Why domestic medical equipment is difficult to occupy the domestic market

Release date: 2014-05-20

Medical equipment is an important part of the pharmaceutical industry. The state has devoted a lot of efforts to the medical device industry and has been increasing investment in research and development of high-end medical equipment. However, the competitiveness of local enterprises in the medical device industry in China is still vulnerable. Domestic equipment is exported to overseas but it is helpless in the domestic market.

Local medical devices are difficult to occupy the domestic market

As one of the hottest medical markets in the world, China ranks fourth in the world in terms of the $17 billion market for medical devices and devices, and is expected to double at least in the next five years. Such tremendous growth is mainly due to the increase in Chinese government investment in health care. At the same time, China's steady economic development has brought about the improvement of medical facilities, the convenience of people's medical treatment, the continuous expansion of public medical insurance coverage in underdeveloped areas, and the continuous improvement of infrastructure.

With the development of China's medical industry, the huge potential of its medical equipment and equipment market is undoubted, and the international medical equipment giant has gradually seen the broad development opportunities in this market. But for these contestants, the competition in such a volatile market will not be smooth.

On the one hand, the high-end medical equipment produced in China has been exported overseas and entered the mainstream markets of more than 30 countries and regions such as Germany, Japan and France. On the other hand, 80% of the high-end medical equipment used in China is CT and 90. % of ultrasonic instruments, 85% of inspection instruments, 90% of magnetic resonance equipment, 90% of electrocardiographs, 80% of high-end monitors, and 90% of high-end physiological recorders are foreign brands, and domestic products are hard to see.

"Our high-end medical equipment has entered the international market, but it is very difficult to enter the domestic market." Qiu Gang, deputy general manager of Suzhou Kaiditai Medical Technology Co., Ltd. told reporters that there is a lot of pride in the tone.

"Our cardiac catheters have been approved by the US Food and Drug Administration and have entered the US market. Some high-end medical devices have been sold at home and abroad, and have entered mainstream markets in more than 30 countries and regions such as Germany, Japan and France. Even Our products have also entered German medical insurance and can be reimbursed in local medical insurance.” Qiu Gang said, “In my Suzhou Medical Device Industrial Park, I have gathered a group of high-end medical device manufacturers with independent intellectual property rights. ."

Local medical device gap

For the reasons for the gap between domestic medical equipment and international level, the “2014-2018 China Medical Diagnostic, Monitoring and Treatment Equipment Industry Demand Forecast and Investment Opportunity Analysis Report” issued by the Forward Industry Research Institute pointed out that there are four main reasons. : The policy environment is not matched, the technology investment is insufficient, the innovation ability is weak, and the industrial system is still relatively fragile.

The above four reasons are actually only the reasons for the surface. The deeper reason is that the lack of determination and perseverance of the company's responsible person to become an internationally competitive enterprise is more focused on short-term benefits, resulting in reluctance to develop. Under the circumstance, especially with the vigorous development of the social capital medical market, I feel that there are more opportunities in the private medical institutions with relatively weak financial strength. However, from the current development of the private medical industry, there are many participants. Multinational medical device companies and some pharmaceutical companies with strong financial strength, for those who are not bad, in the case of relatively backward medical resources, medical equipment is the focus of their future investment, if local enterprises do not catch up The market space in the field of high-end medical devices is not optimistic.

Small scale, low-end, dragging the overall image of the industry

“Many major hospitals have clearly stated that they do not buy domestically produced equipment in the bidding documents for purchasing high-end medical devices.” Qiu Gang said, “The hospital generally believes that the quality of domestic products is not good, and it is worried that it will fail during use, so even if it is good The high-end products have also been dragged down."

For a long time, China's medical device manufacturers have been mostly small and scattered.

“There are fewer than 200 medical device manufacturers in Germany. In 2012, only 543 medical device manufacturers were gathered in Suzhou, although the annual output value of 215 companies was less than one million yuan.” Chen Jianmin, deputy director of the Food and Drug Administration said. According to the latest statistics of the "Blue Book of China's Medical Device Industry Development Status in 2013", there are more than 17,000 medical device manufacturers in China, 90% of which are small and medium-sized enterprises with an annual income of less than 20 million yuan." In fact, many small businesses The main product is just a low-end product like a disposable syringe.

"The output value of the 40 largest medical device companies in the United States accounts for 20% of the global medical device output value, while the output value of all medical device companies in China accounts for only about 5%." Zhao Yixin, president of China Medical Device Industry Association, said that the individual size of enterprises is small. , the investment in research and development is small, and the quality is very different.

These small enterprises not only have low production technology, but also the safety and effectiveness of their production processes and quality control. At the same time, many companies maintain their survival with low investment, only emphasize "cost control" and choose raw materials. All of these are reflected in the product, which means that quality is difficult to guarantee. In this regard, Chen Jianmin, who is in charge of medical device supervision, has a deep understanding.

The uneven quality level directly leads to an unsatisfactory experience, which in turn creates a distrust of domestic medical devices. Although the quality of some domestic high-end medical device products has reached international standards in recent years, the preconceived notion still lingers.

Medical instrument companies face growth bottlenecks

In fact, many instrument manufacturers have already felt the pressure of weak growth.

Mindray Medical started from the monitor, and now the product line has expanded to medical imaging, surgery, medical information and other fields. As the leader of domestic medical equipment, Mindray Medical still feels the bottleneck in the field of medical instrument segmentation.

Compared with large-scale medical equipment such as nuclear magnetic and CT, small-scale product technologies such as monitors are relatively mature, and barriers to entry are low. Except for companies such as Mindray Medical, Libang Instruments, and Bao Laite, there are still many domestic companies. Small companies with revenues of 10 million. Zhang Fabao pointed out that domestic manufacturers of medical instruments do not have much core technology in hand, and it is difficult to compete with imported brands in high-end categories, which also makes it difficult for these companies to make more breakthroughs in current product coverage.

Wang Jianxin told reporters that Mindray Medical currently has a installed base of about 2:6:2 in medical institutions below the top three, dimethyl and dimethyl. Due to the failure of the product performance and parameters, Mindray Medical has fewer products to enter the top three hospitals, and the future goal is to increase the coverage rate to 40%.

Due to the lack of core technology, domestic brands have been blocked from the top three hospitals with greater demand, which is also an important reason for domestic medical device brands to face growth bottlenecks.

"There are two main reasons why domestic brands have difficulty entering the top three hospitals. On the one hand, these hospitals are not bad money and have the strength to purchase foreign products. On the other hand, hospitals also have the demand to attract patients through imported products." Zhang Fabao further said that the hospital as a buyer It is definitely hoped that the longer the use time and the lower the update rate, the lower the update rate of hospitals below dimethyl.

Source: Zhongyan Net

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