Read the Conversation
EF: What accomplishments have you been proud of over the past five years?
FS: Over the past five years, we have experienced two distinct phases on a global scale. We first encountered the beginning of the pandemic in early 2020. Then, for approximately two and a half years, we navigated through the pandemic and its aftermath. Around mid to late 2022, we began to observe a resurgence in business momentum. In 2023, we entered the first full year post-pandemic. During this period, one of our key focuses was to revitalize the association, a goal we have been steadily progressing towards, even amidst the challenges posed by the pandemic.
Beyond the association, our efforts have been directed towards enhancing people's access to cutting-edge MedTech across Brazil. As you are aware, Brazil is a large and diverse country with significant inequalities. While some areas boast state-of-the-art technology, others are still in need of development. Our aim is to bridge this gap. Additionally, we have elevated the association's role in shaping public legislation and regulations pertaining not only to our industry but to the broader healthcare sector as well. We firmly believe that by advocating for the right policies, we can drive positive change and foster greater equality within the MedTech segment, as well as the Health Sector. Specific issues we have been addressing include tax reforms, AI legislation, and sustainability measures. These discussions are not exclusive to Brazil but are part of a global dialogue. Currently, there is a bill under consideration in the Brazilian Congress regarding AI legislation. Now, we are also advocating on the bill related to the National Strategy for Health.
Furthermore, we have been addressing the impact of the pandemic on private and public health plans in Brazil. This period has been marked by complex challenges accelerating from the pandemic's aftermath and the necessary adaptations required for the health industry at large, not just our sector.
EF: What decisions and questions are stakeholders and leaders facing this year regarding artificial intelligence?
FS: Well, medical AI has been integrated into our products for quite some time now. Over the years, we have seen a significant increase in the use of AI, both in software applications directly classified as medical devices and in various components of equipment. This discussion has gained global attention, and here at ABIMED, we hold the position that it is crucial for our legislation, particularly in Brazil, to strike a balance. If every application of AI is viewed as high-risk, it could delay market growth and disrupt the healthcare system. Given the accelerated adoption of AI during and post-pandemic, it is evident that AI is deeply embedded in various aspects of healthcare, from hospital management to medical diagnostics and beyond. Therefore, it is essential for legislation to provide a broad framework while empowering regulatory agencies like ANVISA in Brazil to oversee specific aspects such as registering and approving medical device software. By maintaining a balanced perspective, we can ensure that the regulatory environment supports innovation and growth in the healthcare sector without compromising safety or creating unnecessary barriers.
EF: Do you have any updates regarding the work you are doing in industrial policy and legislation?
FS: Well, let me tell you something you might not be aware of. The government recently introduced a new industrial policy here in Brazil, aiming to revive the industry sector. Like many other countries, Brazil experienced early deindustrialization, with sectors like agriculture taking priority. However, to create jobs and distribute wealth more equitably, a robust industry sector is essential. This trend towards industrial revival has been observed globally, particularly post-pandemic. Many nations, both large and small, are focusing on rebuilding their industries to enhance domestic security and self-sufficiency. In Brazil, there is still work to be done to fully implement this industrial policy, which requires specific legislative measures from the government to define how it will operate.
The proposed policy is modern and comes with clear targets and metrics. While the allocated funds may not be extraordinary, considering the country's scale and current situation, they are appropriate and serve as a call to action. We have been actively collaborating with various associations and providing input to the Ministries of Health and Industry and Commerce to ensure that the unique needs of MedTech are satisfactorily addressed within this broader industrial policy framework. Unlike in other countries where industry refers solely to pharmaceuticals, our market requires distinct considerations that we are working to integrate into this policy.
EF: What initiatives are ABIMED members currently working on, and how well do they collaborate with each other to achieve these goals?
FS: We have member companies who are making investments in Brazil, leveraging specific policies at both the federal and state levels, particularly here in São Paulo. The State of São Paulo serves as the primary market and base for most companies, accounting for around 70% of the market and business operations. These investments are not solely focused on production; they also extend to research and development, which aligns with the significant federal efforts to encourage innovation in Brazil. When it comes to coordinating cooperation and advocacy efforts with Congress or government agencies, ABIMED plays a central role. By working through the association, we are able to consolidate perspectives and proposals that benefit the entire sector rather than individual companies. Just recently, we concluded a significant initiative, submitting our recommendations to the relevant ministries on how to streamline processes within our industry.
EF: Why should multinational companies invest in Brazil over anywhere else in the world?
FS: First and foremost, Brazil is open for business. We are keen to attract more investments into the country, and the government is providing ample support to facilitate this. Additionally, Brazil has the potential to emerge as a significant regional hub, not just for Latin and Central America but also for African nations. We have much to offer in terms of opportunities. Furthermore, our domestic market is substantial enough to yield favorable returns for any company.
EF: How do you maintain a fair balance between multinational corporations and local companies within ABIMED?
FS: Our association comprises companies of various sizes and origins. We have members ranging from small local distributors to global industry leaders hailing from different parts of the world—America, Europe, and Asia, importing and operating around 29 industrial plants locally and, of course, Brazilian companies. I see two key dynamics at play here. Firstly, there's significant room for improvement among Brazilian companies. On the other hand, global multinationals bring cutting-edge technology and innovation to the Brazilian market.
As we discussed earlier, Brazil's process of deindustrialization has disrupted internal supply chains and networks, limiting the ability of multinational corporations to operate here as they do in countries like the US, China, or Germany—the top three exporters globally. However, smaller Brazilian companies still have plenty of opportunities to elevate their production capabilities to another level. Achieving a balance between these different types of companies could foster beneficial cooperation. This cooperation is particularly crucial in MedTech. Instead, development and production rely on collaborations between private national and multinational companies. Our organization's structure, with 11 committees covering various governance aspects, creates an environment where companies can coexist under the same governance model. This fosters the potential for cooperation and future collaboration, enabling the development and expansion of products by both Brazilian and multinational companies operating in Brazil.
EF: What do you expect to be the key developments in Brazil's healthcare sector in 2024?
FS: I believe this year marks the beginning of a new era for the industry, especially with the advancements in AI. These movements will significantly shape the healthcare market in Brazil. It is crucial to understand that AI, like any other technology, is valuable only if it contributes to promoting wellness and improving people's lives. Here in Brazil, we have a great opportunity to leverage these advancements to enhance health outcomes and overall quality of life. This awakening is not unique to Brazil; it is happening globally. The pandemic has highlighted the importance of health and well-being. Without good health, people cannot work, study, or contribute effectively. This realization will be a driving force for progress in the coming year, both in Brazil and around the world.
