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The process of localization of high-value medical consumables accelerates in China

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Author : Joe Wong
Update time : 2020-07-17 15:10:06
The process of localization of high-value medical consumables accelerates in China

 High-value medical consumables such as double-lumen endobronchial tube, closed suction catheter etc are mainly relatively low-value medical consumables. According to the division of departments, they can be divided into interventional equipment and implantable equipment required by cardiovascular, orthopedics, ophthalmology, stomatology, neurology and orthopedics. And high value-added consumables such as artificial organs. Although the overall level of my country's high-value medical consumables is still far from the international advanced level, with the drive of technology, capital investment and policy guidance, in recent years, my country's high-value medical consumables have entered the fast track of localization.

Market outlook is optimistic

In recent years, my country's medical device market has ushered in huge development opportunities. Data show that in 2019, my country's medical device market size was approximately 628.5 billion yuan, an increase of 18.5% year-on-year. Among them, high-value medical consumables are the second largest market segment, with a market size of about 120 billion yuan and a growth rate of about 15%. The sales of medical equipment are relatively low frequency, the added value of low-value consumables is not high, and the added value of high-value medical consumables is higher and the profit margin is larger. Therefore, the development in this field is more optimistic.

From the perspective of financing, in 2019, there were 235 financing projects in the domestic medical device field. Among them, 56 high-value medical consumables financing, accounting for 23.8% of all financing projects; a total of 107 projects have disclosed the amount of financing in the medical device field, with a total financing amount of 9.665 billion yuan, and 17% of financing in the field of high-value medical consumables; There were 40 mergers and acquisitions in the medical device field, including 14 mergers and acquisitions in the field of high-value medical consumables, accounting for 35%. This shows that capital is increasing investment in high-value medical consumables.

 From the perspective of listed companies, there are currently 20 high-value medical consumable-related listed companies in my country (based on the main board and Hong Kong stocks), of which 11 high-value medical consumable companies have been listed in the past three years, accounting for about 55%. This also means that the domestic substitution process of high-value medical consumables is accelerating. At the same time, with the implementation of centralized procurement, price negotiation and innovation incentives, the market of high-value medical consumables will continue to maintain rapid growth.

Midstream research and development efforts to be strengthened

The high-value medical consumables industry chain is divided into upstream raw material supply links, midstream R&D and production links, downstream circulation links, and demand market links. Due to the high gross profit margin of the high-value medical consumables industry, normal fluctuations in upstream raw material prices generally do not contribute to midstream profits The level has a greater impact, and the downstream circulation and demand market links will have a certain impact on the midstream R&D and production links.