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Big Pharma and foreign investors are "flocking" to Turkey to capitalize on its encouraging economic policies, according to new analysis from Frost & Sullivan.
Big Pharma and foreign investors are "flocking" to Turkey to capitalize on its encouraging economic policies, according to new analysis from Frost & Sullivan. The establishment of technology development zones that exempt pharmaceutical entrepreneurs and academics from income taxes until 2023 has played a particularly crucial role in driving R&D activity in the nation’s life sciences industry, says the 2014 Life Sciences Outlook in Turkey. The Turkish market earned revenues of $14.53 billion in 2013, with the pharmaceutical segment valued at $14.04 billion. This sector is estimated to reach approximately $21.65 billion in 2018 at a compound annual growth rate (CAGR) of 9.1 percent. The biologics segment, which accounted for 11 percent of the total Turkish pharmaceutical market in 2012, is also poised to expand at a CAGR of 15 percent between 2013 and 2018, said Frost & Sullivan analyst Aiswariya Chidambaram. Turkey's Healthcare Transformation Program designed to improve healthcare services and access will remain instrumental to boosting spending across these segments. However, price ceilings that do not exceed 66 percent of drug reference prices and rigid reimbursement policies are adversely impacting foreign investors’ profits and overall market momentum. The lengthy drug approval process and poor patent protection are also dampening the investment spirit in the Turkish life sciences industry. Nevertheless, Turkey will become the regional life sciences capital of the Middle East and North Africa, says the study. The country’s inviting investment scenario and pharmaceuticals export potential of nearly $300 billion to neighboring countries will help it quickly attain a strong status in the region. The 2014 Life Sciences Outlook in Turkey is available here.