Abstract
In BMI’s regional Pharmaceutical & Healthcare Business Environment
Rankings (BER) for Q409,
Turkey’s score dropped relative to the
previous two quarters. Although this coincides with a cumulative
decrease
in scores across the region, largely as a result of the financial downturn,
Turkey slipped two
places in the quarter, to fifth. However, its potential
draws – including its large population and the rising
penetration of
health insurance – are considered more attractive than those of the more
advanced markets
of Hungary and Slovenia, for example. In the 2008-2013
period, BMI forecasts a compound annual
growth rate (CAGR) of 8.68% in
local currency terms, reflecting Turkey’s status as a high potential
market. The market, at consumer prices, was worth TRY14.5bn (US$11.2bn) in
2008, and is likely to
reach TRY22.0bn (US$18.8bn) in 2013, also supported
by the improving intellectual property (IP)
climate.
In fact, while
Turkey is listed under the Priority Watch List section of the Pharmaceutical
Research and
Manufacturers of America (PhRMA) Special 301 Report 2009
submission to the United States Trade
Representative (USTR), the report
does not mention counterfeiting. It appears that the recent creation of
the Ministry of Health’s medicine monitoring system has been judged as a
strong commitment to tackling
this issue. However, in July 2009, the
subject of trade in fake medicines resurfaced, with an expert
speaking at
the Association of Research-Based Pharmaceutical Companies (AIFD) conference
stating that
Turkey is the fourth-leading country globally in terms of
2008 arrests for counterfeiting. In the period
between the start of 2006
and the end of 2008, authorities confiscated fake medicines worth in excess
of
TRY212mn, with estimates suggesting that counterfeits represent 10% of
the market.
Other challenges facing companies active in – or those
considering entry into – the Turkish
pharmaceutical market include
the possible introduction of co-payments for healthcare, in addition to
measures designed to reduce the public drugs bill. In the meantime, according
to reports in local press,
some 20% of the population continues to be
uninsured, with this figure rising to 30% within the poorest
of working
age. Given the tightening financial situation, authorities are examining
potential savings from
modifying the current Green Card programme provided
to the poor, especially in the face of the number
of the recently
highlighted fraudulent and erroneous claims.
Nevertheless, foreign
drugmakers continue to express interest in the Turkish market. In July 2009,
Pfizer
was rumoured to be interested in the take-over of Turkish generics
specialist Abdi Ibrahim. Pfizer is also
in the process of purchasing
another US-based pharmaceutical major, Wyeth, which markets a range of
OTC
and prescription medicines in the country. In the same month, Hungarian
drugmaker Egis reported
that it should post increased revenue growth in
2010 as a result of focusing on export markets,
particularly Turkey. On
the other hand, foreign-owned Turkish drugmaker Deva Holding recently
inaugurated a new research and development (R&D) facility. The centre will
focus on the development of
drugs for the treatment of oncology, central
nervous system and respiratory diseases, given the high price
such
medicines can fetch on foreign markets. Deva also announced plants to redirect
its export strategy
towards the developed markets of Western Europe and
the US.
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