A wave of mergers and acquisitions is emerging in the medical device industry, and industry giants will be strong in the future.

As the core resource of the medical ecological supply side, the medical device industry is receiving strong support from national policies under technological changes
.
Based on this, in recent years, the development of China's medical device industry has also begun to enter the fast lane of development
.
However, it is worth noting that while China's medical device market continues to expand, a wave of mergers and acquisitions has begun to emerge in the industry
.
Statistics show that since the beginning of this year, the medical device industry has seen frequent large-scale capital transactions
.
In the first half of 2021 alone, the medical device industry has generated 33 M&A transactions, exceeding the full-year transaction volume of 2020
.
In addition, Deloitte data shows that in the first half of 2021, China's medical device M&A transactions amounted to US$1.
36 billion
.
In these acquisitions, the parties involved in mergers and acquisitions, including blue fan medical, medical Dunlop, San Xiang biological, medical three friends, diving medical
.
On the whole, the types of M&A transactions for medical device companies are very diverse
.
Among them, comparatively speaking, the mergers and acquisitions of medical devices in the cardiovascular field are very active.
For example, on October 29, MicroPort Medical announced that it would acquire 38.
33% of Argus’ shares for 372 million yuan and increase its registered capital.
After the capital increase is completed, the company will own 51% of Argus's equity and gain control of Argus
.
Public information shows that Argus was established in 2016, and its main business is the design, development and sales of intravascular optical interference tomography (OCT) solutions
.
On March 30, Blue Sail Medical also chose to invest in OCT (Optical Coherence Tomography) company Nanjing Wolfman in order to further expand the business layout of cardio-cerebrovascular medical devices and enrich the product portfolio in the field of coronary intervention
.
It is reported that OCT imaging can accurately guide PCI (percutaneous coronary intervention) surgery
.
In the past, Blue Sail Medical's products in the cardiovascular field were mainly focused on treatment.
After investing in Wolfman, it will graft Wolfman's new diagnostic technology on the existing sales platform in the cardiovascular field
.
In addition to focusing on the cardiovascular field, many companies are also trying to cross-track mergers and acquisitions
.
For example, Lepu Medical is deploying the overall dental industry.
This year, it acquired Bosimei for more than 200 million yuan to enter the invisible orthodontic track
.
In addition, it has also entered the fields of digitalization and professional 3D scanning (intraoral scanning) through mergers and acquisitions, and independently developed dental implants
.
The analysis believes that there are many reasons for the emergence of medical device mergers and acquisitions
.
The first is the emergence of a large number of medical device companies, which has intensified competition in the entire industry, and mergers and acquisitions can accelerate the competitiveness of some of them and seize high-potential market segments
.
Secondly, the medical device industry has the attributes of fragmentation and discrete manufacturing.
Not only is the difference between the various sub-fields large, but also the product technology changes rapidly.
Therefore, through mergers and acquisitions, medical device companies can accelerate the acquisition of new technologies and promote their further development.
Development
.
In addition, from a market perspective, there are obvious differences in medical device segmentation.
If it is unable to further expand its market share, fierce external competition is also accelerating the elimination of some companies
.
In the future, under the background of volume procurement and the two-invoice system, higher requirements will be placed on the capital, brand, and financing costs of enterprises.
Affected by this, the industry expects that the trend of mergers and acquisitions will further intensify, and the scale of large enterprises will further expand.
Hengqiang
.
However, it should be noted that in the context of mergers and acquisitions in medical devices, the innovation strength and innovation differentiation level of enterprises will also be increasingly tested
.
This requires domestic medical device companies not to stay in the imitation stage, to have forward-looking thinking and strategic vision, and to actively innovate
.