According to a recent report by IEIS, Turkey’s Pharmaceutical Manufacturers Association, there are approximately 680 companies competing in the country’s pharmaceutical industry. Together, they operate 96 pharmaceutical and 11 raw material production facilities. The industry employs over 40,000 people, exports to 180 countries, and produces more than 12 thousand products.
Here is a snapshot of the industry in six graphs:
A steady growth in value over the last five years
In 2020, the Turkish pharmaceutical market grew by 17.7 percent in value, reaching 47.9 billion Turkish Liras (TKY). If the 2015-2020 period is considered, the real growth stands at 19.8 percent adjusting by price inflation.
Note: Graph amounts are in Turkish Liras (1 USD = 8.5 TKY). The currency has been experiencing significant depreciation over the past few years. On March 22nd, 2021, the Lira fell 15 percent in one day after the country’s central bank governor was replaced
Generics grow, but originators outperform
The size of the market for originator products outperformed the pharmaceutical market in 2020 with an increase of 21.3 percent, going from 27 billion TKY (US 3.2 billion) to 32.7 billion TKY (US 3.8 billion). On the other hand, generics grew by only 10 percent and lost market share to originators, in terms of value, for the first time in more than five years.
Turkey continues to increase its manufacturing of both originators and generics domestically
After localization policies went into effect in 2016, Turkey began attracting more production from multinational companies. Today, 30 percent of all originators sold in the country are produced domestically, up from 20 percent in just five years.
Local manufacturers have also benefited and produce an impressive 96 percent of all generics sold in Turkey’s pharma market.
Locally manufactured products consolidate their position against imported drugs
2020 was the second year in a row that a majority of revenue from pharma products came from products manufactured inside the country. After finally overtaking imported drugs in terms of value for the first time in 2019, locally produced products maintained the lead in 2020 with 24.3 billion TKY (US 2.8 billion).
Biosimilars triple their market share in five years
While the share of biosimilars was 3.1 percent in value in 2015, among biotech drugs, it increased its share more than 3 times since the to reach 10.4 percent in 2020, a trend that is expected to continue. Biotechnological drugs have around 18 percent of the whole pharmaceutical market in Turkey with 8.7 billion TKY (US 1.03 billion).
Oncology and diabetes products rise, antibiotics plummet
Among a selected group of therapeutic areas, all but antibiotics experienced growth in 2020. Oncology products remain the leader capturing a market share of 14.5 percent in terms of value, followed by cardiovascular drugs (8 percent), diabetes (7.7 percent), hematology (7.6), and CNS (6.9 percent).