New Medical Reform Brings ** Market Medical Devices to Bring Business Opportunities

Meng Jianguo, deputy secretary-general of the Chinese Medical Equipment Association, said at the meeting that supporting the medical device industry will be one of the priorities of the “Twelfth Five-Year Plan”. In the next five years, the demand for medical equipment, imaging equipment, inspection equipment, and informatization products in China's county-level hospitals will increase dramatically. At present, China has more than 1.8 million natural villages and nearly 420,000 township-level governments. In addition, the new medical reform drive the private hospital market, it will bring business opportunities to the medical device market.

At present, China's medical device market has a capacity of approximately 100 billion yuan, a compound annual growth rate of approximately 21%, and a ratio of 1:10 to drugs. “The developed countries are 1:1, which shows that there is still huge room for growth in the medical device market.” Meng Jianguo said. Currently, 60% of medical institutions in China use medical devices that belong to the mid-1980s and are faced with new generations. The proportion of medical device consumption in the entire pharmaceutical industry accounted for only 13%, while the international average is 42%. growing space. The future of medical machinery will be the focus of vc/pe investment.

The famous American Cartel Research Center predicts market trends in the next 10 years, ranking first on affordable home health care; the US “Fortune” magazine predicts rapid development of products in the first 10 years of the 21st century, home medical care Instruments are also ranked first. In the West, home medical devices have accounted for 40% of the entire medical device's output value. Two companies have announced plans to participate in the Single Living Nursing and Home Health Care Research Program. The Ge Medical Group has funded a $5 million family health research project by the Hungarian government; intel and the Irish National Development Agency have established a $30 million tril.

In China, the rapid development of equipment manufacturers, including home medical devices, such as Yu Yue Medical, also confirms this market opportunity. At present, most of the medical equipment used by most hospitals in China are imported from abroad. However, in fact, the cost performance of low-end and middle-end equipment produced by some domestic small companies is not lower than that of foreign products. Investors should consider providing support to domestic medical equipment companies.

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