technological upgrading and innovation

• Abdi İbrahim generates significant indirect economic impact in the context of external benchmarks and stakeholder priorities.

• The GVA impact due to supply chain effects and increased spending of the employees are $356 million.

8.3

Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of SMEs

• Having worked with approximately 1,233 suppliers in 2019 and 2020, the ratio of Abdi İbrahim's local suppliers to all suppliers is 68%.

8.5By 2030, achieve full and productive employment and decent work and equal pay for work of equal value

• Abdi İbrahim directly contributes an average of $73K of GVA for each employee in 2020

8.6By 2020, substantially reduce the proportion of youth not in employment, education or training

• Abdi İbrahim directly employs 3,918 qualified personnel in Turkey.

• Apart from that, 15K number of jobs were created indirectly and through induced effects.

8.8Protect labor rights and promote safe and secure working environments for all workers, including migrant workers

• The fatal and non-fatal occupational injuries are %3.52 for the facility and %0.25 for the HQ in 2020.

9.2

Promote inclusive and sustainable industrialization and, by 2030, raise industry’s share of employment and GDP, in line with national circumstances

• $68 million revenue is generated through Abdi İbrahim manufacturing services.

• The manufacturing and quality employment’s share is 24% within total employment.

9.4

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and technologies and industrial processes

• The actual carbon emission resulting from the use of natural gas at Abdi İbrahim Production Facilities is calculated as 8,855 metric tons / year for 2020.

9.5

Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, including, by 2030, encourage innovation and increase the number of R&D workers and spending

• Abdi İbrahim spent $9 million on R&D in 2020 and became the undisputed leader in funding for scientific research and development with investment growing at a level of 14.6% from 2016 to 2020.


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10.3Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices

• At Abdi İbrahim the ratio of the basic salary and remuneration of women to men for each employee category is 1/1.

10.BEncourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest

• Abdi İbrahim generated $70 million FDI.

12.2By 2030, achieve the sustainable management and efficient use of natural resources

• Abdi İbrahim conducted an environmental impacts evaluation through the entire life cycle of You Plus Multi Ener-G supplementary food following ISO 14040/44 Life Cycle Assessment (LCA) standard. In the assessment main indicators such as global warming, ozone depletion, photochemical ozone formation, acidification, water use potential, resource use, fossil, minerals and metal have been taken into consideration. The product’s global warming potential has been calculated as 0.224 kg CO2 eq and the water use potential 0.293 m3 deprived.

12.4

By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment

• In 2020 the recycling reached %3.4. Recovery amounts of paper from products on the market rose to 1,484,111 metric tons and plastic to 32,847 metric tons in 2020.

• In terms of wastewater, the BOD5 value calculated was 17 mg/L and the COD value 167 mg/L in 2020.

12.5

By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse

• Recyclable Waste at the Facility 954K (kg)

• Domestic Waste 339K (kg)

• Hazardous Waste Amount 417K (kg)

• Recovery Rate in Medicine Package (%100)

12.6Encourage companies to adopt sustainable practices and to integrate sustainability information into their reporting cycle

• Abdi İbrahim shares a publicly accesible sustainability report prepared according to the GRI criteria every two years since 2013

12.8

By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature

• Abdi İbrahim provides information of all its products on product safety (pharmacovigilance). The firm also informs the public about procedures for product and service content, particularly with regard to substances that might produce an environmental or social impact via its sustainability reports.

13.2Integrate climate change measures into national policies, strategies and planning

• Abdi İbrahim has pledged its support to SBTi. It is a commitment from Abdi İbrahim to how much it will reduce greenhouse gas emissions and sets targets. In this context, the contribution is made to the 2 °C reduction target in climate change.

• The actual carbon emission resulting from the use of natural gas at Abdi İbrahim Production Facilities is calculated as 6,676 metric tons / year for 2019 and 8,855 metric tons / year for 2020.

• Abdi İbrahim’s efforts will intensify over the years with the objective to become carbon neutral by 2030, and the goal of leading the low carbon transformation of the Turkish pharmaceutical industry.

17.1

Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection

• Tax contribution, exports and foreign direct investment (FDI) are computed and included under the GVA impact of Abdi İbrahim.

• Abdi İbrahim’s direct contribution to government budget from its economic activities totals to $25 million.

17.3Mobilize additional financial resources for developing countries from multiple sources

• Abdi İbrahim generated $70 million FDI since 2017.

17.11

Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020

• Abdi İbrahim is solely responsible for 5% of the total exports of the $1.3 billion pharmaceutical industry in Turkey with a $70 million export volume in 2020.

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Perception on the Sustainability Agenda

According to the result of public survey on corporate sustainability perception in Turkey in 2021, with a participation of 2,563 people; Abdi İbrahim is positioned at the first rank according to specialist doctors, primary care physicians, pharmacists, and press members' opinion26.

When asked...

91% of the specialist doctors and 74% of the public in

Turkey consider it important that

“pharmaceutical companies should be involved in

sustainability”

When asked...

Specialist doctors, primary care physicians, pharmacies, and press members position

Abdi İbrahim

“First in sustainability’’

When asked...

The public consider

“Less plastic and water utilization and renewableenergy among the most

important issues insustainability”

Subjects prioritized in Abdiİbrahim’s sustainability

agendaWhen asked...

Pharmacies and press members place Abdi İbrahim

‘‘Among the top five companies that contributed

the most to the society during the pandemic.”

Source: Sustainability Survey, ERA, 2021. Please refer to the Abdi İbrahim 2020 Sustainability Report to access detailed analysis of the survey results.

FUTUREASPIRATIONS

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Individuals are incentivized to take responsibility for their own health and lifestyle choices

Life sciences organizations are focused on being sustainable and responsible businesses

A resilient public health system protects the public, prevents diseases and prolongs healthy life expectancy.

Abdi İbrahim has accelerated its preventive product development and licensing initiatives with a wider focus on immune system and nutritional support. Additionally, the firm plans the further promote its sponsorship and awareness initiatives to promote the behavioral health impact of an active lifestyle among the local community.

Abdi İbrahim aims to be carbon neutral by 2030. In line with this goal, the firm focuses on life cycle analysis of drugs, sustainability-focused market assessment, production of recycled paper prospectuses, and most importantly, transition from the use of PVC to biodegradable materials. In parallel to its own continuous efforts, Abdi İbrahim also audits its own suppliers in line with the Pharmaceutical Supply Chain Initiative (PSCI) to promote environmentally friendly practices across the value chain.

In the future, Abdi İbrahim plans to diversify its mRNA-based and inactive vaccine production capabilities to the levels that will contribute to the protection of the public health. With the lessons learned from COVID-19, the firm plans to invest in proactive research against potential pandemics likely to be encountered in the future to enable timely access to treatments whenever necessary.

Care to wellbeing

Prioritized decarbonization

Public health focus

Source: Predicting the Future of Healthcare and Life Sciences in 2025, Deloitte, 2020


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Fully integrated care models are now delivering more accessible, efficient and consumer-centric care

The convergence of commercial and production processes, networked through data-driven value chains

Abdi İbrahim strives to provide consumers a healthcare alternative that is always accessible, remote, and under consumer’s own control. Together with Abdi İbrahim’s holistic healthcare approach, the company invests in treatment and disease prevention methods that are based on the consumer’s vital metrics and medical history.

Abdi İbrahim aims to further accelerate its digital transformation programme in line with Industry 4.0 solutions with an endgame to achieve an end-to-end digital supply network. Abdi İbrahim also plans to develop its additive manufacturing capabilities to unlock new value propositions through personalized product offerings.

Here, there, everywhere

Next generation supply chains



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AI-enabled robotics, cognitive automation and constant digitalization rearchitects the who, where and how a work is done.

Abdi İbrahim’s objective is to transform its organization through rapid and continuous adaptation to advanced technologies, as well as agile operating models that would eventually enable the company’s ambitions to launch new service models towards the consumers and healthcare professionals. To become a digital-first company in the future, Abdi İbrahim aims to collectively evolve with its ecosystem partners in cultural, relational, operational, physical and virtual levers.

Collaborative working has redefined traditional innovation models for a more effective health ecosystem

Abdi İbrahim is one of the few companies in the Turkish pharmaceutical industry that promotes social innovation. The firm supports the local life sciences start-up ecosystem to co-develop innovative products while aspires to collaborate with non-pharma digital platforms to develop breakthrough value propositions.

New innovation clusters

Digital transformation at the core



Abdi İbrahim’s 2030 Impact Commitment

"At Abdi İbrahim, we are aware of our responsibility that we have undertaken for a healthier society and a more livable world.

Believing in the potential of the Turkish pharmaceutical industry, which we helped to lay the foundation for, and believing in the strength and the future of our country, we continue our investments uninterruptedly. Because we are a company that reveals its desire to pay its debt to the land where it was born through investment, production, export and employment. Because we are a passionate family that pursues great goals and great ideals. We continue to carry our journey of “healing” that started in 1912, into the future as a rapidly rising value also in the international markets. With this mission driving us, we are committed to shape Turkey’s sustainable wellbeing today and in the future through our 2030 Objectives."

ECONOMIC DEVELOPMENT

HOLISTICHEALTHCARE

DISRUPTIVE INNOVATION

PUBLICCOMMITMENT

ECONOMIC DEVELOPMENT

HOLISTICHEALTHCARE

DISRUPTIVE INNOVATION

PUBLICCOMMITMENT

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Endnotes1. Global Sales Network

The countries, that are represented as part of global sales network, include the locations where Abdi İbrahim has its local operations, collaborates with local distributors and / or has products licensed products in local firms that are sold under different brands.

2. BFS

Abbreviated for Blow Fill Seal is a technology used to package pharmaceutical products.

3. Economic Impact Methodology

The economic impacts of Abdi İbrahim’s operations in Turkey are quantified by the globally accepted Leontief Input - Output analysis, which is an economic model examining the interaction between different industries to capture the secondary and wider benefits. The Input-Output model is constructed based on the Input-Output tables of Turkstat, consisting of 64 different industries. The list of sub industries and related service lines is also provided by Turkstat, enabling industry base analysis in Turkey.

GVA, employment, tax and export metrics are limited to the output of Abdi İbrahim’s local operations in Turkey and do not include the production of Abdi İbrahim Global Pharm and Abdi İbrahim Remede Pharma.

Tax contribution, FDI and export volume metrics are calculated to only include direct firm activities, without considering indirect and induced impacts.

4. Economic Impact Results

GVA generated as a result of Abdi İbrahim’s economic activity is calculated as $642.6 million in total (rounded to $645 million as a part of the utilized modeling approach). The direct GVA contribution of the project is $286.3 million, while the GVA impact due indirect and induced impacts are $62.8 million and $293.5 million respectively.

Indirect GVA is observed to be relatively lower compared to the local benchmarks as the significant majority of Abdi İbrahim’s procurement expenditure is dedicated to imports which are not included in the scope of the impact model.

Based on the model results, Abdi İbrahim creates 19,142 annual employment across the value chain. The direct, indirect and induced employment created by Abdi İbrahim are estimated as 3,918, 2,499 and 12,725 respectively.

Exchange rates of EUR/TL and USD/TL used in the calculations are 8.0592 and 7.0337 respectively.

5. STEM

STEM is the abbreviation for science, technology, engineering and mathematics disciplines.

6. EU GMP Certification

Good manufacturing practice (GMP) describes the minimum standard that a pharmaceuticals manufacturer must meet in their production processes. The European Medicines Agency (EMA) monitors the inspections process to eventually verify the firm’s compliance to the determined standards and also regulates GMP activities at European Union (EU) level.

7. COVID-19

The production of targeted medicines against COVID-19 had a significant positive impact on the local community in the early stages of the pandemic.

8. Investment Partnerships

Based on the Abdi İbrahim’s estimations, a $70 million worth of foreign direct investment is attracted since 2017 through the firm’s partnerships with Allergan, GSK, AstraZeneca and Boehringer Ingelheim, which creates annual $30 million production value-added.

9. Savings from the First Generics

The case study presented analyzes the annual volume and pricing trends of a total of 6 products between 2019 and 2021, sourced from IQVIA due to the regulations on life sciences related public communication, medicine names are not disclosed.

The savings for the end of 2021 is estimated by benchmarking the realized sales in the first quarter of 2021.

Throughout the study, it is assumed that the launched generics did not affect the overall market growth therefore the estimations should not be considered as net savings but only as the positive impact on the public health budget.


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10. Abdi İbrahim’s OTC Portfolio

Other than the OTC product categories shown, Abdi İbrahim also has multiple products under dermatology and sexual health.

11. Abdi İbrahim’s Local Brand Reputation

The findings mentioned are based on the Abdi İbrahim’s 2019 corporate reputation study conducted in partnership with a 3rd party research firm. The study includes the survey results from 3,577 participants’ perception on brand operation in industries including non-pharma.

12. Number of Abdi İbrahim’s Suppliers

Working with approximately 1,233 suppliers in 2019 and 2020, Abdi İbrahim's local suppliers to all suppliers ratio is 68%. There was a 0% percent increase in the supplier network in 2020 compared to the previous year.

13. Healthy Life Years and Productivity Gains

Healthy life years gained per patient are represented via Quality Adjusted Life Years (QALYs) of active substances of selected medicines. The healthy life year gains (QALYs) represent the life years gained with respect to a no treatment scenario.

The number of patients using the medicine in 2020 is multiplied by the QALY gain resulting in the total healthy life years gained.

The productivity gains illustrate the economic value of healthy life years gained and are found by multiplying gross value added per worker and employment rate in Turkey. Since the employment probability for the relevant treatment areas is not calculated, we used the employment rate across Turkey in the computations.

It is important to note that the calculated impact only includes the patients who consumed selected Abdi İbrahim medicines in 2020. Based on Deloitte’s quality-adjusted life year analysis and GVA-based productivity estimations, resulting impact only includes the medication use that has started within 2020 and its impact over the next 25 years. The productivity gain is computed using 2020 prices.

For reference, a similar study Efpia conducted for breast cancer and HIV medicines in Europe involved 650,000 patients who gained 2 million healthy life years and $27 billion productivity gains. The study expressed 3.1 healthy years and $42K in productivity gains per patient. Abdi İbrahim, on the other hand, provided 5.7 healthy life years and $58K per patients with its ten products in five different treatment areas.

We cannot specify the medicines or their active ingredients used in the QALY calculations. Therefore, we also cannot disclose the referenced QALY values in this study. Please contact Abdi İbrahim or Deloitte for further information.

14. Approved Patents

Abdi İbrahim, which has competence recognized at international standards in pharmaceutical production technologies, has reached 193 patent applications in Turkey, Europe and international applications as of the end of 2020. The number of registered patents of the company is 26 in Turkey, and 9 in Europe.

15. GHG Emissions

Greenhouse gas emissions (GHG) are emissions of greenhouse gases that cause climate change.

16. ISO 14001

Sets out the criteria for an environmental management system.

17. Total Environment Related Expenditure

Abdi İbrahim is committed to use appropriate technology to control and minimize the possible effects on the environment and eventually invested $67,652 in the improvement actions, $8,200 in precautionary measures, and made $33,268 of tax payment. The total environment expenditure raised to $109,121 in 2020.

18. Control of Packaging Wastes of the Environmental Legislation

EU rules on packaging and packaging waste cover both packaging design and packaging waste management. They aim to deal with the increasing quantities of packaging waste, which cause environmental problems.


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19. WRI’s (World Resources Institute)

WRI is a global research organization that works with governments, businesses, multilateral institutions and civil society groups. They work around seven global challenges: Food, Forests, Water, Energy, Climate, the Ocean and Cities.

20. MBR (Membrane Bio Reactor)

Membrane bioreactor (MBR) is the combination of a membrane process like microfiltration or ultrafiltration with a biological wastewater treatment process, the activated sludge process.

21. BOD5 Value

The BOD5 indicates how much dissolved oxygen (mg / l) is needed at a given time for the biological degradation of the organic wastewater constituents. This value is an important parameter for the assessment of the degree of pollution that wastewater represents for the environment.

22. COD Value

The chemical oxygen demand (COD) is an indicative measure of the amount of oxygen that can be consumed by reactions in a measured solution.

23. Equivalent Petroleum (TEP) Energy

Unit of energy defined as the amount of energy released by burning one metric tons of crude oil.

24. CDP – Carbon Disclosure Project

CDP is a not-for-profit charity running the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

25. Science Based Targets Initiative

Science-based targets show companies how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change.

26. Perception on the Sustainability Agenda

ERA conducted the perception on sustainability agenda study with public, specialist doctors, primary care physicians, pharmacies and press members. The sample group for each stakeholder consisted of 1502, 624, 251, 156 and 30 people, respectively.

ERA is a member of (ESOMAR) European Society for Opinion and Marketing Research and (TÜAD) Turkish Researchers Association. The firm is a partner of (IrİS) International Research Institutes network in Turkey. ERA conducts all of its research in accordance with the quality standards set by ESOMAR and TÜAD, and scientific and ethical rules.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Our network of member firms in more than 150 countries and territories serves four out of five Fortune Global 500® companies. Learn how Deloitte’s more than 330,000 people make an impact that matters at www.deloitte.com You can also connect with us on Facebook, LinkedIn, or Twitter.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2021. For information, contact Deloitte Turkey, Member of Deloitte Touche Tohmatsu Limited.

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