Thailand Pharmaceuticals & Healthcare Report Q4 2013 - New Study Released

Thailand's status as a priority watch list country in the Pharmaceutical Research and Manufacturers of America (PhRMA)'s submission to the Special 301 Report is unsurprising. The compulsory licences issued by Thailand in 2011 are still in place, negatively affecting its reputation for intellectual property (IP) protection and thus its direct investment potential. We also highlight that Thailand permits parallel imports - which further impacts PhRMA members' revenues in the country.

Headline Expenditure Projections

* Pharmaceuticals: THB135.38bn (US$4.36bn) in 2012 to THB142.16bn (US$4.72bn) in 2013; +5.0% in local currency terms and +8.4% in US dollar terms. Local currency forecast broadly unchanged in relation to previous quarter's projections.
* Healthcare: THB451.69bn (US$14.54bn) in 2012 to THB491.43bn (US$16.33bn) in 2013; +8.8% in local currency terms and +12.3% in US dollar terms. Local currency forecast broadly unchanged in relation to previous quarter's projections.
* Risk/Reward Rating: Thailand continues to occupy 11th position of the 18 countries surveyed in the Asia Pacific region in Q413. Thailand's score for the Industry Rewards variable remains above the regional average, indicating its favourable longer-term standing in terms of pharmaceutical market development. However, operational risks remain in the shape of a lacking intellectual property environment, which includes the threat of compulsory licencing.

Full Report Details at
- http://www.fastmr.com/prod/673255_thailand_pharmaceuticals_healthcare_report_q4.aspx?afid=301

Key Trends and Developments

* In June 2013, Thai Public Health Minister Pradit Sintawanarong confirmed that a co-payment system would not be applied to the universal healthcare scheme, according to reports in Bangkok Post, citing Kriangsak Watcharanukulkiat, the president of the Rural Doctors Society (RDS). The health minister made the move following a meeting with the RDS network, including the Government Pharmaceutical Organisation (GPO) union. Among other demands, the RDS had put forward the withdrawal of the proposed co-payment system and the pay-for-performance scheme at the meeting. However, we believe co-payments may eventually have to be introduced in order to relieve the financial pressure on government funding for healthcare.
* In May 2013, prominent local pharmaceutical distributor DKSH Thailand signed agreements with Kyowa Hakko Kirin (Thailand) Company and Rovithai Limited, under which it will offer regulatory consulting and product registration services for the two companies' products in Thailand. The agreement highlights the potential of DKSH to offer in-demand value-added services, like regulatory and consulting services, along with core distribution and commercial services, which will further solidify its market position.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Nigeria Pharmaceuticals & Healthcare Report Q4 2013
- Kenya Pharmaceuticals & Healthcare Report Q4 2013
- Latvia Pharmaceuticals & Healthcare Report Q4 2013
- Pakistan Pharmaceuticals & Healthcare Report Q4 2013
- Mexico Pharmaceuticals & Healthcare Report Q4 2013