{"id":6451,"date":"2020-05-22T10:47:56","date_gmt":"2020-05-21T22:47:56","guid":{"rendered":"https:\/\/www.loonglist.com\/?post_type=project&p=6451"},"modified":"2021-05-15T10:43:40","modified_gmt":"2021-05-14T22:43:40","slug":"healthcare-products-services-and-medical-tourism","status":"publish","type":"project","link":"https:\/\/loonglist.com\/investment-project\/healthcare-products-services-and-medical-tourism\/","title":{"rendered":"Healthcare Products, Services and medical tourism"},"content":{"rendered":"

Mexico operates a universal healthcare system that evolved through Federal Government actions in the mid-2000s and was fully enacted in 2012. The system is split between an extensive government-run healthcare network and private sector providers and insurers. The government network covers both the provision of care and pharmaceuticals and is further split between a network for government employees covering some 13 million people and a network for the rest of the population covering roughly 60 million. Individual Mexican states also provide independent healthcare services.<\/p>\n

The growth of medical tourism is also significant in Mexico. Estimates vary, but Patients Beyond Borders estimates that 200,000 to 1.1 million patients travel to Mexico yearly. Most are Hispanics living in the United States, from other U.S. citizens seeking lower-cost health care options, and a smaller group of individuals from Canada and the United Kingdom seeking fast treatment options combined with a tourism destination.<\/p>\n

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First, the size of the public sector healthcare system means that sales into the system must go through a government tender process that has lowest-price-provider requirements and, for medications, must be on the official government approved supply list called the \u201cCuadro B\u00e1sico\u201d and Catalog of Medications.<\/p>\n

Second, both the government low-price requirement and general price sensitivity in the market can cause pricing challenges for U.S. companies, particularly at the current value of the peso. This has increasingly driven purchases to lower-cost and often lower-quality Asian producers.<\/p>\n

Third, to get around low-price Asian supplier concerns, government purchasing preferences generally place incentives on suppliers from countries with which Mexico has a free trade agreement. While this benefits U.S. suppliers under NAFTA, it also benefits European and other suppliers, and it can also disadvantage products which have a portion of content from non-FTA countries.<\/p>\n

FDA approval may speed-up the Mexican approval process, but it does not exempt a product from Mexican sanitary registration requirements. Products not yet approved by FDA or other recognized agencies will undergo the standard process.<\/p>\n

For the registration of generic drugs, it is important to note that drugs are not covered by this streamlined process, and that there is a requirement to conduct the corresponding bioequivalence studies in Mexico.<\/p>\n

Leading sub-sectors are split between medical devices, pharmaceutical industry products, and healthcare services. While opportunities may exist across all of these sectors, only medical devices are considered to offer the growth and market entry potential to be a best-prospect sector.<\/p>\n

Medical Device and Equipment Market Size in Mexico<\/strong><\/strong>
(Figures in USD billions)<\/em><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
 <\/td>\n2013<\/td>\n2014<\/td>\n2015<\/td>\n2016 (Estimated)<\/td>\n<\/tr>\n
Total Local Production<\/td>\n8.04<\/td>\n9.00<\/td>\n9.45<\/td>\n14.29<\/td>\n<\/tr>\n
Total Exports<\/td>\n6.03<\/td>\n7.42<\/td>\n7.56<\/td>\n11.43<\/td>\n<\/tr>\n
Total Imports<\/td>\n4.33<\/td>\n6.83<\/td>\n8.43<\/td>\n6.88<\/td>\n<\/tr>\n
Imports from the US<\/td>\n2.20<\/td>\n2.38<\/td>\n2.55<\/td>\n5.42<\/td>\n<\/tr>\n
Total Market Size<\/u><\/strong><\/td>\n6.34<\/td>\n8.41<\/td>\n10.32<\/td>\n9.74<\/td>\n<\/tr>\n
Exchange Rates<\/td>\n13.30<\/td>\n15.89<\/td>\n18.68<\/td>\n18.70 (YTD)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Mexico\u2019s market for medical equipment, instruments, disposable, and dental products has fluctuated significantly in recent years in the mix of local production, exports, and imports. Total imports of these products totaled nearly USD 6.9 billion in 2016 after a large spike of third-country imports in 2015. This represented about 71 percent of the medical equipment and instrument market and approximately 40 percent of medical disposable products and dental materials. Almost 56 percent of the total market, or just over USD 5.4 billion of imports, came from the United States in 2016. This amount represented a massive surge in imports from the United States\u2014in a wide range of categories from dental instruments, hemodialysis, and electrocardiogram equipment to miscellaneous surgical and treatment items such as sutures, catheters, and syringes. These spikes may be due not only to one-time purchases by the government healthcare system but also to construction of several new hospitals in both the public and private healthcare networks. The main third country suppliers of medical devices are: Brazil, Canada, China, France, Germany, Israel, Italy, Japan, the Netherlands, South Korea, and the United Kingdom. A growing competitive problem for U.S. suppliers is low-cost and frequently lower-quality supply from Asian sources, particularly China.<\/p>\n

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Mexico is the eleventh largest market for pharmaceuticals in the world and the second in Latin America after Brazil. The pharmaceutical market in Mexico is divided into patented medicines, which represent 51 percent of the market by value, generics with 35 percent, and OTC products with the remaining 14 percent. According to the Federal Commission for the Prevention of Sanitary Risks (COFEPRIS), the country\u2019s regulatory authority for the sector, generics represent more than 80 percent of the market in terms of volume.<\/p>\n

Pharmaceutical Products Market in Mexico<\/strong>
(Figures in USD billions)<\/em><\/p>\n\n\n\n\n\n\n\n\n\n
 <\/td>\n2014<\/strong><\/td>\n2015<\/strong><\/td>\n2016 (Estimated)<\/strong><\/td>\n2017 (Forecast)<\/strong><\/td>\n<\/tr>\n
Pharmaceutical sales (constant 2016 exchange rate)<\/strong><\/td>\n9.236<\/td>\n9.491<\/td>\n9.774<\/td>\n10.108<\/td>\n<\/tr>\n
Total Exports<\/strong><\/td>\n1.847<\/td>\n1.958<\/td>\n1.587<\/td>\nN\/A<\/td>\n<\/tr>\n
Total Imports<\/strong><\/td>\n4.939<\/td>\n4.804<\/td>\n4.143<\/td>\nN\/A<\/td>\n<\/tr>\n
Imports from the US<\/strong><\/td>\n1.045<\/td>\n1.083<\/td>\n.904<\/td>\nN\/A<\/td>\n<\/tr>\n
Total Market Size<\/u><\/strong><\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\nN\/A<\/td>\n<\/tr>\n
Exchange Rates<\/strong><\/td>\n13.30<\/td>\n15.89<\/td>\n18.68<\/td>\n18.70 (YTD)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Opportunities<\/h3>\n

Devices and Equipment<\/h4>\n

Best prospects in the healthcare sector devices, equipment, and instruments include the following:<\/p>\n

    \n
  • Anesthesia equipment<\/li>\n
  • Defibrillators<\/li>\n
  • Electrocardiographs<\/li>\n
  • Electroencephalographs<\/li>\n
  • Electro surgery equipment<\/li>\n
  • Gamma ray equipment<\/li>\n
  • Incubators<\/li>\n
  • Surgical lasers<\/li>\n
  • MRI equipment<\/li>\n
  • Patient monitors<\/li>\n
  • Respiratory therapy equipment<\/li>\n
  • Suction pumps<\/li>\n
  • Ultrasound equipment<\/li>\n
  • X-ray equipment<\/li>\n<\/ul>\n

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    There may also be niche opportunities for pharmaceutical production, testing, and quality assurance equipment and supplies. The establishment of research clusters in Mexico can generate demand for equipment and technology to support the increasing research and development of new pharmaceuticals and biotechnology products.
    <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    Mexico is taking an expanded view of the sector \u2014 looking beyond medical devices to healthcare services and the pharmaceutical\/biopharma sector.<\/p>\n","protected":false},"author":6848,"featured_media":6452,"comment_status":"open","ping_status":"closed","template":"","yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/project\/6451"}],"collection":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/project"}],"about":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/types\/project"}],"author":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/users\/6848"}],"replies":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/comments?post=6451"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/media\/6452"}],"wp:attachment":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/media?parent=6451"}],"wp:term":[{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=6451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}