Baidu, Huawei, and other giants have made a strong march. Is the gold explosion of medical equipment really coming?

Baidu, Huawei, and other giants have made a strong march. Is the gold explosion of medical equipment really coming?

The signs of the outbreak of medical devices have become more obvious at the beginning of this year. Giants such as Baidu, Huawei Terminal, Tencent Cloud Computing, and Box Mashengsheng have changed the company's business scope and added medical equipment business. It is not uncommon for the giants to enter the market, but a large number of giants are pouring into the field of medical devices. Under the condition of high capital accumulation, the explosion of the industry seems to be foreseeable.

Baidu's business scope includes “selling third-class medical devices” and “selling medical devices class II”; Huawei terminal and box horse fresh sheng added three types of medical device wholesale and retail business; Tencent cloud computing added new sales category The second and third types of medical device business... The giants seized the medical device territory is not unfounded. According to statistics, the scale of China's medical device market is increasing year by year in 2013-2018, and it has soared to 525 billion last year. Yuan, compared with 445 billion yuan in 2017, it has increased by 75 billion yuan, with a growth rate of 18%. With such rapid growth, it is natural for the medical device market to attract giants to fight. The medical machinery industry has arrived in spring.

The advent of the information age, the iteration of technology and the heat of the medical industry itself, the combination of these elements has produced a new chemical reaction, and the medical machinery industry has become one of the fastest growing industries in the world. The growth rate of global GDP has maintained a growth rate of more than 10% in the past 20 years.

Baidu, Huawei, and other giants have made a strong march. Is the gold explosion of medical equipment really coming?

The prospects are bright and there are many players. According to statistics, as of 2018, there are 17,000 medical device manufacturers and 511,000 operating companies nationwide, and the market is fiercely competitive. According to the overall market size of 225 billion yuan in 2018, the average production capacity of 17,000 medical device manufacturers can reach 30.88 million, but the average output value of 511,000 medical device enterprises is only 1.03 million. The low situation is exposed. Take the pharmaceutical market for comparison, the gap is clear. At present, China's pharmaceutical market share reaches 2 trillion, including 4,441 pharmaceutical production enterprises and 14,000 pharmaceutical business enterprises. These enterprises jointly support a market scale of 2 trillion yuan, while hundreds of thousands of medical device enterprises only carry 500 billion. The market size, the output value of a single enterprise is not at all an order of magnitude.

The medical machinery industry is also the same as many medical subdivisions. “Multiple, small, scattered, chaotic” has become the norm, and industrial concentration is not high. At this stage, China's medical machinery industry mainly forms three industrial clusters, namely the Bohai Bay Industrial Zone, the Yangtze River Delta Industrial Zone and the Pearl River Delta Industrial Zone. The Bohai Bay industrial belt is developing rapidly and is gradually forming a group of enterprises including DR, MRI, digital ultrasound, accelerators, computer navigation and positioning medical equipment, respiratory anesthesia machines, orthopedic equipment, and cardiovascular equipment. The Yangtze River Delta belt is a small and medium-sized enterprise. Mainly, the disposable medical equipment and consumables market share is more than half; the Pearl River Delta is the main research and development of comprehensive high-tech medical equipment, including monitoring equipment, ultrasound diagnosis, MRI and other medical imaging equipment and large-scale three-dimensional gamma knife, X-knife Directional radiotherapy equipment, tumor hyperthermia equipment, etc.

There are many sections in the medical machinery, and the proportion in the industrial structure is not the same, mainly depending on the specific application fields. In terms of the product structure of the domestic medical device market in 2018, the share of medical imaging, in vitro diagnostics, and low-value consumables accounted for a relatively high proportion, accounting for 16%, 14%, and 13% of the market share, cardiovascular device implants and orthopedics. Instruments also account for 6% of the market share. However, in the long run, this proportion structure is not fixed and will change with new development gains and major social needs.

Taking cardiovascular device implants as an example, according to the newly released "Blue Book on the Status of Cardiovascular Disease Prevention and Control in China", there are 290 million cardiovascular diseases in China. From 1990 to 2016, the number of cardiovascular deaths in China has been rising, from 2.5 million to 4 million. In addition to the risk of death, the high incidence of cardiovascular disease and the high disability rate put a heavy financial burden and psychological burden on society, families and individual patients. Therefore, how to solve the cardiovascular and cerebrovascular diseases is very important to prevent the disease, which promotes the development of cardiovascular device implants, and the demand for cardiovascular prevention and treatment equipment is also growing.

In the past two years, the development of medical AI devices has been included in the Catalogue of Medical Devices. The Catalogue stipulates that if the artificial intelligence diagnostic software provides diagnostic advice through an algorithm, only the auxiliary diagnostic function does not directly give a diagnosis conclusion, it is declared according to the second type of medical device; if the lesion is automatically identified, and a definite diagnosis is provided Prompt, the risk level is relatively high, according to the third category of medical device management. The registration and listing access standards for Class II and Class III medical devices are different: Class II medical devices need only be registered at the provincial drug regulatory bureau, and clinical trials are exempted; Class III medical devices are registered at the General Administration and need to be Pass clinical trials.

Due to the high standards of the three types of medical devices, there are currently more than 140 medical AI companies in the country, and no one has obtained such registration certificates. Policy supervision is strict, its own technical algorithms are imperfect, and medical AI equipment still has a long way to go. However, the future of medical AI devices is expected, and many hospitals have greatly improved the diagnostic level and work efficiency of medical personnel with the aid of AI medical imaging. Undoubtedly, in the golden explosion of the medical machinery industry, medical AI equipment as a new army will usher in tremendous development with the intelligent process. Therefore, it is imperative for medical AI devices to explore their own profit model and strengthen product technology algorithms.

                                                                                                                           (from medtecchina)