Member Investor: L Catterton
Company: Company: FEMME
The Brazilian diagnostics market has experienced accelerated growth, as shown by the opening of 4,300 new laboratories and 2,600 new medical imaging practices since 2010. The sector is expected to grow 7-10% annually over the next decade, driven by Brazil’s aging population, rising rates of private healthcare insurance coverage and the adoption of new diagnostic technologies. Four publicly traded companies — DASA, Fleury, Alliar and Hermes Pardini — account for approximately 25% of private sector revenue, but the market is still largely fragmented and dominated by small, independently owned businesses. Across the country, there are over 24,000 labs and medical diagnostics practices, of which nearly 72% have fewer than nine employees.
In December 2018, L Catterton acquired a majority stake in FEMME. The investment thesis centered around providing FEMME with the capital and expertise needed to expand the number of clinics, roll out additional services and expand market penetration through increased marketing efforts.
ESG IN FOCUS
FEMME provides accessible health screening and diagnosis services that help to improve women’s care in an overburdened public healthcare system. In addition to democratizing access to women’s health, the company is taking an active role in promoting preventive care. In October 2019, the company began a program called Mamografia do Bem to provide free mammograms to diagnose breast cancer. In late 2021, the company started a similar program called Papanicolaou do Bem, which provides free Pap smears to detect cervical cancer. By July 2022, the company had conducted over 2,100 mammograms and 500 Pap smears in partnership with non-profits, primary care physicians and private companies… download the full case study to read more