Source: excerpt from "qualitative change on the eve of - 2017 China Health and Medical Industry Investment White Paper"
2011-2016 China's medical technology and medical equipment industry, the average annual compound growth rate of up to 20.7%, much higher than the global average of about 3% compound annual growth rate. In 2016, the size of the medical technology and medical device market in China was about RMB370 billion, an increase of RMB62 billion or RMB20.1% from RMB308 billion in 2015. Is expected in 2019 the size of the market will reach about 600 billion.
Medical technology and medical device market
We observe that national policies have an important guiding role in the future of medical technology and medical device markets. October 2016 issued a "notice on the priority of medical equipment approval procedures" clear the rare diseases, malignant tumors and other six categories of medical equipment priority approval process, in recent years to support the localization of medical devices on the basis of further support domestic equipment market The rapid development. At the same time, in the official two-vote system after the official announcement, issued in April 2016, "deepening the medical and health system reform 2016 key tasks" proposed to promote high-value medical supplies centralized procurement and online public transactions, equipment, Has been
In addition to policy factors, the gradual aging of the population and the increase in attendance, have increased the per capita medical expenses. China's population ratio over the age of 65 increased year by year, 2015, the total population of 10.5%, into the population aging society. In the same year the country's total number of clinics reached 7.7 billion, an increase of about 30% from the 5.8 billion in 2010, with an average of six visits per person per year. As a result, the growth in demand for medical care will keep the medical device industry strong growth momentum.
China's medical technology and medical device market will show the following important trends in 2017
1. Full implementation of the two-vote system to promote channel change
2017 two-vote system from last year's pilot to full implementation, large enterprises will sink the channel, small and medium-sized agents will be eliminated a number of mergers and acquisitions, a number of restructuring. Under this trend, the industry will be the birth of three major trends: horizontal acquisition, vertical extension and transformation.
In the horizontal acquisition, capital abundant, strong, wide-ranging large-scale commercial companies, will continue to merge and integrate regional channels, and channel to build a supply chain integration program providers, performance will usher in the outbreak.
Vertical extension can be divided into three types: First, the downstream channels of production-oriented enterprises, that is, large enterprises to buy dealers, such as the United States and Hong acquisition of Heaven, Antu acquisition of Shengshi Junhui; Second, the upstream self- Circulation of enterprises to acquire upstream technology, such as the circulation of Runda medical acquisition POCT high-tech barriers product line; third is the downstream business services, that is, circulation enterprises to extend the terminal services, such as Dean diagnosis continue to actively layout terminal third party laboratory. Longitudinal extension allows companies to have more discourse on the upstream and downstream, thereby enhancing corporate profitability through synergies.
Transformation refers to the transformation of business models between medical device production enterprises and channel companies, such as part of the equipment dealers in the two-vote system, increase and increase the size of the transformation of large-scale transformation of CSO; part of the equipment agent business in the above context or Will transform the distribution business.
In short, the channel mergers and acquisitions, extension, and transformation will make the channel link gradually to focus, which is the trend of the two votes under the channel integration of the future way out.
2. Classification of medical equipment to bring the opportunity
In 2017, the classification of treatment reform will continue in depth, and across the country in full swing. Although the concept of the patient side will not change rapidly, but the "Spring River Plumbing Duck Prophecy", the classification of medical treatment will bring the allocation of medical resources to the grassroots level. And China's high-end medical equipment market is dominated by foreign companies monopoly situation, the vast grass-roots medical market, has been a domestic brand vertical and horse ride the battlefield, and from the policy point of view, the state also encourages and support the use of primary health care unit of domestic medical equipment With equipment. We expect the policy with the tilt and focus on capital investment, domestic excellent brand of equipment, whether there is a channel of the product brand or technically unique in the rising star, in the grassroots area will usher in the outbreak.
Which, on the one hand, the upgrading of existing facilities at the grassroots level, on the other hand is to meet the growing demand for primary health care, but easy to operate the opportunity. We will focus on inspection and diagnosis equipment (especially POCT and fast check equipment, etc.), chronic diseases related household equipment, medical rehabilitation equipment, follow-up equipment, follow-up equipment, ultrasound and other security equipment and other basic equipment.
3. Third-party equipment based on equipment is in the ascendant
With the deepening of health care reform and the continuous exploration of various emerging models, we believe that more and more institutions and companies will realize: for the hospital, and the hospital win-win "mutually beneficial model" , Robbed the hospital business "subversion model" more in line with the current medical business environment, under which all kinds of third-party equipment based on equipment will be promising, all kinds of "Internet +" thinking and model will be integrated into these services The
October 2016, the State Health Commission issued the "Medical Laboratory Laboratory standards and management practices (Trial) notice", a clear medical laboratory is a separate set of medical institutions, an independent legal entity, independent bear the corresponding legal responsibility, By the provincial health and family planning administrative departments set up approval. And then in January 2017 issued by the State Health Commission, "on the medical imaging diagnostic center and other independent medical institutions to set the basic standards and management norms Interpretation" clear medical imaging, testing, blood purification, pathological center as an independent medical institutions is imperative.
From the Office of the Commission on the third party diagnosis, imaging and pathology of the document support, as well as large medical enterprises in this area of the layout and mergers and acquisitions can be seen, based on medical equipment and equipment, third-party diagnosis, imaging, pathology, Maintenance, equipment packaging and other emerging intensive service model will effectively promote the development of the medical industry. As these areas are also capital-intensive industries, I believe there will be a lot of investment and mergers and acquisitions occurred.
We see in the field of third-party inspection, leading enterprises will soon be listed on the gold field test, rising star such as thousands of wheat medicine, Beijing and Hopewell also continue to get the support of the rapid development of capital; in the field of third-party imaging, , A good doctor, listed companies Guangyu Group, also actively layout the field; disinfection areas, the old Ken medical and Sinopharm Holdings is actively layout of the third party disinfection supply chain; and third-party maintenance of enterprises such as Kunya medical, Landing new board with access to capital investment.
We also observed that, such as third-party testing, third-party images and other diagnostic-related third-party institutions, not only to the hospital to provide services, but also for the vast consumer market, such as a good early screening, physical examination and other product services, Will break through the hospital market, creating a trillion level of health care market, such as with large data, artificial intelligence and other "Internet +" combination, or with new drug research and other docking, there will be immeasurable outbreak potential.