Thailand pharmaceutical market downgraded by BMI

For the second quarter of 2011 Business Monitor International has revised downwards its projections for Thailand's once promising pharmaceutical and healthcare markets. The key factor was the revelation that sales of prescription drugs in the South East Asian country contracted by just over 1% in 2010, primarily as a result of pricing pressures.

BMI forecasts that combined sales over-the-counter (OTC) medicines and prescription drugs will increase from 126.5 billion baht ($3.96 billion) in 2010 to 164.0 billion baht ($5.71 billion) in 2015. This equates to local currency and US dollar compound annual growth rates (CAGRs) of 3.85% and 7.20%, respectively.

Unlike the majority of Asia Pacific countries in BMI's coverage universe, Thailand's Pharmaceuticals & Healthcare BER score is unchanged from the previous quarter. The South East Asian nation's Rewards score (55) is above the regional average (50), while its Risks score (45) is below, making the market appealing to bold investors. The country scores particularly poorly for Industry Risks, which evaluates the intellectual property regime, the approval process and policy/reimbursement.