Domestic Medical Devices “Kill” Imports

Medical devices: rapid growth is expected, and there is huge room for import substitution. From the perspective of industry, the scale of China's medical device market has exceeded 300billion, which is the second largest market in the world. However, China's device consumption accounts for only 17% of the overall pharmaceutical market, which is only 40% of that of developed countries. With the aging and the improvement of medical insurance payment level, it is expected that there will be at least 5% of the share to improve in the next five years, corresponding to the market expansion of more than 300billion.

At the micro level, Chinese device manufacturers are "small and scattered". More than 90% of them are small and medium-sized enterprises with a scale of less than 20million yuan. Medium and high-end medical devices still rely on imports. Domestic enterprises mainly undertake relatively low value-added links in the industrial chain, and there is a huge space for import substitution.

Policies continue to catalyze and dividends continue to be released. The premise of import substitution is the technological breakthrough of domestic equipment, and the core catalyst is the strong ice breaking of the policy side from top to bottom.

In recent years, by encouraging innovation, accelerating evaluation, medical anti-corruption and supporting the purchase and use of domestic equipment, China has improved the innovative manufacturing level of domestic brands on the one hand, and provided access opportunities for domestic equipment through pattern remodeling, and cost-effective domestic equipment ushered in the spring of development.

"Space + technology + mode" three-dimensional search for import substitution opportunities

IVD field: chemiluminescence has the most import substitution value. Chemiluminescence has higher sensitivity and automation, and the technology trend of replacing enzyme-linked immunosorbent assay is obvious.

Foreign brands in the domestic market have accounted for 90% to 95% of the share by virtue of technology and service advantages. Antu biology, new industry, Mike biology, Mindray medical and other leaders have achieved technological breakthroughs in the field of instruments and reagents and are more cost-effective. "Technology upgrading" is superimposed on "import substitution". It is conservatively estimated that the chemiluminescence market of domestic brands will maintain a compound growth rate of 32.95% in the next five years, with rapid expansion and substitution.

Medical imaging: Dr (digital X-ray machine) ushers in new development opportunities. The domestic medical imaging market has been highly monopolized by foreign capital for a long time. "GPS" has a total share of 83.3%, 85.7% and 69.4% in domestic CT, MRI and ultrasound respectively.

With the increasing demand for equipment procurement in the grass-roots market and private hospitals, as well as the increasing pressure on anti-corruption and cost control in tertiary hospitals, domestic high-end Dr ushered in an opportunity to replace it.

At present, Wandong Medical has achieved independent research and development of the core components of the total image chain, and actively tested the models of telemedicine and independent image center. It is expected that the domestic Dr market will maintain a growth rate of 10% - 15% in the future, becoming the fastest-growing and largest product line in the field of radiological imaging.

Cardiovascular and surgical instruments: pacemakers and endoscopic staplers will be imported soon. The implantation volume of pacemakers per million people in China is less than 5% of that in developed countries, and the market demand is subject to the price and affordability, which have not yet been effectively released. At present, the domestic dual chamber pacemakers of Lepu medical have been successfully launched, the pacemakers of minimally invasive and SOLIN have been approved, and the products of Xianjian and Medtronic are also about to be launched. The domestic pacemaker industry is expected to replicate the import substitution of coronary stents.

Staplers are the largest category of surgical instruments. Among them, endoscopic staplers have formed a competitive pattern of "foreign capital dominated and domestic capital supplemented" due to high technical requirements. At present, enterprises represented by Ningbo Bingkun, a subsidiary of Lepu, have quickly opened import substitution after technological breakthrough.

Hemodialysis: the next blue ocean of chronic diseases, the layout of chain hemodialysis centers is accelerated. There are about 2million patients with end-stage renal disease in China, but the penetration rate of hemodialysis is only 15%. With the promotion of medical insurance for serious diseases and the acceleration of the construction of hemodialysis centers, 100 billion market demand is expected to be released.

At present, dialyzers and dialysis machines with high technical barriers are still dominated by foreign capital. Domestic brands of hemodialysis powder and dialysis concentrate have accounted for more than 90%, and domestic enterprises of dialysis pipelines have accounted for nearly 50%. They are in the process of import substitution. At present, baolaite and other enterprises with strong resource synergy have built the whole industry chain mode of "equipment + consumables + channels + services" for hemodialysis. Devices and services are coordinated with each other to accelerate the realization of market demand.

Medical DevicesMedical Devices


Post time: Aug-03-2022