GlobalData predicts 10% pharma growth

pharmaceutical market in Thailand is projected to grow by 10% a year and reach US$9.47 billion (314.8 billion baht) in 2020, driven by booming strong internal growth and medical tourism, according to analytics firm GlobalData.

Compared with other Asean countries (with the exception of Singapore), the strength of Thailand’s medical tourism industry grew out of its strong leisure tourism industry and relatively well-developed hospital system, medical experts said at a Thailand innovation forum held in Boston in June.

The government launched a number of initiatives such as the 11th National Economic and Social Development Plan (201216) and the Second National Plan for Older Persons (2002-21).

These schemes are meant to improve quality of life for the country’s elderly population by providing them with easy availability of medical services and thereby boosting the country’s pharmaceutical industry.

In addition, the country expanded its public hospitals network to improve citizens’ access to affordable healthcare facilities, and this expansion will continue to drive the pharma market, GlobalData forecasts.

“The growth of medical tourism in Thailand is related to the low cost of skilled labour and supply of hospital beds, which also make Thailand an appealing location for clinical trials,” said Peter Shapiro, editor-in-chief of the GlobalData product PharmSource. “Thailand is actively courting clinical studies with lower requirements for first-in-human studies than other Asian countries such as China and India.

“The government has been successful in luring contract research organisations including ACLIRES International (in Bangkok), which services Thailand, Vietnam, Cambodia and Peru.”

Government funding includes not only tax rebates, but also incentives intended to lure business to targeted areas of the country.

The government has additionally set up several contract manufacturing organisations to service the industry, including a Thailand Center of Excellence for Life Sciences’ cell and gene production unit and the national biopharmaceutical facility in association with King Mongkut’s University of Technology Thonburi, Mr Shapiro said.

The university operates a biologic pilot plant facility, he said.