BMI View: Despite Cambodia's latest move to expand health coverage for workers, we highlight that the country 's lack of investments in healthcare mean s that the effective coverage of the policy will be low. Consequently, any market potential within Cambodia will still be overshadowed by its neighbours.
Headline Expenditure Projections
Pharmaceuticals: KHR1,008.1bn (USD252mn) in 2015 to KHR1,113.5bn (USD278mn) in 2016; +10.5% in local currency terms and US dollar terms.
Healthcare: KHR5,676.2bn (USD1.4bn) in 2015 to KHR6,292.5bn (USD1.6bn) in 2016; +10.9% in local currency terms and US dollar terms.
|e/f = BMI estimate/forecast. Source: National Sources, BMI|
|Pharmaceutical sales, USDbn||0.228||0.252||0.278||0.307||0.338||0.371||0.407|
|Pharmaceutical sales, % of GDP||1.36||1.38||1.38||1.38||1.38||1.37||1.36|
|Pharmaceutical sales, % of health expenditure||17.8||17.8||17.7||17.6||17.5||17.3||17.1|
|Health spending, USDbn||1.280||1.419||1.573||1.744||1.933||2.142||2.373|
Cambodia's Pharmaceutical Risk/Reward Index score for Q216 is 33.1 out of the maximum 100. The country scored below average for almost all indicators and sub-indicators including overall market expenditure, sector value growth and pensionable population. Consequently, with this low score, Cambodia ranks second-to-last out of the 19 key markets in Asia Pacific, ahead of Myanmar. Cambodia mainly suffers from low per capita consumption, stemming from low wages, the absence of a national health insurance scheme and the wider lack of government financing in the country, poor intellectual property protection and cumbersome bureaucracy.
Key Trends And Developments
In January 2016, the National Malaria Center stated that the government started rolling out mefloquine-based malaria drugs in west Cambodia as the region has shown higher resistance to first-line drug dihydroartemisinin-piperaquine.
In December 2015, a World Bank report on ageing stated that cancer prevalence in Cambodia will increase by 300% and the country's low screening rates and poor access to health facilities are exacerbating the problem.
BMI Economic View
We estimate real GDP growth to have come in at around 7.0% in 2015 marking the fifth consecutive year of plus-7.0% growth. We continue to warn of the risk associated with the ongoing slowdown in the global economy and the leverage-fuelled construction boom that has been in play over the past few years. We forecast 6.9% real GDP growth in 2016, compared with the IMF's forecast of 7.2%.
BMI Political View
Cambodia's long-term political outlook largely depends on the ruling Cambodian People's Party (CPP)'s ability to address widespread corruption and income inequality, which have been fuelling public dissent against the government in recent years. The recent rise in support for the main opposition party shows that the CPP's grip on power is waning, which could lead to heightened political uncertainty over the coming years.
The Cambodia Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.
BMI's Cambodia Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Cambodia pharmaceutical and healthcare industry.
- Benchmark BMI's pharmaceutical and healthcare market forecasts for Cambodia, to test other views - a key input for successful budgeting and strategic business planning in the Cambodian pharmaceutical and healthcare market.
- Target business opportunities and risks in the Cambodian pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Cambodia.
- Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.
BMI Industry View
An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
BMI Industry Forecast Scenario
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
- Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
- Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
- Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
- OTC Drug Market: OTC sales (USDbn & % of total sales).
- Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.
BMI’s Pharmaceuticals and Healthcare Risk Reward Index
BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.
Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.
The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.