BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Pharmaceutical Sector Of Turkey

The Turkish drug market is experiencing substantial growth as the economy recovers from the fiscal crisis of 2002. Drug expenditure stood at US$6.6bn in 2005, and BMI forecasts that this figure will reach US$11.11bn by 2010. As BMI points out in this latest report, foreign drugmakers are increasingly looking to invest in the country. Sandoz, the generics division of Swiss drug giant Novartis, for example, has re-entered the country after an absence of more than 10 years.

Icelandic company Actavis has entered the market in strength. It purchased a 90% stake in leading drugmaker Fako in 2004 and has now acquired the remaining shares. The company has also launched three new generic products, targeting lucrative therapeutic areas such as hypertension and depression. Importantly, these are conditions strongly associated with developed countries, which is a strong sign that Turkey is beginning to adopt a more Western disease profile. Meanwhile, domestic player Eczacibasi is reported to be considering divesting its generic pharmaceutical division, which should interest a number of the major global generics firms, such as Israel’s Teva and US-based Barr Pharmaceuticals.

Meanwhile, recent reforms of the country’s social security system are also set to have a dramatic impact on drug expenditure. This will involve the introduction of a basic universal health insurance system, covering 90% of the population. When combined with other key reforms, such as the availability of more cost-effective pharmaceuticals, this should go some way to providing affordable healthcare and, hence, expand the marketplace in the longer term.

BMI’s adjusted Business Environment Rankings for the Middle East & Africa reveal that Turkey is in 3rd place. This is primarily due to forecasts of high market growth coupled with the sheer size of the pharmaceutical market in the country. Turkey’s poor regulatory system is an investment barrier, as is its policy of strict price controls. The country’s long-term political and economic outlook is improving, as the government toes the International Monetary Fund’s line on economic policy and also looks towards EU accession.

Contents

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Chapter 1 - Executive Summary

Turkey Pharmaceuticals & Healthcare Industry SWOT

Turkey Business Environment SWOT

Turkey Economic SWOT

Chapter 2 - Turkey: Business Environment Ranking

Table: Business Environment Ranking: Middle East & Africa

Business Environment Ranking

Economics – Long-Term Risk

Politics – Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Market Summary

Chapter 4 - Regulatory Regime

Intellectual Property Developments

Pricing and Reimbursement Issues

Table: Turkish Pharmacy And Wholesale Mark-Ups

Health Insurance

Chapter 5 - Industry Developments

Healthcare Sector

Healthcare Delivery

E-Health Initiative

Drug Procurement – Bird Flu

Pharmaceutical Sector

Chapter 6 - Industry Forecast Scenario

Key Growth Factors – Industry

Table: Expenditure Trends

Key Growth Factors – Macroeconomic

Table: Economic Indicators

Prescription Market Forecast

Table: Prescription Market Trends

OTC Market Forecast

Table: OTC Market Trends

Generics Market Forecast

Table: Generics Market Trends

Branded Market Forecast

Table: Branded market trends

Export/Import Market Forecasts

Table: sector trade indicators

Other Healthcare Data

Table: Turkey Healthcare Indicators – Historical Data & Forecasts

Key Risks To BMI’s Forecast Scenario

Chapter 7 - Company Profiles

Indigenous Manufacturers

Actavis (formerly Fako)

Eczacibasi Pharmaceuticals

Deva Holding

Foreign Manufacturer

Bayer

Chapter 8 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Pharmaceutical Industry

Sources

Chapter 9 - Country Snapshot: Turkey Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Chapter 10 - Appendix: Regional Demographic Data

The Long View: Data Over The Economic Cycle (2000-2007)

Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Competitive Landscape for Middle East & Africa Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Middle Eastern and African Pharmaceutical & Healthcare Sources

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BMI's Middle Eastern & African Pharmaceutical & Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceutical & healthcare industry associations, chambers of commerce and company reports. Information sources include: