The Brazilian Diagnostic Lab Market:  Attractive Growth

September 2017
By Patricia Gonzalez, Analyst, VanEck

The Brazilian diagnostic lab market has grown significantly since 2000 and has proven to be resilient, even through the country's recent economic weakness. While the consolidation process among the country's clinical laboratories started in 2000 and has intensified over the last few years, the market continues to be fragmented with more than 22,000 labs spread across Brazil.

Currently, the top four market participants — Diagnósticos da América S.A. (DASA), Fleury S.A., Centro de Imagem Diagnósticos S.A. (Alliar), and Instituto Hermes Pardini S.A. (Hermes Pardini) — account for only 25% of private sector revenues.

We believe there are strong opportunities for the largest players to continue to consolidate and to increase their market share.

Market Share of Brazil’s Top Diagnostic Companies (as of 3/31/2017)

Source: BofA Merrill Lynch Global Research and companies

About the Author:
Patricia Gonzalez joined VanEck in 2014 and is the Emerging Markets Equity strategy’s analyst who specializes in Latin America and Europe, Middle East, Africa (EMEA). Ms Gonzalez has an MBA from Loyola University and a BA in Economics from Universidad Catolica Andres Bello.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.

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