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New Report Predicts the Thai Pharmaceutical Market to Grow at an Average Rate of 4.8% in the Medium Term

Posted on: Friday, 16 November 2007, 00:00 CST

Research and Markets (http://www.researchandmarkets.com/reports/c74342) has announced the addition of The Pharmaceutical Market: Thailand to their offering.

The government's relationship with the international pharmaceutical industry continues to be uneasy, largely due to the country's lax patent laws and preferential treatment of domestic producers. The compulsory licensing of patented drugs by the military government in 2006 and 2007 has further compounded this problem. It has to be noted that the government is acting within its rights and has not violated international law, as stipulated in the TRIPS agreement. The government has offered to pay patented drug manufacturers a royalty of 5% above the price of generics, but no compromise has been reached with the companies involved.

The Thai government has said the compulsory licences will only apply to drugs under all public insurance schemes. Drugs on the open market, i.e. private expenditure, will not be affected by compulsory licensing. The Universal Healthcare Scheme, as of 2007, covers around 48 million inhabitants or over 70% of the population.

Weak consumer demand has been offset by strong exports, which has contributed towards economic growth; averaging around 4.5% per annum. Healthcare sector development, which decelerated considerably as a result of the recession, has begun to pick up again in terms of expenditure and was revived policy-wise, first with the introduction of the 30-baht universal healthcare scheme in 2001, and the new free universal healthcare scheme that started in November 2006.

Taking this and other variables into account, the report predicts the market to grow at an average rate of 4.8% in the medium term.

The Universal Healthcare Scheme, which replaced the 30 baht scheme in 2006, promised more access to healthcare for many poor Thais who would otherwise struggle to afford treatments and pharmaceuticals.

While it is still early days, the public healthcare system has been struggling, both in terms of lack of manpower, i.e. complaints of overworked doctors and other medical professionals, and availability of funds. Unsurprisingly, the government has adopted a number of cost containment issues, not uncommon among even more developed countries with public insurance schemes.

The compulsory licensing of patented drugs by the military government has been a contentious issue with the pharma industry, while some international groups have praised the actions. The compulsory licensing affects drugs sold and distributed under all government schemes. In 2007 alone, over 70% of Thais were under the Universal Healthcare scheme.

Import levels for modern drugs surpassed pre-crisis levels for the first time in 2003 and the market remains dominated by generics. The OTC sector has profited in a similar fashion. The government's relationship with the international pharmaceutical industry continues to be uneasy, largely due to the country's lax patent laws and preferential treatment of domestic producers.

MARKET OUTLOOK Current market size Unique 5-year market projections Market outlook Market structure Includes data on imports and exports Market developments Recent and impending developments with respect to key issues such as regulation, health facilities and government policy Key national data projections

BACKGROUND DATA Population data, including growth trends and age structure Demographic indicators detailing principal causes of death and morbidity

HEALTHCARE SYSTEM Health expenditure Expenditure by source of funding and type Hospital services Hospital data such as beds and inpatient activity Outpatient care Medical personnel Data on healthcare professionals covering such areas as doctors by specialty, nursing staff and dentists ACCESSING THE PHARMACEUTICAL MARKET Regulatory environment Patent protection & intellectual property rights Pricing & reimbursement Distribution channels Domestic production

CONTACT DETAILS For healthcare organisations and trade associations.

For more information visit http://www.researchandmarkets.com/reports/c74342

Source: Espicom Business Intelligence

Source: Business Wire

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