Turkish healthcare system responds to new phase of growth

With rising economic prosperity, an ageing population and strong government incentives, the Turkish pharmaceutical industry is looking to expand both internally and beyond its national borders, says the latest CPhI Pharma Insights report, based on research carried out by Global Business Reports (GBR). In the past decade per capita GDP in Turkey has more than trebled, with a corresponding increase in disposable incomes. Against a background of rising economic prosperity, an ageing population and a social security system that covers 97% of the population, the Turkish government has been expanding the healthcare infrastructure and is now aiming to reduce its overall healthcare trade deficit by encouraging local industry to produce a greater proportion of domestically manufactured drugs.

Government support is vital for emerging domestic pharma economies to grow, flourish and create an environment for investment. As Professor Burak Erman, Koç University, notes: ‘Only 10 years ago, Ireland, South Korea and Singapore embarked on the development of [their] pharma industries. The governments gave great support to pharma companies, which attracted the attention of Western companies, and a lot of money was poured into projects. These companies are now leading the world in production, especially in South Korea. This began with tax incentives.’

‘Today, Turkey has an advanced pharmaceutical industry in terms of installed capacity, production standards and technology,’ says Inci Ayyildiz, International Commercial Operations Director at Mustafa Nevzat Pharmaceuticals. ‘The industry consists of 300 pharmaceutical companies, produces around 8,000 drugs and employs around 30,000 people. This volume and a US$7bn turnover makes the Turkish pharma market the world’s 16th and Europe’s 7th largest market.’