Healthcare opportunities

An Expert's View about Pharmaceuticals in Colombia

Last updated: 29 Jul 2011

According to the 2010 World Health Report, Colombia was ranked 22nd in the world for overall health system performance. Also, of the 35 best-ranked medical institutions in Latin America, eight are located in Colombia and five of those are in the city of Medellin.

Sector briefing Healthcare opportunities in Colombia Why Colombia? Colombia is the third largest country in Latin America, behind Brazil and Mexico with a population of more than 45m inhabitants of which 30% is below 15 years old. The population is set to grow, with a projection of over 60m by 2050. According to the 2010 World Health Report, nd Colombia was ranked 22 in the world for overall health system performance. Also, of the 35 best-ranked medical institutions in Latin America, eight are located in Colombia and five of those are in the city of Medellin. Estimates show that around 7.3% of its GDP and 13.9% of its public expenditure is directed towards healthcare. ?The Colombian Find general information on Colombia market pharmaceutical market is the conditions on UKTI?s website. The Doing fourth largest in Latin Business Guide for Colombia gives an overview America. The total market of Colombia?s economy, business culture, potential opportunities and an introduction to exceeded US$2.2bn in 2009, other relevant issues. over 60% of which was imported.? UK Trade & Investment Sector briefing: Healthcare opportunities in Colombia Opportunities Medical Devices The medical devices and supplies market was Colombia boasts the highest standards of estimated to be worth between US$620m and medicine in certain areas, with particularly US$880m in 2010. Whilst competition is strong strong sectors in optometry, dentistry and ? particularly from North America - very good transplant surgery. But the high level of opportunities exist for British companies across income inequality means that while some care a range of areas. is world-class, other parts of the system require considerable upgrading. This is partially driven by Colombia?s development of primary care services, A Market with Room to Expand including the building or refurbishing of As a result of the 1993 healthcare reform hospitals/clinics and an increased focus on project (Law 100) the structure of public quality. The expansion of private medical health-care funding was reformed by insurance packages is also driving an upgrade introducing the contributory and subsidised of service levels. regimes. As a result, levels of coverage have steadily increased, from 59% in 2005 to 88% Those sectors that have centres of world class in 2010. That still leaves over 5m Colombians excellence (in particular optometry, plastic without coverage. surgery, dentistry and transplant surgery) have an interest in the very latest technological Of those covered, around 40% fall under the advances. contributory regime, who either pay directly for healthcare plans or receive such coverage There is a significant demand for mass through their employers, and the rest fall consumables, dressings, for high tech products under the state-sponsored subsidised regime. both for diagnostic and treatment purposes and for laboratory equipment. Healthcare plans are administered by one of over 70 of Health Promotion Entities (EPSs). There is strong interest from a number of well In turn, the EPS contracts medical cover with a organised companies in representing UK Health Provider Institution (IPS), with a total of companies supplying biomedical products such around 4,600 different hospitals and clinics. as ultrasounds, dopplers, electrocardiographs, vital signs monitors, defibrillators, autoclaves, Pharmaceuticals oximeters, incubators and surgery lamps. The Colombian pharmaceutical market is the fourth largest in Latin America after Brazil, The National Institute for Control of Medicines Mexico and Argentina. The total market and Foods (INVIMA) is responsible for the exceeded US$2.2 billion in 2009, over 60% of approval of all medical-related products. which was imported. All of the major Paperwork for approval processes is usually multinational pharmaceutical companies have a carried out by a local agent or distributor. presence in Colombia, with several having Costs depend on the type of product. production operations (BASF, Bayer, Merck amongst others). Between them, Drugs and Health Supplements multinationals account for 75% of the market. The city of Bogotá offers significant benefits But there also exist a large number (over 120) and advantages as a regional manufacturing, of local pharmaceutical manufacturers. logistics or commercial hub for pharmaceuticals. This is based upon the fact Demographic and Health Indicators that it has preferential access to most of the major markets in the Americas, a strong Population (2010) 46m manufacturing base and a workforce that is Births per 1000 20 highly qualified in manufacturing processes. GNI per capita US$ 8,510 According to the World Federation of Direct Deaths per 1000 6 th Selling Associations, Colombia is the 15 Infant deaths per 1000 20 largest direct-selling market in the world, with births sales of US$1.26bn (2009), an estimated Life expectancy at birth 74 900,000 salespeople and an increasing trend % of <5 year olds 5 associated with natural and alternative underweight methods for nutrition, including liquid dietary Source: 2010 PAHO/WHO Statistics and Population Reference Bureau UK Trade & Investment Sector briefing: Healthcare opportunities in Colombia supplements. It is also the largest Spanish- speaking direct-selling market in South America, offering strong potential for business growth. As with medical devices, products will require registration before the relevant supervisory body (INVIMA). Medical Tourism The quantity and extent of medical tourism is growing. According to research from Invest in Bogota, medical procedures in Colombia cost between 10% and 35% of the prices in the United States. Around 40% of the medical tourists seeking curative medicine arrive through agreements with international health insurance companies. Entities receiving medical tourism patients have over 80% occupancy rates, indicating the need for further expansion in the near future. If you have any questions on the opportunities above, contact the UKTI Colombia contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Healthcare opportunities in Colombia Major events and activities UKTI contacts BEAUTY AND HEALTH FAIR Clara Bermudez Trade & Investment Adviser British Embassy Bogota, Colombia Bringing together the leading manufacturers, Tel: (57 1) 326 8275 dealers and distributors of products, equipment Email: and / or services related to Beauty and Health. Oriented towards new product launches, presentation of trends and updating of Edward Dallas professionals in different sectors. Head of UK Trade & Investment Email: British Embassy Bogota, Colombia Time: 25 to 28 August 2011 Tel: (57 1) 326 8262 Email: 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: Healthcare opportunities in Colombia Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Colombian market are advised you to meet contacts and promote your to undertake as much market research and company in the Colombian market planning as possible in the UK. UKTI?s team in Colombia, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Colombian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you 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 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Healthcare opportunities in Colombia
Posted: 28 July 2011, last updated 29 July 2011

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