Brazil Announces Medtech Stimulus

The government of Brazil announced today the launch of a stimulus package for in-country medical technology companies and public hospitals. Measures include encouraging public hospitals to buy domestically manufactured medical equipment that is no more than 25% more expensive than comparable imports and increasing the spending capacity of public hospitals. In addition, the Banco Nacional de Desenvolvimento Econômico e Social will open credit lines for hospitals purchasing equipment. To tap into this credit, a minimum of 60% of the money must be spent on domestically produced equipment, said Minister of Health Alexandre Padilha.

"We want to stimulate the domestic industry and expand the service capacity of the National Health Service," Padilha said. "These measures aim to revitalize the national [medtech] industry and reduce dependence on the international market."

The announcement was made as the first MD&M Brazil tradeshow ended a successful two-day run at the TransAmerica Expo Center in São Paulo. "Brazil is a growing medical marketplace," said Joshua Dome, Portfolio Director, UBM Canon Events, from the show floor. "Today's announcement of a healthcare stimulus from Brazilian authorities can only accelerate an already high-growth region," he added.

Brazil has the largest economy and largest medical device market in Latin America. The medical technology market has been growing at double-digit rates and is expected to reach $20 billion by 2015, according to Frost & Sullivan.

— Norbert Sparrow