Health Transformation Programme has dramatically changed the pharmaceutical market in the country
Pharmaceutical sales in Turkey have risen, supported by improved medical access and the presence of more multinational pharmaceutical firms.
The pharmaceutical market in the region will grow from $4.9 billion in 2015 to $5.53 billion by 2020, at a compound annual growth rate (CAGR) of 2%, according to research and consulting firm GlobalData.
The medical devices market was estimated at $1.59 billion in 2015, and is expected to reach $2.05 billion by 2020, at a CAGR of 4.2%.
The company’s latest report, Country Focus: Healthcare, Regulatory and Reimbursement Landscape – Turkey, finds that the country’s pharmaceutical market has changed dramatically over the past decade owing to the Turkish government's Health Transformation Programme, introduced in 2003.
Owing to this progressive programme, pharmaceutical sales, as measured by volume, increased by 22.1% in the five years from 2009 to 2014.
This was supported by improved medical access and an increase in the number of multinational pharmaceutical companies in the Turkish pharmaceutical market.
Low government debt and sufficient reserves will present significant foreign investment opportunities
Turkish pharmaceuticals are now sold in 144 countries, including EU states, the Commonwealth of Independent States, North Africa, and the Middle East, the report says.
The reforms seen throughout Turkey’s pharmaceutical market mean that there are a number of opportunities open to drug manufacturers.
For example, branded drugs worth millions of dollars are expected to lose their patents in the next couple of years in certain big markets, presenting a significant opportunity in terms of exports and overseas partnerships for Turkish generic manufacturers.
Low government debt and sufficient reserves will also present significant foreign investment opportunities, as GDP per capita has more than tripled over the past decade.
Turkey's pharmaceutical exports have increased by 80% in five years, reaching $8.56 million in 2014.
High demand for US exports is also providing the country with a way to grow its pharmaceutical market.
In spite of clear opportunities associated with Turkey’s pharmaceutical space, there will still be significant barriers impeding growth over the forecast period, says GlobalData.
A lack of transparency in the regulatory environment could deter clinical investment in the industry, for example, and high private healthcare expenditure and low coverage of services continue to make the market difficult to navigate.