IVDT_In Vitro Diagnostics Technology

IVD Technology, Fall 2013

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GLOBAL DIAGNOSTICS Brazil's Billion-Dollar IVD Market Burdensome regulations and the notorious Brazil-cost of doing business make this a challenging market to penetrate. But, it's well worth the efort. BY CARL MCEVOY T he big news is that the Brazilian IVD market broke through the $1 billion mark in 2012, following a run of spectacular growth since 1995. Table I on page 27 breaks down the market by major product categories. Te chemistry sector includes routine, critical care, and urine chemistry. Te hematology sector includes fow cytometry and coagulation. Microbiology is the primary constituent of the segments not covered in this table. We do not report on microbiology, but we estimate that the sector is worth approximately $100 million with an annual growth rate of 12 to 14%. We estimate that the total IVD market is growing at an annual rate of 6 to 8%. Brazil Overview With a population of 200 million people, Brazil is by far the most populous country in South America. Te population growth rate, which was 1.9% in the 1980s and 1990s, has slowed to the current level of just 0.75%. Tere is a continuing trend toward urbanization, with approximately 85% of Brazilians now living in cities. Te largest cities are São Paulo (20 million), Rio de Janeiro (12 million), and Belo Horizonte (5.7 million). Economic activity is largely concentrated in the three states where those cities are located, which together account for about 60% of Brazil's GDP. São Paulo, with approximately 35% of GDP, contains the core of Brazil's manufacturing industry. Almost 40% of the IVD market in Brazil comes from the São Paulo area. Te Rio de Janeiro area makes up almost 20% of the market. Number three in states is Minas Gerais, home of Belo Horizonte. Tis is followed by Paraná and then Rio Grande do Sul, the southernmost state of Brazil. Brazil's Economy Between 1990 and 1995, infation in Brazil averaged 764%, but in 1994 Fernando Henrique Cardoso, the fnance minister, introduced a new currency, the real, and managed to curb price increases. In 1999 the currency was allowed to foat. Te reforms brought discipline to the government's fnances and stabilized the country's economy. Te Brazilian economy did fairly well during the 2008-2009 global economic downturn. After shrinking by 1 to 2% in 2009, the economy grew at 7.5% in 2010, 3% in 2011 and, despite an overvalued currency, 4.2% in 2012. With ofcial infation at 3 to 4% and a strong trade surplus, the Brazilian economy appears set to continue its growth over the next two years. Brazil recently overtook Britain to become the world's sixth biggest economy. Brazil's Health Sector With the economy doing well and income inequality declining, in part because of cash grants to the poor through the Bolsa Família (Family Allowance) program, Brazil has seen improvements in public health. UNICEF rates the country among the top 25 out of 195 nations in reducing infant mortality during the last decade. Bolsa Família provides fnancial aid to poor Brazilian families; if they have children, families must ensure that they attend school and are vaccinated to receive the aid. Around 12 million Brazilian families receive support from Bolsa Família. Te incidence of malaria has remained at approximately 540,000 cases on average per year through the last decade. Almost all of these cases are in the Amazon basin, where less than 15% of the population lives. 24 IVD TEC HNOL O G Y | FA L L 2013 magenta cyan yellow black ES323643_IV1309_024.pgs 09.24.2013 02:24 UBM

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