2021 Euro Exchange Rate for Pharmaceutical Pricing is Announced!
Presidential Decision amending Decision No. 2017/9901 on the Pricing of Medicines for Human Use (“Pricing Decision”) has been published on the Turkish Official Gazette numbered 31400 and dated 19th February 2021.
With the Presidential Decision, Provisional Clause 3 has been enacted under the Pricing Decision. Newly introduced clause has been regulated as the following:
“Provisional Clause 3 - The value of 1 (one) Euro equivalent to Turkish Lira to be used in 2021 for the pricing of medicinal products for human use determined in accordance with Article 2/2 cannot exceed 20% of the 1 (one) Euro value applied in the previous period.
On the publication date of this Decision, the Price Evaluation Commission assembles and announces the Euro value. Declared Euro value shall become valid on the first day following the announcement of the Commission's decision.”
Accordingly, the Turkish Medicines and Medical Devices Agency has announced the details of the decision taken by the Price Evaluation Commission, as the following:
1. The value of 1 (one) Euro to be used in 2021 for the pricing of medicinal products for human use in accordance with the Article 2/2 and Provisional Article 1 of the Pricing Decision has been increased from 3,8155 TRY to 4,5786 TRY.
2. Values of “13.17 TRY” and “6.89 TRY” mentioned under Article 2/7 of the Pricing Decision were updated as “15.80 TRY” and “8.26 TRY” respectively, increased at the rate of the Euro change enacted pursuant to the Article 2/10 of the Pricing Decision.
3. It has been decided that the new sales price to be applied for the wholesaler shall be calculated by dividing the current sales price for the wholesaler into the former Euro value and multiplying it by the new Euro value.
4. It has been decided that the decision shall become valid on 20th February 2021, in accordance with the Provisional Clause 3/2 of Pricing Decision.
Article 2/2 of the Pricing Decision has provided that the value of €1 shall be designated upon multiplying the annual average Euro value to be calculated on the basis of the daily indicative Euro foreign exchange sale rate realisations of the Central Bank of Turkey declared in the Official Gazette of the previous year with the adaptation coefficient designated as 60%. This ratio was decreased from 70% to 60% in 2019. While the industry players were expecting an increase of approximately 26% as per Article 2/2 of the Pricing Decision; with the newly published Presidential Decision, the increase has been limited to 20% of the previous period’s Euro value for 2021.
Published on Lexology on 22.02.2021