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    Home > Medical News > Medical World News > The gross profit margin is nearly 90%. How long can this medical equipment track last?

    The gross profit margin is nearly 90%. How long can this medical equipment track last?

    • Last Update: 2022-05-01
    • Source: Internet
    • Author: User
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    Since its listing, the gross profit margin of Zhenghai Bio has always remained above 90%
    .
    In 2021, this figure is lower than 90% for the first time, but many competitors in the medical device track are still unable to catch up
    .
    However, the main products are already within the scope of centralized procurement, and the future performance of the company needs to be observed
    .
    Two products support 85% of revenue On March 1, Zhenghai Biological announced its 2021 annual report.
    During the reporting period, the company achieved revenue of 400 million yuan, a year-on-year increase of 36.
    45%, and net profit attributable to the parent was 169 million yuan, a year-on-year increase.
    42.
    44%
    .
    Zhenghai Bio is mainly engaged in the research and development, production and sales of bio-renewable materials.
    Its performance mainly relies on oral prosthetic membranes and absorbable dural (spinal) membrane patches, which account for over 85% of its revenue
    .
    Specifically, the oral repair film achieved sales revenue of 192 million yuan, a year-on-year increase of 49.
    04%, mainly due to the gradual improvement of the domestic new crown epidemic situation and the full opening of dental terminals such as private dental clinics and public private hospitals
    .
    In 2021, oral repair film will account for 48% of revenue, and gross profit margin will be as high as 90.
    39%
    .
    The absorbable dural (spinal) membrane patch achieved sales revenue of 158 million yuan, a year-on-year increase of 14.
    71%
    .
    Products account for 39% of revenue, and gross profit margin is as high as 92.
    58%
    .
    During the reporting period, the overall gross profit margin of Zhenghai Biomedical Equipment was 89.
    11%.
    Although this figure has far exceeded that of many medical equipment companies, compared with itself, it is still 3.
    12% lower than the same period of the previous year
    .
    In fact, the company's gross margins have remained above 90% since going public
    .
    In August last year, Zhenghai Biotech disclosed in an investor relations form that the decline in gross profit margin was mainly related to the full operation of the company’s new plant.
    The increase in asset depreciation and amortization of expenses increased the cost of product allocation, resulting in a slight decrease in gross profit margin.

    .
    The pillar products are included in the centralized procurement The absorbable dural (spinal) membrane patch, which is one of the main performance sources of Zhenghai Bio, has been included in the centralized procurement coverage
    .
    Last year, the Hebei Provincial Medical Insurance Bureau carried out the centralized procurement of various types of high-value consumables, and there was a very high drop in the centralized procurement of hard brain (spinal) membrane patches
    .
    It is understood that the average price of dura mater (spinal) membranes, which are mainly used for surgical repair operations, has dropped from 16,000 yuan to about 1,000 yuan, with an average decrease of 91.
    46% and a maximum decrease of 99.
    21%
    .
    In addition to Hebei, in other areas where the centralized procurement of dura (spinal) membrane patches is carried out, the prices of consumables have also been significantly reduced
    .
    In October 2020, the average decrease of artificial dura mater (spinal) in centralized procurement in Jiangsu Province was 68.
    9%, and the largest decrease was 81%
    .
    In December 2020, the average price of absorbable dural (spinal) membrane patches in Shandong centralized procurement was reduced by 83.
    32%, and the 5 selected companies were all domestic companies
    .
    In June 2021, the average decrease of dural (spinal) patch in Fujian Province was 71.
    49%
    .
    Zhenghai Biological said that as of the end of the reporting period, five provinces including Jiangsu and Shandong had carried out volume-based procurement
    .
    Its products have won bids in 5 provinces, and the bid price is at the median level among all selected brands in each province
    .
    The centralized procurement has not yet had a significant impact on the company's operating performance, and the relevant data needs to be observed for a longer period of time
    .
    In addition, the centralized collection of dental implants to be carried out this year may also have an impact on the company's business
    .
    The market generally believes that after the price reduction of centralized procurement, dental implant surgery will increase in volume
    .
    Oral repair membrane, an important product of Zhenghai Bio, is mainly used in the field of maxillofacial surgery and dental implants.
    Another type of marketed product, bone repair material, is mainly used for filling and repairing dental and jaw defects (or insufficient bone)
    .
    With the increase in clinical demand in the future, the usage and market share of oral repair membranes and bone repair materials are expected to increase
    .
    In the 100 billion market, the gross profit rate is basically above 70%.
    Bioregeneration materials mainly refer to new materials that can be used to treat, repair and replace human tissues, organs or enhance their functions, including soft tissue (skin, trachea, etc.
    ) repair materials and hard tissue (bone).
    , teeth, etc.
    ) restorative materials
    .
    The world's leading companies mainly include Johnson & Johnson, Bard, Geist and Braun, etc.
    The main domestic manufacturers include Zhenghai Biological, Guanhao Biological, Maipu Medical and Bairen Medical
    .
    The main domestic regenerative medical consumables include oral repair membrane, bone repair material, dura (spinal) membrane patch, hernia patch,
    etc.
    At present, the development of dura mater (spinal) patch technology in China is relatively mature
    .
    According to CICC data, according to the sales volume, the market share of domestic animal-derived dura mater (spinal) membrane products has reached 80% in 2019, and localization has basically been achieved
    .
    Among them, Tianxinfu accounted for 37%, Guanhao Biotechnology accounted for 20%, Zhenghai Biotechnology accounted for 15%, and Bairen Medical accounted for 7%
    .
    Except for the dura (spinal) membrane patch, most of the regenerative medical consumables have a relatively low degree of localization
    .
    In fact, globally, regenerative medicine is still in its infancy
    .
    According to the analysis of market research company Verified Market Research, the global regenerative medicine market size in 2020 is 27.
    7 billion US dollars
    .
    According to Frost Sullivan data, in 2017, the market size of bio-renewable materials in China reached 1.
    32 billion yuan, with a compound annual growth rate of 72.
    2% in the past five years
    .
    In the next five years, the market size of China's recycled materials will maintain a rapid growth rate of 16.
    8%, and the market size is expected to rise to 3.
    16 billion yuan in 2022
    .
    Guanhao Biology, which competes with Zhenghai Biology on the same stage, announced its performance forecast in January this year.
    During the reporting period, the company's profit was about 70 million yuan to 79 million yuan, an increase of about 50% to 70% over the same period last year
    .
    The company's 2021 semi-annual report shows that the meningeal product Guanlang increased by 133.
    97% compared with the same period last year; the thoracic general surgery repair membrane increased by 59.
    63% compared with the same period last year; the sterile biological wound protective film increased by 105.
    72% compared with the same period last year; breast patch increased compared with the same period last year 164.
    66%
    .
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