The supply and demand environment continues to improve, and medical device leaders hope to continue to benefit from import substitution

The National Health and Health Commission recently released the "2018-2020 large-scale medical equipment configuration plan" proposed that by the end of 2020, the national plan to configure large-scale medical equipment 22,548 units, of which 10097 new units, implemented in three years. Among them, the national master plan configuration of proton therapy tumor system is controlled within 10 units, all of which are new configurations, the national temporary planning configuration of the positive electron emission magnetic resonance imaging system (PET/MR) is 33, of which 28 are new, and the national planning configuration of surgical robots is 197 units, of which 154 are added.
China's urbanization and aging trend has been accelerating in recent years, and the demand for medical devices and equipment has also achieved rapid growth, with the size of China's medical device market reaching about RMB458.3 billion in 2017, with a compound growth rate of 24% in industrial scale over the past 10 years. On the other hand, the current development of China's medical device market is still lagging behind the pharmaceutical market, China's device / drug market size ratio is only 0.2:1, far below the global level of 0.5:1, the future space potential is huge. The agency predicts that the growth center of China's medical equipment industry will remain around 15-20% in the next five years.
From the perspective of the industry pattern, china's equipment industry as a whole presents a small scattered competitive landscape, in 16,000 equipment production enterprises, most of them are small, the industry average income scale of 23 million yuan. By comparison, in the global medical device market of $387 billion in 2016, the top 10 companies with total sales of $145.3 billion and market share of 37.55 percent, Medtron as the device leader, sales of $29.7 billion, maintain a steady annual growth rate of about 3%, accounting for about 8% of the global market share. It can be seen that compared with developed countries in Europe and the United States, China's medical device industry still has great potential for development.
benefit from the continuous improvement of the policy environment, China's medical device industry is facing good development opportunities. Since 2014, the progress of the introduction of policies in related fields has accelerated significantly, especially as the policy of graded diagnosis and treatment has gradually landed, and the demand for medical equipment in the grass-roots market has continued to grow rapidly. In the first half of this year, the National Health and Wellness Commission also released a large-scale medical equipment configuration license management directory (2018), greatly reducing the need for the National Health And wellness Commission license to purchase the list of equipment. The proposed large-scale medical equipment configuration plan involves a large number of equipment, but also further reflects the national support for the high-end medical device industry. In the future, with the continuous improvement of the efficiency of the medical device approval process, the speed of innovative medical device equipment listed by enterprises is expected to be greatly accelerated, the pattern of the industry in short supply will be improved, and the domestic large-scale medical equipment industry is expected to usher in the spring.
From the structure of China's medical device market, color ultrasound, optical ray instruments, medical X-ray instrument, high-end intervention materials and diagnostic or experimental reagents and other high-end products accounted for 44.3% of China's total medical device imports. Under the trend of medical insurance fee control and domestic policy support, high-quality domestic medical equipment may speed up the process of import substitution, and the import substitution space in the above-mentioned areas is considerable. Among the listed companies, the leading medical device enterprises such as Meirui Medical, Blue Sail Medical and Lepu Medical are expected to continue to benefit from the accelerated process of domestic import substitution. (One Finance Network)