Chinas orthopedic field has experienced nearly 30 years of development, and has completed the transformation from small workshops to large-scale enterprises and innovative enterprises. Although there are many domestic leading orthopedic enterprises, in fact, in the field of orthopedic consumables, foreign enterprises still occupy a large leading position. The dominance of foreign enterprises is closely related to their leading technology and the first mover advantage of introducing the market On October 20, Wang Jun, investment manager of a health industry fund in Beijing, told reporters of the 21st century economic report.
However, Wang Jun also said that the current domestic products are increasingly recognized. With the promotion of policies that pay more attention to price, such as bulk purchase and medical insurance cost control, it can be predicted that domestic substitution will accelerate in the next few years.
Speed up domestic substitution
In the 1990s, before imported products came in, domestic orthopedic products were very scarce. Different from todays major agents trying to get products into departments, it was very difficult for doctors to use the required medical devices 30 years ago.
As a result, it has made great progress in the market of orthopedics in China. In this context, Chinese orthopedic medical device companies are far inferior to foreign enterprises in terms of product, technology and marketing. In the past 20 years, most of them have imitated and followed the imported products for R & D and production.
Different from the situation that nearly 80% of the market share of coronary stents in this centralized procurement are domestic manufacturers, the field of orthopedic implants is still dominated by imported manufacturers. At present, in different segments, the market share of domestic manufacturers is also at different levels. About 70% of the market share of orthopedic trauma belongs to domestic manufacturers, about 50% of the market share of spine belongs to domestic manufacturers, and about 30% of the market share of the joint field belongs to domestic manufacturers.
According to the public data, the latest market value of Dabo medical, a leading domestic trauma industry, has reached nearly 40 billion yuan. In 2019, the revenue is 1.25 billion yuan, and the net profit is 480 million yuan. In recent years, the net profit has maintained a rapid growth of 25%, which is higher than the average growth rate of the same industry. The market scale of orthopedic implants in China is about 30 billion yuan, with a year-on-year growth rate of 10% - 15%.
Although Chinas domestic orthopedic products still have some gaps compared with imported ones, they can better meet the clinical needs in terms of design, materials and safety. At the same time, domestic manufacturers will actively use the emerging technologies in the world to enhance their own technical reserves, and constantly look for opportunities for foreign manufacturers to overtake in corners, said the technical director of a leading domestic joint manufacturer
Competition for innovation
For example, after tianzhihang completed 300 million yuan round D financing in 2018 and Israel mazor orthopedic surgical robot was purchased by tianzhihang at a price of 1.7 billion US dollars, the investment enthusiasm of orthopedic surgical robot began to show initially. In July 2020, tianzhihang successfully landed on the science and technology innovation board, with the latest market value as high as 30 billion yuan, similar to Dabo medical, a leading orthopedic implant enterprise in China. Dabo medical has experienced more than 20 years of development to reach such a height, while tianzhihang only took 10 years.
In the field of traditional orthopedic implants, sports medicine is a hot subdivision in recent years. According to the data of global market insights, the market size of global sports medicine will exceed US $9 billion in 2025, with an average annual growth rate of nearly 8%, far higher than the 2% - 3% level of traditional orthopedics and 5% of orthopedic consumables.
Both domestic leading enterprises and innovative enterprises have begun to pay more attention to emerging products with higher technology content and larger blank market in product selection and layout. In the emerging subdivided fields, domestic manufacturers and imported manufacturers are almost in the same starting line. In these fields, domestic manufacturers have the same technical level and clinical experience as imported ones. With the continuous investment of domestic professionals and capital, this emerging field is bound to usher in more market opportunities. Wang Jun concluded.
Source: Yang Bin, editor in charge of economic report in the 21st century_ NF4368