Challenges and progress in Thai pharmaceutical industry

Thailand's lax patent laws and tendency to give preferential treatment to domestic producers continues to strain the country's relationship with the international pharmaceutical industry. Lax patent laws have brought widespread discontentment among industry players, and the compulsory licensing of drugs in 2006, 2007 and 2008 has worsened the situation. Widespread corruption is also a challenge. Notably, Public Health Minister Witthaya Kaewparadi resigning in 2009, after a government-appointed panel found evidence of misappropriation of funds provided by the Thai Khemkhaeng stimulus package.

Nevertheless, Thailand’s pharmaceutical market is expected to perform better than most of its regional peers, as global economic downturn continues to stifle development. The pharmaceutical market is expected to grow by 7.7% in 2009 which is well above the global average for the year. In addition, prospects for patent law reform are improving as a result of Thailand’s involvement in the regional harmonisation initiative and resumption of talks with the US over a free trade agreement (FTA).