Turkey is a changing and dynamic economy and GDP per capita has more than tripled in the last 10 years. The country's healthcare economy is changing tremendously, thanks to an ageing population and near-universal social security coverage.
With rising economic prosperity and the ageing population the government has been systematically increasing healthcare infrastructure. However, Turkey is entering a new phase of growth thanks to government targets of reducing the healthcare trade deficit by encouraging local industry and increasing the proportion of drugs produced domestically.
In light of these developments CPhI conducted extensive research examining the prospects of the country's pharmaceutical sector ahead of the new regional trade show CPhI Istanbul. We approached all the major companies in the region to get an overview of their strategic positions within a market that already boasts some 300 different pharmaceutical companies - who, between them, produce around 8,000 different drugs. With an annual turnover of $7bn and a growth rate of 6.5% in 2012, the domestic pharma market is Europe's sixth largest market and 16th largest globally.
Rise of R&D
Turkey has traditionally focused on generics manufacturing, with profits generated from a typically brand-oriented generics business. “The true strength of Turkey's pharmaceutical industry is production. There are a lot of high-tech modern production facilities, approved by both the EMA and the FDA,” says Sirin Deha, general manager at Istanbul-headquartered ERA Pharma.
More recently, however, the industry has shifted from standard contract manufacturing to focus more intensively on R&D. Ranked as Turkey's sixth largest pharmaceutical manufacturer in 2013, Deva Holding has pursued vertical integration to support new product development. Philipp Haas, chairman and CEO, explains: “We created the first generic for Imatinib available in the Turkish market. We've also developed an API for it, vertically integrating our supply chain. It's a rarity to find vertical integration in Turkey's pharmaceutical industry.”