Recently, the Beijing Medical Insurance Bureau, the health commission and the human resources and Social Security Bureau issued the notice on standardizing and adjusting the price of some medical services, uniformly priced 53 assisted reproductive technology projects such as in vitro fertilization and embryo culture, and included 16 of them in class a medical insurance (outpatient only), which will be implemented from March 26, 2022, It is applicable to 15 public assisted reproductive medical institutions designated by basic medical insurance in Beijing. The agency predicts that the entry of assisted reproductive projects into medical insurance will accelerate the development of the industry, and the downstream medical service enterprises will take the lead in benefiting.
billion market space
Assisted reproductive technology refers to the technology of using medical aids to help infertile couples get pregnant, among which the most widely used are artificial insemination (IUI) and test tube baby technology (IVF). According to the data of reproductive biology and endocrinology, the ratio of IUI to IVF in China is 7:19, and IVF is the dominant force in the assisted reproduction market. Among the 16 assisted reproductive technologies included in the scope of medical insurance reimbursement this time, there are 2 IUI technologies, 1 second-generation IVF technology and 3 third-generation IVF technologies.
Ping An Securities said that at present, the average single cycle cost of IVF in China is about 3500045000 yuan (excluding the third generation), and the medical insurance can cover 800011000 yuan this time. Some assisted reproductive projects have entered medical insurance, which improves the accessibility of patients, is expected to promote the rapid release of demand side, and the penetration rate is expected to increase rapidly, so as to promote the development of the industry.
Zhongtai Securities Co.Ltd(600918) said that at present, there are about 48.8 million infertile couples in China, while the current IVF penetration rate in China is only 7%. In the future, with the increase of public awareness, the improvement of service accessibility and the relaxation of Fertility Policies, it is expected that the number of IVF oocyte collection cycles in China will reach 2.03 million in 2030, and the market scale will reach 106.9 billion yuan, which is 2-3 times larger than that at present.
Behind the huge market space is the lack of licensed institutions.
On January 22, 2021, the general office of the National Health Commission issued the notice on printing and distributing the guiding principles for the application planning of human assisted reproductive technology (version 2021), which made it clear that in principle, a body can be set up for a population of 2.3-3 million Soochow Securities Co.Ltd(601555) data show that in 2020, there were only 411 institutions with IVF licenses in China, including only 38 private institutions; There are about 30 institutions with more than 5000 IVF treatment cycles, while there are only 3 private institutions.
listed companies actively participate
The upstream of the industrial chain of assisted reproductive industry is the R & D of devices, drugs and technologies, the midstream is the distribution and marketing channel of devices and drugs, and the downstream is the assisted reproductive medical service provider. The market environment of short supply has brought a blue ocean to listed companies.
On February 23, in response to investors' questions, Dajia Weikang said that Jiachen hospital, a wholly-owned subsidiary of the company, is currently in the preparation and construction stage of carrying out assisted reproduction business. It needs to operate for three years according to the regulations, apply for and complete the review of level-3 specialized hospital, and apply for the practice license of human assisted reproduction technology after passing the review of level-3 specialized hospital, IVF business with good growth rate and profitability can only be started after obtaining the license. This year, Jiachen hospital has entered the evaluation stage of applying for specialized hospitals. At present, it has actively prepared to apply for the evaluation of specialized hospitals.
In August 26, 2021, Hybio Pharmaceutical Co.Ltd(300199) announced that the company and Cetrorelix Acetate Powder for Injection Pharmaceutical (China) Co., Ltd. reached a strategic cooperation to jointly promote Cetrorelix Acetate Powder for Injection ( Hybio Pharmaceutical Co.Ltd(300199) ) in Chinese mainland commercialization. Sittrek is an injectable gonadotropin releasing hormone (GnRH) antagonist used for assisted reproduction and inhibiting the peak of early-onset luteinizing hormone (LH).
In June 2021, Jinxin reproductive entered into an equity transfer agreement with Honz Pharmaceutical Co.Ltd(300086) to acquire 10% equity of Honz Pharmaceutical Co.Ltd(300086) for 37.74 million yuan, Honz Pharmaceutical Co.Ltd(300086) holds 51% equity of Yunnan Jiuzhou hospital and Kunming and Wanjia maternity hospital, both of which have IVF licenses.
many policies are good for industry development
In 2021, Shanghai, Hebei, Henan, Tianjin, Guizhou, Anhui, Shaanxi, Shanxi and other 12 provinces and cities issued the application plan of human assisted reproductive technology (20212025) (hereinafter referred to as the plan). All provinces and cities indicated in the plan that the number of human assisted reproductive service institutions should be increased. Among them, Sichuan Province has the largest number of planned new institutions, up to 20, followed by Anhui Province, Shaanxi Province and Jiangsu Province, with no more than 10 planned new institutions.
In terms of safety standardization, Hebei, Shanxi and other provinces proposed to establish an exit mechanism and deny access to institutions that do not meet the regional setting plan and technical standards; Institutions that violate human assisted reproductive technology management policies and relevant requirements and implement assisted reproductive technology in violation of regulations shall be dealt with; If it does not meet the relevant management and technical requirements, it shall be allowed to quit automatically.
Shanghai proposes not to add a human sperm bank within five years. Strengthen the examination and approval management of new institutions applying for human assisted reproductive technology in strict accordance with the relevant provisions of the state and this Municipality; Strengthen the verification management of institutions that have been approved to carry out assisted reproductive technology, focus on the verification of technology, quality, safety, ethics, management and other contents, and regularly publish the white list of institutions.
