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On December 28, 2021, the Ministry of industry and information technology further interpreted the contents of the “14th five year plan” for the development of medical equipment industry jointly issued by the former 10 departments, and further explained the contents of the document from the aspects of policy introduction background, preparation process, development objectives and main tasks and measures.
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At present, the development of medical equipment industry faces opportunities in challenges. China’s medical equipment industry has achieved rapid development in the past. The market scale has increased from 480 billion yuan in 2015 to 840 billion yuan in 2020, with an average annual compound growth rate of 11.8%. Covid-19 pneumonia has accelerated the regionalization and localization adjustment of the global industrial chain supply chain, and developed countries are increasingly competing for the highland of medical equipment. However, the new round of scientific and technological revolution and industrial reform are further promoted, and the integration of manufacturing industry and new generation information technology is accelerated, which brings new opportunities to the development of medical equipment, and there is a huge space for the development of medical equipment industry in the future.
Mainstream medical equipment supply will be realized in 2025 and will be in the forefront of innovative countries in 2035. The document puts forward the overall goal of the development of medical equipment industry in 2025 and the long-term goal in 2035, and sets subdivision goals around the whole industrial chain, technical level, enterprise vitality, industrial ecology and brand influence. In the future, the national policy will continue to support the development of the medical equipment industry for a long time. The goal is to upgrade to the world advanced level in R & D, manufacturing and application by 2035, and significantly improve its position in the global industrial division and value chain. It is expected that 6-8 Enterprises will rank among the top 50 in the global medical device industry.
Focus on 7 major areas, covering the needs of all people in all directions and life cycle. The document points out that the development should focus on the following seven key areas: diagnosis and testing equipment, treatment equipment, monitoring and life support equipment, traditional Chinese medicine diagnosis and treatment equipment, maternal and child health equipment, health care and rehabilitation equipment, and active implant intervention equipment. In terms of improving the technical level, special emphasis is placed on the application of high-end products such as ECMO, endoscopic surgery Siasun Robot&Automation Co.Ltd(300024) , 7T human whole body magnetic resonance imaging system and proton heavy ion integrated treatment system. In the future, the industrial structure of domestic medical devices will inevitably develop in the direction of high-end, and a number of excellent domestic enterprises are expected to emerge in emerging industries with the support of national policies.
Guarantee and support the innovation of equipment enterprises and promote the promotion and application of products. In terms of specific safeguard measures, in the future, local governments, industrial funds and social resources will support medical workers to jointly tackle key problems such as medical equipment, key parts and basic materials. Innovative medical equipment urgently needed in clinic will enter the special approval channel to speed up product approval. Qualified medical consumables shall be included in the payment scope of medical insurance according to procedures. At the same time, the allocation of medical equipment in grass-roots hospitals is expected to be strengthened. It is expected that policy and regulatory support will be gradually implemented in the future, and the industry is expected to usher in stronger innovation vitality.
Investment advice
The interpretation of the 14th five year plan for the development of medical equipment industry by the Ministry of industry and information technology this time shows the importance that government departments attach to the medical equipment industry and their confidence in the future development of the industry. Companies with strong strength in innovation, R & D and technology improvement are expected to stand out in line with the development of the industry in the future. We believe that the innovation and upgrading trend of domestic medical devices will gradually usher in the harvest period in the future, accelerate the import substitution in the Chinese market, and are expected to gradually open the market space of overseas high-end devices. We are firmly optimistic about the medium and long-term development prospects of industry leaders and leading enterprises in characteristic segments.
It is suggested to focus on the leading Shenzhen Mindray Bio-Medical Electronics Co.Ltd(300760) in China’s medical device industry; Hospital diagnosis and treatment Micro-Tech (Nanjing) Co.Ltd(688029) , Apt Medical Inc(688617) , etc; Leader in in vitro diagnosis industry Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , Autobio Diagnostics Co.Ltd(603658) , etc
Risk statement
Risk of policy implementation falling short of expectations; Risk of medical insurance fee control policy; Risk of major changes in the business environment of foreign markets;
