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Analysis on domestic medical device industry
- Jun 22, 2018 -

According to the report of the 19th congress of the communist party of China (CPC), the major social contradictions in China have been transformed into the contradictions between the people's growing need for a better life and the unbalanced and inadequate development.The change of the main social contradictions in China is the historical change of the overall relationship, which is also of guiding significance to the field of medical devices.

Medical devices are closely related to human life and health, and their development level is directly related to whether people can meet their needs for a healthy life.

Medical devices and drugs, as two major supporting conditions for the implementation of hospital diagnosis and treatment, have similar industrial characteristics and roles in hospitals, accounting for a large proportion of medical income.Because medical devices are more intersecting than pharmaceutical specialties and have greater variety differences, it is an unwritten regulation that the relevant national regulatory policy of "drugs before consumables" has been adopted.

As an important part of the supply-side reform of the medical system, the medical device industry attaches great importance to its healthy development.Scientific configuration and rational use of medical devices have become the focus of comprehensive medical reform.

According to the "blue book on the development of China's medical device industry in 2016", the total scale of the domestic medical device market in 2016 is about 370 billion yuan, an increase of 20.1% over 2015.Despite China's medical equipment market growth is around 5%, significantly higher than the global industry but devices/products in China market scale ratio of only 0.2:1, far below the global market: 0.5 1 level, but also has very big development space.

According to the state food and drug supervision and administration bureau statistics, by the end of 2016, the medical device manufacturing enterprise in our country has reached 1.53, can produce 43 categories such as CT, mri, linear accelerator, more than 300 small classes, tens of thousands of rules of medical apparatus and instruments.

There are no Chinese companies among the TOP100 global medical device companies in 2016 released by MedtechInsight.In terms of sales revenue ranking, medtronic, the world's largest company, sold 28.83 billion us dollars in 2016, while xinhua medical, the number one listed company in China, only sold 83.6.4 billion yuan, a difference of about 23 times.

The development of medical equipment is highly affected by the corresponding national basic industry development level, the United States, Europe, Japan, in the field of medical apparatus and instruments or monopoly position itself as a leader in the world for a long time, some domestic professional medical field import devices share even more than 80%.

There are still some problems in the development of medical device industry in China, such as unbalanced industrial layout, insufficient investment in research and development, and insufficient innovation ability.

It can be seen that although China's medical device market develops rapidly and has great potential for development, the development of this industry is not balanced enough and the market competitiveness of national brands still needs to be improved.In recent years, China's medical device industry has launched a series of reform measures aimed at promoting the healthy and rapid development of the medical device industry.

In October 2017, the state council issued "about further review the opinions of the examination and approval system reform to encourage pharmaceutical medical equipment innovation", 36 reform measures are put forward, and the policy guidance of the most prominent is to encourage domestic instead of imported brands, strengthen the market competitiveness of national brands.

The gap between domestic brands and imported products is narrowing, though, in terms of technology and innovation.There are many problems in the circulation and purchase of medical devices, which seriously restrict the scientific configuration and rational use of domestic medical devices.

The main forms of expression include: the imported brand products rely on the monopoly status to suppress or acquire domestic brands;There are many circulation links of medical devices and the market competition environment is bad.Medical institutions do not have enough trust in domestic brands and even purchase imported products.

Equipment "launch", for example, as a result of in vitro diagnosis, hemodialysis, and other fields in China started relatively late, the vendors provide free import equipment for hospital use, hospital purchase its form a complete set of consumables (reagent), late for economic benefits, has long occupied the medical market.

On the surface, the equipment "delivery" saves the cost for the hospital. In fact, it avoids the public bidding and seriously damages the development of national brands.

In recent years, the relevant laws and regulations of medical devices have been constantly revised and improved, which has played a positive role in promoting the elimination of accumulated malpractices in the industry.

In July, 2017, who planning commission jointly issued by nine ministries and commissions of the medical consumables special clean-up plan, to control medical consumables of problems existing in the production, circulation and use of the link, to further strengthen the rational use of medical consumables.The newly revised law against unfair competition adopted by the standing committee of the National People's Congress will be implemented from January 1, 2018, with a focus on regulating all forms of commercial bribery and unfair competition.

According to the requirements of the comprehensive medical reform, on the basis of controlling the proportion of income from drugs, consumables, examinations and laboratory tests in hospitals, the increase of outpatient and inpatient expenses per time is required to be further reduced.Among them, the health materials consumed in the medical income of 100 yuan (excluding drug income) fell below 20 yuan.

As "two votes", "zero bonus" and "centralized purchasing" policy of gradually implement in the field of medical apparatus and instruments, and the implementation of "single macro-reforms" model, the competent department of health to family planning and other regulation will continue to increase, the management of the medical institutions facing increasingly serious situation.

For the implementation of comprehensive health care reform, realize the transformation and upgrading, medical institutions to strictly control the medical material proportion, saving the cost of consumables spending, to constantly optimize the product structure, adjusting supply catalog, some provinces and cities have started the "second negotiation" to reduce the material price.

Domestic brands with greater cost performance advantages will be introduced in large quantities to replace existing expensive imported products.It can be predicted that in order to break the monopoly of import brands and break the industry barriers, the configuration and use of medical devices will usher in a great change, and domestic medical devices will enter a "golden period" of rapid development.

Medical institutions, as the introduction and use of medical devices, are the "main battleground" for implementing various policies.In terms of medical equipment introduction, arguments from demand planning to purchase review, may not be on domestic medical equipment to set up the discriminatory, disparate treatment, actively implement the fair allocation standard, to create a fresh air wind is purchasing environment.

Public medical institutions should also implement the requirements of the government procurement law and give priority to purchasing domestic brands.If it is true that due to the gap in technical performance, domestic equipment cannot meet the clinical requirements for the time being, it may apply for the designation of purchasing imported brands and approval according to the regulations.At the same time, foreign brands and joint venture brands produced in China should be considered domestic brands.

In October 2017, the China medical equipment industry development report blue book (2017), the system of medical equipment in our country are reviewed the development difficult course, the medical device industry development in our country in anticipation.

In fact, China's medical equipment industry has formed a number of medical equipment industry clusters and manufacturing development belt, have sprung up in shenzhen mindray, shandong weigao, Shanghai united Germany, Beijing, shandong xinhua, a batch of high quality national brands, such as jiangsu diving areas based on their traditional advantage, to complete the series product layout, on the basis of consolidating the domestic market to enter the international market actively.

At the same time, the trust of domestic medical institutions to national brands is steadily improving, and the market prospect is continuously improving.

In a word, the development of the national brand of medical equipment is in the ascendant, but the development road is full of twists and turns, and the unbalanced and insufficient development is still to be solved.The competent authorities at all levels should be fully aware that improving the allocation level of domestic medical devices has become an inevitable requirement to solve the problem of unbalanced development.

YiXie staff should to boost national brand development as own duty, grasps the policy trend, enhance their awareness of the importance of the rule of law and set up the height of the national brand of confidence, actively break industry deeply, reform of power supply side, increase the supply quality, and the effect of medical treatment service, satisfy the people's growing health care needs.