The stock market value of health economy companies in 2021 shows a rise in private

Diagram I.1 Structure of the health complex: services and production

State: promotion and regulation Chemical-and biotechnology-based industries: Drugs and medicines Active pharmaceutical ingredients Vaccines Hemoderivatives Diagnostic reagents

Mechanical, electronics and materials-based industries: Mechanical equipment Electrical and electronic equipment Orthotics and prosthetics Special materials Diagnostic devices

Industrial sectors

Primary care Information and connectivity subsystem

Health services

Hospital Outpatient Diagnostic Retail and distribution

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of C. A. Grabois Gadelha, “O Complexo Econômico-Industrial da Saúde 4.0: por uma visão integrada do desenvolvimento econômico, social e ambiental”, Cadernos do Desenvolvimento, vol. 16, No. 28, Rio de Janeiro, International Celso Furtado Center for Development Policies, 2021.

The health industry encompasses productive activities that harness biology and technology for improving health, including biopharmaceutical products, medical technology, genomics, diagnostics and digital health. This definition places an emphasis on products that are applied or used in preventive or curative medicine, are produced and distributed on an industrial scale and have systematized processes of research, development and innovation of processes and products. The health industry is divided into three categories: the pharmaceutical industry, production of medical equipment and devices, and activities carried out by entities dedicated to health-related research, be they companies or non-profit organizations.

The systemic approach to the health complex in this document contemplates the perspective of health as an inherent right of the population and, at the same time, as a strategic space for the development of the productive and technological base, the creation of value and the generation of investment, income, employment, knowledge and innovation. Within that framework, the State performs a fundamental role, both in guaranteeing the formation of productive and technological capacities, and in ensuring universal access to health. Within the health complex, this document focuses on the pharmaceutical industry to respond to the request from the Community of Latin American and Caribbean States (CELAC) to move forward with the preparation of a plan to strengthen vaccine and medicine production and distribution capacities in the region.

To address that request, this document is divided into two chapters. The first, contains a diagnostic assessment of the region’s capacities, providing a basis for recommendations on strategies, policies and lines of action set out in the second. This analysis emphasizes that the formulation and implementation of the plan presented here is based on the interaction between the supply of goods and services generated by the industry and the demand arising from the needs of the health sector in order to move towards the provision of universal healthcare coverage. After examining the issue of vaccination in the regional context, the study analyses the structure of production and the behaviour of the main economic agents that impact the sector’s performance, before exploring in detail the characteristics of the health sector. It also includes a section specifically devoted to the dynamics of international trade, given its importance to a plan that aspires to regional self-sufficiency in the pharmaceutical industry.