echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Medical News > Medical World News > Siemens returns to the field of radiotherapy, where medical experts, Philips and domestic radiotherapy equipment manufacturers are sitting on their backs.

    Siemens returns to the field of radiotherapy, where medical experts, Philips and domestic radiotherapy equipment manufacturers are sitting on their backs.

    • Last Update: 2020-09-11
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    Recently, Siemens Medical and Valian Medical Systems announced that the two sides have signed an agreement, Siemens Medical will be $177.50 per share in cash to buy all shares of Valian Medical Systems, equivalent to a total purchase price of about $16.4 billion, more than 100 billion yuan.
    is the biggest acquisition in the medical device sector so far this year.
    the question is, can the merger succeed in the end? Who can benefit? In what form will the merger be marketed after its success? Is Philips going to buy Merida? How will the pattern of radiotherapy change? All these questions need to be answered with a question mark.
    't necessarily the moment, the news of Siemens Medical's acquisition of Valian has been rite of flurry and seems to be a nail in the coffin.
    " is not, both are listed companies, mergers and acquisitions between listed companies can not be said to be a slate on the board, now is only the two sides to release official news.
    the board of directors will not necessarily pass 100%, there has been a purchase of mergers and acquisitions ushered in a stock price surge, and then a few days later announced the history of the failure of mergers and acquisitions, " said one industry insider.
    also learned from Siemens Medical's official calibre that Siemens Medical's acquisition of Valian is expected to be completed in the first half of 2021, subject to approval from Valian shareholders and regulators, and to meet other agreed terms of acquisition.
    also said Siemens Medical's acquisition of large equipment companies had been less successful.
    In the economic sphere, mergers and acquisitions are often used to eliminate competitors and capture their markets, which is a very risky thing in itself, and will encounter a lot of uncertainty, coupled with Siemens Medical as a German company, its working style is more rigid, clearly more efficient working methods, but they are not easy to change their thinking.
    but once the integration is successful, it is really a strong union, the above-mentioned industry with "frightening" to describe.
    , the world's leading radiotherapy giant, was one of the first three companies to enter Silicon Valley and one of the best-performing companies of its kind on NASDAQ.
    it has installed more than 8,000 radiation therapy systems worldwide, accounting for more than 50% of the global radiotherapy market share, and its medical linear accelerators are a weapon against a variety of tumors and a mainstream technology in the clinical application of chemotherapy.
    2019, Valian's operating income was $3.225 billion, well ahead of the $1,559 million in the second-largest medical unit in the radiotherapy market.
    acquisition also helps Siemens Medical to take the lead in the "GPS" competitive landscape.
    Siemens Medical and Valian revenue added up to more than $20 billion on a 2019 revenue basis, up from GE Healthcare's $19,942 million in revenue; Valian's revenue was $1,623 million, while Siemens' revenue was $8,562 million, added up to $10,185 million, surpassing GE Healthcare's $8,626 million.
    as Bernd Montag, global chief executive of Siemens Healthcare, puts it: "The strong union of two industry-leading companies has enabled us to make two leaps in one step: to drive the company's cancer business on the one hand, and to increase the company's overall influence in the healthcare industry on the other."
    " cancer treatment market was initially divided into surgical treatment, radiation therapy and drug therapy.
    about 70 percent of these cancer patients need radiation therapy during treatment, and about 40 percent of cancers can be cured with radiotherapy.
    the role and status of radiation therapy in tumor therapy has become increasingly prominent, has become one of the main means to treat malignant tumors.
    "Daxizi return" and "can't sit still" medical koda and Philips in fact, this Siemens Medical acquisition of Warian, is not the beginning of Siemens Medical into the field of radiotherapy, but the original business to regain.
    shanghai proton heavy ion hospital that more than one billion levels of "out-of-print" proton heavy ion all-in-one machine from Siemens.
    until 2012, Siemens still had a "radiotherapy division", with Valian, Medical University and the global cancer radiotherapy equipment "three countries kill."
    , however, just as the European debt crisis erupted in 2010, Siemens was in a business crisis and considering giving up its proton heavy ion business.
    2011, contracts were suspended at treatment centres in Heidelberg (HIT) and Madelein (MIT) in Germany.
    after completing the machine delivery of the Shanghai Proton Heavy Ion Hospital, Siemens officially announced in 2012 the dissolution of the Radiotherapy Division, which was staffed by some of its personnel who went to Medical University and partly to United Pictures Medical.
    years later, the dissolution of Siemens' radiotherapy division also made room for the development of two other Wallian and Medical Dada "Three Kills", which were left to kill.
    , for the radiotherapy market, Siemens can not put down.
    A year after Siemens separated health care business Healthineers from the group in 2016, Ralph Thomas, then Siemens' chief financial officer, revealed that Siemens Healthers would reverse its bid for a listed competitor as an alternative to listing the business, when Thomas did not disclose Siemens' specific options.
    but a subsequent source close to the matter said it was Mr. Varian.
    , however, Siemens was not in a hurry to act.
    2018, Siemens formally split its healthcare division, established Siemens Healthcare and successfully listed on the Frankfurt Stock Exchange.
    two years later, Siemens Medical took advantage of the low price of the outbreak to really buy Valian, "kill back" the radiotherapy market.
    industry insiders said: "Old Siemens accelerator is quite strong, 'Big Xizi' is finally back."
    " and this "return", "sitting difficult" must be radiotherapy equipment "second" medical staff and Philips.
    after all, after Siemens Medical's acquisition of Warrian, there is a good chance that, with God's help, it will crowd out the market space for Medicaida and Philips.
    , there has been speculation in the industry whether Philips will buy a medical company with deep roots in itself.
    2017, Philips and Merida negotiated a merger, but it ended in failure.
    Siemens and Philips have some balance in market capitalisation, culture, market, technology, and are both European companies.
    10 years, Philips, a centenny company, has lost many areas, including lighting and home appliances.
    globally, Siemens' acquisition is likely to promote further acquisitions and consolidation of several other equipment manufacturers, which should be a major trend.
    the next big battleground: if Philips buys Medicaid, Siemens Medical will succeed in completing its acquisition of Warrian, catching and killing, and is invincible.
    especially in the Chinese market.
    Valian is a monopoly in the U.S. in terms of the two major radiotherapy giants, Valian and Medi-San, but Thea is the number one radiotherapy market in China, and in other regions, it's evenly divided.
    Among them, China's radiotherapy market has great potential, china's tumor population is the largest in the world, there is a large expandable market space, maintain double-digit growth, is Warian and Medical University, or Siemens Medical and Philips against a major battleground.
    , there were about 18.1 million new cancer cases and 9.6 million cancer deaths worldwide in 2018, including 3.804 million new cases and 2.296 million deaths in China.
    means that for every 100 new cancer patients worldwide, Chinese 21 new cancer patients, the highest proportion of any country.
    the domestic radiotherapy market grew from 5.83 billion yuan in 2008 to 26.9 billion yuan in 2015, with a compound annual growth rate of 24.42%, according to Frost and Sullivan market research data.
    in China's top 50 hospital radiotherapy equipment, medical market share of more than 50%.
    in China's high-end brachytherapy system, medical market share of more than 70%.
    in 1982, medical science first entered China, and a year later, Warian was reluctant to fall behind to join the Chinese battlefield.
    but after a few sets of "combination punches" in China, the medical department reached a deal for the chinese market leader.
    For example, to strengthen localization, in 2006, MedicalDa acquired the Beijing Medical Device Research Institute, a comprehensive research institute focused on research and production of medical linear accelerators, in an 80% controlled manner to complement the localized low-end market.
    , the implementation of local sales ideas.
    Siemens official announced the acquisition of Warrian, will it increase the Chinese market "capture land"? According to an industry source, Siemens Medical's sales and marketing team in the industry is a "semi-divine" existence, coupled with the past in the field of imaging equipment accumulated in the market laying capacity is far from the radiotherapy market can be compared, Warian equipment sales will not be a problem.
    if Siemens Medical United Wallian were to play in the Chinese radiotherapy market, medical science would not be any better.
    But The current situation that Both Wallian and MedicalDa are facing is that China's radiotherapy market has a large capacity, but the current proportion of radiotherapy is still lower than that of developed countries, China's cancer treatment means show high drug proportion, low surgical rate, low radiotherapy rate characteristics, market education has a long way to go.
    In the view of Lian heart medical CEO Zhang Wei, there are three main reasons, one is that China has formed clinical habits and patient awareness, cancer patients are more likely to choose surgery and drug treatment;
    according to the 2019 Chinese mainland Radiotherapy Personnel and Equipment Basics Survey" shows that in 2018, the country's radiotherapy equipment per million people (1.5 units) is still lower than the WHO requirements (2 to 4 units), but also lower than the developed countries and regions per million people 6 to 12 units of the level.
    wave from the entire Chinese radiotherapy market, large-scale radiotherapy equipment 90% rely on imports.
    , high-energy accelerators for radiotherapy are almost monopolized by two foreign medical device giants, Valian and Medical.
    the same time, China's radiotherapy equipment market also exists a number of domestic radiotherapy equipment "back wave."
    but in terms of strength, these "back waves" are hard to beat on the beach.
    According to Zhang Wei, domestic equipment is mainly linear accelerator-based manufacturers, can be sold by manufacturers including Xinhua Medical, Dongso soft group, United Pictures Medical, Chengdu Linico, Wuxi Haiming, Guangdong Zhongn energy.
    , there is a certain scale of sales is Xinhua Medical, Dongso soft group, United Shadow Medical.
    are still in research and development, the next two years are expected to form sales of manufacturers are Suzhou Leitai, Xi'an University, China Nuclear Anrui.
    addition to linear accelerators, radiotherapy's main products include X-knife, gamma knife, proton heavy ion knife, etc.
    But overall, gamma knife can only be used as a supplement, replacement of "radiation source" cost is too high, and there are clunky equipment, adaptive problems, proton heavy ion treatment effect is the best, the cost ratio is not high, the cost is 10 times higher than other methods, but the therapeutic effect is only 10% higher.
    , linear accelerators are still the number one market share product.
    In terms of volume, according to industry sources, among these domestic manufacturers, Xinhua Medical can sell thirty or fifty units a year, and United Pictures Medical can sell about 10 units, because only last year was approved for listing, and the price is too expensive.
    some small businesses are even three or five years old.
    zhangxuan revealed that in the field of large-scale domestic medical equipment, radiotherapy equipment is the only area after China's accession to the WTO, the rate of localization has decreased rather than increased.
    until 2020, domestic substitution is not obvious, domestic systems and brands are far from competitive.
    from the current point of view, domestic radiotherapy equipment manufacturers in the range of millions of low-end market PK, aimed at the primary health care market.
    However, domestic replacement is urgent, Wallian set up more than 70 years, Wallian also set up nearly 50 years, and domestic manufacturers, Xinhua Medical radiotherapy products are only about 20 years, the film is now less than two years.
    " equipment is on the one hand, 10 years or 20 years, China and the United States and other hardware gap can be expected to narrow, but also to a large extent to solve the problem of more expensive imported equipment", some industry people believe that "for the current low proportion of radiation therapy in China, the biggest problem of domestic radiotherapy should be 'software' problem, lack of radiotherapy talent, Chinese universities to open radiology physics major no more than 5, which greatly limits the development of radiation therapy in China."
    , according to the 2019 Chinese mainland Basics of Radiotherapy Personnel and Equipment Survey, the overall number of radiotherapy practitioners in 2018 was 2.3% lower than in 2017.
    industry has suggested that AI is a good tool to effectively solve the shortage of talent, conducive to clinical improvement.
    , domestic medical AI and foreign equipment manufacturers have some cooperation, but the integration of products is low.
    from the global strategy of Valian, Medical University and Ancory, they are all choosing to take the self-study route.
    in domestic equipment companies, there are now some cases, which may also be for domestic radiotherapy equipment to add some competitiveness.
    , however, after Siemens Medical completed its acquisition of Valian, china's radiotherapy market will eventually be reshuffled, leaving little time for Medicaida and domestic device companies.
    .
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.