1. Accelerated substitution of imported equipment by domestic equipment

A few days ago, eNet Research Institute and Internet Weekly jointly released the "2020 Top 100 Chinese Medical Device Industry" list.

In the first half of 2020, the global outbreak of the new crown epidemic has greatly increased the demand for monitors, ventilators, infusion pumps, and medical imaging services such as portable color Doppler ultrasound and mobile DR (mobile digital X-ray machines). Orders for medical devices such as protective equipment, nucleic acid detection kits, and ECMO surged, sales prices rose sharply, and some medical devices continued to be out of stock.

The sudden outbreak of the epidemic is a "big test" for medical device companies, and it has also brought unprecedented opportunities for the development of China's medical device industry.

After the test of this round of epidemic, the brand influence and awareness of Chinese medical device companies in the domestic and international markets have been greatly improved, and they have achieved breakthroughs in customer bases in many high-end markets, bringing more opportunities for the company's future growth. many opportunities.

In the domestic market, the epidemic period is mainly concentrated in the middle and late January to the end of February. When the epidemic is in urgent need, major companies have increased their product production capacity to meet the anti-epidemic demand to the greatest extent. After this battle, top hospitals have gained a deeper understanding of Chinese medical device companies, improved brand recognition, and shortened the marketing cycle.

After the epidemic, domestic brands will have more opportunities to compete on the same stage if they have core technology and the quality of imported equipment is the same, so that high-quality, high-performance domestic equipment can truly enter major hospitals, and further accelerate import substitution.

The international market has been at the peak of the epidemic since the beginning of March. From the beginning, developed countries in Europe and the United States have gradually spread to developing countries. The production capacity and delivery of related anti-epidemic equipment began to tilt towards the international market after March. In the emergency procurement triggered by the epidemic, major enterprises have greatly expanded their overseas high-end customer base.

At the same time, the epidemic has brought a greater blow to the economies of developing countries. After the epidemic, the demand for cost-effective attributes in these markets will become stronger, and the competitiveness of domestic enterprises will be further reflected.

2. my country has become the second largest market in the world

With the natural growth of the global population and the aging of the population, the demand for the healthcare industry will continue to increase. In addition, the economic growth of developing countries has improved the consumption capacity. In the long run, the medical device market will continue to maintain a growth trend globally.

According to estimates by EvaluateMedTech, the global medical device market in 2018 will be approximately US$427.8 billion, and global medical device sales will increase by an average of 5.6% from 2017 to 2024, reaching US$594.5 billion in 2024.

my country's medical device industry is growing rapidly and has become the second largest market in the world. According to the "Medical Device Blue Book: China Medical Device Industry Development Report (2019)" jointly issued by China Drug Administration Research Association and Social Science Literature Publishing House, the main operating income of my country's medical device manufacturers in 2018 was about 638 billion yuan;

From 2021 to 2022, the main operating income of medical device manufacturers is expected to exceed one trillion yuan. The compound growth rate of my country's medical device industry will continue to remain at around 15%. The Chinese market will maintain a high-speed expansion trend in the future.

Although my country's medical device industry has maintained a good momentum of rapid and healthy development, the product structure has been further optimized, and innovative products have accelerated. But on the whole, my country's medical device production and operation enterprises present a "small and scattered" situation.

According to the "Medical Device Blue Book: China's Medical Device Industry Development Report (2019)", more than 90% of my country's medical device manufacturers are small and medium-sized enterprises, with an average annual main income of 30 million to 40 million yuan, which is 300 million yuan compared with the domestic pharmaceutical industry enterprises. Compared with the average annual main operating income of ~400 million yuan, there is still a huge gap.

At this stage, my country's export of medical devices is still dominated by low-end products, but in recent years, the structure has tended to be optimized, the proportion of high value-added products has continued to increase, and the cost performance of medical consumables has increased significantly, while imported medical devices are still high-end. Product-based.

With the improvement of technology and expansion of Chinese medical device enterprises, the export of high-tech and high value-added products will gradually expand, and Chinese medical device enterprises will assume a more important role in the global medical device trade.

The medical device industry is closely related to life and health. The demand of the medical device industry is rigid. The industry has a strong ability to resist risks, so the cyclical characteristics of the industry are not obvious. One of the supply characteristics of medical device products is small batches and multiple varieties to meet the diverse needs of different levels of medical institutions and different types of medical scenarios.

3. Comprehensive expansion of the domestic medical device industry

With the normalization of epidemic prevention and control, the state has successively issued relevant policies to improve my country's epidemic prevention and control and public health emergency system, accelerate the improvement of strategic scientific and technological strength and strategic reserve capacity in the field of epidemic prevention and control and public health, and accelerate the replenishment of high-end medical equipment in my country Short board, accelerate key core technology research, break through the bottleneck of technical equipment, and realize independent control of high-end medical equipment.

The National Development and Reform Commission and the National Health and Medical Commission successively issued the "Public Health Prevention and Treatment Capacity Building Plan" and the "Notice on Improving Fever Clinics and Infection Prevention and Control in Medical Institutions", pointing out the modernization of the disease prevention and control system and the comprehensive improvement of the treatment capabilities of county-level hospitals , Improving and perfecting the urban infectious disease treatment network, transforming and upgrading major epidemic treatment bases, and promoting the transformation of public facilities for both peacetime and wartime purposes;

It is necessary to strengthen the construction of the intensive care unit (ICU), respiratory and infection departments, configure bedside monitoring systems, ventilators, extracorporeal membrane oxygenation (ECMO), polymerase chain reaction (PCR) and other equipment, and further strengthen public health care. Sanitation construction, comprehensively do a good job in making up for shortcomings, plugging loopholes, and strengths and weaknesses.

According to statistics from the Ministry of Finance, in the first half of 2020, local government bonds issued nationwide amounted to about 3.5 trillion yuan, including 2.4 trillion yuan of special bonds; To support local governments' investment in infrastructure, including new medical infrastructure.

On July 6, 2020, the National Development and Reform Commission issued a 45.66 billion yuan investment in the central budget in the health field in 2020 to support the strengthening of public health prevention, control and treatment capabilities in various regions. On July 30, 2020, the Ministry of Finance issued the "Notice on Issuing the Subsidy Fund Budget to Support the Construction of the Emergency Material Security System", focusing on improving the production and mobilization capacity of public health emergency materials, supporting state-owned and private enterprises to carry out necessary capacity backup construction and enhance emergency response The ability to change production and form a sustainable supply of medical supplies and equipment. This time, the central financial support for the construction of the emergency material guarantee system subsidy funds for the provincial budget indicators totals 30 billion yuan.

On July 23, 2020, the State Council issued the "Key Tasks for Deepening the Reform of the Medical and Health System in the Second Half of 2020", pointing out that it is necessary to promote the construction of hierarchical diagnosis and treatment and medical and health informatization, accelerate the development of "Internet + medical and health", and improve national health information for all The platform promotes the application of new generation information technology in the medical and health field, and promotes the reshaping of medical and health management and service models;

It is necessary to improve the public health emergency material support system, improve nucleic acid detection capabilities, and increase investment in research and development of vaccines, drugs, and rapid detection technologies. The promulgation of a number of policies has accelerated the expansion of my country's medical device industry, promoted the country to continue to actively support independent R&D and innovation, and accelerated the import substitution of some domestic advanced fields.