Pharmaceuticals and medical devices
40% lower operating costs than the Central American average for the production of medical devices.
El Salvador stands out as an attractive centre for investment in the pharmaceutical and medical devices industry (Tier II and III), as one of the country’s main productive branches.
With an outstanding use of advanced technologies and a high level of specialised employment, the pharmaceutical industry is internationally positioned as a leader in the diversity of high-quality products. The medicines produced in the country are recognised for their therapeutic efficacy, and are in high demand in Central America, the Caribbean and key markets such as Mexico, Panama and the United States.
In addition, El Salvador is the first country in the Central American region to obtain WHO Good Manufacturing Practices certification, complying with strict international regulations and standards. This favourable environment, combined with the industry’s versatility to diversify into different therapeutic lines, creates significant opportunities for investors looking to capitalise on the growth of this booming sector.
Pharmaceutical sector exports (2023)
Medical device exports (2023)
Less in costs than average costs in Central America for operating a medical device center
Pharmaceutical export destinations (2023)
by the pharmaceutical industry
International Society for Prosthetics and Orthotics (ISPO) Certified Training Center in Latin America
El Salvador’s economic development provides a number of opportunities for investment in this sector.
RESEARCH AND DEVELOPMENT
- Clinical trials
- Molecule and drug testing
- Medical research
DRUG MANUFACTURING AND PACKAGING
MEDICAL DEVICES
- Consumables: Adhesive bandages, non-adhesive bandages, suture materials, needles, catheters, syringes, surgical gloves, masks, dialysis bags, drainage systems and bags, ostomy bags and ostomy accessories, as well as surgical textiles.
- Medical instruments and appliances: Scissors, forceps, forceps, reusable scalpels; parts and pieces of medical devices; screws, plates, and support rods; standard support equipment such as stethoscopes, sphygmomanometers and basic thermometers.
Investing in
El Salvador
- El Salvador positions itself as an ideal destination for nearshoring, offering a value proposition that includes preferential access, extensive export experience, and proximity to the United States, the world’s largest importer of pharmaceutical products, with connections to both U.S. coasts in less than 6 hours.
- The safest country in the Western Hemisphere in 2024, with a dollarized economy providing stability and certainty for investors seeking profitable opportunities.
- El Salvador offers a robust ecosystem supporting the pharmaceutical and medical devices industries, with a well-established sector specializing in packaging, electronic components, and metal-mechanical industries. This infrastructure provides a solid foundation for boosting competitiveness in life sciences production.
- The implementation of a telemedicine system in El Salvador, aiming to improve the quality of life for approximately 4.5 million Salvadorans, enhances the country’s research and development capacities.
- Advanced technological platform, including the construction of a submarine cable, deployment of 5G, and collaboration with Google to accelerate digital transformation, driving automation and industrial process optimization.
- Modernized and digitized customs, featuring an integrated system that facilitates regional trade and commerce with the United States, supported by an agreement with the U.S. Customs and Border Protection.
- The most attractive free zone regime in Latin America, offering up to 45 years of tax exemptions and accessible requirements for investment.
- Benefits and tax incentives for up to 15 years for research and development activities under the Innovation and Manufacturing Technologies Promotion Law.
- Tax incentives for renewable energy generation projects, supporting economical and sustainable production, backed by one of the most diversified energy matrices in Latin America and the Caribbean.
Laboratorios Biogalenic has been operating in El Salvador for more than 45 years, supplying intravenous, oral and peritoneal dialysis serums to the national and international market.
In 2016 it managed to export serums for veterinary use to the United States and in 2017 invested USD $10 million to strengthen the quality and processing of its products, through infrastructure and machinery with advanced technology.
Its constant research, development and high quality standards have allowed it to export to Mexico, Central America, Panama, the Caribbean, Venezuela and Argentina.
If you wish to invest in another sector, you can also seek advice from our specialists.