Life Sciences Opportunities in Brazil

An Expert's View about Dental and Medical Equipment in Brazil

Posted on: 4 Oct 2010

Brazil will be one of the five largest worldwide biotechnology business hubs by 2015.

Sector briefing Life Sciences Opportunities in Brazil Why Brazil? Healthcare. Brazil has the largest healthcare market in Latin America, with an annual spend of £7.8 bn, over 7,000 hospitals and 280,000 doctors. It also has the largest medical devices market in Latin America, with imports that amount to £350 mn and a total internal market of almost £1 bn. Biotechnology. Brazil has approximately 350 biotechnology companies, with an estimated annual turnover of £2.6 bn (1.5% of Brazil's GDP) and employs around 28,000 people. Brazil is internationally recognised by its biotechnology advances, including genomics, cell therapies (stem cell research), phytotherapics and vaccines. Pharmaceuticals. The Brazilian pharmaceutical industry is comprised of 392 companies, with a market value of £6.2 bn in th 2009. It is the 10 largest market in the world. Brazil will be one of the Brazil has more than 50,000 pharmacies and five largest worldwide more than 500 distributors of pharmaceutical biotechnology business products. hubs by 2015. Find general information on the Brazilian market conditions on UKTI?s website. The Doing Business Guide for Brazil gives an overview of Brazil?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Life Sciences Opportunities in Brazil Opportunities On the other hand, large national laboratories that were considered potential purchase Brazilian medical devices market 2010 ? targets for foreign investors are also looking at 2013. other markets and focusing on foreign market expansion. Brazil is the largest medical device market in Latin America, considering both local and These indicators, together with other factors, multinational medical companies. such as the stability of Brazil?s economy, the population?s larger access to medicines and The domestic production largely consists of low Governmental policies regarding healthcare to medium end devices and is mainly focused generates the perfect environment for the towards the local market, whereas the high development of business opportunities in Brazil end medical equipment are mostly supplied by by foreign investors. imports from the US and Europe. Currently, the Brazilian medical devices market is going Biotechnology market through changes in its standards, resulting in a higher demand for better medical equipment, The biotechnology market in Brazil generates partly due to the expansion of private health around £3.5 bn/year for the country, with sector, which has greatly increased the emphasis on public health and environment demand for quality healthcare services and sectors. medical equipment. In 2007, the Brazilian President Luiz Inácio Also, the population health awareness became Lula da Silva introduced the National Biotech higher, resulting in regular checkups and Industry Development Policy. The objective of continuous monitoring of health information by this was to turn Brazil into one of the five patients. This also led to a higher demand for largest worldwide biotechnology business hubs consumer medical devices and for better by 2015, to be achieved by investing medical services in general. approximately £ 3.5 bn into the industry. The Brazilian market has a tremendous Brazil is the largest investor in R&D in Latin potential in several areas such as: monitoring America, the government being responsible for and curing procedures with short recovery more than half of the investments. time, devices offering minimal invasive treatment and low cost diagnosis, among A total of 22 Brazilian companies and entities others. linked to biotechnology took part in the BIO International Convention 2010, held between May 3-6 in Chicago, USA, in partnership with the Brazilian Trade and Investment Promotion Pharmaceutical companies plan to invest Agency (Apex-Brazil). £1 billion in the country in 2010 At the Convention, the BrBiotec Brazil brand In 2010, 15 major Brazilian and international was launched, to introduce the country's companies and consultants in the healthcare products and expertise to the international sector were surveyed by the financial market. BrBiotec is the Biosciences Integrated newspaper Valor (www.valor.com.br). The Sectorial Project held by Apex-Brazil, which result of the survey shows that investments aims to generate business opportunities and may exceed £13 mn in 2011 if strategies internationalise the Brazilian biosciences planned by those companies are achieved. sector. Those investments include acquisitions, expansion of plants currently installed in the BrBiotec currently has a platform of 23 country and R&D for new products. companies and 28 institutions such as research centres and universities. The purpose is to Brazil is one of the main destinations for extend the number of members and attract at international investors. Acquisitions, especially least 50 companies until this year's end. in the generic drugs segment, became an attractive solution for multinational A study named Panorama on Biotechnology in pharmaceutical companies. One example is the World and in Brazil has shown that the Sanofi-Aventis, which recently acquired the Brazilian biotechnology scientific production in domestic generic firm Medley. UK Trade & Investment Sector briefing: Life Sciences Opportunities in Brazil areas such as animal and vegetal reproduction, has been rising at a rate of more than 12% a biological control in agriculture, biomass year. conversion and biodiversity has been highly important, place among the first 15 positions in This is a major opportunity for manufacturers the worldwide ranking between 1998 and of beauty products and hygiene products 2009. seeking to export their products. In addition, Brazilian universities have been Vitamins, Nutraceuticals and ranked in the top 25 in terms of scientific Phytotherapics production in all 14 biotechnology areas included in the study. The vitamins and nutraceuticals market is growing 20% a year, with an estimated value Healthcare sector to invest £32 mn in IT of £250 mn. According to the Brazilian Association for Complementary Medicine Brazil's 20 major healthcare companies are (ABMC), this can be related to three main each expected to invest around £32 mn in IT, factors: the valorisation of quality of life, the mainly in hospital management systems. The low cost of the products and the scientific objective is to meet the requirements set by studies corroborating its efficiency. the government?s healthcare regulator ANS (National Agency for Supplementary Brazilian women are the main consumers of Healthcare). vitamins and nutraceuticals, representing 75% of the market. The project, named ?Information exchange for private healthcare?, aims to standardise the The market is comprised of seven main brands, use of IT systems among some 150,000 with Centrum, manufactured by Wyeth suppliers of medical services such as hospitals, Consumer, having nearly 30% of the market laboratories and private doctors, and 2,000 share. private healthcare plan providers. This is an excellent opportunity for UK Though only 5% of private companies in the companies that manufacture vitamins and healthcare segment are currently linked up to a nutraceuticals which are searching for new central IT system, ANS expects 100% of them markets to explore. to be interconnected by November 2011. ANVISA, the health surveillance agency in In May 2010, ANS began to standardise Brazil, recently established technical rules for healthcare content to reduce costs and improve phytotherapy products manufacturing and the quality of information in databases. commerce. Phytotherapic products are sold as OTC in pharmacies and the top selling Beauty Products Market substances are Ginkgo Biloba followed by Passiflora, according to a recent research in According to the Financial Times in 2009, Brazil Brazil. has become the world?s third largest market for beauty products after USA and Japan. Even though the drugs are sold as over the counter (OTC), doctors and specialists advise The turnover for hair products in 2009 was of consumers to look for a pharmacist to ask for approximately £1.9 bn, representing nearly more information about the products. This is 25% of the total of the personal hygiene, important to raise awareness of possible side perfumery and cosmetics industries. effects and drug interactions present in these products. According to Euromonitor, between 2003 and 2009, these products had a growth of 18%. The main products sold were shampoos & conditioners, gels, sprays, mousse, colouring shampoos, colouring pigments and hydration masks. ABIHPEC, the Brazilian Personal Hygiene, Perfumery and Cosmetics Industry Association, has also said that the market for such products UK Trade & Investment Sector briefing: Life Sciences Opportunities in Brazil If you have any questions on the opportunities UKTI contacts above, contact the UKTI contacts named in this report. Business opportunities aimed Steve Graham specifically at UK companies are added daily to Consul Commercial - Head of UKTI Team, Rio UKTI?s website. These leads are sourced by our de Janeiro staff overseas in British Embassies, High Tel: +55 21 2555 9612 Commissions and Consulates, across all sectors Email: steve.graham@fco.gov.uk and in over 100 markets. Luciana Medeiros You can be alerted to business opportunities on Acting Sector Manager a regular basis by registering on the UKTI British Consulate Rio de Janeiro website. More on UKTI?s business opportunities Tel: +55 21 2555 9611 service Email: luciana.medeiros@fco.gov.uk www.ukti.gov.uk Major events and activities Brazilian Life Sciences Seminar Contact: UKTI Life Sciences Sector Group Email: jane.grady@ukti.gsi.gov.uk Time: October 2010 Medica, Germany Contact: UKTI Life Sciences Sector Group Email: jane.grady@ukti.gsi.gov.uk Time: November 2010 Hospitalar Trade Show, Brazil Biggest Healthcare trade show in Latin America Contact: Luciana Medeiros Email: luciana.medeiros@fco.gov.uk Time: TBC, May 2011 FCE Pharma Main trade show for the pharmaceutical sector in Latin America Contact: Luciana Medeiros Email: luciana.medeiros@fco.gov.uk Time: 24 to 26, May 2011. Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Life Sciences Opportunities in Brazil Next steps - How UKTI can help British companies wishing to develop their business in the Brazilian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Brazil, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Chinese market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Chinese market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Life Sciences Opportunities in Brazil
Posted: 04 October 2010

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