The Pharmaceutical Market: Thailand

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.