Healthcare and Medical Equipment Trade Mission

Astana and Almaty, Kazakhstan

May 11-14, 2009

MISSION DESCRIPTION

The United States Department of Commerce, International Trade Administration, U.S. and Foreign Commercial Service is organizing a Healthcare and Medical Equipment Mission to Astana and Almaty, Kazakhstan, where mission activities will be held in conjunction with the 16th annual Kazakhstan International Health Care Exhibition. The mission will include representatives from a variety of U.S. firms in the healthcare services and medical equipment sectors, with special emphasis on the following product areas: cardio-surgery, neurosurgery, oncology equipment including radiotherapy and chemotherapy, and hematology equipment. Mission participants will be introduced to agents, distributors, and end-users whose capabilities and services are targeted to each participant’s needs.

The mission will include:

• Customized matchmaker appointments.
• Meetings with representatives of Kazakhstan’s Ministry of Health and medical business community.
• Site visits to medical institutions and companies of commercial interest.
• Participation in a health products seminar for local firms and government officials.
• Promotion in a catalog show at Kazakhstan International Health Care Exhibition, managed by the U.S. and Foreign Commercial Service.

COMMERCIAL SETTING

Demand for medical equipment in Kazakhstan is increasing due to sustained economic growth, increased healthcare spending, and the recognized need to replace obsolete equipment, which comprises about 80% of the medical equipment in the country’s public hospitals. The public sector purchases approximately 85% of the medical equipment in Kazakhstan. From 2007 to 2008, the market for medical equipment in Kazakhstan increased by an estimated 66%, with almost all of the medical equipment imported. Medical equipment imports from 2007 to 2008 are expected to increase by 67%, reaching an estimated $800 million. The U.S. market share was 5.5% in 2007, valued at almost $26 million.

The Government of Kazakhstan is implementing reform programs that will nearly double state healthcare expenditures over the next few years. Priorities stated in the programs include reformation and development of the country’s primary healthcare networks, improvement in its public health administration system, provision of enhanced medical personnel training, enhancement of mother and child health services, and emphasis on preventive measures such as diagnostics, treatment of social diseases, and patient rehabilitation. Kazakhstan’s budget for 2008 allocates $1.2 billion to healthcare sector, which exceeds the 2007 figure by 40%. In 2007, President Nazarbayev directed the government to develop the “Building a Hundred Medical Facilities” program, to be implemented by state-owned and private medical institutions. Emphasis will be placed on multi-purpose clinics intended to provide a wide range of medical services. According to the program, construction on a number of regional hospitals, clinics, and blood centers will start in 2008. Building of municipal clinics and hospitals, as well as university clinics, is planned in 2009.

In January 2008 the World Bank approved a $118 million loan for the Kazakhstan Health Sector Technology Transfer and Institutional Reform Project. The total project cost is $296 million, with $178 million being co-financed by the Government of Kazakhstan.  The project will help introduce international standards and build long-term institutional capacity in the Ministry of Health and related healthcare institutions in support of key health sector reforms pursued by the government. 

Kazakhstan’s healthcare and medical equipment market provides excellent opportunities for U.S. companies in several areas, including cardio-surgery, neurosurgery, oncology equipment, and blood equipment, all necessary for the dynamic growth in new hospitals.

MISSION GOALS

Participation in the mission will provide a unique opportunity to each participant to identify profitable opportunities and new markets for their respective U.S. companies in Eurasia and to increase their export potential to the region. Results expected from the mission include matches between U.S. participants and potential partners, agents and distributors, joint venture partners, and market knowledge for future expansion.

MISSION SCENARIO

The mission will stop first in Astana, Kazakhstan’s capital, where the delegation members will take part in site visits to healthcare facilities, meet with government and business leaders, and showcase their products and technologies in seminar presentations to Kazakhstan’s medical business community. At the second stop, Almaty, the mission will coincide with the 16th Annual Kazakhstan International Health Care Exhibition (KIHE), to be held May 11-15, 2009. Typically attracting more than 150 exhibitors and 5,000 trade visitors, KIHE is Central Asia’s largest medical trade event in the region and an excellent venue for promoting medical products and services in Kazakhstan’s fast developing healthcare market. The U.S. and Foreign Commercial Service will operate a U.S. Product Literature Center (catalog show) for the mission members, allowing them to generate trade leads and gauge market interest while they are participating in business appointments and other mission activities.

MISSION TIMETABLE

Monday, May 11, 2009

• Arrive in Astana
• Country Briefing and Mission Overview
• No host introductory dinner

Tuesday, May 12, 2009

• Meetings with representatives of the Ministry of Health
• Site visit to Astana-based medical institution/hospital and meetings with representatives of Kazakhstan’s medical business community
• Mission seminar for local companies and suppliers, held at the U.S. Embassy
• Mission Networking Reception at the Ambassador’s Residence

Wednesday, May 13, 2009

• Departure to Almaty (a.m.)
• Matchmaking Meetings at the hotel (p.m.)

Thursday, May 14, 2009

• Matchmaking meetings (at the hotel) with potential agents, distributors or partners
• KIHE opens; mission catalog show starts; delegation visits the show floor
• Mission Networking Reception at the Senior Commercial Officer’s Residence
• Departures from Almaty -- Most flights depart in the late evening, allowing mission members to depart immediately or early the following morning.
  

PARTICIPATION REQUIREMENTS

All parties interested in participating in the Commercial Service Healthcare and Medical Equipment Trade Mission to Astana and Almaty, Kazakhstan must complete and submit an application package for consideration by the Department of Commerce. All applicants will be evaluated on their ability to meet certain conditions and best satisfy the selection criteria as outlined below. A minimum of 7 and a maximum of 12 companies will be selected to participate in the mission from the applicant pool. U.S. companies already doing business in Kazakhstan as well as U.S. companies seeking to enter the Kazakhstan market for the first time may apply. 

Fees and Expenses:

After a company has been selected to participate on the mission, a payment to the Department of Commerce in the form of a participation fee is required. The participation fee will be $3,600 for a small or medium-sized enterprise (SME)¹ and $6,150 for large firms. The fee for each additional firm representative (SME or large firm) is $150. Expenses for travel, lodging, most meals, and incidentals will be the responsibility of each mission participant. Delegation members will be able to take advantage of Embassy rates for hotel rooms.

Conditions for Participation:

• An applicant must submit a completed and signed mission application and supplemental application materials, including adequate information on the company’s products and/or services, primary market objectives, and goals for participation. If the Department of Commerce receives an incomplete application, the Department may reject the application, request additional information, or take the lack of information into account when evaluating the application.
• Each applicant must also certify that the products and services it seeks to export through the mission are either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.

Selection Criteria for Participation:  Selection will be based on the following criteria:

• Suitability of the company’s products or services to the Kazakhstan market
• Applicant’s potential for business in Kazakhstan, including likelihood of exports resulting
  from the mission
• Consistency of the applicant’s goals and objectives with the stated scope of the mission

Referrals from political organizations and any documents containing references to partisan political activities (including political contributions) will be removed from an applicant’s submission and not considered during the selection process.

TIMEFRAME FOR RECRUITMENT AND APPLICATIONS

Mission recruitment will be conducted in an open and public manner.  Outreach will include posting on the Commerce Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet web sites, press releases to general and trade media, direct mail, broadcast fax, notices by industry trade associations and other multiplier groups, and publicity at industry meetings, symposia, conferences, and trade shows. The mission will also be promoted by ITA Healthcare Team members in U.S. Export Assistance Centers.

Recruitment for the mission will begin immediately and close March 15, 2009. The mission will be open on a first come first served basis. Applications received after March 15, 2009, will be considered only if space and scheduling constraints permit.

CONTACT INFORMATION

Stuart Schaag, Senior Commercial Officer AND
Nurlan Zhangarin, Commercial Specialist
U.S. and Foreign Commercial Service
U.S. Embassy Branch Office
Samal-2, 97 Zholdasbekov St.
Samal Towers Building, Almaty
Tel:  7-727-250-4850
Fax: 7-727-250-4967
Email: Stuart.Schaag@mail.doc.gov and
Nurlan.Zhangarin@mail.doc.gov

Jennifer Loffredo
Pontiac U.S. Export Assistance Center
Oakland Pointe Office Building
250 Elizabeth Lake Rd, Suite 1300 West
Pontiac, MI 48341
Phone: (248) 975-9600
Fax: (248) 975-9606
Email: Jennifer.Loffredo@mail.doc.gov

¹     An SME is defined as a firm with 500 or fewer employees or that otherwise qualifies as a small business under
SBA regulations (see http://www.sba.gov/services/contracting opportunities/sizestandardstopics/index.html). 
Parent companies, affiliates, and subsidiaries will be considered when determining business size.  The dual
pricing reflects the Commercial Service’s user fee schedule that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).