Local production of viral transport media.
Local production of viral transport media.
Business Model Description
Manufacture in vitro diagnostic medical devices as an input to be used in clinical laboratories for the transport of samples.
Expected Impact
Productive capacities strengthening in countries that import medical suppliesdevices becomes relevant as they complement State security.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Panama: Central Region
Sector Classification
Health Care
> 2/3 of low-income countries do not have a national health technology policy capable of ensuring efficient use of resources through appropriate planning, evaluation, procurement and management of medical devices.
> USD 995.8 billion were the total world exports of medical products in 2019, of which four countries stand out with the highest production, that is, 14% correspond to Germany, the main supplier of these products, followed by the United States United States (12%) and Switzerland (9.9%).
Medical devices offer economic returns that are significantly higher than cost, and also not only help people tremendously, but also have a better economic future for countries in general. In the short term, some innovations increase direct healthcare costs. However, long-term costs are minimized by reducing the need for hospitalization, medication, or other treatment.
Medical Equipment and Supplies
Pipeline Opportunity
Local production of viral transport media.
Manufacture in vitro diagnostic medical devices as an input to be used in clinical laboratories for the transport of samples.
Business Case
Market Size and Environment
< USD 50 million
< 5%
>1M annual medical devices are consumed by Government and private Hospitals in Panama.
Hospital consumption 15k-35k, MINSA, CSS, OPS 500K-1M, Clinical Laboratories 12k-30k
Indicative Return
> 25%
The profitability of more than 25% is due to the low cost of raw materials, personnel costs and the production that is carried out in non-own facilities.
Investment Timeframe
Short Term (0–5 years)
Given its low operating costs since its first year in production, it is generating returns. Coupled with the captive market with the formalization of agreements with government entities as well as with the private market.
Ticket Size
USD 500,000 - USD 1 million
Market Risks & Scale Obstacles
Business - Business Model Unproven
Capital - Limited Investor Interest
Impact Case
Sustainable Development Need
<4% of the production of medical supplies required in Latin America and the Caribbean are produced in the Region, creating a large dependence on imports.
> 4 main suppliers for Latin America and the Caribbean restricted their exports of medical products for the year 2020 due to the COVID-19 pandemic.
The production of medicines and other medical and health supplies is highly concentrated in industrialized countries and a small number of developing countries, mainly in Asia.
Expected Development Outcome
Medical devices are considered a fundamental component of health systems; the benefits they can provide continue to increase as they are essential to safely and effectively prevent, diagnose, treat and rehabilitate disease.
The local production of in vitro viral transport media contributes directly to non-dependence on imports and reinforces health insecurity in times of viral instability.
Gender & Marginalisation
Primary SDGs addressed
3.d.1 International Health Regulations (IHR) capacity and health emergency preparedness
Strategic objectives to mitigate the high dependency of Latin America and the Caribbean in order to strengthen their productive capacities in the pharmaceutical and medical supplies and devices industries, in order to face future health crises in a situation of less vulnerability than the one experienced.
Continue strengthening the Network for contact with all the National Liaison Centers of the IHR member countries, with the aim of maintaining active surveillance in the face of any public health event of international importance.
Secondary SDGs addressed
Directly impacted stakeholders
People
Public sector
Indirectly impacted stakeholders
People
Corporates
Outcome Risks
Global overproduction of medical supplies, which will directly affect the profit projections of the initiative.
High cost levels in relation to foreign production which will directly affect sales.
Impact Risks
Biological risk due to low quality of the device or its anticipated and unexpected expiration.
Impact Classification
What
Local production of devices complements the health system and contributes directly to non-dependence, providing health security in times of instability.
Risk
Biological risk due to low quality of the device or its anticipated and unexpected expiration.
Impact Thesis
Productive capacities strengthening in countries that import medical suppliesdevices becomes relevant as they complement State security.
Enabling Environment
Policy Environment
National Secretariat of Science, Technology and Innovation of the Republic of Panama, autonomous institution (SENACYT)
National Science, Technology and Innovation Policy by 2040. Addresses the three great challenges of the country: sustainable development, social inclusion and sustainable competitiveness.
National Strategic Plan for Science, Technology and Innovation (PENCYT) 2015-2019.
Financial Environment
Financial incentives: Financing under normal conditions with local private banks, as well as management in international financial markets or with more favorable options with multilateral entities in the region.
Regulatory Environment
INDICASAT: The Institute of Scientific Research and High Technology Services of Panama
Gorgas Memorial Institute. It leads and promotes scientific research in health, a reference in public health and contributes to teaching for the benefit of the population.
Official Gazette No. 28765-A, Executive Decree No. 83 of April 26, 2019 was published, which regulates Law 90 of December 26, 2017, in relation to medical devices and related products that exist and may exist in the national territory.
Knowledge Foundation, Through Decree Law No. 6 of 1998. Innovative community that imagines, investigates, learns, teaches, experiments, invents, creates and inspires.
MINSA, Ministry of Health of Panama
Marketplace Participants
Private Sector
Capital or local private equity contribution, bank financing under normal conditions of local and international banks, foreign investment.
Government
MINSA, INDICASAT, SENACYT, GORGAS MEMORIAL INSTITUTE, KNOWLEDGE FOUNDATION
Multilaterals
BID-LAB: innovation laboratory of the Inter-American Development Bank Group.
Target Locations
Panama: Central Region
References
- (1) INDICASAT August 2022, https://indicasat.org.pa/historia-y-objetivos/.The Institute for Scientific Research and High Technology Services of Panama (INDICASAT) promotes the development of science, based on the premise that the scientific development of a country is decisive for its economic and sociocultural development.
- (2) IDB LAB, August 2022, https://bidlab.org/es/nosotros.IDB Lab is the innovation laboratory of the Inter-American Development Bank Group. It seeks to empower poor and vulnerable populations and activate new and sustainable drivers of inclusive growth in Latin America and the Caribbean (LAC).
- (3) SENACYT, August 2022, ttps://www.senacyt.gob.pa. National Secretariat of Science, Technology and Innovation of the Republic of Panama, autonomous institution
- (4) IESA August 2022, https://www.iesa.edu.pa/,training of leaders, managers and entrepreneurs
- (7) INDI-MTV Project, January 2022, https://indicasat.org.pa/noticias/nota-de-prensa/proyecto-indi-mtv/
- (8) Authority for Micro, Small and Medium Enterprises, August 2022, https://ampyme.gob.pa/
- (9) City of Knowledge, August 2022, https://ciudaddelsaber.org/temas/investigacion-desarrollo-innovacion/
- (10) GEM, August 2022, https://gem.ufm.edu/que-es-gem/