We grow in a steady and balanced manner as we are open to continuous development. In the Turkish market, which reached TL15.2 billion in size in 2011, we ranked third with a 5.1% market share. An analysis of the market in terms of the number of boxes sold showed that we completed the year in third place, selling a total of 100.4 million boxes.
We are determined to be a strong player not only in the domestic market but also in foreign markets. As a reflection of the progress we have achieved in this vein, we currently export to a total of 48 countries. By the end of 2013, we aim to raise our exports to $40 million.
The Turkish pharmaceutical market is one of the emerging markets offering high growth potential. One of the most important reasons for foreign companies’ interest in Turkey is that the pharmaceutical markets in developed countries have reached their saturation point and are growing slowly.
Turkey’s pharmaceutical industry has transformed over the past few years from being a relatively high-margin industry sector to a low-margin one. It’s becoming more and more like the European market, especially on the generic side. The changes have been very fast and very deep.
Biofarma has very recently turned to a new strategy and tried to adapt itself to the changing market conditions. The main features of this shift are a more differentiated product portfolio strategy, separate development and management of branding and commercial activities, and more aggressive R&D work.
GROWING THE MARKET
Domestic companies possess the capacity to deliver the quantity needed to grow the market. Quantitatively there is not going to be a supply problem for the “conventional” products. But, domestic companies are not able to deliver high-tech production outputs.
MAKE IT SUSTAINABLE
We want to see a different pharmaceutical industry when we arrive at the year 2023, because if the current unsustainable policies are maintained, we will no longer see a strong and powerful pharmaceutical sector in Turkey.
The new incentive legislation is expected to attract the attention of foreign investors and bring in green-field investments in areas where we lack know-how, such as biotechnology, bio-similars, and oncology. Furthermore, Turkey is an attractive market given its large population.
FILLING A ROLE
There is a very open niche area in value-added generics that could be exploited through improving existing products rather than spending large amounts of money on innovation and trying to seize a role in the innovative industry. Due to the production culture that we have, Turkey could fill this role.
Turkey enjoys a relatively young population. This will automatically create demand for medication in the next couple of decades. The population is growing quickly, and this will also mean the number of elderly citizens will increase, also driving up demand.
The public demands innovation, as do patients, which we have to provide from a moral perspective. This is an opportunity not only for the generics business, but it is also important for innovative products. If generic medication is enjoying good opportunities, this will also provide increased exposure to innovative medications.
Yeni Recordati is in a growing position in this market. Our main target is to grow faster than the Turkish market. Considering the different sources of organic and acquisition-based growth parameters now in Turkey, Yeni Recordati has become one of the top-20 companies in unit production, and is in the top 25 in terms of the value created after these acquisitions.
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