The Pharmaceutical Sector in Turkey is Dominated by the Private Sector

DUBLIN, Ireland--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/reportinfo.asp?report_id=45295) has announced the addition of the “The Pharmaceutical Market: Turkey” report to their offering.

Health sector development in Turkey has been far from dynamic in recent years, largely due to the effects of the earthquakes that hit the northern region in 1999; the draining effect on the national economy has been considerable. However, with the launch of the Second Health Project, with aid from the World Bank, there are signs of renewed activity in the sector. Turkey continues to take further steps towards EU accession and is currently in talks. However, not all member states are happy with Turkey’s possible membership. Austria for example, would far rather enter into a “privileged partnership” with Turkey than accept it as a full member; other members are also bitterly divided over the issue. The accession bid sees national legislation, including regulation of the healthcare sector, becoming increasingly aligned with EU guidelines.

In a stark contrast to the health sector, the pharmaceutical sector is dominated by the private sector, which handles the majority of all production, import, wholesale, storage and retail of medicaments in Turkey; the only exception is the SSK-owned pharmaceutical plant, which provides drugs solely to SSK facilities. A large share of the private sector production is under license to foreign companies. Turkey spends a disproportionately large amount on pharmaceutical products. The high percentage of drugs expenditure in terms of total health expenditure is as much a reflection of low health spending as it is of high pharmaceutical expenditure. Due to the sensitive economic climate, the majority of the population is sensitive to fluctuations in drug prices.

When drugs are launched onto the Turkish market, they are usually accompanied by aggressive advertising campaigns and so drug distribution by price moves towards higher priced medicaments; according to a World Bank report, there was a 50% increase in the number of drugs costing more than five million old Turkish lira between 2000 and 2001. The World Bank concurs that ""while the overall pharmaceutical price index has not moved out of line relative to the general consumer price index, the proportion of expensive medicines has gone up, as a result of which pharmaceutical expenditure has also gone up, especially among the insured"".

The Turkish pharmaceutical market is relatively small, at around US$5.5 billion in 2008, at consumer prices. Industry concern continues to revolve around Turkey’s integration into the international pharmaceutical community, especially with regard to compliance with WTO regulations. The threat of an influx of foreign-manufactured products onto the EU market has been the catalyst for the local drug industry to oppose harmonisation. However, with the appointment of a pro-EU Director of Pharmaceuticals at the Directorate of Pharmaceuticals of the Ministry of Health, international disquiet looks set to decline as the process of harmonisation gathers pace.

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