Unlimited potential for medical track! 106 billion high-value consumables market, investment logic and segmentation opportunities are explained!

Guide: High-value consumables eye-catching, investment logic in the end how! Guide: In recent years, China's continuous release of policy dividends to encourage the domestic replacement of medical devices, this situation in the sino-US trade war broke out more and more intensified, which will bring a lot of opportunities for domestic medical device enterprises.
and medical high-value supplies as the second largest component in the field of medical equipment, at this stage in high-tech products in the overall level of domestic and foreign level gap is still huge, with increasing demand, domestic high-value supplies to replace imported products is imperative, this is also a lot of medical investment in the population of "soldiers must contend."
why high-value supplies are the "pearl of the eye" in the field of medicine? First, let's see how to define medical supplies. Medical supplies refer sings medical hygiene materials used in the process of clinical diagnosis and nursing, scientific research and testing, and its wide variety and wide application are important material bases for hospitals and other terminal medical institutions to carry out daily medical treatment and nursing work.
its promotion and use greatly reduces the burden of work of health care workers, so that the workflow becomes simple and effective.
and strictly speaking, medical high-value consumables cover the scope of the device is also relatively large, including vascular and non-vascular intervention class, orthopaedic intervention class, electrophysiology class, ophthalmology class, in vitro circulation and blood purification and many other categories, the details of the classification can be seen below: medical high-value consumables brief classification table we with some professional medical equipment investors in the market to exchange medical high-value supplies this sub-sector of the project, "good things" We sum up three: the market is large, the gross margin is high, the consumption frequency is large.
1, the market: high-value consumables is the second largest market segment in the field of medical devices in recent years, China's medical equipment market development speed is very fast, according to the 2018 market data, the medical device market size has exceeded 530 billion yuan, in such a huge market cake, high-value consumables accounted for a steady second place, accounting for about 20% of the market share, the size of about 106 billion, the market is absolutely large enough to meet the "good" of investors.
2018 China's medical device market segment distribution, medical high-value supplies market size growth rate of nearly 5 years maintained at 20%, but the performance of each sub-sector is different.
the development path of high-value medical supplies in China is mainly technological breakthrough and localization, lies in the increase of penetration and the increase of penetration rate.
We believe that the medical high-value consumables market will remain at a high and steady growth rate in the next 5 years.
2, high gross margin: part of the gross margin to catch up with Maotai? It's a lot of money anyway! In the secondary market, Maotai's high gross profit is often enjoyed by investors, according to the 2018 public data, Guizhou Maotai's gross margin is as high as 91.14 percent! But this looks basically like empty gloves white wolf business, in the field of medical devices, especially medical high-value consumables sub-sector, close to or more than Maotai does not seem to be difficult.
give three examples of related listed companies: (1) Zhenghai Bio's 2018 gross margin of 93.08 percent, the main products include oral repair film, biofilm, bone repair materials and other bio-regenerative materials.
According to the company's 2018 annual report, the company's biofilm productgross margin of 94.20%, oral repair film products 93.29%.
(2) The company's bio-type hard brain (spinal) membrane patch gross margin was 93.46 percent, according to the company's 2018 annual report.
, the gross margin of sterile bio-protective membrane and B-type hard brain (ridge) membrane patch products was also as high as 83.77 percent and 81.94 percent, respectively.
(3) Dabo Medical's 2018 Annual Report mentions that the company's overall gross margin is 80.40%, while its spine products have a gross margin of 85.42%.
3, consumption frequency is large: medical field high-end fast consumer, characteristics of high-frequency ... Supplies, as the name suggests, most are one-time use, high frequency is one of its characteristics, some supplies often reuse the security risks are very large.
this is why in recent years, the Health and Welling Council and the private sector has been discussing some expensive one-time import supplies reuse of the issue of increasingly fierce.
simple, let's give a typical example of an ultrasound knife being widely used in a variety of surgical procedures for cutting all human tissue except bone tissue and fallopian tubes.
the current ultrasonic knife in this area, Johnson and Johnson occupies more than 80% of the market share, according to the 2017 tender data, Johnson and Johnson ultrasonic knife host price of about 475,000 yuan, the knife head in 7000-8000 yuan.
ultrasonic knife compared to other cutting tools have obvious advantages, the use of more departments, including general, urology, obstetrics and other departments are required to configure, assuming that the average configuration of tertiary hospitals 6, the average configuration of secondary hospitals 2, the average configuration of the first-level hospital 0.5 units, according to the unit price of 475,000, the domestic host market space alone has nearly 15 billion yuan.
knife supplies, if the three-level hospital each host each year knife demand 60, the second-level hospital 40, the first-level hospital 20, the knife supplies market space also has nearly 10 billion yuan.
high-value medical supplies industry characteristics of the domestic high-value medical supplies industry presents three major industry characteristics, namely, high industry barriers, low industry concentration and the overall technical level is not high, foreign giants lead a large number of sub-sectorbattlefield.
1, the industry barriers high due to the speciality of high value supplies, the industry has a high barrier to entry, which is mainly reflected in technology and talent.
take high-value consumables implantable supplies, it needs to stay in the human body for a long time and fit the human tissue organs, if supplies once the problem, often fatal, which is why most of these consumables belong to three types of devices, must pass a long registration review process and clinical testing.
from the technical point of view, high-value consumables industry is a cross-disciplinary high-tech industry, not only is knowledge-intensive, more capital-intensive, its related products related to disciplines including biomechanics, medicine, materials and other disciplines, so the development of an impact on the existing industry pattern of products, no long-term technical accumulation and development capacity is difficult to achieve.
also for the product manufacturing process and manufacturing production line overall level is also very high.
from the talent aspect is more clear, precisely because the high-value supplies industry involves a wide range of disciplines, strong reliance on research and development innovation, so the need for a large number of composite professionals, at least the need for biomechanics, medicine, materials and other multidisciplinary technical personnel to work together for more than 5 years.
shows how wide the moat is for a leader in the mature medical high-value aviation industry.
2, the overall level of domestic technology is not high, the industry concentration is low domestic high-value supplies industry development of only 20 years, compared to some developed countries are still short.
take the current domestic high-value consumables industry pattern, most enterprises are still relatively small in size, limited market competitiveness, such as China's orthopaedic implants supplies manufacturers about 130, income scale of more than 100 million not more than 10, visible industry concentration is quite low;
3, foreign giants dominate a large number of sub-sectorbattlefield, the development of extremely unbalanced China's high-value medical supplies industry presents a "number of small, small scale" situation, the industry competition pattern is relatively scattered.
in addition, the majority of small and medium-sized players in China lack of technical advantages and extensive cooperation, directly promote the development of China's high-value supplies industry imbalance and lack of strong competitiveness, so as to compete with foreign products, at a disadvantage.
so foreign well-known enterprises by virtue of their own technical performance and quality level in the high-end market has been in a dominant position, while understanding the development of the law of the international giants are also through mergers and acquisitions to further enhance their own market position. What is the
investment logic? From the current domestic market share situation, in many high-value supplies sub-sectors, most of the domestic products in a very weak position, mainly imported products in the leading markets, take typical, such as orthopaedic joints, endoscopes, pacemakers and other fields, foreign products market share of more than 50%.
at present, only a few sub-sectors of domestic micro-innovation products occupy the market advantage, such as heart stents, orthopaedic trauma and other fields have basically achieved import substitution.
before in "Why Medical Devices ushered in a golden decade?! It also mentioned that import substitution this big logic will become the domestic medical device enterprises to obtain the first opportunity of high-speed growth, subdivided into the field of high-value consumables, the logic is also very simple, there are two main: First, the domestic aging, high-value medical supplies demand will increase rapidly, the most common geriatric needs such as cardiovascular intervention supplies, orthopaedic intervention supplies, etc.; Year-high-value consumables to suppress imported products, support domestic products policy frequently, domestic medical high-value supplies research and development model can be divided into two categories, one is micro-innovation model, the other is the model of completely independent innovation products, the majority of domestic consumables enterprises or the first category of the main: micro-innovation model: on the basis of imitation imported equipment to a certain degree of improvement, enterprises have a certain degree of core technology, at least slightly better than imported products in utility and safety performance, this is the mainstream model.
especially in national policies to encourage medical innovation, the implementation level of tenders and health insurance payments are tilted towards such domestic products, this is compared to all independent research and development is a shorter, more flat, faster model.
full independent innovation model: fully independent research and development of innovative products, for the current market segments of imported products.
because it is not in the import substitution product sequence, domestic enterprises need to start from scratch academic promotion and marketing education, and gradually improve the penetration rate of products.
why domestic medical device enterprises, especially high-value supplies worthy of attention, the large logic of population aging, import substitution, medical insurance control fees and so on are clear, domestic enterprises also have a unique "landlord advantage", this "landlord advantage" is also why the current high investment of Qiming medical can occupy more than 70% of the domestic TAVI market share of the reasons: in communication with domestic hospitals and clinicians, domestic enterprises occupy a unique advantage.
clinicians on the use of equipment feedback can be timely communication with domestic enterprises research and development team, enterprises according to the needs of doctors to make adjustments and improvements to the device.
because of the asians and Europeans and Americans of the physical and physical characteristics of different, domestic manufacturers can be based on clinical needs to design more suitable for our doctors and patients products, this is also difficult for importmanufacturers to do, but also according to local conditions.
this, some of the domestic innovation medical high-value supplies, and even medical equipment standards, it is worth everyone to go gold. Which segments of
high-value consumables are worth noting? Based on the growth rate of the sub-sector, the degree of domestic substitution process, the technical status quo, policy and other factors, we think that the sub-areas of concern are these pieces: 1, cerebrovascular and peripheral vascular intervention supplies: We know that cardiovascular disease is the number one disease of death of the domestic population, with the aging of society intensified, basically in the future can be said to be sitting in this position, why not recommend cardiovascular intervention products? Because the investment opportunities in the field of cardiovascular intervention is really limited, so far related products such as coronary artery stents have been completed 3 times the replacement, the localization rate is now more than 90%, such as the domestic run out of Lepu, minimally invasive and other enterprises have landed a share.
is not only cardiovascular disease, cerebrovascular, peripheral vascular disease incidence is also getting higher and higher, and the development of cerebrovascular and peripheral vascular-related products is also in the initial stage, but also belongs to the situation of foreign manufacturers leading the market.
According to the 2019 China Medical Device Blue Book, China's cerebrovascular intervention market in 2018 was 4.8 billion yuan, up 37.14% year-on-year.
the market size of our foreign peripheral vascular intervention devices reached 7.7 billion yuan, a growth rate of 32.76 percent.
in these two markets, China's technical level is still relatively backward, high-end products are very weak, take the peripheral vascular implant device stent, the domestic only first health and minimally invasive occupy a little market share, the future is likely to run out of several excellent domestic products listed companies.
2, blood purification supplies: China's current blood purification market mainly to imported products, especially blood purification high-value medical supplies market, foreign brand products occupy more than 70% of the market share, over time and domestic manufacturers of technology, import substitution space is still very large.
in addition we also see for China's dialysis market is very large, the stock of treatment needs far from being met, the market to be developed is 10 times the current! 3, neurosurgery supplies: neurosurgery as one of the cutting-edge disciplines, the application of high-value medical supplies in surgery technical content and fine degree requirements are very high. however,
, China's neurosurgery supplies field development time is still short, domestic products and foreign products there is no small gap, at present, in addition to the artificial hard brain (ridge) membrane market completed import substitution, other segments or foreign brands dominate the market, import substitution rate is very low, of course, the market space is also large enough, is one of the gold track of domestic manufacturers.
4, wound management supplies: wound management supplies typical products including dressings, stitches and stitches, etc. , the current market for absorbable materials in 9.2 billion, the market size of non-absorbable materials in 15.2 billion, over time, absorbable materials will be irabsorbible materials to complete replacement.
but the domestic market for absorbable materials is still dominated by imported products, such as Johnson and Johnson's imported sewing, Bud's sequins, Medtronic's hemorrhage clip, accounting for more than 70% of each market share.
there are still few domestic enterprises can be alone, the overall import substitution rate is very low, for the wound management of this kind of cash cow subject, very we deserve attention.
5, import substitution of the low degree of some ophthalmology and oral supplies: aging degree deepened, eyes and teeth are the most intuitive organ sensation of the elderly.
with the country in recent years to promote the development of domestic equipment and domestic technology, the emergence of a number of outstanding companies, such as hard corneal contact lens of Upcomvision, do.