Ministry of Commerce report: In-depth interpretation of innovative models of medical services and medical devices

The medical device industry is an important part of the Chinese economy. During the “Twelfth Five-Year Plan” period, despite the impact of the controlled fee policy, the growth rate of the main business income and total profit of the industry gradually slowed down, but the market demand brought about by aging and urbanization will still drive the industry to grow steadily. The policy of orientation will also benefit the healthy development of the industry. According to the plan, during the “Thirteenth Five-Year Plan” period, the government will focus on enhancing the economies of scale and innovation of the pharmaceutical industry, comprehensively improving product quality and supply security systems, and accelerating the pace of internationalization. China's medical device industry is expected to continue to attract domestic and foreign investment.

商务部报告:深度解读医疗服务与医疗器械的创新模式

Summary of innovation models in various fields of medicine and health

商务部报告:深度解读医疗服务与医疗器械的创新模式

This report focuses on the policy hotspots and investment management status of the pharmaceutical industry. It sorts out information from various aspects such as industry operation, policies and regulations, and emerging hotspots, and analyzes investment opportunities and potential risks of China's pharmaceutical industry; “introducing” foreign-invested enterprises and Chinese enterprises The “going out” direct investment and M&A data are subject to detailed statistical analysis and trend analysis. In addition, the investment dynamics and innovation models of the pharmaceutical industry are interpreted from the perspective of capital market. The main findings of the report are as follows:

During the 13th Five-Year Plan period, the pharmaceutical industry will maintain medium-to-high-speed growth. The increase in household income, the upgrading of consumption structure, the aging of the population and the acceleration of urbanization, and the further improvement of the medical insurance system will all increase the demand for Chinese pharmaceutical consumption and promote faster market growth.

The lack of quality of domestic generic drugs and high health costs have become the main challenges affecting the development of the industry. Improving the quality of drugs and the cost of medical expenses will become a key task. Under the influence of total medical insurance control, rational use of drugs, drug ratio control and increasingly severe centralized bidding procurement policies, the profit rate of pharmaceutical companies will face pressure in the future.

The total foreign direct investment in the pharmaceutical industry is on the rise, the number of projects is steadily declining, and the average investment scale per project is growing, reflecting the tendency of foreign companies to be more cautious and more savvy for each project.

Due to the limited domestic research and development capabilities of pharmaceuticals, foreign mergers and acquisitions in China are less than direct investment. Foreign mergers and acquisitions are mainly to enrich the product line and expand its influence in the Chinese market.

The amount and quantity of foreign direct investment in China's pharmaceutical industry are rising, but the overall scale is small; the scale of individual projects has an expansion trend, and enterprises have transitioned from exploratory foreign investment to strategic; while the external investment in medical equipment is in scale and quantity. Not big, mainly to expand sales channels.

The external mergers and acquisitions in the pharmaceutical industry tend to be active, the price increases, the size of a single transaction has risen sharply, companies want to expand the market through mergers and acquisitions or enrich product lines; the overseas medical equipment and medical services mergers and acquisitions are also heating up, and the mergers and acquisitions medical institutions Mainly.

In the capital market, the investment boom of investment institutions in China's pharmaceutical health industry continued unabated, and new technologies drove investment in the bio-pharmaceutical sector and medical services expanded rapidly.

This report was jointly released by the Investment Promotion Agency of the Ministry of Commerce and Deloitte China. The survey was conducted through statistical analysis, industry experts and corporate interviews to help the parties understand the opportunities and risks of the Chinese pharmaceutical industry.

Capital market focuses on the pharmaceutical health industry

The first section of the multi-level market analysis of the pharmaceutical health industry

China's medical health market is huge. With the continuation of urbanization, the problem of population aging has attracted more attention. With the rise of national consumption power and the further improvement of the basic medical security system, the pace of development and expansion of China's medical and health market is increasing. According to the 2015 China Health and Fertility Statistics Yearbook, China's total health consumption reached 3.5 trillion yuan in 2014, with a compound growth rate of 18.5% over the past 10 years. However, China’s total medical and health expenditure only accounts for 5.55% of the gross national product, which is still relatively low compared with 7.7% in high-income countries. With the opening of the second-child policy and the deepening of medical reform, China’s pharmaceutical health industry There is still huge room for growth in market size.

The capital market has never been absent from every industry's development and growth, and the performance of the capital market in 2015 also proves that the pace of development of China's pharmaceutical health industry continues to accelerate.

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