South East Asian Health News

THAILAND

Glaxo Wellcome (Thailand) Ltd is changing its market plan for 1999 to concentrate more on drug stores and export markets rather than local hospitals. During the economic downturn, governments have tightened state-owned hospitals' budgets, affecting over 60% of Glaxo Wellcome's sales in Thailand. Exports are expected to comprise 42% of total sales for 1998. Glaxo currently has 19% of the total drug market share worth Bht8.5bn (US$213m). (September 23rd 1998)

The Government has allocated Bht1.4bn (US$35m) to the Ministry of Public Health to ease the increased burden of public hospitals as a result of the economic crisis. Of the total amount, Bht560m (US$14m) has been earmarked for 92 central and regional hospitals and Bht840m (US$21m) for district hospitals via provincial health offices. The budget is to be spent mostly on medical supplies. (September 14th 1998)

Red Earth Co has announced its intent to change its focus from sensitive skin care products to cosmetics. The new plans are a result of successful trial runs in Hong Kong. The company will invest Bht10m (US$250,000) into its new cosmetics focus and hopes to generate Bht30m (US$750,000) by the end of the year. Red Earth is a subsidiary of Bill Heinecke's Minor Group and is also allied with Esprit Co of Hong Kong and Australian-based Red Earth. (September 11th 1998)

Schering AG, the German pharmaceutical manufacturer, has begun to subsidize prices in Thailand to enable Schering Bangkok Ltd, its local subsidiary, to maintain its market share of pharmaceutical products. The move is designed to prevent brand switching by customers. (September 2nd 1998)

The Thai FDA has proposed a policy that would divide herbal medications into four groups based on their production process in order to expedite registration. Under the new method, drugs would be registered as traditional, modified traditional, semi-purified substances or purified substances. Opponents of the policy say that it will deter the growth of small-scale industries and traditional healers. (September 11th 1998)