Read the Conversation
EF: What are your top priorities for BMR Medical in 2023 and 2024?
RO: 2023 has been a challenging year. We had anticipated better sales, but the high number of untreated patients during the pandemic returning to medical attention filled the hospitals and put a strain on the nation's health insurance system. The health insurance industry faces a reduced profit margin, and this affects our operations.
Inflation comes as an additional issue and causes health insurers to bargain and negotiate. We expect this situation to last a few more months but remain positive that we will see an increase both generally and in our business as the interest rate declines. Even though the scenario is difficult, we still registered double-digit growth this year and anticipate continuing that growth into the following year.
EF: What are the main challenges or opportunities for a local business to meet the Ministry of Health’s objective to advance industrialization in the country to cover 70% of its public healthcare needs?
RO: Achieving this goal will be challenging. Brazil is not a nation that produces medical devices, and even though businesses are trying their best, the MedTech industry’s supply chain is not well enough established. We need a structural change in our tax reform to develop industrialization in any industry.
Taxes are an important expense to consider. Together with labor costs, prices for raw materials, and other fees in the medical device sector, it is often more affordable to purchase imported goods than local ones. If passed, the new tax reform will address this issue and give us a stronger foundation to advance industrialization.
The importance of tax and labor reform impacts the business environment and how multinational companies see the nation. Politics has a significant role in every discussion on growth and expenditure, and it is important to align the needs of all stakeholders involved if we want to see the industry prosper.
EF: How does BMR Medical actively promote collaborations to push Brazil's potential as an innovation hub?
RO: Innovation is at our core. We always take on new projects to explore innovative solutions, as this is the greatest approach to stop depending on imports. Our universities and scientists are of high caliber. If we compare this year's academic publications to previous years, we can see that both the quantity and quality are improving. We work in cooperation with Academia to introduce more scientists to the industry, which has proven to be very successful.
EF: How is BMR Medical advancing digital transformation in the medical device industry?
RO: We utilize AI in various ways; our business-oriented approach includes analyzing consumer buying patterns, anticipating stock shortages, and learning about new product categories that customers could purchase from us.
In the field of innovation, AI is game-changing. Pharmalog S.A., a spin-off of BMR, has used digital solutions to track pharmaceutical cold chains and collaborated with pharmaceutical distributors and manufacturers to employ this model across the nation. Our AI forecasted when a medication's temperature might exceed the acceptable range while being transported or stored. The ability to look at the data in advance gives our customers improved control over their product and significantly reduces the cost during transportation.
EF: Besides offering technical solutions for cancer patients, how is BMR Medical focused on oncology prevention, diagnosis, and raising education and awareness in cancer care?
RO: The country's cancer care has advanced significantly over the past few years, largely due to the efforts of organizations like Oncoclínicas, the A.C. Camargo Cancer Center, Oncologia D'Or, and DASA. These businesses have consolidated the industry to improve cancer care and increase patient safety and quality of life. However, despite significant regulatory advancements, like the requirement for patients to receive treatment within 30 days, the practical implementation of these measures is still lacking in the public sector.
Nevertheless, when we analyze our sales figures, one of the contributing factors behind our growth, in addition to our successful market expansion through the acquisition of new clients, is our client relationships, where patients have increased in numbers from one year to the next. There are essentially two causes for this: The first factor is an upsurge in the patient population, signaling an average annual growth rate of 8% over the past five years or more.
The second factor is a greater number of individuals seeking medical care. Year after year, we have observed a substantial increase of at least 12% in patient numbers, which is highly encouraging as it indicates more people are receiving diagnoses and treatment. Even though cancer is growing in numbers, we have a silver lining of reaching more patients. While the disease itself contributes to 80% of this rise in patients, the remaining 20% can be attributed to new patients entering the healthcare system.
EF: What are the three necessary pillars to build a more sustainable framework for the healthcare sector in Brazil?
RO: Education, innovation, and accessibility. The private sector receives more funding than the public sector, creating deep gaps between the two systems. The government needs to consider better patient access into consideration.
EF: What advice would you give to other entrepreneurs hoping to establish successful operations in a nation like Brazil?
RO: Be persistent and never give up. Despite all the challenges, the economic landscape is highly valuable. The market is immense, and opportunities arise from adversities.
