Bangkok: The government is advancing its effort to transform Thailand into a Medical Investment Hub, successfully closing a deal with global pharmaceutical giant MSD for pilot research and technology transfer.
According to Thai News Agency, Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, announced that this initiative is part of the government's strategy to shift from being a mere "pharmaceutical buyer" to forming "investment partnerships" with world-class pharmaceutical companies. This strategic move aims to bring new investment, foster research and development, facilitate technology transfer, and enhance the development of Thai human resources.
Guided by the Joint Public-Private Sector Committee for Economic Problem Solving (JPPSEC) and the Sub-Committee on New National Investment Development, the government is employing the Offset Policy concept to negotiate with foreign companies. This approach seeks to leverage government procurement to generate domestic investment and boost Thailand's capabilities.
Under the leadership of Minister Pattana Promphat, the Ministry of Public Health has initiated negotiations with 10 global pharmaceutical companies to attract investment. These investments will focus on clinical trials, manufacturing technology transfer, drug and raw material production, and the development of Thai medical personnel. The Board of Investment (BOI) is also involved in considering investment promotion measures and related facilitation.
The collaboration with MSD represents the first tangible success, paving the way for expanding clinical research in Thailand. Research on a new drug is valued at approximately 2 billion baht, with the potential to create around 1,000 jobs. It also presents opportunities for public hospitals to take a more active role in research.
Plans are in place to expand technology transfer and production of pharmaceutical precursors for new HIV drugs with the Government Pharmaceutical Organization. If realized, this initiative will elevate Thailand from a drug market to a significant player in high-tech pharmaceutical research and production.
Ms. Lalida highlighted that following the MSD collaboration, the government is preparing to finalize additional agreements with more global pharmaceutical companies. In about two weeks, there are plans to sign a cooperation agreement with Sandoz, marking another step towards enticing global firms to invest and stimulate economic activity in Thailand.
The government's aim is to ensure that when Thailand procures pharmaceuticals and medical products from world-class companies, the country gains added benefits in return. This includes investment, research, technology transfer, domestic production, and the creation of highly skilled jobs. The goal is to transition from a buyer-seller relationship to a partnership that fosters mutual investment and growth. The MSD deal is seen as a starting point, with more agreements to follow.
The government envisions this strategy as part of building a high-value domestic healthcare industry, reducing long-term reliance on imports, and ensuring that healthcare spending in Thailand is reinvested in technology, research, employment, and knowledge transfer for Thai people. This approach will elevate Thailand from a healthcare service hub to a major center for medical research and production in the region.