Medical equipment import substitution market is vast
The technology roadmap of the “Made in China 2025” key area recently released has listed medical devices as a key development direction. The road map pointed out that the rapid development of health needs and the status quo of the domestic medical device industry are extremely incoherent, thus clarifying the technical roadmap for the development of high-performance medical devices.
A number of industry insiders told the China Securities Journal that the investment in the medical device industry will mainly focus on three key points: terminal control capability, technological innovation level and after-sales service quality.
Four factors boost the growth of the industry
The current status of the industry is the large number and small scale of medical device companies with low industry concentration. There are about 15,000 medical device companies in China, but 90% of the company's revenue ranges from 10 million to 20 million yuan. The domestic high-end medical device imports account for about 40% of the total market, and imported brands occupy the domestic high-end market. 70%, import substitution is vast.
At the same time, there are many medical device subdivisions and spans, and there are certain R&D and sales barriers, and the market space in subdivided fields is relatively limited. Therefore, outreach M&A 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 all increased their strength through the expansion of expansion, and the consolidation of industry mergers and acquisitions has accelerated.
For the investment in the medical device industry, a number of industry experts propose to grasp three key points, including terminal control capability, technological innovation level and after-sales service quality.
Junlian Capital executives told the China Securities Journal that terminal control is the basic survival of medical device companies. Foreign companies have already occupied high-end markets, including large hospitals and high-end products. Chinese companies have grown from low-value consumables step by step, accumulating capital strength and technical capabilities of the industrial chain, 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 opportunities for growth in other areas of the medical device industry in the future. "Terminal control capabilities are embodied in models, channels, and sales. The future of medical device marketing will increasingly emphasize decentralization and return to services and technologies."
The innovative standards and service capabilities of products are also the focus of investment institutions. The development of the medical device industry has many barriers and barriers. The enterprise development process must have its own core competitiveness, especially the early enterprise. As the scale expands and gradually reaches the platform level, expansion can be achieved through mergers and acquisitions. Many sub-divisions are small in scale and easy to form leading companies like Leopard Medical and Mindray Bio.
Import substitution market brings a broad space for the development of the domestic medical device industry. The increase in health care consumption demand due to the superposition of population aging, the increase in basic market volume, the development of private medical institutions and the upgrading of technological innovation will jointly contribute to the growth of the industry.
After years of accumulation, the technological level and service quality of domestic enterprises have improved, and certain core areas have been established in certain subdivided areas, with initial strength from the low end to the mid-to-high end. Under the support of the “12th Five-Year Plan” medical device key special projects of the Ministry of Science and Technology, China’s medical devices continue to break through in the medium and large-sized medical imaging equipment fields. The independent R&D of equipment such as 1.5T superconducting magnet machines and 64-slice spiral CT machines has broken cross-border The company's monopoly.
Increased policy support
At present, the state attaches great importance to the development of the medical device industry strategically, and strongly 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. Equipment, especially high-performance medical devices, will soon be breaking.
According to the above road map, the scale of the medical device industry will reach 600 billion yuan by 2020 and reach 1.2 trillion yuan by 2025. In 2020, the share of domestic high-end and middle-end medical devices in county-level hospitals will reach 50% and reach 70% by 2025; 2020 The domestic market share of domestically produced core components reached 60%, and reached 80% by 2025; 3-5 internationally renowned brands and 6 upgraded industrial clusters with output value exceeding 100 billion yuan were formed.
In recent years, China has increased its policy support for independent innovation in medical devices and localization, and has created a good environment in terms of supervision, innovation approval, and funding. According to the Circular on Printing and Distributing the Key Tasks of Deepening the Reform of the Medical and Health System in 2014, the organization and promotion of pharmaceutical product R&D will be further strengthened, focusing on the localization of basic medical device products. In May 2014, the Chinese Medical Equipment Association initiated the first batch of medical device selection. The “Twelfth Five-Year Plan” target defined by the key scientific and technological projects for medical devices was gradually realized, and the “Three Large Parts” of new basements such as X-ray machines, ultrasound, and biochemistry were all available. Technology upgrades, localization of high-end products such as MRI, color ultrasound, CT, and PET/CT continue to advance.
Since 2015, the support for medical devices has been further increased. The Ministry of Science and Technology has issued the "Digital Medical Engineering Technology Development Project"; the Ministry of Science and Technology and the Health and Family Planning Commission jointly promulgated the "Key Special Items for Digital Medical Equipment"; the Food and Drug Administration issued the "Medical Device Industry Standard, innovative medical device special procedures." The policy dividend will further accelerate the localization of medical devices.
In addition, the Health and Planning Commission requested public hospitals to prioritize the use of domestically produced medical equipment and devices 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 deployment of large-scale medical equipment, reducing inspection fees for large-scale medical equipment, increasing investment in science and technology, and guiding the approval of the domestic market.