National oil and gas conglomerate PTT Plc is to move into the production of medical consumables amid growing demand, especially in ageing societies, under a new partnership with petrochemical and plastic manufacturers.
The company, through its subsidiary IRPC Plc, recently signed a memorandum of understanding (MoU) with Innobic (Asia) Co, the biotechnological arm of PTT, and Panjawattana Plastic Co (PJW) to jointly conduct a feasibility study on the new business, covering product design and development, state regulations, and a long-term business model.
The firms said they wanted to seize a new business opportunity as many countries, including Thailand, are now ageing societies and are battling non-communicable diseases.
They are interested in making dialysis filter cartridges, oxygen and humidifier bottles, and medicine packaging.
The first product is scheduled to be launched by the end of the year.
Buranin Rattanasobat, PTT's senior executive vice-president for innovation and new ventures, said the MoU is in line with the government policy of turning Thailand into a medical hub.
At present, demand for single-use medical products in the global market is growing by 4-6% each year, with a market value of US$500 billion.
In Thailand, this sector's annual market value stands at 50 billion baht, with over 80% of these products imported into the country.
Mr Buranin said selling medical consumables can raise the value of polymer and plastic materials by 5-10 times. The process requires strong research and development and good marketing.
Wiwat Hemmontharop, PJW board chairman, said his company can help support the new business with its expertise in making plastic bottles.
PTT is also further strengthening its life-science-related businesses by partnering with pharmaceutical and food supplement company Inter Pharma Plc (IP) for the development of medicines and food supplements.
Its subsidiary, Innobic, acquired more shares in IP through a private placement, leading Innobic to secure a 20% share in IP last month.
Mr Buranin said the investment will synergise two companies' strengths in order to have better business opportunities in the life science segment.
IP's strength lies in its production facility, while PTT has good business networks.
Partnering with IP will also pave the way for telemedicine business development in the future.
"We have already prepared facilities to support our life science businesses," said Mr Buranin.
Over the past two years, Innobic has partnered with several companies. They include Taiwan-based medicine maker Lotus Pharmaceutical Co, with a 37% share owned by Innobic.
Innobic also joined hands with SET-listed NR Instant Produce, a producer of vegetarian and plant-based food, to set up Nutra Regenerative Protein Co under a 50:50 joint venture to develop and sell a full range of plant-based protein and functional foods.