Turkish Life Sciences Industry Fuelled by Favourable Investment Climate and Healthcare Reforms
Big pharmaceutical companies and foreign investors are flocking to Turkey to capitalise on its encouraging economic policies. The establishment of technology development zones that exempt pharmaceutical entrepreneurs and academics from income taxes until 2023 has played a particularly crucial role in driving R&D activity in the nation’s life sciences industry.
New analysis from Frost & Sullivan, 2014 Life Sciences Outlook in Turkey, finds that the market earned revenues of $14.53 billion in 2013. The study covers pharmaceuticals and clinical diagnostics. The pharmaceutical segment was valued at $14.04 billion in 2013 and is estimated to reach approximately $21.65 billion in 2018 at a compound annual growth rate (CAGR) of 9.1%. The clinical diagnostics segment accounted for the rest of the total life sciences market revenues in 2013 and is forecasted to hit $0.70 billion in 2018 at a CAGR of 7.4%.
“Biologics, oncology drugs and blood-based products are expected to support the development of the life sciences market in a big way,” said Frost & Sullivan Healthcare Senior Research Analyst Aiswariya Chidambaram. “The biologics segment, which accounted for 11% of the total Turkish pharmaceutical market in 2012, is poised to expand at a CAGR of 15% between 2013 and 2018. On the other hand, the oncology segment will witness strategic investments — including certain tax allowances, customs duty exemption and value-added tax exemption — worth more than $9 million.”
The Healthcare Transformation Program designed to improve healthcare services and access will remain instrumental to boosting spending across these segments. The strategic objectives of the program, along with rapid economic growth will ensure that Turkey’s life sciences market progresses faster than mature markets in the US, Japan and Europe.
However, price ceilings that do not exceed 66% of drug reference prices and rigid reimbursement policies are adversely impacting foreign investors’ profits and overall market momentum. The lengthy drug approval process and poor patent protection are also dampening the investment spirit in the Turkish life sciences industry.
“With the reimbursement amount for prescription drugs having decreased at an average AGR of 7.1% between 2009 and 2012, companies are increasingly foraying into the over-the-counter segment with different product offerings,” noted Chidambaram. “This trend is expected to significantly boost domestic production and supply capacity.”
Eventually, Turkey will become the regional life sciences capital of the Middle East and North Africa. The country’s inviting investment scenario and pharmaceuticals export potential of nearly $300 billion to neighbouring countries will help it quickly attain a strong status in the region.
Related News
-
News Patients vs Pharma – who will the Inflation Reduction Act affect the most?
The Inflation Reduction Act brought in by the Biden administration in 2022 aims to give better and more equitable access to healthcare in the USA. However, pharma companies are now concerned about the other potential costs of such legislation. -
News CPHI Podcast Series: What does the changing US Pharma market mean for industry and patients alike?
In this week's episode of the CPHI Podcast Series Lucy Chard, Digital Editor for CPHI Online is joined by James Manser to discuss the political and market changes in the US pharma field. -
News CPHI Barcelona Annual Report illuminates industry trends for 2024
The CPHI Annual Survey comes into it’s 7th year to report on the predicted trends for 2024. Over 250 pharma executives were asked 35 questions, with their answers informing the industry landscape for the next year, spanning all major pharma marke... -
News Which 10 drugs are open to price negotiation with Medicare in the USA?
The Centres for Medicare & Medicaid Services, under the Biden administration in the USA, has released a list of the 10 drugs that will be open to price negotiations as part of the new legislation under the Inflation Reduction Act (IRA). -
News EU Medical Devices Regulation causes unintended disappearances of medical devices for children, doctors state
Doctor groups and associations have appealed to the EU to correct the EU Medical Devices Regulation law that may cause unintended shortages of essential drug and medical devices for children and rare disease patients. -
News 10 Major Drug Approvals So Far in 2023
Last year, 37 novel drugs were approved by the FDA, this was a high number for such a category, and covered many fields including oncology, demonstrating how promising further research is, and how it is only continuing to build. To date, there are alre... -
News Detecting Alzheimer's disease with a simple lateral flow test
A novel rapid diagnostic test for early-stage Alzheimer's disease has been developed using a biomarker binder from Aptamer Group along with technology from Neuro-Bio, the neurodegenerative disease experts. -
News CPHI Podcast Series: outsourcing and manufacturing trends
Listen to the CPHI Podcast Series this June to hear Gil Roth of the PBOA speak with Digital Editor Lucy Chard about the biggest trends and topics to watch in pharma outsourcing and manufacturing at the minute.
Position your company at the heart of the global Pharma industry with a CPHI Online membership
-
Your products and solutions visible to thousands of visitors within the largest Pharma marketplace
-
Generate high-quality, engaged leads for your business, all year round
-
Promote your business as the industry’s thought-leader by hosting your reports, brochures and videos within your profile
-
Your company’s profile boosted at all participating CPHI events
-
An easy-to-use platform with a detailed dashboard showing your leads and performance