Turkey Sees Growth in Pharma Market

From Pharmaceutical Technology:

According to a report unveiled at week's CPhI Istanbul, the pharmaceutical industry in Turkey increased by 8.8% in 2014 on the previous year, with growth in the coming years expected to come mostly from generic drugs. The findings come from UBM EMEA's Pharma Insights Turkey Market Report 2015, part of a longer report available from CPhI Istanbul titled Turkish Pharmaceuticals 2015: Turkey, Research & Development and Regional Growth.

The markets most traditionally targeted by Turkey, including the Middle East and across North Africa, have slowed because of “political instability and regional conflict,” causing an increase in exports to countries not typically targeted by Turkey. Currently, the country with the highest growth in 2014 exports from Turkey is South Korea, which experienced a 260% annual increase, while Russia saw an increase of 81%. Markets such as Switzerland, Germany, Iraq, Iran, the US, and Azerbaijan currently make up Turkey’s largest export market for pharmaceuticals. The report writes that Turkey will look to push exports into new countries including investments into facilities in Commonwealth of Independent States (CIS) nations to gain more access into the Russian market, as drugs imported from CIS nations will be considered domestic in Russia. Turkey will have an advantage over Western countries hesitant to enter CIS economies because of geopolitical concerns, according to the report.

While the Turkish market is facing problems with government reimbursement models and fixed-rate price conversion, the government has agreed to support the industry to reduce the trade deficit. Because domestic production is low, however, Turkish manufacturers surveyed for the report agreed that the Turkish government “could, and should, do more to facilitate the expansion of the domestic market. For instance, the government could increase incentives for the development of research and development-centered products.”

The report listed biosimilars and international partnerships as two of the driving forces in the Turkish market. Companies are looking into the development of biosimilars, “particularly as an export product into the EU.” The report also listed the involvement of universities as a growing stream of support, in that the academic community may eventually enable the country to adapt and meet the changing skills needed within the industry.

Source: CPhI