Mexico Crucial on Global Map of Opportunities

Q: What role does the healthcare industry play in Spain and how is FENIN organized to reach the most companies in the sector?

A: FENIN represents 80 percent of the total market sales in Spain and 5 percent of the market share in Europe, which is in part possible thanks to the 500 members that belong to FENIN. The market for healthcare technologies in Spain was worth around US$7.75 billion (EUR$7.000 billion) in 2015, US$2.55 billion of which corresponded to exporting products. FENIN’s members include multinational companies that have a strong presence in the market, as well as innovative small and medium enterprises (SMEs) manufacturing and exporting healthcare products from Spain. At the moment, SMEs represent close to 90 percent of our membership, which is in line with the scale distribution found in the Spanish industrial sector. In the case of multinationals, we are working with most of the main multinational companies of this sector, representing their medical divisions in international markets. We work under a vertical organization based on product areas due to the high level of diversification found in the healthcare market, now having over 500,000 references. FENIN’s administration is managed by a national board of directors and a regional one for Catalonia, a region where the healthcare industry is showing buoyant activity.

Q: How is FENIN helping its members in Spain to move their businesses forward?

A: Our goal on an institutional level is to represent and defend the interest of the healthcare sector before national stakeholders. We help our members with legal and regulatory aspects of the industry, as well as innovation, internationalization and sustainability issues. For instance, we analyze the potential impact of regulatory changes in our market. At the moment, we are following the advancements done in the Code of Good Practices, which will avoid the direct sponsorship of healthcare professionals to congresses, implementing the use of an external entity for this purpose. Regarding innovation, we promote the collaboration between entrepreneurs and healthcare companies through the organization of specific forums aiming to bring new technologies to the market. FENIN also collaborates with public R&D centers developing innovative initiatives in hospitals and other healthcare institutions. We are certified as an internationalization agent, helping companies to expand their business to international markets. To promote internationalization, we attend important exhibitions and congresses about the industry, including MEDICA in Düsseldorf, one of the major healthcare summits in the world.

Q: How will your visit to Mexico help your Spanish members expanding their business to America?

A: We are on a commercial mission to analyze the market conditions and provide an in-depth perspective to our clients willingness to enter or consolidate their presence in Mexico. So far, our agenda has consisted of visiting Mexican healthcare institutions, including different hospitals. We had, for instance, a meeting with the healthcare division of the National Chamber of the Manufacturing Industry (CANACINTRA), the innovation sector, and the Direction of Innovation and Technology of IMSS. We also have held meetings with the COFEPRIS, the healthcare division of PEMEX, as well as different private actors such as the Hospital Español. The meeting with COFEPRIS was particularly relevant as we might be able to coordinate the certifications provided by them with those of Spain to help companies entering the two markets. Mexico has multilateral agreements established with the governments of Japan, Canada and the US, facilitating the homologation of sanitary certifications among the different territories. Regrettably, Spanish companies do not enjoy these benefits. Additionally, we are in talks with infrastructure centers and associations to analyze the potential of developing innovative infrastructure projects for the healthcare sector. For instance, we have visited Sacyr and the Mexican Association of Specialized Healthcare Architects (SMAES). In Spain, we are the only association dealing with the industry of healthcare technologies while there are several actors working in this area in Mexico, a situation that has also enriched our commercial mission.

Q: What crucial discoveries have you made during your commercial mission to Mexico and how will you apply the lessons learned to your work in Spain?

A: The similarity of COFEPRIS’s requirements with those of the FDA was an important aspect arising during this mission. We have now identified the need to help our members comply with American standards as most of them have no experience exporting products outside

Europe, in addition to communicating Mexico’s specific requirements that our clients need to be aware of. For instance, Mexican regulations require enterprises to have local representation in the country, which must be considered in the estimated costs of expanding their business to Mexico. We have also identified a wide range of opportunities among the healthcare institutions, companies and associations that we have visited in Mexico, particularly within the public healthcare system. An important fact we discovered in Mexico is the lack of local technology manufacturers, which makes it one of the largest importers of these kinds of products. In particular, we see interesting opportunities for companies dealing with in-vitro diagnostics, chemical reagents for medical use, sterilization and medical equipment. We also see an important opportunity for software and apps connected to medical equipment with the purpose to optimize healthcare costs, as well as IT solutions for remote medical consultation. Getting back to Spain, we are planning to share this information with our members, putting special attention on our SMEs associates. These companies require more training and are in greater need of the institutional networks we have developed during our commercial mission in Mexico. Our objective is to be a facilitator agent across different levels of the healthcare market so we aim to provide our members a general mapping of the business opportunities around the world, where Mexico plays a crucial position.

Q: What are the advantages that Mexico offers to international healthcare companies, and what areas should be improved to foster foreign investment?

A: The market size is definitely one of Mexico’s most attractive points, for instance, the 60 million people affiliated with IMSS. We have identified a strong demand for imported healthcare products, offering a wide range of business opportunities to multinational and SME companies. Mexico’s geographical position is also highly attractive, particularly as it shares borders with the US and has coasts on the Atlantic and Pacific oceans.However, the Mexican market is also fragmented and complex, which represents important challenges for our members. Long and complicated bureaucracy is also a challenge for European companies, so we see room to improve in this area. We are analyzing the best strategies to speed up this process, which includes using a local distributor or establishing a local subsidiary. Companies generally avoid the use of subsidiaries as it raises costs considerably, but in some cases, it just makes economic sense. The public healthcare system in Mexico is so broad that getting a slight share of it is enough to assure the investment return and the company’s position in the market.