The prospects for the development of medical devices in China

Medical care, education, and housing have always been the three major topics for the people's livelihood. The medical device industry is getting more and more attention. When the concept of “urbanization” was mainly interpreted, the related beneficiary industries were tapped by the market, which also included the medical device industry. The increase in the demand for medical services brought about by the intensification of urbanization will have 200 billion yuan, bringing about an increase in the government-led increase in the supply of medical services by about 250 billion yuan, plus the Ministry of Health promised in August 2012 to exceed 10 times in 2008 The medical system special funds, etc., multi-factor driven medical device industry, or will achieve "high-speed development."

The current medical device market in China has reached a scale of 100 billion yuan, and the average annual growth rate is about 23%. It is estimated that the market size will reach RMB340 billion by 2015. It is noteworthy that compared with the global medical equipment, which accounted for 42% of the total pharmaceutical market, China's medical equipment accounted for only 14%.

Many factors promote the growth of medical devices As a small-capacity industry, medical devices do not have the infrastructure or finances. Therefore, with the differences in the subdivided areas, it is generally difficult for ordinary investors to systematically comb them. However, under the stimulation of many favorable factors, the medical device industry has shown tremendous growth potential.

Multi-factor driving growth China's current medical device market has reached a scale of 100 billion yuan, with an average annual growth rate of about 23%. It is estimated that by 2015, the market size will reach 340 billion yuan. It is worth noting that compared with the global medical equipment, which accounted for 42% of the total pharmaceutical market, China's medical equipment accounted for only 14%.

From the policy point of view, following the issuance of the “12th Five-Year Plan” for the medical device technology industry by the Ministry of Science and Technology, on August 17, the Ministry of Health released the “Healthy China 2020 Strategic Research Report,” which mentioned that the next eight years will The launch of a major special project of the seven major medical systems involving an amount of up to 400 billion yuan has aroused concern for the investor spirit of the medical device industry, because 109 billion yuan was explicitly used in the construction of county hospitals. In 2008, the funding for the medical system investment arrangement was 4.8 billion yuan, and there will be an annual special fund of 50 billion yuan in the next 8 years, 10 times that of the 2008 period. In fact, the above-mentioned county hospital construction plan actually complements the previous medical reforms and the “urbanization” that has been largely interpreted. The process of urbanization naturally involves the construction and upgrading of the medical system. The benefit of medical devices is also reasonable. "County-level hospitals are certainly opportunities," and now domestic and foreign medical device manufacturers are also staring at this market built by county hospitals.

In addition, from the perspective of trends, first of all, the ageing trend has ensured a continuously expanding market for some specific medical devices such as oxygen generators, blood glucose meters, etc.; followed by medical reform, and the State Council’s "12th five-year plan" for medical reform. By 2015, the number of beds and services of non-public medical institutions will reach 20% of the total number of medical institutions. Under the background of the continuous expansion of medical protection, the acquisition of medical equipment by private medical services will also promote the industry. The development is again a new GMP plan. For example, new GMP requirements for aseptic manufacturers are high. All of them are required to pass before the end of 2013. Finally, substitution is required. Many high-end medical devices are imported today, but with technology. Gradually upgraded, domestic high-end medical devices have gradually had an alternative strength.

Benefiting the concept of “urbanization” If the “urbanization” and “medical reform” are taken as an opportunity to carry out excavation, the listed companies that benefit substantially can be classified into engineering, chain, and equipment.

First, in order to match the size of new towns or private organizations, the demand for medical engineering will increase significantly. For example, Shangrong Medical, a clean operating room specialist, signed a contract in 2012, involving an amount of up to 2.678 billion yuan, which is 7.68 times the operating revenue of 2011. Dongxing Securities analyst once said in its research report that since the listing, the number of orders for Sunrong Medical has exceeded 100 million yuan. This kind of first-mover advantage and brand effect are likely to form stronger Matthew. effect.

Second, in the process of expansion, listed companies with similar chain nature of hospital assets have also gained opportunities.

"Compared with public hospitals, the expansion of private hospitals is a policy that encourages the development of private hospitals." For example, it is like Aier Ophthalmology. As for the public hospitals, although the policy does not encourage them to engage in debt construction, it still has its own motivation because it is related to the hospital's rating, but also consider the industry's overall upgrade cycle and other factors. According to the statistics, Aier Eye has 42 chains nationwide (as of the end of July 2012), focusing on eye treatment, cataract surgery, keratopathy, medical optometry, and ocular trauma, among which myopia surgery The scale is particularly large; in addition to Dean's diagnosis, the company provides medical diagnostic service outsourcing as its core business and can carry out more than 1,000 medical diagnostic services including biochemical, enzyme-free, radio-immunoassay, PCR, and fluorescence immunity. There are 10 (2012 interim data), and 4 other regions have obtained the lab's consent setting book. Similar listed companies still have general medical care for the stomatological hospitals that are still in developed areas, and Ciming medical examinations that are in a queue.

In addition, the benefits of equipment in the development of urbanization can not be ignored, such as diving medical care, which is often cited by the market leader in home medical devices. According to the data, Yuyue Medical produces as many as 36 varieties and 225 specifications, including ultra-light oxygen valves, nebulizers, sphygmomanometers, and stethoscopes. The market share is already the highest in China, and wheelchairs are the second in China. . Similar stocks include Sanno Life, which overlaps with Yuyue Medical's blood glucose meter business, and Libong Instruments, which has made achievements in the four major fields of obstetrics, electrocardiography, monitoring, and ultrasound imaging. It focuses on medical lyophilizers and freeze-drying systems. Dong Fu Long, the main product for the third generation of vacuum blood collection system Yang Pu medical; focus on infant market Dai Wei medical and Bo Hui innovation.

Import substitution, upgrading "Money King"

In addition, in addition to the normal growth of the market size, the medical device industry also has two major opportunities for import substitution and upgrading.

For example, Kelly Tai established in 2005, based on the research on the science of polymer materials, it became a company with complete production technology and capability of complete vertebral expansion balloon components in 2007, taking advantage of cost-effectiveness and channels. Started the process of import substitution.

According to the evaluation of the incremental market and stock market for newborns and the elderly, the estimated annual demand for cochlear implants is approximately 224,000 units. According to the calculation of 50,000 yuan per unit, the market scale is 11.2 billion yuan per year. "The market is big enough and there will be explosive growth in the next few years."

Recently, Lepu Medical, which further acquired equity in Qinming Medical, has become a controlling shareholder of Qinming Medical with a shareholding ratio of 75.1%, while Qinming Medical holds the only approval for cardiac pacemakers in China. For a long time, China's cardiac pacemakers have been mainly imported from Europe, and imports have steadily increased. Import substitution has always been the direction of development of various companies, and Lepu Medical clearly has a first-mover advantage in this area. According to the research report of some brokers, the current dual-controlled pacemakers developed by Qin Ming Medical are expected to be introduced to the market in about two years.

As for upgrading, for example, due to the high requirements of new GMPs for aseptic manufacturers, it is necessary to pass new GMP by the end of 2013, which will inevitably lead to the transformation and upgrading of various companies. The large infusion and small needle production lines are all classified as sterile. Thousands of mountain medicine machine will naturally benefit from it.