A New Era in the Pricing of Human Medicinal Products: Euro Exchange Rate Increased to 65% of the Previous Year’s Average, Pricing Incentive Introduced for the First Equivalent/Generic Product

Presidential Decision No. 11031 dated 12 March 2026 (“New Pricing Decision”) has introduced significant changes to the pricing system for human medicinal products that was originally established by Decision No. 2017/9901 and subsequently updated several times. Increasing the adjustment rate used in Euro/TL calculations from 60% to 65%, allowing higher pricing for the first equivalent or generic products to encourage their faster entry into the market, and the inclusion for the first time of the term "value-based pricing" in Turkish legislation are the main focal points of the New Pricing Decision.

Previously, the Turkish Lira value of the Euro used in the pricing of human medicinal products corresponded to 60% of the previous year’s average Euro value. This coefficient has now been increased for the first time in years to 65%. Until 1 April 2026, the Euro value will temporarily continue to be calculated based on the 60% rate. For the period starting 1 April 2026, the applicable Euro value has been set at 29.1164 TL.

Although this increase may be considered a positive step as it addresses a long-anticipated adjustment in the sector, the regulation still appears insufficient to resolve patients’ difficulties in accessing medicines, particularly innovative therapies. Considering the reference exchange rate mechanism applied in Türkiye’s pharmaceutical pricing system and the limited budget allocated to public pharmaceutical expenditures, the increase alone is unlikely to provide a sustainable solution. OECD data show that both the share of pharmaceutical spending within Türkiye’s total healthcare expenditures and per-capita pharmaceutical spending remain below those of many OECD countries. Therefore, updates to the exchange rate alone are not sufficient to improve patients’ access, especially to innovative and advanced therapies, and the public budget allocated to pharmaceuticals also needs to be strengthened.

The New Pricing Decision introduces a new incentive system aimed at allowing higher pricing for the first equivalent or generic products entering the market, encouraging faster market entry. Under normal circumstances, generic or equivalent medicines can be priced at up to 60% of the lowest-priced product referenced in the European Union. Under the new regulation, when the first equivalent or generic product enters the market, it will be able to receive 80% of the reference price in the first year, 75% in the second year, and 70% in the third year from the date of market entry. Furthermore, if generic products manufactured in Türkiye reach certain market-share thresholds in the second and third years, these percentages may increase further. In this way, a system similar in purpose to the incentive in the United States, where the first generic product entering the market benefits from temporary market exclusivity, has been introduced in Türkiye for the first time in the form of a pricing advantage.

While the flexible practice allowing different pricing mechanisms, without strict adherence to the general regulation, for products such as blood products, allergy products, orphan drugs, biosimilars, vaccines, products of critical importance for public health, and medicines subject to alternative reimbursement arrangements continues, the concept of "value-based pricing" has also been introduced into Turkish legislation for the first time. This development signals that value-based pricing and reimbursement methods for medicines, an approach that the innovative pharmaceutical industry has advocated for many years, can now be implemented.

Certain aspects regarding the transition process for the implementation of the New Decision are also important. The pricing system is expected to be implemented gradually throughout 2026, and Euro/TL calculations and certain price thresholds will be updated as of specific dates. The new tiered rates for equivalent products will apply only to products placed on the market after the Decision enters into force, meaning that products already on the market will maintain their current pricing structure during this transition period.

It is also stipulated that the provisions of the current Communiqué on the Pricing of Human Medicinal Products (“Communiqué”) that do not conflict with the Decision will continue to apply until a new Communiqué is published. Companies, particularly regarding pricing applications and price changes, need to closely monitor the publication of the new Communiqué and evaluate the rules that will apply during the transition period accordingly. Full transition to the new pricing system is expected to become clear once the temporary arrangements are completed and the secondary legislation, namely the Communiqué, is updated.

First published by in Mar 13, 2026.