The Structure of the World Pharmaceutical Market: Prioritizing Iran’s Target Export Markets

Shabaninejad, H and Mehralian, G.H and Yusefzadeh, H and Rahimi, B (2019) The Structure of the World Pharmaceutical Market: Prioritizing Iran’s Target Export Markets. Iranian Journal of Pharmaceutical Research, 18 (1). pp. 546-555.

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Abstract

Iran`s pharmaceutical products market has faced fluctuations over time. Suitable market selection is necessary for stability of pharmaceutical exports. This study aimed to determine the structure of the world pharmaceutical market and to identify the target of Iranian pharmaceutical export. T do so, concentration ratios and Herfindahl index were used to address the world pharmaceutical market from 2001 to 2012. Also, a composite index was used to identify the target markets of Iran’s pharmaceutical industry. The results showed that the export side of world pharmaceutical trade has shifted to open oligopoly, thereby decreasing the monopolistic power of exporters. The import side, however, follows monopolistic competition. It has been observed that the structure of Iran’s pharmaceutical export is shifting to open oligopoly; though, pharmaceutical importers from Iran have not been stable. Moreover, 27 countries were identified as target markets. Due to significant differences between the current and potential export destinations of Iran’s pharmaceutical products, exporters should choose suitable strategies in order to diversify export markets. Such mechanisms as setting preferential tariffs on the basis of bilateral agreements, following effective advertisment, and paying attention to global consumers’preferences can be used to develop Iran’s pharmaceutical export to target countries.

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