Transcript PHARMACEUTICAL INDUSTRY INTRODUCTION • Turkey’s pharmaceutical production makes it 16th among the world's 35 leading pharmaceutical producing countries. • Turkey has the lowest pharmaceutical consumption rate.

PHARMACEUTICAL
INDUSTRY
INTRODUCTION
• Turkey’s pharmaceutical production makes it
16th among the world's 35 leading
pharmaceutical producing countries.
• Turkey has the lowest pharmaceutical
consumption rate.
Turkish pharmaceutical industry
production is mostly realized:
under licenses agreements,
the industry has high added value,
huge production and export capacity.
HISTORY OF PHARMACEUTICAL
INDUSTRY
80% of the world pharmaceuticals production
is generated by developed countries.
Graph 1: World Pharmaceuticals Market
2001(%)
6
11,1
12
47,2
23,7
North America
Europe
Japan
Africa,Asia & Australia
Latin America
Turkish pharmaceutical industry
• Pharmaceutical industry has become one of the most
progressive sectors in Turkey.
• 1928-1950: Fabrication period
• International pharmaceutical companies : Bayer
(Germany), Aventis Pharmaceuticals, Inc (US), Pfizer
(US), Roche (Switzerland), Sanofi (France) and
Novartis (Switzerland).
• The leading Turkish manufacturers are Eczacıbaşı,
Abdi İbrahim, Fako, İlsan İltaş, İbrahim Ethem and
Bilim.
• Medium level of concentration which is 33,41 CR4.
MARKET STRUCTURE
Market overview
• The Ministry of Health, other government hospitals,
the Turkish Social Insurance Organization (SSK), and
the government's Pension Fund
• Turkey’s present population is at around 67 million
• The number of people per hospital bed is 380
• There are 83,200 doctors, 77,000 nurses and 14,700
dentists
• The number of patients per doctor is 800
• The population per dentist is 4,500
• Turkey’s annual per capita health
expenditure is USD 160.
• Europe-wide per capita spending on health
care goods and services is USD 2,140.
• There are 22,000 pharmacies
in Turkey.
• There are about 900 pharmacists
graduate from university each year.
Competition
• Local competition is quite strong.
• 134 fairly large-sized companies
• 85 are pharmaceutical producers, 11
raw materials producers, and 38 are
importers.
• 952 million units of drugs and 4,382
tons of raw materials were produced in
Turkey in 2002.
The Porter’s diamond concept in a
pharmaceutical setting
Pharmaceutical production in Turkey
Years
Quantity
1998
923,000,000
1999
1,005,000,000
2000
1,100,000,000
2001
925,000,000
2002
969,000,000
Raw Material Production
Table 4 : Production of pharmaceutical raw materials in Turkey
Years
Quantity
1998
7,076
1999
5,552
2000
4,980
2001
4,382
2002
3,909
• The production of raw materials in Turkey concentrates on many active
ingredients of pharmaceuticals, primarily antibiotics and analgesics,
by using fermentation, extraction and synthesis methods.
• The Turkish pharmaceutical raw materials sector is represented by 11
plants of private sector and 1 plant of public sector.
• The major characteristics of pharmaceuticals raw materials industry
are:
 the investments are made at a great proportion
by privately owned companies,
 the existing production capacity can be easily shifted
to various production possibilities.
Quality Standards
• Investments for the development of technology in
the industry have been accelerated and today
production technology of the Turkish pharmaceutical
industry has reached world standards.
• Turkey started recognizing patents from 1995.
• Patent protected products will only become
more common between 2005 and 2007.
Pharmaceutical Consumption in Turkey
• In 2002, sales level of pharmaceuticals in
Turkey is US$ 2.6 billions.
• Public sector employees including civil
servants account for almost 80% of Turkey’s
pharmaceutical consumption.
• Antibiotics :18,2% Painkillers: 12,1%
• The factors that affect the consumption:
Invention of new pharmaceuticals, economic
and cultural level of the country, population
growth, average life period, urbanization rate,
income distribution.
EXPLORING CONDUCT
Pricing and paying-back policies
Prices are under control of the Ministry of Health
THE PAYING BACK APPLICATIONS FOR
PHARMACEUTICALS OF…
• Emekli Sandığı: Medicine expenditures of civil
servants, their relatives, widows and orphans
• Has aggrements with 16,000 pharmacies
• SSK: It has 261 pharmacies in its structure
• Bağ-Kur: It has its own pharmacies and health
institutions
• Medicines can be bought from contractual
pharmacies
• Complementary social security foundations:
Ordu Yardımlaşma Kurumu, Amele Birliği and
İlksan
Foreign Trade
• Exports: In 2003 total value of pharmaceutical industry exports
reached US$ 220 million.
• Imports: Turkey's pharmaceutical industry imports have shown
an increase by years and reached to US$ 2,296 million in 2003.
2001
2002
2003
2004
Avr. yearly growth (%)
2004-2005
Imports
1,300
1,500
1,700
1,950
15
Local
Production
900
1,200
1,400
1,600
17
Exports
132
140
184
200
10
Total
2,068
2,560
2,916
3,350
15
Market
EXPORTS
•Major export products are the ones containing
-Penicillin,
-Antibiotics,
-Alkaloid medicaments.
•Turkey is now exporting various pharmaceutical products to 50
countries including developed countries like ,
Germany, the United States, Austria, Belgium, Finland,
the Netherlands, the United Kingdom, Switzerland,
Italy and Japan.
IMPORTS
• In our country the pharmaceuticals industry, as in all developed
countries, is importing some products in finished forms.
• Major import products of the industry are medicaments
consisting of mixed or unmixed products.
• Major countries from which pharmaceutical products imported
are the United Kingdom, Germany, France, the United States,
Switzerland and Italy.
Investments
• The industry is continuously in loss due to unstable pricing policies
Graphs 2: Investments, 2001 ( US$ Millions )
Investments
80
70
60
50
40
30
20
10
0
US $ Mio.
1997
1998
1999
2000
2001
45,4
68,8
65,8
68,6
77
Year
R&D Strategies and Its Importance
• The pharmaceutical industry does not
have enough funds to transfer on R&D
activities in Turkey.
• In Turkey, the R&D activities for
pharmaceutical industry should start
immediately for the competition in
foreign markets .
Employment
• The number of the total employees working
for the industry as of year 2001 is about
20,840.
Marketing Strategies
• Medical representatives,
advertisements in medical, direct
mail, academic meetings, exhibitions
and other similar activities organized
during such meetings, distribution of
samples to doctors and pharmacists,
gifts and printed promotional
materiel.
• The advertising of medicinal products
in newspapers without prior
permission by the Ministry of Health
is prohibited.
PERFORMANCE
Growth
• If Turkey gives importance to the
growing up in the market and
rearranging plans, future of the
industry seems to be hopeful.
• The developments concentrating
on bio-technology is expected to
provide important contributions
into the economy and sector.
CONCLUSION AND FUTURE
EXPECTATIONS
• Turkey needs to make both technical and marketing
investments.
• It is expected that total pharmaceutical market by 10
percent increase each year will reach to 8.292 million
dollars in 2013.
• After 2005, the number of the original
pharmaceuticals patented in Turkey and introduced
to the market will increase.
SWOT ANALYSIS
• Strengths
- Availability of the capacity to meet the
domestic market in conventional products,
- Availability of the conventional drug
production technologies that all basic drugs
can be produced,
- Availability of qualified human source,
- Production of high quality products,
- Growth of domestic market development
(%10 annually).
• Weaknesses
-Inability to use the full production capacity
-No R&D activity for new pharmaceuticals
-Government interference
-Weak financial resources
-Insufficient investment level
-The limited number of patents taken by
national industry
-Inability to develop new technologies
-Inability to create funds necessary for
expensive research
• Opportunities
-Rapid development of information and
communication technologies and the easy
access to information
-Increase in the technology transfer
possibilities
-Positive changes in population and
demographical structure
- As a result of globalization, the availability of
capital seeking for investment opportunities
- The potentials gained by the our fellow
citizens in foreign countries for new
technologies
• Threats
-The exponential increase of science and
technology in the world
- Low purchasing power
- High inflation rate
- High cost of and limited credit
resources,
- Insufficient research consciousness
and appreciation
- Insufficient government resources
allocated to health and education