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In the regional Pharmaceutical & Healthcare Business Environment Rankings (BER) for Q409, Turkey's score dropped relative to the previous two quarters. Although this coincides with a cumulative decrease in scores across the region, largely as a result of the financial downturn, Turkey slipped two places in the quarter, to fifth. However, its potential draws – including its large population and the rising penetration of health insurance – are considered more attractive than those of the more advanced markets of Hungary and Slovenia, for example. In the 2008-2013 period, the report forecasts a compound annual growth rate (CAGR) of 8.68% in local currency terms, reflecting Turkey's status as a high potential market. The market, at consumer prices, was worth TRY14.5bn (US$11.2bn) in 2008, and is likely to reach TRY22.0bn (US$18.8bn) in 2013, also supported by the improving intellectual property (IP) climate.
In fact, while Turkey is listed under the Priority Watch List section of the Pharmaceutical Research and Manufacturers of America (PhRMA) Special 301 Report 2009 submission to the United States Trade Representative (USTR), the report does not mention counterfeiting. It appears that the recent creation of the Ministry of Health's medicine monitoring system has been judged as a strong commitment to tackling this issue. However, in July 2009, the subject of trade in fake medicines resurfaced, with an expert speaking at the Association of Research-Based Pharmaceutical Companies (AIFD) conference stating that Turkey is the fourth-leading country globally in terms of 2008 arrests for counterfeiting. In the period between the start of 2006 and the end of 2008, authorities confiscated fake medicines worth in excess of TRY212mn, with estimates suggesting that counterfeits represent 10% of the market.
Other challenges facing companies active in – or those considering entry into – the Turkish pharmaceutical market include the possible introduction of co-payments for healthcare, in addition to measures designed to reduce the public drugs bill. In the meantime, according to reports in local press, some 20% of the population continues to be uninsured, with this figure rising to 30% within the poorest of working age. Given the tightening financial situation, authorities are examining potential savings from modifying the current Green Card programme provided to the poor, especially in the face of the number of the recently highlighted fraudulent and erroneous claims.
Nevertheless, foreign drugmakers continue to express interest in the Turkish market. In July 2009, Pfizer was rumoured to be interested in the take-over of Turkish generics specialist Abdi Ibrahim. Pfizer is also in the process of purchasing another US-based pharmaceutical major, Wyeth, which markets a range of OTC and prescription medicines in the country. In the same month, Hungarian drugmaker Egis reported that it should post increased revenue growth in 2010 as a result of focusing on export markets, particularly Turkey. On the other hand, foreign-owned Turkish drugmaker Deva Holding recently inaugurated a new research and development (R&D) facility. The centre will focus on the development of drugs for the treatment of oncology, central nervous system and respiratory diseases, given the high price such medicines can fetch on foreign markets. Deva also announced plants to redirect its export strategy towards the developed markets of Western Europe and the US.
Turkey Pharmaceuticals and Healthcare Report Q4 2009: http://www.companiesandmarkets.com/r.ashx?id=J2ONYQ898155777
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