The air outlet of medical equipment station: the field of bull stocks in the next decade

category:Finance
 The air outlet of medical equipment station: the field of bull stocks in the next decade


Innovative technology and new demand lead the development of the industry

According to the report, the demand for more minimally invasive, more accurate and earlier diagnostic devices is increasing. Many of the innovation needs and Inspiration of the devices come from the clinical practice. Chinas huge volume of surgery helps to continuously tap the innovation needs. At present, new minimally invasive products with independent innovation are frequently emerging in China, such as the gene detection products of Eide biology, the intraoperative stent of cardiac pulse medicine, the blood perfusion device of Jianfan biology, the traction device of South micro medicine, etc.

According to China Medical Device Industry Development Report (2017), by the end of 2016, the per capita consumption of drugs and medical devices in China was only 1:0.35, far below the global average of 1:0.7, and even lower than the level of 1:0.98 in developed countries.

Looking forward to the future, innovative technology and new demand will lead the development of medical device industry.

Import substitution and concentration promotion promote industry leader

In addition to the growth of demand, import substitution is another huge dividend for the future medical device industry.

At present, domestic medical equipment has gradually broken through a number of technical barriers, and has basically realized the subdivision of import substitution, including: cardiovascular stent, cardiac occluder, artificial meninges, trauma products in orthopedic implants, etc.; monitor, Dr, etc. in large and medium-sized medical equipment; biochemical diagnosis in the field of in vitro diagnosis; oxygen generator in domestic medical equipment , sphygmomanometer, etc.

Tracing back the successful experience in the subdivision field of imported substitute devices in China, technology, brand, cost performance and channel are all the magic weapons for domestic enterprises to win, and the policy plays a certain role in promoting the support of domestic products.

With the trend of grading diagnosis and treatment and large amount of grass-roots units, China is expected to usher in a new stage of prosperity and development of domestic equipment, and it is expected that import substitution will be completed in multiple subdivisions in the next five to ten years.

Chinas leading enterprises will enjoy the dual drive of high growth rate and import substitution, industry concentration will increase, and market competition pattern will be reshaped. Such fields are the golden subdivisions of equipment investment, mainly including color ultrasound, chemiluminescence, endoscope consumables, orthopedic consumables, cardio cerebrovascular consumables and other sectors. After the technology has been comparable to the imported products, they are gradually importing substitutes, which is not the case To the birth of bull stocks in an important area of segmentation.

Technology is the core competitiveness, it is very important to enter the first echelon. The competition pattern of many subdivisions of medical devices in China belongs to the decentralized competition pattern, which creates good conditions for the import substitution of domestic enterprises. At the beginning of import substitution, the concentration of domestic enterprises is relatively low. When the first echelon in the industry is not formed, it is the best way for domestic enterprises to realize import substitution to make technically competitive products, with strong marketing and promotion capabilities, and build brand moat.

For example, Shanghai minimally invasive and Lepu medical entered the field of cardiovascular stents around 2004. At that time, Johnson & Johnson, Medtronic, Boston science and Abbott were all important manufacturers of cardiovascular stents in China, and there was no absolute advantage between them. Due to the large scale of the cardiovascular industry itself, they also reserved a certain development space for domestic enterprises. In addition, foreign-funded enterprises have done a good job in user education in the early stage. With its advanced technology and cost-effective advantages of products, as well as comprehensive marketing channels to complete import substitution, Minmetals and Lepu have formed the first domestic echelon (Minmetals, Lepu and Jiwei). After that, the competition situation has been maintained for nearly ten years, which is difficult to break.

The reform of high value consumables continues to advance, and domestic innovative equipment is expected to take the opportunity to counter attack

On June 8, 2020, the state health insurance bureau issued the Interim Measures for the management of medical consumables for basic medical insurance (Draft for comments), which is intended to formulate the catalogue of medical consumables for basic medical insurance, which is applicable to the access, payment and corresponding management and supervision of medical consumables, and is conducive to the timely inclusion of innovative devices into the medical insurance volume.

In the long run, Societe Generale Securities said that the volume procurement of consumables is conducive to the improvement of the industry concentration. Consumables that meet the health economics and have a clear clinical diagnosis and treatment value are expected to benefit in the future. Domestic consumables are expected to gradually seize the market share of imports due to their high cost performance; they have the ability of independent innovation, diversified business layout, or a single product with high technology The domestic leading enterprises, which have obvious advantages in the differentiated competition due to their high content and added value, are expected to benefit from the reshuffle of the industry.

High quality medical devices are expected to realize pipeline valuation

The R & D cycle of medical devices is relatively fast, and the R & D risk is relatively low. In the future, high-quality medical device varieties may be similar to innovative drugs to realize pipeline valuation.

The change of valuation system is expected to promote the companies with biotech attributes in the medical device sector (mainly Hong Kong stock 18a and emerging enterprises in science and technology innovation board) to come out of the new valuation promotion market, which will also promote the revaluation of the existing medical device companies varieties under research.

Suggested attention

Medical equipment: Mindray medical, open medical, Wandong Medical, Yuyue medical, etc;

Medical consumables: minimally invasive medical (H), Lepu medical, Jianfan biological, Nanwei medical, Xinmai medical, Weigao Co., Ltd. (H), Dabo medical, Aikang medical (H), Chunli medical (H), kailitai, Sanyou medical, Xianjian Technology (H), Qiming medical (H), Peijia medical (H), etc;

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