Aksam – Presenting huge investment potential with its large population, skilled labor force and an advantageous geographic location, Turkey ranks high on the list of global pharmaceutical companies looking for new growth markets.
Currently the 6th largest in Europe and 16th globally, the Turkish pharmaceutical sector is forecast to hit a volume of USD 23 billion by 2023, up from today’s USD 8 billion. Having attained a growth rate of 6.5 percent in 2013, the industry has already attracted a number of foreign drug makers including Amgen, East Pharma and Recordati, all of which made their entry to the market through acquisitions and partnerships and later chose to expand their investments to meet the growing demand. The country’s central location between large continental markets has also made Pfizer and GlaxoSmithKline (GSK) manage their regional operations from their Istanbul headquarters.
Turkey’s unique location easily translates to an export hub for the pharma sector, providing access to markets in the Middle East, North Africa, Balkans, the Caucasus and beyond. Export figures for the sector are expected to reach USD 8.1 billion by 2023, up from last year’s USD 818 million, making the country the primary investment destination as a supplier of pharmaceuticals across multiple markets.
“Investing in manufacturing operations in Turkey is most advantageous when it comes to exporting to markets in Europe, the Middle East and Africa”, according to Arnaldo Restelli, Recordati’s Vice President. The Italian company broke ground for a USD 50 million facility in Tekirdag early this year, its second in Turkey.
“The future growth of the sector relies on new partnerships and acquisitions”, according to Pharmaceuticals Industry Leader, Ediz Gunsel at PriceWaterhouseCoopers Turkey. Stating that the Turkish pharmaceuticals market is likely to see new strategic partnerships and acquisitions in the near future, growing population and increasing life expectancy are to keep the foreign interest in the sector going, he noted.
Of the 300+ domestic and foreign pharmaceutical companies operating in Turkey, around 70 have manufacturing operations in the country. Multinationals with manufacturing facilities operating in Turkey include Recordati, Sanofi, Amgen, East Pharma, Baxter, Bayer, GSK, Novartis, Pfizer and Roche.