Turkish Life Sciences Industry Fuelled by Favourable Investment Climate and Healthcare Reforms

Written by on January 30, 2015 in Research & Technology - No comments

Big pharmaceutical companies and foreign investors are flocking to Turkey to capitalize on its encouraging economic policies. The establishment of technology development zones that exempt pharmaceutical entrepreneurs and academics from income taxes until 2023 has played a particularly crucial role in driving R&D activity in the nation’s life sciences industry.

New analysis from Frost & Sullivan, 2014 Life Sciences Outlook in Turkey, finds that the market earned revenues of $14.53 billion in 2013. The study covers pharmaceuticals and clinical diagnostics. The pharmaceutical segment was valued at $14.04 billion in 2013 and is estimated to reach approximately $21.65 billion in 2018 at a compound annual growth rate (CAGR) of 9.1 percent. The clinical diagnostics segment accounted for the rest of the total life sciences market revenues in 2013 and is forecasted to hit $0.70 billion in 2018 at a CAGR of 7.4 percent.

TurkeyWEB“Biologics, oncology drugs and blood-based products are expected to support the development of the life sciences market in a big way,” said Frost & Sullivan Healthcare Senior Research Analyst Aiswariya Chidambaram. “The biologics segment, which accounted for 11 percent of the total Turkish pharmaceutical market in 2012, is poised to expand at a CAGR of 15 percent between 2013 and 2018. On the other hand, the oncology segment will witness strategic investments including certain tax allowances, customs duty exemption and value-added tax exemption worth more than $9 billion.”

The Healthcare Transformation Program designed to improve healthcare services and access will remain instrumental to boosting spending across these segments. The strategic objectives of the program, along with rapid economic growth will ensure that Turkey’s life sciences market progresses faster than mature markets in the United States, Japan and Europe.

However, price ceilings that do not exceed 66 percent of drug reference prices and rigid reimbursement policies are adversely impacting foreign investors’ profits and overall market momentum. The lengthy drug approval process and poor patent protection are also dampening the investment spirit in the Turkish life sciences industry.

“With the reimbursement amount for prescription drugs having decreased at an average AGR of 7.1 percent between 2009 and 2012, companies are increasingly foraying into the over-the-counter segment with different product offerings,” noted Chidambaram. “This trend is expected to significantly boost domestic production and supply capacity.”

Eventually, Turkey will become the regional life sciences capital of the Middle East and North Africa. The country’s inviting investment scenario and pharmaceuticals export potential of nearly $300 billion to neighboring countries will help it quickly attain a strong status in the region.

2014 Life Sciences Outlook in Turkey is part of the Life Sciences Growth Partnership Service program. Frost & Sullivan’s related studies include: Next-generation Healthcare Global Advanced Medical Technologies 2014, Global Stem Cell Market, Global Infectious Disease Diagnostics Market, and Western European Biomarkers Market in Drug Discovery and Development. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Source: http://www.newswiretoday.com/news/149538/

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