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

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.