The healthcare system in Turkey has entered a long period of development under the 2003-2013 Health Transformation Program. The purpose of the program is to increase the quality and efficiency of the healthcare system and enhance access to healthcare facilities.
According to the Pharmaceutical Manufacturers Association of Turkey (IEIS), the Turkish pharmaceutical market was around USD 9.2 billion in 2010, up from USD 4 billion in 2003, growing by 12.6 percent of CAGR. There are 49 manufacturers in the industry, and 13 of them are foreign investors. The industry employs approximately 25,000 people.
The General Directorate of Pharmaceuticals and Pharmacy, a division of the Ministry of Health, is in charge of the regulation and control of pharmaceutical prices. Manufacturers and importers are obliged to apply to the Ministry of Health for the authorization of new product prices, as well as for price increases and decreases.
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1952-1972 |
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Beginning of the “industrial period” (1952)
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Formation of modern manufacturing facilities
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Commencement of raw material manufacturing
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Production of 95 percent of all products domestically |
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1973-1990 |
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Stagnation period until 1984
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Introduction of Good Manufacturing Practices (1984)
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Advanced technological development through heavy investment |
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1990-2003 |
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2004-2007 |
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New pricing regulation based on reference prices
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VAT rate reduced to 8 percent
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New registration regulation
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Data exclusivity for original products
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Transfer of SSK hospitals to the Ministry of Health |
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2008-onwards |
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Falling morbidity and mortality rates
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Growing population and improving demographic indicators
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Improving healthcare awareness
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Availability of a skilled workforce
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Growing healthcare investments, including growing foreign investment in recent years
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Market regulations increasingly in line with EU
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Government’s commitment to healthcare industry improvements |
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Low per capita healthcare spending of USD 817 in 2010, putting Turkey in a position behind many European countries
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Domestic patent law and intellectual property remaining below international standards
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High dependence on the import of hi-tech drugs
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Harmonization with the EU and sector modernization leading to considerable potential
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Significant scope for growth, given the size of the population and current low consumption rate
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Recent introduction of new R&D legislation, designed to facilitate investment
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One of the fastest growing markets in the world
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Healthcare reforms, such as centralized health insurance/social security, leading to better and wider access to healthcare |
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Negative effect of government price controls/reimbursement lists on market attractiveness
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The costs of modernization to potentially deter the harmonization of the domestic regulatory infrastructure and industry standards with international norms
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Need to address the substantial deficit of the healthcare system
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