Growing Turkish Pharma Market Attracts Investment Despite Challenges
A growing pharmaceutical market, solid infrastructure and ready access to other emerging markets, such as North Africa and the Middle East, as well as Eastern Europe, make Turkey an attractive location for global pharmaceutical companies. But an emphasis on localization, tough pricing regulations, a depreciating currency and a sluggish drug approval system make the market a challenging one for external companies to break into.
Turkey’s pharmaceutical market is growing at a steady rate. According to a July 2016 report by PharmSource’s colleagues at GlobalData, the market rose at a rate of about 2%/year from $4.35 billion in 2008 to $5 billion in 2015, and is expected to hit $5.53 billion by 2020. The bulk of this growth has been in the generic arena, which increased from $1.24 billion in 2008 to $1.6 billion in 2016, a rate of 4%/year.
Turkey also now exports drug products to 144 countries, including South Korea, Switzerland, Germany, the UK, the US and Russia, according to the GlobalData report. Exports have increased from $0.54 billion in 2008 to $0.88 billion in 2015. The value of imports in Turkey has remained stable, at $4.4 billion in 2008 and $4.43 billion in 2015.
Turkey features a strong Contract Manufacturing Organization (CMO) industry within its borders, says Travis Sower, a US Trade Representative analyst. PharmSource has identified nine “pure” CMOs in Turkey, as well as an additional 23 pharma companies that offer some contract manufacturing services on an excess capacity basis. The country also hosts 22 local manufacturers and global companies that do not offer contract manufacturing.
This article is reprinted from the December issue of Emerging Markets Outsourcing Report. The full article addresses the benefits and challenges in the Turkish pharmaceutical market. To learn more, click here.