Medical Device Market
As usual, we send a greeting to all our readers. Hoping you are well, we present this new entry in our blog.
In Mexico, the health emergency due to the Coronavirus SARS-CoV-2 that affects the body with the Covid-19 disease began in the first quarter of 2020, which caused isolation for the entire population to be taken as a preventive measure (except for those who participated in essential economic activities), with the addition of the temporary closure of non-essential economic activities, such as: restaurant services, entertainment services, retail stores, among others.
As a result of the economic paralysis, the Gross Domestic Product (GDP) had a contraction of (-) 18.9 percent in the second quarter of 2020 (INEGI, 2020); the reduction of personnel in several companies, the reduction of wages and salaries and the closure of SMEs were consequences of the lack of income to have the capital needed for expenses and costs to be able to survive in the market.
In the third quarter of the year, with the gradual reactivation of activities, there was a growth of 12 percent in the national economy. Primary activities (agriculture, cattle raising and forestry) registered a growth of 7.4 percent (it was the only item that did not register a reduction in the second quarter); Secondary activities (industry, construction, mining, electricity and manufacturing) registered a growth of 22 percent; and tertiary activities (commerce and services) grew 8.6 percent, compared to the previous quarter.
According to the Survey of Expectations of the Specialists in the Economy of the Private Sector carried out by the Bank of Mexico, a growth of 2.75 percent in the national economy is forecasted by the end of the year.
Regarding the revitalization of the economy, the Mexican export of medical supplies related to the manufacture of disposables and Mexican pharmaceutical are important pillars and represent an opportunity for companies dedicated to this sector.
The sectors of Electronic Commerce, Circular Economy, Aerospace Industry and Software Industry are also part of the projected growth.
According to the webinar “The medical device market in Mexico, 2020-2021” conducted by CANIFARMA and Global Health Intelligence, the Mexican market for medical instruments and devices is worth USD $ 5.3 billion a year, reflected in 7,600 million devices and units.
Until 2019 it represented a stable market, even with a constant annual growth of 2 percent, however, with the pandemic there was a reduction in the market of up to 30 percent and a decrease of 15 percent in units. A rebound is forecasted for the last four months of the year, but it may contract during the start of a second wave of Covid-19.
Offering a medium-term glimpse into the future and thanks to the updates that the media, the Mexican Health Secretariat and other formal institutions have given us, they have given us hope that we are close to creating the definitive vaccine; At the moment, Mexico has already signed a contract with the pharmaceutical company Pfizer for the purchase of 34.4 million vaccines against Covid-19 and it is expected to have the resolution of COFEPRIS in a few days for approving the vaccine, since it is expected that the first 250,000 tests will be aimed at the population most at risk in December 2020.
Meanwhile, Johnson & Johnson’s Janssen company, as well as other world-renowned large pharmaceutical companies, are already in phase three of their vaccine project. With these advances, it can be expected that the end of the global pandemic is near and thus we may begin to guide all our efforts to improve the projection of the economic outlook for 2021.
Remember that Regulatory HS is your commercial ally for submissions to COFEPRIS.
Until the next update.
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