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Analysis of six innovative Medical Devices Industry in 2019



According to CFDA data, the medical device market in 2018 continued its high growth trend in recent years. In 2011-2018, China's medical technology and medical device industry income grew at a combined annual average rate of 20.7%. It is much higher than the global average compound growth rate of about 3% per year. The scale of China's medical device market in 2018 is about 370 billion yuan. Market size is expected to reach around 600 billion in 2019. Imaging equipment, in vitro diagnosis and high value consumables occupy the first three parts of the medical device market, accounting for 1916% and 13.3% of the total market size respectively. Policy, market and new technology are still the three main factors that affect the development of China's medical device industry. In 2018, six major innovative investment directions of medical devices: imaging equipment sub-industry, in vitro diagnosis sub-industry, cardio-cerebrovascular sub-industry, Tumor-related instruments sub-industry, surgery, orthopedic equipment sub-industry, medical artificial intelligence sub-industry.

Image equipment sub-industry

<2018-2020 Report on Investment of China's Big Health Industry> Data:

Medical imaging industry is mainly divided into upstream medical imaging equipment and supplies and downstream image diagnosis services. Medical imaging is also one of the largest segments of the world in terms of medical device size. In 2012, the global medical device market sold $349 billion, including $36.1 billion in imaging diagnostic products. With a market share of 10.3%, ranked third in the world medical device market. China is the world's fourth-largest medical imaging market, accounting for 12 percent of the world, and is expected to reach $5.5 billion by 2018.

Innovative video equipment sub-industry investment direction:

For general-purpose large equipment, such as CT, magnetic resonance, PET-CT and other areas, there are few outstanding early projects and high valuation. We prefer the image equipment in the subdivision field, especially those with unique hardware and artificial intelligence algorithms, such as breast cancer ultrasound, dental cone beam CT and so on. In addition, we master core technology and other image core components upstream enterprises are also more optimistic.

In vitro diagnostic sub-industry:

In vitro diagnostic reagents include blood, biochemistry, immunity, molecular biology, bacteria, POCT and so on. China's in vitro diagnostic reagent industry has a certain market scale and foundation, and is entering the growing period from the industrial introduction period, which has a good market prospect. According to statistics, in 2014-2015, among the $50 million medical device-related investment and acquisition cases, the proportion of in-vitro diagnostics accounted for 1 / 3.2016, and the market scale of in-vitro diagnostics in China was about 51 billion yuan. Growth is expected to remain 15-20% for the next 3-5 years, with a market size of more than 85 billion in 2020. Compared with foreign mature market, China's in vitro diagnostic reagent industry scale is relatively small. China's population accounts for more than a fifth of the world's population, but its share in the field of in vitro diagnostic reagents accounts for only four percent of the world's total. The average annual use of Chinese in vitro diagnostic products is US $1.50 per person. Developed countries use between $25 and $30 per capita. The development of in vitro diagnostic reagent industry in China is characterized by large market, but greater market potential. Therefore, in vitro diagnostic reagent is a hot piece of investment and financing in the medical device industry.

Cardio-cerebrovascular industry:

<2018-2020 Report on Investment of China's Big Health Industry> Data:

There are 290 million patients with cardiovascular diseases in China, about 3.7 million people die of cardiovascular diseases every year, accounting for 42 percent of the total deaths in China. The field of cardiovascular medical devices has been one of the largest segments in the global medical device market. With the trend of aging and the high incidence of cardiovascular and cerebrovascular diseases in China, the market demand for cardiovascular intervention instruments is huge, and the industry has a good prospect. However, there is still a huge gap between the local enterprises of cardiovascular implant medical devices in China and their European and American competitors, and most of the market is in the hands of foreign-funded enterprises. Foreign companies such as high-end intervention consumables and pacemakers, Medtronics, St. Jouda, Boston Science, and Abbott account for 80 percent of the total market share. With the accumulation of technology and R & D investment, domestic enterprises have begun to break through.

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Innovation of the investment direction of the cardiovascular and cerebrovascular sub-industry:

There are relatively many hot spots in cardiovascular implant medical devices. Stent is no longer the focus of our attention. The innovative direction of more attention is focused on transcatheter valve intervention, coronary heart disease diagnostic devices, cardiac pacemakers, drug balloon. Radiofrequency ablation devices and cardiac occluders are used in several directions.

Tumor related instrument industry:

According to the forecast of IARC, the mortality rate of malignant tumor in China will be about 10% higher than the global average in the future, and there is a huge gap between the supply and demand of the excellent methods of cancer treatment. At present, there are three core cancer treatment methods: surgery, chemotherapy, and radiotherapy. Radiotherapy is a method to inhibit and kill cancer cells by radiation irradiation. It is the adjuvant therapy for most tumors and the first choice for a few radiotherapy-sensitive tumors. More than 70% of cancer patients need radiotherapy, that is, most patients undergoing surgery and chemotherapy also need radiotherapy as an adjuvant treatment. Domestic gamma knife loading capacity is insufficient. At present, the linear accelerator is the absolute mainstream in the radiotherapy market in China, and the main producers are foreign medicine and Varian, which are expensive and have some side effects. At present, there are more than 3000 linear accelerators in China. What is different from linear accelerator is that gamma knife is mainly made in China and imported equipment is less than 10 parts, but the installation quantity of the two is far away, which shows that the potential market of gamma knife is huge.

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Innovative investment in tumor-related devices: tumor ablation equipment that has been hot for some time, including refrigeration, radio frequency, microwave and laser, etc. In the field of radiotherapy, it takes a long time to accumulate proton heavy ion technology in domestic enterprises. The enterprises of electron linear accelerators are worthy of attention, but they need to focus on the ability to develop and produce high energy machines. Gamma knife based on its own technical constraints, limited market space, is not our focus on investment direction. In addition, tumor intervention has been increasing rapidly in recent years, and new drug-loaded microspheres are worthy of attention. The consumables of microsphere delivery system may be a new market growth point in the future, but the technology is not yet fully mature.

Surgery, orthopedic instrumentation industry

< report on Investment in China's Big Health Industry from 2018 to 2020 > data: orthopaedic equipment is a subdivision of the medical device industry that cannot be ignored. From the perspective of the overall proportion of medical devices, it accounts for about 6%. In the past five years, the domestic orthopedic equipment industry maintained a compound growth of about 15.5%, which far exceeded the global growth rate of about 4.5%. The market is forecast to grow at a compound growth rate of 15% from 2015 to 2018, with a market size of 0. 21 billion. Greater growth during the subdivision area is joint and spinal instruments, can reach more than 20%. Orthopaedic instruments are also regarded as high value consumables in the medical device industry, with high technology content, high gross profit margin and huge market growth space, which attracts a large number of domestic and foreign manufacturers to enter the industry. At present, the domestic orthopedic equipment industry is still in the early stage of development, showing many, small, weak characteristics. Innovation surgery, orthopedic equipment sub-industry investment direction: in view of the huge orthopedic market growth space in China and the large, small and weak characteristics of orthopaedic enterprises, the future orthopedic plate is still a hot investment and financing sector in the medical device industry. Surgical robots are undoubtedly still one of the most important directions. However, due to the excessive pursuit of capital in recent years, the phenomenon of price deviation from value is serious, and 3D printing combined with biomaterials is also one of the most promising directions.

Medical artificial intelligence sub-industry

CFDA data: on Aug. 31, 2017, CFDA released a new version of the Classification of Medical Devices, which will come into effect on Aug. 1, 2018. The original 43 subdirectories were reduced to 22. Among them, it has added the category corresponding to artificial intelligence assistant diagnosis, which is embodied in the analysis and processing of medical image and pathological image in the catalogue. Innovation of medical artificial intelligence investment direction: medical artificial intelligence is the future direction of medical development. Compared with other industries, the application of artificial intelligence in medical industry is based on good, obvious pain points in medical industry, such as lack of high-end medical personnel, unbalanced distribution of resources, high medical costs, etc. The electronic degree of data is high, the data is centralized and the quality is high, and more application scenes can be standardized, such as medical image. Based on the current observation, the artificial intelligence of medical imaging and medical virtual assistant will be relatively mature.

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