Economy, Domestic Economy

Private Sector, Gov’t Discuss Medical Equipment Sector

Private Sector, Gov’t Discuss Medical Equipment SectorPrivate Sector, Gov’t Discuss Medical Equipment Sector

Minister of Industries, Mining and Trade, Mohammadreza Nematzadeh emphasized the need to expand production and export of medical devices in the meeting of the ‘Working Group on Development of Non-Oil Exports’ on Monday.

Noting that the medical equipment industry has fallen behind the global average and other domestic sectors, he called on authorities to pay more attention to this sector, IRNA reported.

The meeting focused on reviewing the medical devices market and identifying barriers to production and export of high quality products. Representatives from the private sector also attended and exchanged views.

In its 2015 report on Iran’s medical device sector, Business Monitor International research group predicts that Iran’s medical device market will reach $1.28 billion in 2018. The industry generated $832.5 million in 2013 and its revenues are expected to grow at a relatively moderate compound annual growth rate (CAGR) of 9.1% to 2018. The market size has been estimated using a trade-based approach, looking at imports, and then adding in domestic production, minus any exports.

In May 2014, director of the Technological Development Department of the Ministry of Industries, Mining and Trade, Hassan Aqakasiri said there were 593 medical equipment production units in the country, employing 17,200 people. The units manufacture 520 products.

In 2012, head of Iran’s Medical Equipment Exports Union, Reza Yaghoobzadeh, described European countries as major export markets for Iranian-made medical devices. Later in 2013, he claimed that Iranian firms exported medical devices to 70 countries. He says Iran is self-sufficient in the production of disposable syringes, following the opening of a factory in March 2013.

But despite the manufacture of basic consumables such as syringes, needles, catheters, dental instruments and orthopedics, over 90% of the medical device market is still supplied by imports.

Imports grew by 8.3% in 2014, reaching $792.2 million, compared with the $731.8 million in 2013, with more than 67% supplied from the European Union.

The Netherlands has been the leading supplier accounting for $150.8 million or 20.3% of the total imports. The country supplied 45.7% of orthopedics and prosthetics and 35.3% of patient aids. Other leading suppliers included Germany, Belgium and China, accounting for 16.2%, 11.2% and 9.0% respectively.

Meanwhile, exports rose by 66% in 2014 to $10.3 million, compared with the $6.2 million reported in 2013. The leading destination for medical device exports from Iran was Turkey, with $1 million or 13.8% of the total. Other leading destinations were Germany (13.7%), Belarus (11.3%) and Poland (8.7%).