Speed ??integrated development industry giants looming
In the long term the Chinese medical device market has great potential, the current industry consolidation is in the development of the critical point. Integration and specialization in the development process will give rise to future industry giants.
With the medical device industry
The following investment highlights: China's medical device industry in the development of critical point integration, specialized foster mergersdigital blood pressure monitor and acquisitions market segment leader, gave birth to giant mergers and acquisitions integration. Eisai mainly from the primary start-up phase to the category of the initial stage of expansion, to the 1990s, structural changes in private capital to promote the stage, China's medical device industry,digital thermometer manufacturer completion of the original technology and capital accumulation, and initial implementation of product structure adjustment and regional industrial layout. Start a new healthcare reform in 2006, the industry entered a new historical period. Diversification strategy demands, fierce competition in the industry and capital strength to become a catalyst for industry consolidation in the industry and the endogenous characteristics under the action of the external environment, enhance concentration and diversification trends in the formation. China's domestic medical device companies through mergers and acquisitions, to promote the industry to focus on. Integration and specialization in the development process, digital thermometer the emergence of more market segments leader, and gave birth to the future of the industry giants.
The future development of the strategic positioning decision, first and business expansion is expected to become industry giants. Integration period of development, China has three medical device companies will develop the pattern of choices: 1) focus on market segments, segment leading achievements; 2) expansion through mergers and acquisitions, an integrated giant; 3) The advantages of using technology to achieve the Medical electrical integration. Focus and diversity are essential, we believe that diversity, actively integrate more companies expand to become the winner. Mindray Medical, WEIGAO [36.00-1.10%], diving medical [28.02-0.25% share it research report], Dunlop medical [18.28-2.51% share it research report] has been through joint ventures, mergers and acquisitions to diversify, become an integrated leader. Minimally invasive medical [3.45-4.17%], Comfort Medical, creation care, nine medical security [14.58-1.42% share it research report], Improve Medical [12.24-2.08% share it research report], Xinhua medical [33.73- 1.72% shares it research report] is a sub-leader in the field. Wandong [15.290.00% share it research report], although only focus on one segment, but it carries behind the development of China Resources Group's medical device industry expectations.
Industrial upgrading trend, China's medical device industry from traditional manufacturing to high-tech development. China's medical device manufacturing and processing industry basis, through the accumulation of products has established a complete system, and established in the field of low-end product a pivotal position. China actively carry out technological upgrading medical equipment, for domestic market and external industrial transfer opportunities. Product quality, enhance the technological structure of Chinese companies in making care, medical imaging equipment, laboratory equipment and clinical areas such as minimally invasive treatment get remarkable results. Irreversible trend of development of innovative, computer tomography, MRI, Cardiac Electrophysiology equipment, artificial joints will be the next occupied the high ground.
Chinese medical device market has great potential to sustain rapid growth. Global medical device industry, the pharmaceutical market growth over the next 10 to 15 percent will maintain a compound growth rate. While developed countries accounted for 78% of the market, however, developing countries represented by China's market is experiencing rapid growth, the accumulation of the cost benefits of upgrading the industrial chain and R & D position. Rising health care costs, the increasing spending power and health consciousness will be a positive factor to promote the development of the industry, pharmaceutical industry and health system to inject additional momentum, as the release of pent-up demand and potential future open space of the induced forces. Rebalancing the allocation of resources, industry upgrading and transfer of internal and external power are intertwined, the Chinese medical device industry compound annual growth rate will remain at 20% -30%.
Industry Risk:
1) economic recession, cut spending may curb demand for high-end export markets; 2) appreciation of the RMB to weaken China-made products globally competitive; 3) medical equipment production and sales in the country are subject to strict regulation, policy changes could significantly improve manufacturing costs; 4) large foreign medical device companies to accelerate into the Chinese market, as well as domestic brands increased competition may drive down industry profits.