The Brazilian Diagnostic Lab Market: Attractive Growth
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