Huge Markets For Devices Emerging In Brazil, Latin America
Nearly stalled Western economies have driven corporations of all stripes to ponder the market potential promised by the so-called BRIC countries (Brazil, Russia, India and China). The medical device industry is no exception. The BRIC nations present a challenging but lucrative opportunity for companies willing to deviate from traditional markets to access economies with GDPs that place them in the top 15 economies in the world. Of the BRIC nations, China has become the number one destination for health care technology companies in the minds of CEOs of commercial-stage medical device companies. But executives staring only on China might be missing another compelling opportunity that literally rests under their noses: Latin America.
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Advance Medical Inc. is using $20 million in new capital to expand its reach in Latin America. The company is partnering with US-based medical device companies to sell their products in the region.
Smith & Nephew’s recent purchases of two trauma businesses in Brazil and India (Pró Cirurgia Especializada and Adler Mediequip Pvt. Ltd.) reflect its broader strategy to find growth in emerging markets, an attempt to offset the losses and disappointing quarters the company is seeing in established markets like Europe.
Spotlight On Latin America: Regional Transition Brings Big Opportunities For Medical Device Manufacturers
Latin America’s 30-year transition toward urbanization and economic growth has opened up a huge opportunity for medical device companies to provide treatment solutions for the “diseases of affluence” that are now common in the region. Device imports into Latin America totaled nearly $8 billion in 2009 and import growth is expected to remain strong going forward, particularly in Brazil and Mexico. The outlook is particularly positive for the heart and vascular disease markets.