Pharmaceutical Industry is one of the most critical industries with its production volume and trade capacity.
The point that differs pharmaceutical sector from other sectors is the nature of pharmaceutical products that are not suitable for replacement for many reasons. Due to the dynamics of the pharmaceutical industry, it is one of the most significant and crucial sectors in the world considering the cyclical trends will be in the future.
In last five-years period pharmaceutical industry growth has approached almost 4,3 %, and in the last three years the size of the market has reached to more than 700 USD million USD
In accordance with the technological developments and new legislations regarding patent protections it seems that pharmaceutical industry will be also on the rise in the forthcoming years in business perspective.
In 2006, 16 % of total growth in pharmaceutical industry belongs to emerging countries. In 2009 it was 51 % and now it is expected to raise more than 75 %. Therefore, multinationals in this industry mostly focus on the pharmaceutical companies in developing countries. Increase in research & development numbers in developing countries, makes them attractive more than ever.
Health Sector and Pharmaceutical Industry in Turkey
Health sector in Turkey has been on the rise for the last five years. It seems that due to developments in pharmaceutical industry, healthcare service, insurance and medical devices, Turkey has now become one of the important developing countries for the healthcare sector and pharmaceutical industry.
Turkey has developed its healthcare sector as the result of government policies in this area together with FDI regime and appeared in one of the thriving economies. Since thriving economy reflects on the healthcare service access, health expenses have been increasing and Turkey’s place among the other countries has been becoming stronger.
Healthcare sector has been on the rise for the last ten years. Turkey’s health expenses have approached approximately 7 % which is the same among other developing countries. Besides, hospitals have been increasing in number in Turkey. In 2002, for instance, total hospitals in Turkey were almost 267; however, in 2010 the numbers rose to 489.
For the pharmaceutical industry, Turkey has become 13rd biggest in the world pharmaceutical industry. In 2012, Turkey pharmaceutical market volume was totally USD 8 billions on the basis of producer price index and Turkey pharmaceutical market is the sixth biggest market among European Union Countries. Besides, Turkey’s pharmaceutical importation has reached USD 5 billion in recent years.
In 2013 over 1.75 billion boxes were sold and the volume reached over TL 15 billion which correspondence 7 % growth when compared to year of 2012.
Mergers and Acquisitions Continue in the Market
In determination of the pharmaceutical market in Turkey, it is obviously observed that investors prefer to acquire existing pharmaceutical companies in Turkey rather than establishing a new one since existing pharmaceutical companies are generally well-established and capable of realizing know-how in the market. In 2013, there were several mergers and acquisitions both in pharmaceutical companies and pharmaceutical warehouses.