What are the characteristics of China s medical device and pharmaceutical industry, and what are the

China's pharmaceutical industry has maintained a rapid growth momentum. Overseas venture capital institutions and domestic pharmaceutical consulting companies are also very interested in investing in China's health industry, but no one is willing to place an order after a round of inspection.

First of all, the payback period is too long.

From an investment point of view, China's pharmaceutical industry is a very good industry. However, the pharmaceutical industry is a traditional industry in China, and its added value does not lie in the product, but in the product sales channel, management system, and relationship. The pharmaceutical industry is highly regulated, and the process of building relationships with doctors is very complex.

Even if the investment is successful, it will take 5 to 10 years to see results, and the return on investment period is much longer than that of electronics, computers and other industries.

Second, the gap between China's pharmaceutical policy and foreign countries is too large, and it is difficult for foreign investors to grasp the rules of investment in the pharmaceutical industry.

The process of developing a new drug in the U.S. from concept to phase III clinical trials takes five or six years. Investment**In this process, more than 100 million US dollars will be invested. After receiving the certification from the U.S. Drug Administration, the market value of the equity can become $1 billion.

In China, even after obtaining the certification of the State Food and Drug Administration, the new drug may not be sold, and it is too complicated to enter the medical insurance catalog, enter the hospital, and let the doctor know about the new drug.

Thirdly, there is a lack of investment talents in the health industry.

There is a group of professionals in the United States who are engaged in the operation of health industry risks**, but such a group has not yet been formed in China.

Finally, there are institutional reasons.

In China's medical and health industry, the most promising and profitable hospitals are public tertiary hospitals. Institutional investors have taken a fancy to them, but these hospitals are not open to the capital market at all, and the property rights of the hospitals are in the hands of the first company. At present, the hospitals that are allowed to merge and reorganize are all private hospitals or small hospitals below the second level, and the benefits are not very good.

At the same time, China's medical and health industry is still difficult to attract foreign venture capital. Even if the public tertiary hospitals are open to foreign investors, due to the backward system and complex management system, external risks** are not willing to take over. Although it is still difficult for China's medical and health industry to attract foreign venture capital, it can be expected that in the next three to five years, the medical device industry will become a breakthrough to attract foreign investment.

Generally speaking, foreign investors pay attention to the development of IT companies. In the medical industry, the medical device industry is closely related to the IT industry, and it is relatively easy for foreign investors to enter this industry. The operation cycle of investing in medical devices is relatively short.

It takes one year for an instrument to be produced, while it takes three to five years for a drug to be approved. Some investment institutions have seen the investment advantages of the medical device industry and have begun to inject funds, and the medical device market has also entered a period of slow development.

Cycling, skipping rope, running equipment.

The prospect of the development of the medical device industry is very goodIn the future, with the support of national policies, the expanding market demand, the acceleration of the aging of the Chinese population and the technological development and industrial upgrading of the medical device industry, the medical device industry is expected to continue to maintain a good trend of rapid growth, and realize the vision of importing from the low-end market to the high-end market instead of the rubber generation.

Development History:

The medical device industry involves many industries such as medicine, machinery, electronics, plastics, etc., and is a multidisdisciplinary, knowledge-intensive, and capital-intensive high-tech industry.

The basic characteristics of high-tech medical equipment are digitization and computerization, which is the crystallization of modern high technology across disciplines and fields, and its products have high technical content and high profits, so they are the commanding heights of competition between major scientific and technological countries and large international companies, and the entry threshold is higher.

Even in the sub-industries with low overall gross profit margin and low investment, there will continue to be products with high technical content, and some enterprises with strong profitability will be bred from them. Therefore, the overall trend of the industry is high investment and high returns.

——Foreseeing 2022: Panorama of China's Medical Device Industry in 2022 (with market size, competitive landscape and development prospects, etc.).

Major listed companies in the industry:Mindray Medical (300760), BGI (300676), Dian Diagnostics (300244), MeCan Biotech (300439), Yuyue Medical (002223), etc.

The status quo of industrial development

The overall situation of the industry: medical equipment accounts for nearly 60%, and the overall level of domestic substitution is low

Overall, the overall domestic substitution development of China's medical device industry is relatively weak, especially in the field of high-value medical consumables, the overall degree of domestic substitution is relatively low, which is a "depression" of domestic substitution in the field of medical devices, and the development status of related subdivided products is as follows

Note: The full score is half a star.

From the perspective of market segment structure, China's medical device industry will account for the largest proportion of the market size of midstream segmented products in China's medical device industry in 2021, reaching 553.3 billion yuan, accounting for 553.3 billion yuan.

There are four main development trends

Compared with developed countries, China's medical device industry has the characteristics of late start, small scale and single product. However, after rapid development in recent decades, China's medical device industry has become a sunrise industry with relatively complete industrial categories, continuous enhancement of innovation ability and strong market demand. With the support and optimization of national policies, the deepening of medical reform, the continuous highlighting of the aging population, and the improvement of consumption capacity and health awareness, China's medical device industry, especially the leading domestic medical device enterprises, has entered a period of development.

The domestic medical device market, under the ambiguity of international medical giants with both capital and technical advantages, the industry is fiercely competitive, opportunities and challenges coexist, and China's medical devices may have the following development trends in the future:

The prospects for the medical device industry are very good. The global medical device industry is growing rapidly and is growing into a pillar industry of the world economy. According to the estimation of industry associations, the global medical device product market has reached 350 billion US dollars in 2009, and can maintain an annual growth rate of more than 7%.

At the same time, the international value of medical device products is growing at a rate of 25% every year, with a sales profit margin of 15-25% and high added value of products, which has become one of the fastest growing and most active industrial categories in the world today.

In the global medical device market, the United States, the European Union, and Japan dominate. Asia has become the market with the most development potential, and China, India and Brazil have become the "rising stars" in the international medical device market. The medical device market in developed countries such as the United States and Europe grew by 4%-5%, and emerging markets grew rapidly, with an average of 18% in China, 14% in India, and 16% in Brazil.

In 2009-2010, the top 10 large enterprises had annual sales of more than 120 billion US dollars, accounting for more than 30% of the global market share. The remaining less than 70% of the medical device market share is shared by many small and medium-sized companies in other countries and regions of the world.

According to the "2020-2026 China Medical Device Market Status and Future Development Trend" released by QYRESEARCH; Medical devices refer to instruments, equipment, appliances, in vitro diagnostic reagents and calibrators, materials and other similar or related items that are directly or indirectly used in the human body, including the required computer software. The medical device industry is a knowledge-intensive and capital-intensive industry that is complex and intersecting in high-tech fields such as bioengineering, electronic information and imaging diagnosis. As a strategic emerging industry related to human life and health, the global medical device industry has maintained a good growth momentum for a long time under the huge and stable market demand.

From 2013 to 2018, the compound growth rate of sales volume was about 4%, and the global medical device output value reached 408 billion US dollars in 2017.

This report examines the production, consumption, import and export of medical devices in the Chinese market, focuses on global and local medical device manufacturers that play an important role in the Chinese market, and presents key indicators such as medical device sales, revenue, **, gross margin, and market share of these manufacturers in the Chinese market. This paper also studies the capacity, output, output value and market share of medical devices of local manufacturers in China. In addition, this article also makes an in-depth analysis of the segmentation growth of medical device products themselves, such as different medical device product types, **, output, output value, and market sales of medical devices in different fields.

Historical data from 2015 to 2019 and **data from 2020 to 2026.

About 15% of the medical instruments and equipment owned by 10,000 medical and health institutions in the country are products from around the 70s, and 60% are products before the mid-80s. This also indicates that they need to be updated, and in the process, it will ensure the rapid growth of China's medical device market in the next 10 years or even longer.

According to the data of the "Analysis Report on Market Demand and Investment Strategic Planning of China's Medical Device Industry" released by Qianzhan Network, China currently has 10,000 hospitals at or above the county level, 10,000 township (town) health centers, and more than 3 million hospital beds. If 10,000 hospitals above the county level in the country can basically meet Japan's 1980 hospital medical equipment standards (800,000 yuan per 100 beds), then the incremental space of China's medical device equipment market will exceed 24 billion yuan.

According to the relevant plan of the new medical reform, the Ministry of Health, together with the state, will invest 100 billion yuan to support the construction of about 2,000 county hospitals, 5,000 central health centers and 2,400 community health service centers across the country, and carry out centralized procurement of medical devices for the equipment allocation in primary medical and health institutions.

Grassroots medical institutions are gradually adding and updating medical devices, thereby bringing endogenous growth to the industry; In addition, in recent years, we are vigorously transforming and supplementing primary medical institutions and equipment; In the context of these two industries, the low-end medical equipment market will achieve rapid growth.

Qianzhan network expects that the market share of low-end medical devices will be difficult to decline in 3 years, mainly because: household medical devices and low-end medical equipment will continue to grow rapidly, and the compound growth rate of the household market is expected to be 30%-35% in 2013-2017, and the growth rate of low-end medical equipment is 25%-30%. Although implantable devices are also in a period of rapid growth, the growth of high-end medical equipment only depends on the natural renewal of products and the partial addition of county-level hospitals, which is slightly slower than the growth rate.

Therefore, the low-end medical device market is still the main theme of development, and local companies have great opportunities in this industry context.

Overall, China's medical device industry is still very good, and the industry has a lot of room for growth.

The country is aging, and there is a huge demand for hospital medical services.