By Ceyda Caglayan

ISTANBUL, Reuters – Turks face difficulties buying medicines after a “unsustainable” collapse in the lira. This has caused an increase in import prices and disruption of supplies.

According to industry leaders, pharmacies warned that the sector of 48 billion lire ($4 billion), was suffering severe losses and could face disruptions.

The Turkish currency, already weak, has lost as much as 25% in the last week because of what analysts refer to as reckless interest rate reductions that have led to shortages of certain imported goods.

The chairman of Turkey’s Pharmaceutical Manufacturers Association, Nezih Brut said that stock levels of certain medications were now down to a week. This is in contrast to the usual month. He said that some unexpectedly high-priced imports by pharmaceutical companies have been curtailed due to the drop in currency.

Some pharmaceuticals do not have a market. Barut stated that the forex rate and difficulties in accessing foreign raw materials are responsible for this.

One mother was concerned.

The nurse who was seeking medication for her son, 16 years old with cerebral palsy/epiphany, said that she searched everywhere but couldn’t find any more.

She requested anonymity and said that she needed to talk to her doctor to change the drug. We were informed that the change in exchange rates was responsible for it.

An industry that imported $2 billion worth of medication last year in 24 billion lira, the latest slide in lira has aggravated an already existing problem. The Turkish Pharmacists Association stated earlier this month that it was having difficulty accessing 645 medications.

This year, the lira fell by 38% against USD and 32% against euro. The selling speeded up this month after the central bank under President Tayyip Erdan slashed rates another 100 basis points, to 15%. This is well below inflation of 20%.

On Thursday, the currency held firmer after falling to 13.45 against the dollar on Tuesday.

However, the depreciation is not enough to reduce Turkey’s inflation via its imports of drugs and other goods.

Barut stated that “manufacturing and importing pharmaceuticals are unsustainable at the current forex rates.” He also said that his organization would request a minimum of 35% increase in price for the next year due to the exchange rate.

DISRUPTIONS

From February to March, the last annual price reference for drugs will be set by pharmacists as they predicted shortages.

Ayse Sibelbirinci, an Ankara pharmacist, stated that there will be shortages in many drugs including hormones, children’s medications, and blood pressure medication.

Ahmet Meta Kablama, another pharmacist stated that the falling lira made it difficult for children to get painkillers, fever suppressants as well as nasal sprays, cough syrups, and nasal sprays.

“Patients have difficulty getting this medicine, due to the current flu epidemic” he stated.

Officials believe that sector’s troubles are due to a 2004-based reference pricing system.

Five EU countries serve as references. The lowest priced medicine in Turkey is considered the “reference” price. The reference price for generic drugs is 60%. It is calculated using a one-year fixed rate euro.

According to companies, the rate is way too low. This year it was set at approximately 4.6 euro per euro, with a euro equal to 13.4 lira as of Thursday.

This can lead to delays in some cases.

Elif Kucuk (43), from Erzurum, said that she needed to purchase a Vitamin, but could not get it after waiting for a few days. “The pharmacist told me there was no stock.”