Brazil Demands More, Fueling IVD Market

Brazil Demands More, Fueling IVD Market

Make sure to visit our In Vitro Diagnostics page, Kalorama's all-in-one resource covering the IVD market. 

In the IVD (in vitro diagnostics) market, private healthcare spending can make or break a strong market. Disease detection is among many emerging markets's first developments, a trend that bodes well for the Brazil IVD market. Brazil’s medical device & equipment market looks favorable to IVD participants hoping to expand into the country. The laboratory market sector has a growing demand for medical devices, and increasing investment in medical R&D is fueling additional growth for the IVD and lab equipment markets. Brazil's IVD market diagnostics sector is experiencing growing demand from healthcare professionals and patients for innovative medical devices that target infectious disease and cancer.

Kalorama notes Brazil’s IVD market as one of the largest, surpassing $900 million. Brazil's healthcare system relies on both public and private spending, and private health spending is higher in the private sector at 53% compared to 47% for the public sector. This has made it a stable market opportunity for the Brazil clinical testing industry. 

Brazil is the sixth most populated country in the world with a population of 205.8 as of 2016, and is Latin America's largest country by population, accounting for 33% of the regional population. Brazil's 65-and-over population segment is expected to account for 21% of the country's total population by 2050, up from 7% in 2010. Disease incidence will increase overall due to the aging population's vulnerability to disease, according to Kalorama Information's new report, Brazil IVD Market Analysis

Brazilian IVD Market Availability & Quantity  

Brazilian healthcare services are funded by the Ministry of Health (Ministério da Saúde), which runs all government hospitals (also known as Municipal Hospitals) and medical services.  Government-funded hospitals and clinics offer a wide range of medical services. The system is popular, but government hospitals are consequently often crowded.  Waiting times can be long, and facility quality may not be equal as that in private hospitals (such as a lack of air-conditioning or certain medical equipment).  The Brazilian Government oversees public health programmes such as Farmácia Popular whose aim is to make essential medications and drugs readily available for the population (at affordable prices) in pharmacies throughout Brazil.

Brazil's IVD market is not new, and its major IVD companies and many innovators have set up shop in the BRIC countries. Brazil's IVD market is also host to a growing cohort of indigenous diagnostics manufacturers and partners. Brazil's IVD market is dominated by a few international diagnostics companies, with some local alternatives manufacturing reagents and medical devices as well. Evidence presents these IVD companies as well-established in routine diagnostic tests and systems market sector.Brazilian IVD companies do not await U.S. products with bated breath.  

Within Brazil's IVD market, in-demand diagnostics products include: 

  • automation and automated clinical laboratory systems,
  • molecular test reagents, instrumentation and supplies,
  • automated and rapid microbiological tests especially in the area of HIV, malaria, tuberculosis, STD, hepatitis, and parasite testing;
  • diabetes monitoring devices,
  • hematology, chromotography and enzyme analyzers;
  • rapid diagnostic tests;
  • allergy tests;
  • tumor markers

IVD & Brazil's Private Health Industry 

Kalorama characterizes Brazil's healthcare system as a single-payer one. Brazil's government-run public health system, Sistema Unico de Saude  (SUS), was established by the 1988 Constitution and provides nationwide coverage. Brazil's health system serves ~75% of Brazilians, and aims for universal healthcare access. Brazil's health system is effective in some regions and areas of medicine, but facilities are under-funded, ,more staff is needed,and long waiting lists are common in the public sector.  When possible, Brazilians purchase healthcare coverage from various private health insurance or cooperative health plans. About 25% of Brazil's population is covered by at least one form of health insurance; 75% of Brazilian insurance plans are offered by commercial operators and companies with self-managed plans.

Reimbursement in Brazil's IVD market is complex and different for the public and private sectors.  Reimbursement is a misnomer for what occurs within the public sector, as there is a payment list issued by the government.  Free nationwide healthcare is guaranteed by Brazil’s constitution, for which public hospitals are given budgets. Diagnostic labs perform what tests they can, the result usually being that public customers may be using older diagnostic technology.

A reimbursement list exists for the amount the government will pay for diagnostic services provided by private institutions for patients without insurance or the ability to pay. This list includes all medical procedures and diagnostic services. However, this list has not been changed in nine years, although it is still possible to add new diagnostic tests. Some more recent tests have consequently been reimbursed at a more reasonable level.

Brazil's public health system is relatively slow. Some private laboratories report as much as one-third (33%) of income coming from direct patient payments.  For Brazilians personally paying for healthcare, the pricing is generally market-based.  For those with private insurance, the Brazilian Medical Association (AMB) governs payments to laboratories with a list. 

According to Kalorama Information's Brazil IVD Market Analysis, some Brazil IVD market trends stand out:

  • M&A in the lab industry Is stabilizing. There are now four national, or regionally-dominate, laboratory service providers operating in Brazil. Intense consolidating reduced the number of large-volume labs from around 15 in the early 2000s.  Consolidation is now stabilizing and current providers are highly competitive.
  • Demand for high-sensitivity testing and high-volume testing equipment is increasing. There is a growing demand for advanced testing technologies, higher sensitivity and equipment that can meet the demand for faster results.  The stabilizing economic condition in Brazil and increasing middle class have supported this trend. 
  • Test turnaround times are a priority among patients. The growing private health system and increasing middle class expects faster results.  The middle class is responsible for the growing private health insurance industry, which accounts for about 53 percent of total health spending in the country. 

Kalorama Information’s full study on the Brazilian IVD market contains segmentation market analysis for various sectors of the Brazilian IVD market, including point-of-care, immunoassays and clinical chemistry.  The report identifies IVD market share leaders in the country.  The report can be found at: https://www.kaloramainformation.com/Brazil-IVD-10934090/.