Production of pharmaceutical preparations done in pharmaceuticals laboratories between 1928 and 1950 had increased with the establishment of local and foreign invested plants starting from the year 1952, which is the start of the “fabrication period” of the Turkish pharmaceuticals industry.

Within the period after 1984 up to the present, investments of foreign capital companies have increased and especially after the year 1990, 19 foreign capital firms have entered into Turkish pharmaceuticals market.

Today, there are 53 manufacturing facilities and approximately 300 entities operating in the sector in Turkey. 39 of the manufacturing facilities are local firms. On the other hand, multinational firms own 14 of the manufacturing facilities and 134 of the entities.

Pharmaceutical industry has a production structure comprised of high level of technology and automation. Approximately 31.000 people are employed in the sector. Pharmaceuticals industry, due to its nature, is one of the industries which has a high proportion of personnel with university education (50%).

Turkish pharmaceutical industry is mainly located in the Marmara Region especially in provinces of Istanbul, Kocaeli and Tekirdağ. This is mainly due to the better infrastructure, ease of supply in packaging materials and technical personnel, telecommunication and transportation facilities and the existence of a high number of health institutions in the region.

The Turkish pharmaceutical industry has a well-organized structure. Most of the manufacturers and exporters have been organized under the roof of “The Pharmaceutical Manufacturers Association of Turkey” (İlaç Endüstrisi İşverenler Sendikası).

PRODUCTION

According to IMS (International Medical Statistics) data, the sector has reached a total Sunday volume of US $ 1.2 trillion with a growth rate of 5% in 2018, with 95% of the world pharmaceutical market owned by internationally-owned companies. In 2018, the U.S. accounts for about 40% ($485 billion) of world pharmaceutical sales, China 11% ($132 billion) and Japan 7% ($86 billion), with the top three countries accounting for almost half of the world Sunday Share. In the coming period, the growth trend in the pharmaceutical sector, which is the third largest sector in the world, is expected to continue and the sector will reach a Sunday size of over 1.5 trillion dollars by 2023.

As of the end of 2018, 48% of the world pharmaceutical Sunday production is made up by North American countries, while 22% is made up by European countries. In recent years, developing countries such as Brazil, India, Russia and China have also come to the fore in Sunday distribution. Although it is predicted that the US will continue to be at the top of global pharmaceutical sales in the coming period, the share of developing countries outside the US is also expected to increase. (IQVIA, IEIS)

In 2018, 17.5% of total R & D spending in the world was carried out by the pharmaceutical sector. Drug R & D expenditures require a long process and high cost, the conversion of a molecule into a human drug can take an average of 10-15 years and requires high investment amounts. As of the end of 2018, Global R & D expenditures of the pharmaceutical sector amounted to approximately US $ 179 billion. Global R & D expenditures are expected to reach $ 204 billion in 2024. Pharmaceutical consumption in Turkey, by therapeutic class, includes antibiotics, cardiovasculars, antirheumatics, nervous systemics and oncologics.

In recent years, there has been a trend towards biotechnological products in the world and the share of products produced by synthesis chemistry in the pharmaceutical market has been declining. In our country, it is of great importance to turn to biotechnological products in accordance with this trend. The Turkish biotech pharmaceutical market reached TL 5.4 billion in 2018, corresponding to approximately 17% of the total prescription drug market. The share of biotechnological drugs within the total prescription drug market is steadily increasing, similar to the trend around the world. In the same year, the total biosimilar drug market increased by 48% compared to the previous year, reaching approximately TL 282 million.

The production of raw materials in Turkey concentrates on the active ingredients of antibiotics and analgesics, by using the methods of fermentation, extraction and synthesis.

Within the Turkish pharmaceutical raw materials sector, 11 plants are owned by the private sector.

The production and marketing of all pharmaceuticals in Turkey are obliged to be authorized by the Turkish Ministry of Health, and pharmaceutical products and firms must be registered in the Ministry.

The Turkish government has implemented a number of regulations to bring its pharmaceutical laws into line with those in the EU.

• Patent protection
• Data exclusivity
• Pricing
• Registration
• Good Manufacturing Practices(GMP)
• Good Laboratory Practices (GLP)
• Good Clinical Practices (GCP)
• Bioavailability / Bio equivalency
• Packaging Labelling
• Promotion / Advertising
• Drug Research and Medicinal Product Registration
• Stability Requirements
• Regulation on Good Distribution and Storage Practices
• Pharmacovigilance

Since 1995, pharmaceutical manufacturers have to abide by regulations specifying Good Manufacturing Practices (GMP), Good Laboratory Practices (GLP) and Good Clinical Practices (GCP) requiring significant investment by local industry companies. The necessary investments for the development of technology in the industry have been accelerated and today the production technology of the Turkish pharmaceutical industry has reached world standards.

PHARMACEUTICAL AND PHARMACEUTICAL PRODUCTS SECTOR IN TURKEY

Exports

Turkish exports have shown a steady increase in recent years, although in 2018, the total value of the pharmaceuticals exports decline to US $ 1,2 billion, in 2019 the total value of pharmaceuticals export increased to US $ 1,3 billion (Table 1).

Turkey is now exporting various pharmaceutical products to 180 countries including developed countries like South Korea, Switzerland, Poland, Slovenia, Germany, the UK, the USA and Georgia (Table 2).

TIM 2023 Export target for 2023 as part of a strategy 3.3 billion US dollars is designated as the drugs and pharmaceuticals sector, and the sector in question within the scope of the relevant exporters General Secretariat of Istanbul mineral and metals exporters ‘association (IMMIB) with the general secretariat of Mediterranean Exporters’ Union (AKIB) General Secretariat has been designated as.

On the other hand, organizations such as the pharmaceutical industry employers ‘ union (IEIS), the Health Products Association and the Pharmaceutical Industry Association of Turkey (TISD), which serve the Turkish pharmaceutical sector, serve as a reference institution for both the public and private sectors through their activities.

Source: Data pf Ministry of Trade of the Republic of Turkey
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Industrial turnover index increased by 26.4% compared with same month of previous year
When the sub sectors of the calendar adjusted industrial sector (based on 2010=100) were examined, mining and quarrying index increased by 31.5% and manufacturing index increased by 26.2% in March 2017, compared with same month of previous year.
The largest increase was in durable consumer goods
When the seasonal and calendar adjusted main industrial groupings (MIGs) were examined, the largest increase was in durable consumer goods by 7.7% in March of 2017, compared with previous month.

The largest increase realized in manufacture of furniture
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the largest increase was in manufacture of furniture by 7.3%, it was followed by other manufacturing by 6.5% and manufacture of leather and related products by 6.4% in March 2017, compared with previous month.

The highest decrease realized in manufacture of other transport equipment
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the highest decrease was in manufacture of other transport equipment by 19.5%, it was followed by manufacture of basic pharmaceutical products and pharmaceutical preparations by 10.3% and manufacture of chemicals and chemical products by 5.9% in March 2017, compared with previous month.

Seasonally and calendar adjusted total industrial turnover index increased by 11.9% compared with the previous quarter
In the first quarter of 2017, seasonally and calendar adjusted total industrial turnover index increased by 11.9% compared with the previous quarter. The calendar adjusted total industrial turnover index increased by 24.4% compared with the same quarter of the previous year.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Industrial production increased by 2.8% compared with same month of previous year
When the sub sectors of the calendar adjusted industrial sector (based on 2010=100) were examined, while mining and quarrying index decreased by 3.8%, manufacturing index increased by 2.5% and electricity, gas, steam and air conditioning supply index increased by 7.7% in March 2017, compared with same month of previous year.
The largest increase was in durable consumer goods
When the seasonally and calendar adjusted main industrial groupings (MIGs) were examined, the largest increase was in durable consumer goods by 6.4 % in March 2017, compared with previous month.

The largest increase realized in manufacture of leather and related products
When the sub sectors of the seasonally and calendar adjusted manufacturing were examined, the largest increase was in manufacture of leather and related products by 23.5%, it was followed by manufacture of electrical equipment by 9.1% and manufacture of coke and refined petroleum products by 5% in March 2017, compared with previous month.

The highest decrease realized in manufacture of basic pharmaceutical products and pharmaceutical preparations
When the sub sectors of the seasonally and calendar adjusted manufacturing were examined the highest decrease was in manufacture of basic pharmaceutical products and pharmaceutical preparations by 9.9%, it was followed by manufacture of tobacco products by 5.7% and manufacture of other transport equipment by 4% in March 2017 compared with previous month.

Industrial production increased by 1.4% compared with the previous quarter
In the first quarter of 2017, seasonally and calendar adjusted industrial production increased by 1.4% compared with the previous quarter. The calendar adjusted industrial production increased by 2.2% compared with the same quarter of the previous year.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Industrial turnover index increased by 22.3% compared with same month of previous year
When the sub sectors of the calendar adjusted industrial sector (based on 2010=100) were examined, mining and quarrying index increased by 36.4% and manufacturing index increased by 22% in February 2017, compared with same month of previous year.
The largest increase was in durable consumer goods
When the seasonal and calendar adjusted main industrial groupings (MIGs) were examined, the largest increase was in durable consumer goods by 11.4% in February of 2017, compared with previous month.
The largest increase realized in manufacture of tobacco products
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the largest increase was in manufacture of tobacco products by 35.1%, it was followed by manufacture of computer, electronic and optical products by 12.8% and manufacture of other non-metallic mineral products by 11.4% in February 2017, compared with previous month.

The highest decrease realized in repair and installation of machinery and equipment
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the highest decrease was in repair and installation of machinery and equipment by 18.7%, it was followed by manufacture of basic pharmaceutical products and pharmaceutical preparations by 10.2% and manufacture of wood and of products of wood and cork (except furniture) by 4.5% in February 2017, compared with previous month.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

The highest decrease realized in manufacture of other transport equipment
When the sub sectors of the seasonally and calendar adjusted manufacturing were examined, the largest decrease was in manufacture of other transport equipment by 21%, it was followed by manufacture of basic pharmaceutical products and pharmaceutical preparations and manufacture of coke and refined petroleum products by 11.4% in February 2017, compared with previous month.

The largest increase realized in manufacture of beverages
When the sub sectors of the seasonally and calendar adjusted manufacturing were examined the highest increase was in manufacture of beverages by 6.9%, it was followed by manufacture of machinery and equipment n.e.c. by 5.8% and manufacture of other non-metallic mineral products by 4.3%  in February 2017 compared with previous month.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Domestic producer price index rate of changes, 2016-2017
[2003=100]
Domestic producer price index, annual change on same month of the previous year, 2016-2017
[2003=100]

D-PPI increased by 0.37% for mining and stone quarrying, increased by 1.35% for manufacturing, decreased by 2.69% for electricity and gas and increased by 0.66% for water supply compared with the previous month.

Domestic producer price index and rate of changes, March 2017
[2003=100]

The highest monthly increase was in basic pharmaceutical products and pharmaceutic preparations
The highest rates of monthly increase in D-PPI by sub divisions of industry were basic pharmaceutical products and pharmaceutical preparations 6.84%, other transport equipment by 3.73%, tobacco products by 3.73%. On the other hand the highest rates of monthly decrease in D-PPI by sub divisions of industry were index for coke and refined petroleum products by 4.39%, electricity, gas, steam and air conditioning by 2.69% and crude petroleum and natural gas by 0.44%.

The highest monthly increase in main industrial groupings was in intermediate goods
According to main industrial groupings classification in March 2017, the highest rates of monthly and annual increase were in intermediate goods.

Domestic producer price index main industrial groupings and rate of changes, March 2017
[2003=100]

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Industrial turnover index increased by 24.1% compared with same month of previous year
When the sub sectors of the calendar adjusted industrial sector (based on 2010=100) were examined, mining and quarrying index increased by 32.5% and manufacturing index increased by 23.9% in January 2017, compared with same month of previous year.

The largest increase was in energy
When the seasonal and calendar adjusted main industrial groupings (MIGs) were examined, the largest increase was in energy by 18.8% in January of 2017, compared with previous month.

The highest increase realized in repair and installation of machinery and equipment
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the largest increase was in repair and installation of machinery and equipment by 47.4%, it was followed by manufacture of basic pharmaceutical products and pharmaceutical preparations by 28.4% and manufacture of coke and refined petroleum products by 20.7% in January 2017, compared with previous month.

The largest decrease realized in manufacture of tobacco products
When the subsectors of the seasonal and calendar adjusted manufacturing were examined, the highest decrease was in manufacture of tobacco products by 35.8%, it was followed by manufacture of computer, electronic and optical products by 20.4% and manufacture of leather and related products by 7.7% in January 2017, compared with previous month.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.