BMI's Executive Summary

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Thailand's pharmaceutical market, one of the most challenging in Asia, is likely to become more so over the coming years. One of the factors that threaten to worsen operating conditions in the country is the increasing use of compulsory licensing by the government. While legal under the World Health Organization (WHO) guidelines, compulsory licensing in Thailand seems to be getting out of hand, with the multinational research-based industry quick to criticise the government's stance on the issue.

The Thai pharmaceutical market was worth an estimated US$2.16bn. BMI forecasts modest growth over the period, with the value reaching US$2.62bn by 2012. Thailand has one of the fastest growing populations in the region and the government's implementation of basic universal health coverage in 2001 has served to boost demand for pharmaceuticals. However, the government finances appear to be insufficient to support the new health coverage system, with authorities needing to resort to making decisions unpopular with drugmakers.

In BMI's revised Q108 Business Environment Ranking table for the 14 key markets in Asia, Thailand occupies one of the bottom places. Ranked joint eleventh, with Indonesia, Thailand poses considerable risks and limits to investment in terms of its pharmaceutical industry. Despite modernisation of the healthcare sector, which is attracting a considerable number of medical tourists, the military-appointed government's regulatory decisions are continuing to knock multinationals' confidence in the market, as well as stopping the launch of new products and deterring foreign direct investment (FDI) in the country. Nevertheless, foreign drugmakers continue to dominate the market, led by US-based major Pfizer.

Domestic manufacturers remain limited to basic generics due to a lack of available capital to fund research and development (R&D). The state-owned Government Pharmaceutical Organization (GPO) is in the privileged position of being the largest supplier of drugs to the public sector, and its range of antiretrovirals (ARVs) are a growth area.

Contents

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Chapter 1 - Executive Summary

Thailand Pharmaceutical Industry SWOT

Thailand Political SWOT

Thailand Economic SWOT

Thailand Business Environment SWOT

Chapter 2 - Thailand: Business Environment Ranking

Table: Asia Business Environment Rankings

Business Environment Ranking

Economics - Long-Term Risk

Politics - Long-Term Risk

Regulatory Barriers

Domestic Sector Threat

Market Growth Potential

Market Size Ranking

Chapter 3 - Thailand: Market Summary

Chapter 4 - Regulatory Regime

Pricing & Reimbursement

Intellectual Property Regime

Recent Intellectual Property Developments

Regional and International Developments

Chapter 5 - Industry Trends and Developments

Healthcare System

Recent Healthcare System Developments

Epidemiological Trends

Table: Prevalence of Mental Disorders per 100,000 population

Pharmaceutical Sector

Pharmaceutical Retail Sector

Indigenous Producers

Foreign Companies

Traditional Medicines

Research & Development

Recent R&D Activities

Clinical Trial Considerations

Chapter 6 - Industry Forecast Scenario

Overall Market Forecast

Table: Thailand Drug Market Expenditure Forecasts

Key Growth Factors - Industry

Table: Thailand Health Expenditure Forecasts

Key Growth Factors - Macroeconomic

Table: GDP, Output & Population

Prescription Market Forecast

Table: Prescription drug market indicators

OTC Market Forecast

Table: OTC market indicators

Generics & Branded Market Forecasts

Table: Generics And Branded Market Indicators

Export/Import Forecasts

Table: Sectoral trade indicators

Other Healthcare Data Forecasts

Table: Socio-demographic indicators

Key Risks to BMI's Forecast Scenario

Chapter 7 - Competitive Landscape

Overview

Chapter 8 - Company Profiles

Leading Multinational Manufacturers

Pfizer

GlaxoSmithKline

Novartis

Merck & Co

Sanofi-Aventis

Domestic Manufacturer Profile

Siam Pharmaceutical

Government Pharmaceutical Organisation (GPO)

Biolab Co

Thai Meiji Pharmaceutical Co

Chapter 9 - BMI Forecast Modelling

How we generate our industry forecasts

Technical Process

Pharmaceutical Industry

Sources

Chapter 10 - Appendix: Regional Demographic Data

Table- Manufacturing Wages (ave per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn

Chapter 11 - Country Snapshot: Thailand Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages per year

Competitive Landscape for Asia Pharmaceuticals and Healthcare: Sample of Companies Ranked

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Cross-border analysis of regulatory systems comparing the patenting environment, summarising regional pricing and reimbursement factors and monitoring the growth of the Pharmaceuticals sector across the region. Company SWOTs cover leading multinational and national drug companies operating in each market.

Network of Asian Pharmaceuticals & Healthcare Sources

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BMI's Asian Pharmaceuticals Healthcare Reports are based on an extensive network of multilateral organisations, government departments, pharmaceuticals & healthcare industry associations, chambers of commerce and company reports. Information sources include: