How Does China'S Medical Equipment Surge In Gold Rush?

With the new crown pneumonia epidemic sweeping the world, the demand for test reagents, respirators, respirators and other products all over the world skyrocketed, which greatly promoted the global development of Chinese medical device enterprises.

Today, the epidemic has not yet been effectively controlled, and the market for medical devices will continue for a longer time. Some analysts believe that after the end of the epidemic, the entire medical device industry dividends will be even bigger. After the outbreak of the epidemic, governments around the world will strengthen the construction and investment of the entire health care and medical device industry, such as new hospitals, upgrading and upgrading the existing CDC, hospital ICU, operation room, infectious disease hospitals and other facilities and facilities.

In the past, domestic medical devices were restricted to the sea and were subject to the situation of middle and low end products, and some breakthroughs were expected.

Baden medical CEO Ding Haibo told reporters on twenty-first Century economic report: "the domestic medical device industry is developing at a high speed, and there are also many challenges." But for different groups, the challenges are different. For upstream R & D manufacturers, the main difficulty is technological upgrading and the construction of the entire marketing channel. The challenge for intermediate distributors is to respond to policy changes and how to improve their comprehensive supply chain capabilities and service capabilities. For the downstream medical institutions, their biggest problem is how to liberate from the tedious and inefficient medical devices and consumables procurement, reduce costs and improve efficiency.

Medical equipment in China

Ventilator, protective equipment and testing reagent became the rigid demand of global medical institutions during the epidemic period. It also led to a surge of related enterprises' first quarter results and had a long-term positive impact on subsequent development.

In the first quarter of 2020, the domestic medical device leader MINDRAY medical revenue was close to 4 billion 800 million yuan, and the medical revenue of fish diving was close to 1 billion 400 million yuan. Huasi gene, Ying Ke medical treatment, Shandong medicine glass, Ogilvy medical, Wanfu biology and Mike biological 6 revenue have all broken through 500 million yuan, and the revenue of the world life has increased 276% to 200 million yuan.

MINDRAY medical profit broke 1 billion yuan in the first quarter. In the first quarter of the first quarter, Yue Yue medical, Le Pu medical, Da'an gene, Jian Fan biology, Mei Kang biology, LAN fan medical treatment, Chinese big gene, Ying Ke medical treatment and Shuo Shi biology all broke 100 million.

Compared with the first quarter of 2019, the earnings of Ying Ke, Mei Kang and Da an gene increased by 284%, 140% and 607% respectively, reaching 130 million yuan, 170 million yuan and 200 million yuan.

Tianfeng securities research report pointed out that after the outbreak, the state is expected to strengthen investment in medical and health fields, and enhance the ability of society to deal with public health emergencies, including improving ICU configuration, improving the ability of primary diagnosis and treatment, and strengthening the level of personal medical protection at home. This will have a far-reaching impact on the medical and health industry, and the medical device industry will usher in its own spring.

As one of the most important subdivision tracks in the field of health care, the scale of China's medical device market is already over trillion of terminal procurement scale and showing a steady growth trend.

There are two kinds of medical devices, one is household medical devices, the other is medical medical devices. Most of the household medical devices are commonly used medical devices by ordinary people. They mainly include sphygmomanometer, blood glucose meter, wheelchair, nebulizer, contact lens and so on. At present, the most important transactions are offline pharmacies and online Taobao e-commerce platforms such as Tmall.

Medical medical devices are in hospitals, including ultrasonic monitors, electrocardiograph, anesthetic machines, ventilators, and all kinds of medical operation consumables. The sale scene of medical medical devices has a special chain of medical circulation in hospitals.

At present, the main profit mode of household medical devices is the price difference of products, and its service is relatively small. The core profit mode of medical medical devices is product price difference, but in the future, it will gradually change to two aspects of product price difference and service.

According to the relevant information of the Ministry of industry and information, in the first three quarters of 2019, the added value of medical industries above designated size increased by 6.9% over the same period last year. Over the past years, statistics on medical devices show that the growth rate of value-added in the medical device industry is obviously higher than that in the pharmaceutical industry.

According to the blue book of medical devices: China Medical Device Industry Development Report (2019), more than 90% of medical device manufacturers are small and medium enterprises, with an average annual income of 30 million to 40 million yuan. But the composite growth rate of China's medical device industry has remained at around 15%. According to the blue book analysis, the main revenue of China's medical device manufacturing enterprises in 2018 was about 638 billion yuan. In the 2021~2022 year, the main income of medical device manufacturers will be able to exceed one trillion yuan.

The rapid growth of the medical device industry is inseparable from policy support. In recent years, the government has promulgated a series of policies to encourage innovation in medical devices. The State Drug Administration has also drawn up a series of documents to encourage the development of innovative medical devices. In deepening the reform of the examination and approval system, the government has attached more importance to the supervision of post marketing medical devices, and has guaranteed the safety and effectiveness of public equipment.

At the same time, in order to control the excessive growth of medical expenses, the medical insurance department has put forward a series of reform ideas of medical insurance mechanism. Drawing lessons from the reform achievements in the medical field, we should carry out centralized procurement with large quantities of medical devices and medical high value consumables, adopt the "two vote system", carry out the "zero price difference", and explore the distribution mechanism of "surplus remaining, reasonable expenditure sharing", and the implementation of medical insurance payment price, so as to become the focus of the reform of "three medical linkage" in the future.

How to break the sea

During the domestic epidemic, MINDRAY medical care as an example, the monthly cumulative supply volume of its ventilator is more than 1000 units. With the outbreak of overseas outbreaks, domestic enterprises have already begun to receive overseas orders. MINDRAY medical overseas orders for breathing machines are up to tens of thousands of units, and orders are scheduled to take place until June.

In the field of Chinese medical devices, domestic manufacturers have occupied most of the market share to some extent, but there is a certain gap between the high-end industry and the world's leading enterprises. The causes of the gap involve materials, technology, industrial foundation, sales channels and capital investment.

In 2019, the United States occupied five seats in the world's ten largest medical device companies. Among them, Medtronic (Ireland), Johnson (USA) and PHILPS (Holland) rank the top three, with sales volume of 30 billion US dollars, US $27 billion and US $21 billion 400 million respectively. Meanwhile, Medtronic has invested more than $2 billion in research and development in 2019. In contrast, the domestic medical device enterprises not only have a small volume of revenue, but also have a huge gap with the multinational enterprises in R & D investment.

Behind Gao Guang's time also reflects some pain points in the field of Chinese medical devices. How to go out for gold in the long run has become a challenge for Chinese medical device enterprises.

The main problem is that for a long time, China's medical devices are still in the position of low-end manufacturing and OEM. Small, scattered and chaotic industries need to integrate the capacity and brand with the industrial Internet platform, and speed up the brand building and sea going. In addition, homogenization and low price competition are serious.

Ding Haibo told the twenty-first Century economic news reporter that the main reason for the pain of medical device exports is not that the quality of Chinese products is not good, but that the overseas market is very complicated. More than 200 countries and regions in the world, different countries and regions have different policies, laws, access threshold and qualification requirements. For most of China's small and medium-sized manufacturers, how to find localized marketing strategies for every country and region, including localized warehousing, to meet fast delivery, localized marketing and clinical promotion also need localized after-sales service. Whether distribution or direct sale has become a difficult issue in the sea.

For most Chinese medical device enterprises lacking experience in localization production and operation overseas, the most difficult part of overseas landing is the comprehensive service capability of localization.

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