Although the pharmaceutical industry in Thailand is currently somewhat limited in terms of development, with the majority of drugs being generic and mainly produced for domestic use, there is still great potential for growth in the industry.
Key Takeaways
- Thailand’s pharmaceutical industry has great potential for growth, driven by increasing demand for healthcare services due to the aging population and rising prevalence of chronic diseases.
- The adoption of generative AI, data-driven drugs, and biotechnology is expected to significantly impact the development of pharmaceuticals in Thailand.
- Despite active research and development in the industry, challenges such as government policies and infrastructure development need attention to facilitate efficient drug development and enhance competitiveness.
The complete medical industry is one of the target industries in the New S-Curve that Thailand is accelerating to become the medical hub of Asia. In addition to Thailand’s potential in healthcare, pushing and supporting the pharmaceutical industry is another important factor that will help enhance the value chain of Thailand’s medical industry.
The pharmaceutical industry in Thailand is currently limited in its development, with a majority of the production focusing on generic drugs and serving the domestic market. However, there is potential for growth, as the market value of pharmaceuticals in the country is projected to increase by 6-7% annually over the next 3 years, reaching approximately 3.2 trillion baht by 2027. This growth is driven by increasing demand for healthcare services due to Thailand’s aging population and the rising prevalence of non-communicable chronic diseases.
The trend towards generic drugs, which are similar to branded drugs but more affordable, is also expected to improve access to healthcare for the Thai population. Therefore, Thailand should promote the development of the pharmaceutical industry to meet the growing domestic market potential and also expand its production for export, particularly in the ASEAN market.
Pharma tech trends worth watching
Trends related to Pharma tech that are worth watching include:
1) Generative AI will act as a catalyst in developing effective drug formulas. It is safe. and can predict more side effects from clinical trials.
2) Data driven drugs and personalized medicine is the use of data to develop drugs that meet specific treatment needs more individually, such as drug development. By relying on each person’s genes combined with treatment information and other health information to help treat diseases caused by genetic defects.
3) Biotechnology is poised to significantly impact the development of biological drugs. For instance, it facilitates the creation of monoclonal antibodies—proteins engineered as biological materials for disease treatment. These are particularly effective in targeted cancer therapies, enhancing the elimination of cancer cells and minimizing side effects. Additionally, biotechnology is instrumental in advancing research on herbal medicines, an area where Thailand shows great promise. Through biotechnology, the effects of herbal medicines can be determined with increased accuracy and quantifiable outcomes.
Research and Development in the Thai Pharmaceutical Industry
Historically, the Thai pharmaceutical industry has been actively engaged in research and development, as evidenced by the expanded list of drugs on the National Innovation List. Moreover, investment is expected to continue its growth trajectory. In 2023, there were 12 projects that sought investment promotion from the Board of Investment (BOI) in the pharmaceutical manufacturing sector, with a combined worth of approximately 1 billion baht.
Nonetheless, despite Thailand’s enhanced focus on investment and research in medicine, there remain challenges that warrant attention. These include government policies that should better facilitate the development of new drugs, particularly regarding regulations that enable pharmaceutical companies to conduct clinical trials and obtain approvals for new drugs more efficiently.
This includes the development of infrastructure, such as information systems and medical networks, that connects researchers, doctors, hospitals, and pharmaceutical companies. This connection will optimize drug development processes. As for drug manufacturers, in addition to researching and applying technology, they must track trends in drug demand from doctors, hospitals, and patients. They should also consider further development into upstream industries, such as the production of raw materials used in drug manufacturing. Reducing reliance on imported raw materials will enhance the competitiveness of Thailand’s pharmaceutical industry and ensure its sustainable future.
Source : SCB EIC brief / ส่องอุตสาหกรรมยา…โอกาสสู่การเป็น Medical hub ของเอเชีย | SCBEIC
