Country Report: Turkey - Pharmaceutical Executive


Country Report: Turkey

Pharmaceutical Executive


Another key development in recent years has been a noticeable increase in takeovers and partnerships. Somewhat of a departure for a market traditionally dominated by family-owned businesses, over the past five to seven years, there has been a flurry of international interest in local industry.

Dr Ali Akyildiz, general manager of IMS Health Turkey
Ali Akyildiz, general manager of IMS Health Turkey, said, "There has been increased activity in terms of mergers and acquisitions in Turkey over the past five years. Amgen took over 96 percent of Mustafa Nevzat, which further reduced the number of important local players."

One of the biggest transactions to hit the news lately, the US biotechnology giant spent some USD 700 million to gain the majority of the local generics manufacturer which was ranked 19 in value by IMS in 2011.

CORENA’s Global Take On Business
Although a leading Turkish pharmaceutical company, Abdi Ibrahim, occupies the number one spot, international companies have picked up several local companies in the top 30. Recent acquisitions include Dr Frik and Yeni Ilaç by the Italy-based Recordati and Eczacibaşi by the Czech generic drug maker Zentiva, which is a subsidiary of Sanofi.

As Turkey's investment profile continues to attract international attention, some local players are planning today for future buyouts. For example, Serdar Sözeri, general manager of Biofarma Pharmaceuticals, said that the company is preparing an exit strategy in the next three year: "We are going to add value to the company before selling it, to reach a value higher than the average assumption of what it is worth."

Other local companies are leveraging their competitive advantages to stay ahead in an increasingly crowded market. Erhan Baş, general manager of Bilim Pharmaceuticals, said, "There are 300 pharmaceutical companies operating in Turkey; Bilim is number 3, and will be number 2 in a very near future. The company's main differentiators are its flexibility, its ability to manage change, and its efforts in R&D."


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