Industry Trend Analysis - Universal Healthcare Schemes To Play A Vital Role In Market Growth - FEB 2018

BMI View: Universal healthcare will remain a key theme throughout Asia Pacific (APAC) and the roll - out of these programmes in the emerging APAC markets will shape opportunities for pharmaceutical firms. To best leverage this trend, drugmakers will have to anticipate the timelines leading to implementation and understand the differences in respective models. While the expansion of healthcare across the region will boost utilisation of medical services, the roll - out of such schemes will be varied in success as financial challenges limit their sustainability.

Commercial opportunities for multinational pharmaceutical firms in the Asia Pacific (APAC) region, characterised by a mix of emerging and developed economies, will be supported by the universal healthcare programmes. Achieving universal health coverage is increasingly being prioritised by the governments in emerging APAC and as such the growth opportunities for drugmakers are in the these markets, where demand for medicines is anticipated to accelerate as governments focus heavily on the reduction of healthcare inequality and implement systems to enable greater proportions of populations to access treatment.

Indonesia introduced its Universal Healthcare Program in 2014, aiming to provide comprehensive healthcare for the entire population by 2019, with government-subsidised coverage for low income groups. Myanmar is set to achieve universal health coverage status by 2030, providing a comprehensive national health insurance scheme to improve access to healthcare facilities. The greater availability and affordability of treatments will boost the demand for medicines and consequently these markets will be among the growth outperformers for medicine sales in the coming years. We forecast medicine sales to expand at a moderate rate over our five-year compound annual growth rate (CAGR) for Indonesia and Myanmar, at 9.99% and 9.95% in local currency terms respectively.

High Growth Prospects In Emerging Asia
Pharmaceutical sales, Five Year Forward CAGR, (loccur, %)
Source: BMI

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