The achievements of the Brazilian industry in health products
The industry of health products in the world is one of the most dynamic sectors of the Economy. In 2009, the sales invoicing of those items was estimated in U$ 289 billion, and it is forecasted it will attain U$487 billion in 2016, resulting in a yearly growth of 7%. The sector has more than 27 thousand industries around the world employing more than 1 million people. It is expected the emerging Economies such as Brazil, China and India will bring a next wave of growth to the health products market.
(Source: Global Data 2010)
Brazil’s image as manufacturer of medical-hospital and dental items is in an process of evolution. Attributes such as development, technology and business potential are added to the country’s image, thus benefiting the whole national industry.
In Brazil, the sector is divided in Odontology (equipments, inputs and instruments), Laboratory (equipments, reagents, and consumables), Radiology (devices, accessories and consumables), medical-hospital equipments (non-electric furniture, eletromedicals, surgical instruments, physiotherapy devices, and hotel services), Implants (orthopedic, neurological, cardiac, among others) and consumables (hypodermic, textile, patches, and others).
As to the size of Brazilian companies in that sector, they are ranked as follows:
|
Medium |
54.3% |
|
Medium/Large |
16.6 % |
|
Big |
11.9% |
|
Small |
13.9% |
|
Micro |
3.3% |
The Southeast Region of the country comprising the states of São Paulo, Rio de Janeiro, Minas Gerais and Espírito Santo shelters the highest amount of industries in that sector, corresponding to 87.3% of the total productive capacity in the area followed by the Southern Region (states of Rio Grande do Sul, Paraná and Santa Catarina) with 11.1%, and other Regions (North, Northeast, and Center-West) with 1.6%.
The invoicing in the sector had almost 200% increase during the 2003 to 2010 period, attaining U$ 4.791 billion, and it evolved in the following way:
|
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
|
Invoicing (in US$ 1,000) |
1,602,433 |
1,828,433 |
2,457,701 |
3,090,780 |
3,737,454 |
3,960,742 |
3,864,575 |
4,791,671 |
Import and export by segment
As to export, the segment of Patches was the most remarkable one, with an 87% increase in its external sales during the 2006 to 2010 period.
Export
|
2006 (US$) |
2007 (US$) |
2008 (US$) |
2009 (US$) |
2010 (US$) |
|
|
Odontology |
64,476,000.00 |
82,867,603.00 |
82,509,442.00 |
70,434,183.00 |
84,457,550.00 |
|
Laboratory |
30,916,000.00 |
29,459,054.00 |
37,487,148.00 |
31,988,008.00 |
55,836,250.00 |
|
Radiology |
24,258,000.00 |
22,027,376.00 |
28,817,774.00 |
22,610,052.00 |
25,220,705.00 |
|
Medical-Hospital Equipments |
40,756,000.00 |
58,948,884.00 |
61,489,219.00 |
45,998,469.00 |
47,256,112.00 |
|
Patches |
55,219,000.00 |
80,572,575.00 |
88,397,990.00 |
94,754,612.00 |
103,576,045.00 |
|
Consumables |
226,264,000.00 |
254,853,459.00 |
282,163,587.00 |
275,324,539.00 |
316,709,958.00 |
|
Total |
441,889,000.00 |
528,728,951.00 |
580,865,160.00 |
541,109,863.00 |
633,056,620.00 |
Brazilian exportations in the health industry area had an increase during the first semester of 2011
Not even the dollar depreciation would undermine exportations of the Brazilian health industry during the first semester of 2011, when the sector exported US$ 338 million, a 8% increase related to last year’s. In 2010, international sales of health equipments represented 13.2% of the total invoicing in the industry, with a total turnover of US$ 633 million. The aim is to attain US$ 696 million up to the end of 2011, and US$ 1 billion exportations up to 2015.
In the first semester, the most exported item in the sector was inputs – US$ 164 million – with a 6% growth in relation to the same period of the previous year. The best growth rates during the period were attained in the sectors of radiology (24% with US$ 13 million trades), medical-hospital equipments (18% sales - US% 33 million), and implants (13% - US$ 58 million sold outside Brazil).
Articles most exported during that period were: adhesive dressing (U$ 44 million), sterilized catguts for surgical sutures (U$ 32 million), and cardiac valves (US$ 26 million).
Country of origin of importations and destination of exportations
United States were the major buyers (22.4%) of equipments and consumables used in Odontology, medical-hospital and laboratory Brazilian items in 2010. In total, 10 countries composed the total of major buyers of the Brazilian products (USA, Argentina, Venezuela, Mexico, Colombia, Chile, Belgium, Peru, Germany, and Paraguay), generating a total amount of US$ 633,057.000.
Brazilian importations sunned up U$$ 3,667,075, and it was performed commercial trades with the following countries (by order of trade volume): USA, Germany, China, Japan, Malaysia, Switzerland, Irish, Netherlands, Sweden, and United Kingdom.
By their turn, exportations had a total accrued in an amount of US$ 619 million during that period with an 8% increase related to the same period of the last year.
More than 56% companies of that sector compete earnestly other markets added to the Brazilian. For this, around 82% of exporters has mounted appropriate structures dedicated to attend foreign buyers. Such structures provide employment to 755 persons (3.3 average per exporter with a specific area dedicated to exportation), being 86% allocated in Brazil and 14% abroad. From the Brazilian companies in the sector, 57% export part of their production.
(Source: Estudo Setorial da Indústria de Equipamentos Médicos, Odontológicos, Hospitalares e de Laboratórios no Brasil, IEMI e ABIMO, May, 201)
The growth generating new employments and technological advancements
The balance for the first half of 2011 performed by the WEB Setorial – an economic consultant for the Brazilian Association of Importers of Equipments, Products, and Medical-Hospital Supplies (Abimed) and the Brazilian Chamber of Laboratory Diagnosis (CBDL) – based on data from IBGE has shown that the sector of medical and diagnosis materials and equipments has presented a 21% increase in the production from January to June of this year compared to the same period in 2010. The sales in the commercial and services branches had a 10% from January to May.
Still according to the Ministry of Work (MTE) and Caged, in the first half of 2011 the industrial and commercial activities in the sector of medical and diagnosis materials and equipments generated 3,603 thousand new jobs in relation to the amount of jobs in December, 2010. In June, 2011, the sector was already providing employment to 113 thousand people in industrial and commercial activities.
The major generation of employment among groups of the sector occurred in the wholesale trade of dental, medical and hospital machinery, devices and equipments in the accrued amount from January to June, 2011 (22.8%). Services of diagnostic and therapeutic complementation that consumes the products traded by the sector presented a 10.1% increase in the June, 2011 jobs in relation to the December, 2010.
According to the Executive Secretary of the Brazilian Chamber of Laboratory Diagnosis (CBDL), Carlos Gouvêa the rapid growth in the sector is a reflection of the positive economic moment in the country, and it has been contributing for the generation of jobs and technological advancement that is granting to the population the most diversified solutions in terms of health products. "As it is a sector with high technological value, it still is quite dependant of importations. On the other hand, exportations are increasing, showing an even higher importance Brazil is attaining compared to other Latin America countries ", said that director.
(Solange Melendez (11) 9232-9712 - Oficina de Mídia - (11) 2219-2433)
Participation in international events
The Brazilian health industry celebrates in 2011 nine years participating in the Medical Fair to be held in the city of Düsseldorf, Germany as the main event in the world for the health sector, gathering every year more than 130 thousand visitors from all over the world and 5 thousand exhibitor companies launching their marks internationally, Brazilian Health Devices aims to settle the image of the Brazilian market abroad as a competent and committed manufacturer of health products, with an affordable, trusty and advanced technology and with an excellent cost/benefit ratio.
Previously called Brazilian Medical and Dental Devices, the project went through a branding reformulation in November, 2010. It was performed an intense work with the participation of more than 30 companies and which lasted 3 months in order to result in a new logo, a new name and a new international positioning for the sector. (ilustrar com o novo logo)
Organized by the Brazilian Association of the Medical, Dental, Hospital and Laboratory Supplies and Equipment Industry (ABIMO) in an partnership with the Brazilian Agency, to Promote Exportations and Investments (Apex-Brasil), the Brazilian Pavilion counts on the participation of more than fifty companies.
The creation of the Brazilian Health Devices brand is result from the Integrated Sector Project (PSI) held in 2002. The project has contributed for an 180% increase in external sales in the sector within a seven years period in the following categories: laboratory, odontology, radiology, medical-hospital supplies, patches, and consumables. The new international brand of the Brazilian health industry reflects the technological quality and reliability of its products, in order to enlarge markets beyond the 180 consumer countries of the five continents. The purpose is to progressively increase the volume of exportations – which attained the level of US$ 633 million in 2010. The Brazilian Health Devices brand will take to the world products to provide health and quality of life at an excellent cost/benefit.
In 2010, Brazilian industries participating in the event closed business of around US$ 4 millions and prospecting more than US$ 38 million for the following 12 months after the event. “We were able to perceive the evolution of the Brazilian participation along the years with the enlargement of the pavilion and the higher level of recognition and higher amount of visitors to our companies. The fact we re participating for the first time of a worldwide event in the sector launching an international brand shows the maturity in the actuation of our industry in foreign markets”, says Paula Portugal, Manager of the ABIMO’s International Projects.
The success of the Brazilian industry in international events was repeated along Fime held last August, 2011 in Miami, United States. The Fair received thousands of visitors, and it is among the main events of the health sector at worldwide level turned to the presentation of new technologies and services for hospitals and health establishments.
Our 9th participation in that event was quite promising. Fifty Brazilian micro and large size companies invested in search for conquering international markets. Along Fime, Brazilian companies performed 1,840 contacts and US$ 380 thousand on business. Added to this, it is expected further business for the next 12 months in an amount of US$10 million.
The participating companies performed contacts with several countries mainly United States, Canada and Latin America countries. It was commercialized from disposable items to ICU devices and furniture.
The Brazilian delegation is also present in another event of international importance: Arab Health, which is held in the Arabian Emirates in the city of Dubai, where it closes big business and opens new frontiers to the growth of the Brazilian industry abroad.
(Calia|E2 / Leila Xavier ou Flávia Arcanjo - 2122.8600, 9774.3347)
Strategies to assure the quality in the Brazilian health products
Brazil has now mechanisms actuating to promote and protect health. Anvisa – National Agency of Health Surveillance is an official entity in charge by the safety of the health products and services, and also participating in the assembling of its access to the markets. For this, it actuates from the registration and authorization for products and services to enter into the market up to the follow-up of their performance in the next post-commercialization phases.
Good Manufacturing Practices (GMP) are rules that sets the applicable requirements in the manufacture of medical items from methods and controls used in the project, purchase, manufacture, packing, labeling, storage up to their installation, usage and technical assistance of every product turned to the sector. The legislation sets that every supplier of medical-hospital must fulfill every requirement in order to assure the safety and effectiveness of their use. Further to this, such certification aggregates value to products and equipments and sets rules to improve the companies’ performance.
The Country disposes of an association working in an intense way in order to stimulate the industry to get a certification of its products with Good Manufacturing Practices, and the Brazilian Association of Certified Companies actuates providing assistance to bid processes and promoting a permanent interaction between its associates and Anvisa.
The criterion of quality applied to Brazilian products turned to the health segment has been proving to be a quite important differential in the promotion of the country into international markets, walking to get equivalence to the main producers of technology at a worldwide level.
The Brazilian health industry integrates committees that define international standards to the manufacturing of hospital equipments
By means of an agreement between the Brazilian Association of Medical, Dental, Hospital and Laboratory Articles and Equipments (ABIMO) and the Pan American Health Organization (OPAS), the Brazilian health industry became an integrating member of several regulatory forums and committees to the manufacturing of medical-hospital equipments using electric and electronic technologies.
In September, the Brazilian delegation headed by Vicente Barbosa, ABIMO’s director and Superintendent for ABNT/CB-26 participated in the meeting at TC 62 of the International Electrotechnical Commission (IEC) – an entity that defines international technical rules. The meeting was held in Nuremberg, Germany. The Brazilian participation in such context reinforces the concern ABIMO has in relation to the quality of medical equipments aiming the patients’ safety.
It is fundamental that every manufacturer of health products is aware of every national and international Technical Rules involved in the products of its manufacturing line.