Medical device industry: potential is endless to break technical barriers

The Lepu Medical , which was launched in 2009, has a return on investment of 151 times in the mid-ship investment that began to lurk in March 2004. Behind this classic case is the tendency of the medical device industry to win VC and PE due to its stable high growth.

Ouyang Xiangyu, managing director and partner of Junlian Capital, said in an interview with reporters that at present, the growth of domestic medical and health industry, just like the Internet 20 years ago, the visionary PE institutions should seize the rapid growth of this industry. The process of finding a future may grow into a good seedling company like Huawei in the world to share the fruits of industrial growth.

The logic of investing in the medical device industry will soon be verified. First, under the impetus of the national new medical reform policy, the rigid demand of China's primary medical market has been released. Secondly, under the premise of continuously improving independent innovation and technology level, medical device enterprises are expected to achieve import substitution. Ouyang Xiangyu said that at present, the sales ratio of medical devices and drugs in developed countries is about 1:1, while China is only 1:10. The medical device market with broad demand and certain technical barriers has great potential. In the early stages of investment, development is faster.

Policy promotion, medical equipment concentrated on "early"

In the first three quarters of this year, 18 medical device companies in the A-share market achieved a total operating revenue of 8.432 billion yuan, a year-on-year increase of 16.89%; a total net profit of 3.018 billion yuan, an increase of 10.25% year-on-year. Two.

The financial indicators for the third quarter of the single quarter show that since the outbreak of the international financial crisis in 2008, the medical device sector has been the only sector in the six sub-sectors of pharmaceutical biology that has not experienced a decline in performance.

While the industry is growing steadily, the endogenous growth of China's medical device industry is gradually increasing due to policy factors.

The "Health China 2020 Strategy Research Report" issued by the Ministry of Health on August 17 clearly stated that in the next 8 years, the major projects of the seven major medical systems involving a total amount of 400 billion yuan will be launched. For independent research and development of pharmaceuticals, medical consumables, medical equipment and large-scale medical equipment, the Ministry of Health has launched a special project for the national health industry of 10 billion yuan. Among them, the Ministry of Health plans to set up 210 project funds, of which 100 projects will fund the research and development of medical consumables, 20 million yuan per project, 100 projects funded medical device research and development, each project 50 million yuan, and 10 projects for funding The development of large-scale medical equipment, each project about 300 million yuan.

At the same time, the deepening of the new medical reform is also the underlying reason for pushing up the performance of the medical device sector. Grassroots medical institutions are becoming the main consumers of the medical device market in China, and the demand for conventional medical devices in rural areas will also be released quickly. According to the planning opinion of the Ministry of Science and Technology in 2012, the output value of new medical equipment in China during the “Twelfth Five-Year Plan” period is expected to reach 200 billion yuan.

In addition, compared with the global per capita medical device consumption level, domestic per capita consumption has 5 to 6 times improvement. Demand for consumption upgrades and product upgrades will lead to increased investment in medical devices.

Ouyang Xiangyu said that the industry generally divides the medical and health industry into three major blocks. One is medical equipment (equipment) and medical diagnosis, one is medical research and development, and the other is medical services, including specialist hospitals, medical IT service companies such as B2B and B2C, and mobile Internet medical service companies. “For the three major blocks, we are all concerned.” However, from the existing investment cases, the number of investment projects in the first category is relatively large, the investment phase is basically early, and the single amount is relatively small; and the third type of investment projects It is mainly concentrated in the growth period or even later, and the amount of a single investment is relatively large.

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