Outsourcing to Emerging Markets: The Effect of the European Economic Crisis - Pharmaceutical Technology

Latest Issue
PharmTech

Latest Issue
PharmTech Europe

Outsourcing to Emerging Markets: The Effect of the European Economic Crisis
Each developing economy has unique economic, political, and cultural issues that help define its pharmaceutical market. To succeed, multinational pharmaceutical companies will have to adapt differently.


Pharmaceutical Technology
Volume 36, Issue 2, pp. s34-s42

Turkey

The Turkish pharmaceutical industry still lacks capital investment and subsequently has minimal R&D capabilities. Foreign investors are free to repatriate their profits outside Turkey as an incentive—subject to certain limited restrictions—and to acquire immovable property or rights in Turkey. As a result, a number of major developers have chosen to make Turkey a production base for pharmaceuticals serving the Middle East, Asia, and Eastern Europe (especially given the possibility of EU accession on the cards in the medium term). Among the 49 manufacturing facilities in the country, multinational firms own 13. The availability of a skilled workforce keeps improving but domestic patenting law is below international standards, with the protection of confidential test data and counterfeiting being key concerns.

Conclusion

The EM–7 region, while still a comparatively minor contributor to overall global drug sales for most global pharmaceutical companies, will likely grow in size and importance over time. In light of the primarily positive macro growth indicators across all the profiled EM–7 pharmaceutical markets, there will likely be heightened negotiations for partnerships between global pharmaceutical companies and locally based CMOs and CROs. Although European drug companies are showing more interest in these partnership opportunities, the US is not far behind. The key to ongoing success for the pharmaceutical industry in emerging markets remains the improvement of R&D productivity to a point where the discovery of new, meaningful products that can serve remaining unmet medical needs become a reality. Products like these could then see sustainable demand in both established and emerging markets alike.

Victor Coker is director of business intelligence at That's Nice, LLC, New York, NY,


ADVERTISEMENT

blog comments powered by Disqus
LCGC E-mail Newsletters

Subscribe: Click to learn more about the newsletter
| Weekly
| Monthly
|Monthly
| Weekly

Survey
What role should the US government play in the current Ebola outbreak?
Finance development of drugs to treat/prevent disease.
Oversee medical treatment of patients in the US.
Provide treatment for patients globally.
All of the above.
No government involvement in patient treatment or drug development.
Finance development of drugs to treat/prevent disease.
23%
Oversee medical treatment of patients in the US.
14%
Provide treatment for patients globally.
7%
All of the above.
47%
No government involvement in patient treatment or drug development.
9%
Jim Miller Outsourcing Outlook Jim MillerOutside Looking In
Cynthia Challener, PhD Ingredients Insider Cynthia ChallenerAdvances in Large-Scale Heterocyclic Synthesis
Jill Wechsler Regulatory Watch Jill Wechsler New Era for Generic Drugs
Sean Milmo European Regulatory WatchSean MilmoTackling Drug Shortages
New Congress to Tackle Health Reform, Biomedical Innovation, Tax Policy
Combination Products Challenge Biopharma Manufacturers
Seven Steps to Solving Tabletting and Tooling ProblemsStep 1: Clean
Legislators Urge Added Incentives for Ebola Drug Development
FDA Reorganization to Promote Drug Quality
Source: Pharmaceutical Technology,
Click here