Technological innovation is the only way out for medical devices in China

Due to the aging of China, rising living standards, sustained investment from the government, and other factors, medical devices are the industries with the longest growth in the medium and long term. For example, China's health care costs account for about 5% of GDP, far below the US's 16%. From the end of 2007 to the end of 2010, the proportion of pharmaceutical stocks in the total market value of A-shares was 1.56%, 2.48%, 2.78%, and 4.41%, respectively. The proportion of pharmaceutical stocks on October 14, 2011 was 4.02%. It is expected that the ratio will increase steadily and slowly.

In the medium to long term, we are still optimistic about the development prospects of the medical industry. First of all, the factors that have driven the development of the industry have not changed, such as an aging population, an increasing proportion of chronically ill patients, and an increase in the ability of the people to pay. Secondly, after the implementation of the new medical reform, the government has invested nearly RMB 1 trillion in funds, and the coverage and level of medical insurance have increased rapidly. These are good for the long-term development of the pharmaceutical industry. By borrowing experience from overseas experience in the market share of various industries, the share of pharmaceutical stocks in the stock market is expected to continue to grow in the medium and long term.

After nearly 30 years of development, the domestic medical device industry has achieved initial results, but it still has a long way to go compared with world-class companies. The development of domestic medical device industry in various subdivided areas is not the same. For example, domestic enterprises in the field of medical consumables and large and medium-sized medical equipment are relatively mature and have strong competitiveness in the international market; in areas such as cardiovascular stents and trauma orthopaedics, Domestic companies have dominated the domestic market, but overseas markets have only just begun; there are still some areas in the initial stage, such as pacemakers and cochlear implants.

The way out of the domestic medical device industry is first of all technological innovation, which gradually grabs the high-end market from the hands of multinational companies. In addition, it is necessary to take the road of globalization relying on the local market. After all, the overseas market is huge.

China's medical device industry is still in a period of growth, and it is still in the process of import substitution. Compared with developed countries, there is still a very large space for growth in the industry, which is mainly reflected in: First, increasing investment in health care in the country and increasing Under the background of the growing demand for residents' health, the demand for the medical device industry grows very fast; secondly, we have a large gap between the technology level and overseas companies, and there is a large space for import substitution; finally, the government’s policy support for medical devices in terms of medical insurance payment is biased. Weak, overseas, medical devices can enter the scope of medical insurance, it is expected that the state will increase the intensity of compensation in this regard.