IVD market analysis of the hottest rising industry

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The rising sunrise industry - IVD market analysis

the total output value of the national pharmaceutical industry in 2015 increased by 9.8% year-on-year in 2014, exceeding the GDP growth rate (6.9%), which is the first time in recent years that the growth rate has fallen below double digits. In terms of breakdown, the growth rate of medical devices ranked second at 11.2%, behind biological products (12.9%). In the segmented field of medical devices, IVD industry is a rising sunrise industry. The compound annual growth rate of in Vitro Diagnostics Market in China is 15% - 20%, and there are good investment opportunities

I. Introduction

the total output value of the national pharmaceutical industry in 2015 increased by 9.8% year-on-year in 2014, exceeding the GDP growth rate (6.9%), which is the first time in recent years that the growth rate has fallen below double digits. In terms of breakdown, the growth rate of medical devices ranked second at 11.2%, behind biological products (12.9%). In the segmented field of medical devices, IVD industry is a rising sunrise industry. The compound annual growth rate of in Vitro Diagnostics Market in China is 15% - 20%, and there are good investment opportunities

in vitro diagnosis is the cornerstone of precision medicine. The world is relatively mature, China is rising rapidly, and the development of the industry meets the needs of graded diagnosis and treatment. The domestic policy and market environment will continue to be favorable for "import substitution" in the next 10 years. According to international experience, the domestic IVD industry still has a lot of room for development. The rising trend and space of Chinese diagnosis and treatment visits and costs ensure the sustainable development of the IVD industry


II. Domestic and foreign market conditions of IVD industry

1. China's IVD industry is growing rapidly

in, the compound annual growth rate of China's in vitro diagnostic market was 15%-20%, and China's in vitro diagnostic capacity in 2015 was 50 billion yuan. In, the compound annual growth rate of the global in vitro diagnostic market was about 5%, and the global in vitro diagnostic capacity in 2015 was US $58.8 billion

2. The concentration of IVD industry in China is relatively low

European and American enterprises dominate the development of in vitro diagnostic reagent industry (78% market share). The industry presents an oligopoly competition pattern, in which the United States accounts for 47% and Europe 31%. The American market has a great impact on the development of in vitro diagnostic industry

the concentration of international IVD industry is relatively high. Roche, Siemens, Abbott, Johnson & Johnson, Beckman, BD and other six major enterprises occupy nearly 60% of the market share of the body diagnosis market, with obvious monopoly advantages

the concentration of domestic IVD industry is relatively low. In 2015, there were Mindray, Kehua and Mike with an overall business of more than 1billion. Only Shenzhen Mindray (excluding agents) had a market share of only 2% compared with the domestic market of 50billion in 2015. The relatively low industrial concentration also means that enterprises have more development opportunities in the future

at present, China's in vitro diagnosis situation: the United States and Europe monopolize 50% of China's high-end market, and foreign IVD giant is the highest level in flame retardant materials. Through mergers and acquisitions, China's development is rapid, competition is fierce, there are many small and medium-sized enterprises, and the overall innovation ability of the industry needs to be strengthened

3. The IVD industry has huge space for development because nano crystal rods are easy to gather

it is estimated that in vitro diagnosis can affect about 70% of medical decisions, but it accounts for less than 1% of the total global medical expenditure. The development and application of in vitro diagnosis industry will help to optimize the use process of medical equipment and drugs and improve the use efficiency

China's population accounts for about 20% of the world's population, but the scale of in vitro diagnosis market only accounts for about 10% of the world. The per capita annual expenditure on in vitro diagnosis is less than $2, while the per capita annual expenditure in mature markets is $2. This means that the market demand and market scale of in vitro diagnostic products in China contain great potential for rapid growth

III. The situation of IVD sub sectors

1. Biochemical diagnosis: reagents have been imported and replaced, and high-end instruments are still dominated by foreign capital

industry growth rate:%

industry characteristics: low industry barriers, fierce competition among domestic enterprises, and the main channel advantages

market pattern: the test reagents have basically been imported and replaced, and the share of domestic brands is more than 60%, but high-end automatic biochemical instruments are still dominated by foreign brands

2. Immunodiagnosis: chemiluminescence is a new growth point

the import substitution of immunodiagnosis has just started, and chemiluminescence gradually replaces ELISA, which is the main growth point of the industry, and the growth rate of the industry can reach 30%

3. Molecular detection: high industrial barriers, high-end products are monopolized by foreign capital

high barriers to R & D of instruments and reagents, and high-end products such as gene chips and second-generation gene sequencing are still monopolized by foreign capital

with the continuous promotion of clinical application of new technologies, more diagnostic items will appear, and the growth rate of the industry will remain above 20%

with the policy of second-generation gene sequencing, but in recent years, subject to the pressure of environmental protection and the liberalization of cost clinical application, as well as the market's acceptance and recognition of new technologies, second-generation gene sequencing will develop rapidly

IV. how to choose IVD enterprises to invest

(I) the direction of IVD investment

at present, the "import substitution" of the middle and low-end market has been completed, and has become the Red Sea, which is not the best choice for the best entry point of entrepreneurship. We can look for investment opportunities from the following directions

1. R & D strength of the instrument. The R & D barrier of instruments is high, and the sales of instruments will drive the sales of reagents, especially the instruments closed to reagents in the immune and molecular fields

2. Subdivisions with high barriers. It mainly refers to the field of chemiluminescence and molecular detection. The product technology content is high, and the enterprises in this field are difficult to be copied. Moreover, the import substitution in these two fields has just begun, and the growth rate is higher than the industry average. Entrepreneurs with excellent R & D and production strength and strong marketing channels can still seize this wave of "import substitution" in the big cake

3. Full category layout. IVD products are mainly used in the laboratory department in hospitals. Enterprises that can expand product categories through mergers and acquisitions or self-development can use the original channels to promote new products, which can bring new profit growth points

4. High end market and some emerging technology fields. For example, gene sequencing with strong clinical applications, innovative POCT (with special attention to projects that enter domestic mass production after overseas verification) are becoming hot entry points for IVD entrepreneurs

(II) choose the blue ocean field of IVD industry: POCT

POCT has the characteristics of short detection time, low requirements for professional knowledge of operators and low requirements for operating environment. At present, the penetration rate of POCT products in the Chinese market is very low, and the penetration rate of blood bran instrument with the highest market popularity is also less than 10%. The demand for rapid diagnosis, the demand for hospital fee control and the trend of individual medical treatment promote the popularity of POCT products. In terms of import substitution, domestic companies also have certain opportunities. Domestic brands have a low market share. For example, Sino foreign joint venture brands account for more than 50% of the blood glucose meter terminal market, and there are almost no domestic brands for blood gas products

in 2013, the global POCT market size was about US $10billion, and China's was about US $500million, accounting for a low proportion, with a fast growth rate, and there is a lot of room for future development

1. The market space of blood glucose meter is huge, and the technology of domestic enterprises is relatively mature

the global blood glucose meter can still maintain a growth rate of more than 6% in recent years. The number of patients with diabetes in China accounts for 26% of the world, but the blood glucose meter market accounts for only 5% of the world, with a market scale of 3.5 billion yuan

the domestic blood glucose meter market is still dominated by foreign brands, and domestic brands account for about 30%

2. Pregnancy detection and lifestyle changes are conducive to improving product penetration

there are 16million pregnant women and 300million women of childbearing age in China every year, and the market scale of POCT detection is about 300million yuan. With the change of residents' lifestyle and the improvement of the awareness of eugenics, the penetration rate of pregnancy testing products will be increased, and the liberalization of the second child policy will also be conducive to the improvement of product penetration rate

3. Blood gas and electrolyte analyzers: foreign capital is in a monopoly position, and domestic manufacturers have mature products

at present, the main application departments of the product are operating room, emergency room, respiratory department, rehabilitation room, ICU, dialysis ward, central laboratory, etc. China's market size is about 1billion yuan, and the industry growth rate is about 20%. The domestic market is still monopolized by foreign capital. The products of Nippon instruments have been sold, and the product quality has been recognized by the market

4. Detection of disease markers: functions and characteristics of POCT fastest growing dynamic stiffness experimental machine: fast sub industry

in the field of cardiac marker detection, the market growth rate is very high. In 2013, the product sales growth rate of international leading enterprises in the Asia Pacific region exceeded 50%, which is the fastest growing region in the world. The global market is still monopolized by alere, Roche and Abbott. The Chinese market is about 1billion yuan, and the industry growth rate is 30%

(III) what kind of enterprise should be selected

1. Strong technology research and development ability. With good technology research and development capabilities, and constantly create marketable new products, enterprises should invest a corresponding proportion in technological innovation

2. Strong ability to respond to new product innovation. The backward original technology is not terrible, but we must have strong forward-looking judgment and control ability on the development direction. With long-term and stable technology research and development partners, it is best to establish strategic cooperative relations with excellent scientific research institutions at home and abroad. It has the ability of rapid response, imitation and innovation to new products, otherwise it will be eliminated by the market

3. Outstanding fist products and rich product lines. Enterprises must have a fist product and rely on fist products to fight the market. At the same time, plump the product structure, so as not to increase the cost of customers, and establish solid market barriers

4. Strong ability in market and channel expansion and control. In the field of IVD, it is difficult for enterprises to win by a single product. Enterprises must have strong market expansion ability, occupy the market through channel construction and the first mover advantage of products, and enhance competitiveness

5. Have a good business strategy and manage direct selling and distribution. Hospital channels are relatively special, and dark box operations are common. For listed companies, we should rely on dealers to establish firewalls (official fees), avoid legal risks, and manage dealers well

Copyright © 2011 JIN SHI