Open Market Necessary to Boost CompetitivenessTue, 03/12/2019 - 11:50
Q: What are Mindray Medical’s strongest areas in the Mexican market?
A: Mindray Medical México began operations developing patient monitoring and life support devices, followed by ultrasound equipment and IVD lines. In Mexico, our main strength is in the patient monitoring and life support (PMLS) subsector, which is valued at US$500 million in the country. Demand for these products is high but there are few sellers because development of this technology has a high entry cost. Our PLMS products are often bought by new hospitals and in fewer cases, to replace existing equipment in the public sector. At this point, our PMLS products hold 12 percent of the market in the public sector.
Q: How is Mindray Medical México expanding its other business lines among potential clients?
A: We sell less ultrasound equipment than PMLS systems. Hospitals may require a monitor for every other bed but their imaging departments often require only a handful of ultrasound equipment. Our ultrasound products are targeted toward the many imaging and diagnostic centers instead of hospitals or clinics. Most laboratories operate as chains, where franchises collect all samples and send them to a central laboratory to be processed. Our goal is to place Mindray Medical equipment in these central laboratories. At this point, we have 18 percent of the market for ultrasound equipment in private sector laboratories. We are developing our supply chain to increase our penetration in this segment. Mindray Medical México also provides laboratory equipment for chemical analysis, hematology and immunology, the latter having the most potential in the Mexican market.
Q: How does Mindray Medical México help doctors improve diagnostics and make better treatment decisions?
A: Mindray Medical México is a challenger of the status quo and operates based on three axes: quality, technology and low cost. We use simple, accessible and user-friendly technologies that allow medical professionals to make better use of their time and to focus on what is most important: the patient. Moreover, due to its Chinese roots, Mindray Medical was created following strong cost-containment principles to adhere to local cultures and needs.
Q: How is Mindray Medical México growing its penetration in the public sector and with public-sector clients?
A: The public sector follows an integration scheme as there is no single company that can provide the entire portfolio of products the sector needs. At the same time, the rules of the game favor the industry over the patient. Government organizations are ordered by law to open tenders to foreign suppliers, but public institutions, such as IMSS and ISSSTE, are unable to buy products from countries that do not have FTAs with Mexico. This puts some countries in a better position to trade with Mexico. Regulations should be revised to allow other countries to offer better deals to public institutions and provide patients with better technologies.
Q: How does Mindray Medical balance technology development with its cost-containment strategy?
A: At Mindray Medical, we understand that we will become competitive in the international market through quality and innovation. Our products are now fully focused on the needs of the end user. We study the market and develop our products accordingly. Mindray Medical has been in Mexico for 11 years. To consider bringing manufacturing and technology development operations to the country, Mexico would need to ensure certainty in its regulatory and economic framework. The country is now the No. 1 exporter of medical devices in Latin America thanks to the support and innovative efforts from the public and private sectors.
Q: How will Mindray Medical make a difference in the Mexican medical devices industry?
A: The medical devices industry traditionally launches a product every six to 10 years. On the contrary, Mindray Medical, and Chinese companies in general, offer around six different new products per year. We are changing paradigms in the market. The medical devices sector is often slow to change but it is increasingly adapting to new work models.