Brazilian Health Equipment Exports: Grow and Conquer Competitive Markets -- MEDICA - World Forum for Medicine


ABIMO - Brazilian Medical Devices Manufacturers Association

Brazilian Health Equipment Exports: Grow and Conquer Competitive Markets

Brazil's health equipment industry is seeking to boost sales with its new industry brand Brazilian Health Devices, aiming to reach US$ 1 billion in exports by 2015.

The Brazilian health equipment industry registered 8% growth for the first half of the year in terms of exports compared to the same period in 2010. The fact that the country's currency has hit record highs against the dollar over the same period, when the global economy is undergoing difficulties, only makes this achievement all the more noteworthy.
A recent entry into the industry's international market, Brazil launched its health equipment export strategy at its first time participating in MEDICA, ten years ago. Since then, new buyers have been won over all over the world, and its international presence has grown. According to the WHO (World Health Organisation), it is currently the second placed exporter among developing countries and boasts the highest revenues in sales of medical equipment.
Over the span of a decade, Brazil's health equipment industry's revenues have grown by 244%. The goal is now to maintain this momentum and reach an annual total of US$ 1 billion in exports by 2015. The industry's sales for the first half of 2011 have resulted in US$ 338.65 million.
Paulo Henrique Fraccaro, the ABIMO (Brazilian Medical Devices Manufacturers Association) Vice President, said: "Brazil's industry is not only aiming to increase export volumes. We want to win over competitive markets with high quality standards, such as the US and countries in Europe. The US and Germany are already among our top ten buyers."
Companies installed in Brazil are already able to provide 90% of a hospital's equipment needs. The only missing pieces that are not made in Brazil are large scale imaging units.

Strict criteria

Fraccaro notes that the way the domestic market is structured has led the country's industry to develop products focused on the cost-benefit ratio. As the Brazilian government is the largest buyer in the market, there is a need to meet the demanding standards set by ANVISA [the National Health Surveillance Agency], which subjects companies to continuous assessment. In addition, these companies have to make their products available at accessible prices due to the public authorities' tight budgets.
Fraccaro said: "The Brazilian government always makes its purchases through public tenders where the final price is the deciding factor. This is the reality that our companies have had to adapt to."
He also points out that the flexibility of the country's industry is another important factor in helping exports grow. "Unlike other countries, here in Brazil, our production can be adapted and changed to
suit clients' needs. If there is something that has to be changed in a product, we'll do it", Fraccaro affirmed.

New brand

ABIMO, in partnership with Apex-Brasil (the Brazilian Trade and Investment Promotion Agency), launches the new industry brand Brazilian Health Devices at this year's edition of MEDICA as part of the growth strategy for the country's international presence in the health equipment sector.
Hélio Lôbo, a project manager at Apex-Brasil, said: "The new brand is part of a strategy to increase exports and expand the number of markets purchasing Brazilian products, which currently stands at 180".
ABIMO, Apex-Brasil and associate companies have also worked together to draw up a list of eight countries that comprise target markets for consolidation. The countries in the list are: Angola, Saudi Arabia, Chile, the US, India, Mexico, Peru and Russia.

Investing in technological innovation
Another factor driving the industry's impressive performance is the solid investment made by Brazilian companies in technological innovation. The main innovation initiatives are acknowledged every year through the ABIMO Inova Saúde [Innovate Health] award. There are currently an estimated 980 R&D projects being undertaken by Brazilian companies in the medical and hospital industry.

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Brazilian participation at MEDICA:
The Brazilian Pavilion will be located at Hall 17, Stands 17A30, 17A38, 17A39, 17A41, 17B38, 17B42, 17C36, 17C42

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