The Pharmaceutical Research and Manufacturers' Association said that such plans would force the industry to assess all new investment plans in the Kingdom.

"Leading members of the association have been stunned by these statements and have confirmed to me that their plans for further investment in Thailand will be put on hold pending a review of the foreign investment climate," said president Teera Chakajnarodom.

"They are concerned about continuing to invest in a country where the government cannot provide a basic guarantee for the safety of their assets," he said.

Teera said that he was aware there were other drugs, including treatments for heart disease, cancer and antibiotics, that were also being targeted for "compulsory licensing" by the ministry.

Although the association realises the ministry's health challenges and financial constraints, the best response is to engage constructively with the industry to find a mutually agreeable solution, not forcefully taking private companies' assets, Teera added.

The association's members are willing to enter into a dialogue with the government to provide low-cost treatments.

"These actions, which have been conducted without any consultation with the industry, will lead to our country being isolated from the international investment community," Teera added.

"Companies in the life sciences field have all been working very hard to try and promote Thailand as a biotechnology centre for the region.

"This step has undone the many years of work we have undertaken to convince our head offices about the attractiveness of Thailand as a biotech centre, and it gives a huge boost to our competitors in the region.

 "Without appropriate protection of intellectual property, no incentive - financial or otherwise - will be enough to attract research and development-driven enterprises."