Market Structure of the Turkish Pharmaceutical Industry

The market structure of the Pharmaceutical Industry, which has an extremelyimportant both socially and economically position, is carefully monitored by regulatoryauthorities. The consantration of pharmaceutical companies tends to adversely affectconsumer welfare as well as resource distribution in the economy. The competitivestructure of the markets is determined by the concentration indices. For these reasons,in this study the market concentration ratios of the pharmaceutical sector in Turkey arecalculated by using concentration measures such as Concentration Ratio; HerfindahlHirschman; Hall-Tideman; Rosenbluth; Comprehensive Industrial Concentration;Hannah-Kay; Hause and the Entropy measure with the annual sales revenue data of thecompanies in the sector for the 2009-2016 period.According to the results,pharmaceutical sector in Turkey has a low concentrated market structure. In addition,the Rosenbluth index presents the most consistent results for the Turkishpharmaceutical sector, which consists of hundreds of small companies having marketsshares of 7% at the highest.