Medical imports represent most of the market, being valued at US$2.5 billion in 2008.
Mexico is estimated as the largest medical device market in Latin America. The market is dominated by imports, principally from the USA. US manufacturers benefit from geographic proximity and preferential terms under NAFTA. Some of these imports, however, are used to produce goods which are eventually sent back to the USA. Mexico is the third largest medical importer in the Americas, behind the USA and Canada; Brazil is not a big importer in comparison, as it relies on local production.
New health accord fast-tracks medical devices commercialised in US & Canada
On 25th November 2010 a New Health Accord came into effect in Mexico which recognises medical devices which have been approved and commercialised in the USA and Canada. Medical devices on health registers and commercialised in these countries will be evaluated and authorised by COFEPRIS within 30 days from the date which importers give information to the Mexican health authority.
Health expenditure valued at US$61.7 billion in 2008, public share increasing
According to the Secretary of Health's Health Accounts 2008 report, which was released in December 2009, health expenditure equalled US$61.7 billion in 2008 of which around US$29.1 million was public expenditure, 47.1% of the total. Public sector spending has been gradually expanding as a share of the total over the past few years. Targeted spending on the poorest means that public expenditure on the uninsured rose 20.6% in 2008, compared to spending on the insured (6.8%).
Current public hospital investments are contributing to market growth
The economy has deteriorated in dollar terms and the exchange rate of the Mexican peso per US dollar is spiralling. This is going to affect the value of the Mexican medical market in dollar values. Population growth, increasing health expenditure, the incidence of chronic diseases and new technology acquisition, particularly diagnostic & orthopaedic medical equipment in the public sector, are factors contributing to this growth, offset by the economic slowdown. The public sector continues to invest in hospital medical equipment acquisitions, whilst the private sector is expected to recover in 2010.
Mexico over reliant on US maquiladora activity, COFEMER proposes regulatory change
The US has been a favourite for Mexican exports and is still the chief destination for most medical devices, but President Obama is seeking closer ties with Asia, in particular China. Some Mexican export sectors have been overtaken by China and maquiladora activity moved there, in spite of Mexico's geographical proximity and low operation costs. Mexico should develop its economy outside of the maquiladora programme for increased stability.
Medical exports are very high, valued at US$5.2 billion
Exports of medical equipment and supplies were valued at US$5.2 billion in 2009, which represented an increase of 0.5%. Almost all of Mexico's exports are shipped across to the USA, which accounted for 90.7% of the total in 2009; the EU-27 represented a further 7.6% of the total. Medical consumables are the major export area, but exports of patient aids have increased as consumables share has dropped.
30,000 medical device registrations being renewed or removed from market
A Decree published 24th February 2005 amended Article 376 of the General Health law, granting sanitary registrations for medical devices for a five-year period. Requirements to renew medical device registrations were then published in January 2008. About 30,000 registrations of medical devices were due for renewal by 24th February 2010. Medical device registrations more than five years old by this date, which did not apply for renewal, have been removed from the Mexican market. In May 2010, COFEMER was scheduled to list all registrations in the process of renewal and revocation on its website.
Includes 3 quarterly updated outlook reports!
Please note: Report sections are periodically updated and some sections may have been updated more recently than the publication date given for the full report.
Click for Report details:The Medical Device Market: Mexico