• What Should We Understand From IMS Report For Turkish Pharmaceutical Industry?
  • August 22, 2012
  • Law Firm: HERDEM&Co. Attorneys At Law - Istanbul Office
  • The IMS, leading provider of information, services and technology for the healthcare industry, covering markets in 100+ countries around the world has announced its latest report  with regard to  and in consideration of  worldwide pharmaceutical industry as of July 2012. As it has been reported, the pharmerging companies will grow by USD 150-165Bn over five years. Generic and other products will account for approximately 83% of the increase. In pharmerging markets the rising incomes, combined with continued low costs for medicines will drive significant increases in affordability of basic medicines.The  patients face substantial out-of-pocket costs in these markets, with a few exceptions, which limits the usage of brands and expensive newer medicines. Government-supported or funded programs will continue to increase access to medicines, limit patients’ exposure to costs and encourage greater use of medicines. In the report, Turkey has been defined as one of the pharmerging countries (tier 3 ) with a change in ranking over prior five years  in parallel with its economic development. Turkey’s pharmaceutical industry has growth about 30% that is considerable when compared with the worldwide market with the growth rate of 4,6%. Since 2006, 13 local companies have restructured its corporate mechanism to go ahead through a foreign partnership. The M&A operations in Turkish pharmaceutical industry, notwithstanding the regulations that limit the sales of companies, are still ongoing. It is expected USD five million foreign capital to penetrate into Turkish market within coming ten years. It is also obviously observed that the interest of foreign capital rise the importance of employment. The estimated rates figure out that there are 25.000 persons employed in Turkish pharmaceutical industry by 300 companies that  57 of them are multinational. The pharmaceutical industry shall be considered as a whole if the Turkish market is question. However in consideration of  the effective and qualified labor force in Turkish market, there is no obstacle for multination manufacturers to set their  R&D units in Turkey alike they did the same in similar countries in the past. The result we have launched when we evaluated the M&A operations of past five years, the major local manufacturers are largely acquired by foreign manufacturers that is a rule of distribution mechanism as we have experienced up to date. In evaluation of IMS report and the potential of Turkey in pharmaceutical industry we are in the opinion of that,  only the minor manufacturers or the manufacturers still hesitant to proceed in Turkish market will be potential purchasers of local distributor against the current regulations of Turkish Ministry of Health. As the key factor of being a distributor requires taking precautions against loosing the know-how, it is clearly foreseen for Turkish distributors to review their contracts together with their forecasts for near future.