BMI View: Cambodia is increasingly looking to provide greater health coverage for its population and this bodes well for pharmaceutical firms over the longer term . However, consistently low levels of government health expenditure mean that there has been, and will continue to be, a lack of healthcare resources available for the development of the sector. Until the government shows more concrete commitment towards the sector, progress of healthcare provision to the population will be hindered .
Headline Expenditure Projections
Pharmaceuticals: KHR1,008.1bn (USD250mn) in 2015 to KHR1,113.5bn (USD280mn) in 2016; +10.5% in local currency terms and US dollar terms. Forecast remains unchanged from previous quarter.
Healthcare: KHR3,981.1bn (USD1.0bn) in 2015 to KHR4,181.1bn (USD1.1bn) in 2016; +5.0% in local currency terms and US dollar terms. Forecast remains unchanged from previous quarter .
|e/f = BMI estimate/forecast. Source: National Sources, BMI|
|Pharmaceutical sales, USDbn||0.230||0.250||0.280||0.310||0.340||0.370||0.410|
|Pharmaceutical sales, % of GDP||1.36||1.38||1.38||1.38||1.38||1.37||1.36|
|Pharmaceutical sales, % of health expenditure||24.0||25.3||26.6||27.9||29.3||30.5||31.8|
|Health spending, USDbn||0.950||1.000||1.050||1.100||1.150||1.210||1.280|
Cambodia's Pharmaceutical Risk/Reward Index score for Q316 is 32.9 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 the Asia Pacific region, 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.
In April 2016, the World Bank stated that 100% of Cambodia's poor are covered by the Health Equity Fund and that more babies are being delivered by health professionals in the country.
In the same month, according to local media outlet The Phnom Penh Post, approximately 360,000 workers in various parts of the country will get access to healthcare coverage from May 1 due to the expansion of the National Social Security Fund.
In March 2016, CEO of GlaxoSmithKline, Sir Andrew Witty announced that the company would not file for patents for new medicines in poor countries such as Cambodia.
BMI Economic View
Cambodia is currently undergoing a sharp slowdown in tourist arrival growth, which threatens to undermine the country's robust economic growth rate. The ongoing deterioration in domestic political stability poses an additional risk, given the recent murder of prominent government critic Kem Ley.
BMI Political View
The Cambodian government's latest crackdown on the opposition ahead of the 2017 elections reflects growing concerns among the ruling Cambodian People's Party over a loss of electoral support and could trigger a rise in protests from the opposition and garment worker unions. We have downgraded Cambodia's short-term political risk index to 62.1 out of 100 from 62.7 previously, owing to a decline in the social stability score to 55.0 from 57.5.
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.