Boditech Med, a South Korean in vitro diagnostics manufacturer, has signed an agreement with Brazilian diagnostics firm Biosys to establish a local production base, aiming to cut costs and expand its presence in South America, the company said Thursday.
The deal extends the companies’ existing distribution partnership into manufacturing, as Boditech seeks to strengthen price competitiveness and improve supply efficiency in Brazil. The initiative comes as the diagnostics market adjusts following the surge in COVID-19 testing demand.
Under the agreement, Biosys will invest in production facilities and oversee factory operations, while the Korean firm will provide essential equipment, technology, raw materials and semi-finished components. Boditech will also supervise manufacturing processes and quality standards.
The partners plan to start with diagnostic cartridge assembly and packaging, then gradually expand production capacity and the range of locally manufactured products.
According to Boditech, local manufacturing is expected to reduce logistics and inventory costs while shortening delivery times. The arrangement also aims to improve its ability to meet domestic demand and compete for public healthcare contracts alongside private-sector sales.
“Brazil is an important market for our expansion in South America, and we expect local production to play a key role in strengthening price competitiveness and supply responsiveness,” Boditech Med CEO Choi Eui-Yul said.
yejinlim@heraldcorp.com
