Increased policy support and broad medical equipment market
[China Pharmaceutical Network Market Analysis] Recently released the "Made in China 2025" key area technology roadmap has listed medical devices as a key development direction. For the investment i...
[China Pharmaceutical Network Market Analysis] Recently released the "Made in China 2025" key area technology roadmap has listed medical devices as a key development direction. For the investment in the medical device industry, many industry insiders recommend grasping three key points, including terminal control ability, technological innovation level and after-sales service quality.
The roadmap pointed out that the rapid development of health demand and the current situation of the domestic medical device industry are extremely unsuitable, and the technical roadmap for the development of high-performance medical devices has been clarified. Increased policy support and broad medical equipment market
Four factors boost industry growth
The current state of the industry is the large number of medical device companies, small scale, and low industry concentration. There are about 15,000 medical device companies in China, but 90% of the enterprises have a revenue of 10 million to 20 million yuan. The domestic high-end medical device imports account for about 40% of the total market. Imported brands occupy the domestic high-end market. 70%, the import substitution space is vast.
At the same time, medical device segmentation has many fields and large spans, certain R&D and sales barriers, and the market space in the segmentation field is relatively limited. Therefore, the outsourcing merger is an effective way for medical device companies to accelerate their growth. In terms of listed companies, Lepu Medical, Qianshan Pharmaceutical Machinery, and Yuyue Medical have successively expanded their strength through epitaxial expansion, and the integration of industry mergers and acquisitions has accelerated.
For the investment in the medical device industry, many industry insiders recommend grasping three key points, including terminal control ability, technological innovation level and after-sales service quality.
Junlian Capital executives told China Securities Journal that the ability to control the terminal is the basis for the survival of medical device companies. Foreign companies have occupied the high-end market, including large hospitals and high-end products. Chinese companies have grown up from low-value consumables, accumulating capital strength and industrial chain technical capabilities, and extending to the high end of the value chain. More and more domestic companies are now able to compete with foreign companies. For example, in the field of cardiac stents, Chinese companies have achieved market dominance. There are still such growth opportunities in other areas of medical devices in the future. “The terminal control ability is reflected in the mode, channel and sales. In the future, the marketing of medical devices will increasingly emphasize the de-intermediation and return to service and technology.”
The level of innovation and service capabilities of products is also the focus of investment institutions. There are many barriers and thresholds for the development of the medical device industry. The enterprise development process must have its own core competitiveness, especially in the early stage. As the scale expands and gradually reaches the platform level, expansion can be achieved through mergers and acquisitions. Many sub-divisions are not large in size, and it is easy to form leading companies like Lepu Medical and Mindray.
The import substitution market will bring a broad space for the development of the domestic medical device industry. The increase in the demand for health care consumption, the increase in the grassroots market, the development of private medical institutions and the upgrading of technological innovation will help the industry grow.
After years of accumulation, the technical level and service quality of domestic enterprises have improved, and certain core competitiveness has been established in some sub-segments, initially having the ability to break through from the low-end to the mid-to-high end. Under the support of the “Twelfth Five-Year” medical equipment key project of the Ministry of Science and Technology, China's medical equipment has made breakthroughs in the field of large and medium-sized medical imaging equipment. The independent research and development of equipment such as 1.5T superconducting magnet machine and 64-row spiral CT machine has broken the transnational. The monopoly of the company.
Increased policy support
At present, the state attaches great importance to the development of the medical device industry strategically, and vigorously supports and guides domestic medical devices to “recapture” the domestic market, “enter” the international market, and set the tone for the specific route planning of high-performance medical devices. Devices, especially high-performance medical devices, are breaking soon.
According to the above road map, by 2020, the scale of the medical device industry will reach 600 billion yuan, reaching 1.2 trillion yuan by 2025; in 2020, the domestic high-end medical device market share of county-level hospitals will reach 50%, reaching 70% by 2025; 2020 The domestic market share of domestically produced core components reached 60%, reaching 80% by 2025; 3-5 internationally renowned brands and 6 upgraded industrial clusters with an output value exceeding 100 billion yuan were formed.
In recent years, China has increased its policy support for independent innovation and localization of medical devices, creating a favorable environment for supervision, innovation approval, and funding. In accordance with the "Notice on Printing and Distributing the Key Tasks for Deepening the Medical and Health System Reform in 2014", we will further increase the organization and promotion of pharmaceutical product research and development, and focus on the localization of basic medical device products. In May 2014, China Medical Equipment Association launched the first batch of medical equipment selection. The “Twelfth Five-Year Plan” target for medical equipment key science and technology was gradually realized, and the new “three major pieces” of X-ray machine, ultrasound, biochemistry and other grassroots layers were all in line. Technology upgrades, localization of high-end products such as MRI, color ultrasound, CT, PET/CT continue to advance.
Since 2015, the support for medical devices has been further increased. The Ministry of Science and Technology issued the “Digital Medical Engineering Technology Development Project”; the Ministry of Science and Technology and the Health Planning Commission jointly issued the “Digital Diagnostic Equipment Key Project”; the Food and Drug Administration issued the “Medical Device Industry” Standard and innovative medical device special approval procedures. The policy dividend will further accelerate the localization of medical devices.
In addition, the Health Planning Commission requires public hospitals to prioritize the use of domestic medical equipment and equipment to accelerate the localization of medical devices. Relevant departments are paving the way for the rise of domestic medical devices in improving the registration of medical devices, loosening the allocation of large medical equipment, reducing inspection fees for large medical equipment, increasing investment in science and technology, and guiding domestic market recognition. (Source: China Securities Journal)
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