In the next few years, there will be a snake swallowing elephant style merger and acquisition in the medical device field

Why has the medical device industry suddenly become popular? It is reported that there are currently over ten thousand medical device manufacturers, far exceeding pharmaceutical factories, but the industry is relatively scattered. The low-end market is mainly domestic, with mid-range domestic and imported products evenly divided, and the high-end market is mostly occupied by foreign brands. Some industry veterans believe that such a market pattern harbors great opportunities for mergers and acquisitions as well as investment.

Yu Bo, who once built the brilliant record of Jiuding Investment Pharmaceutical Fund, appeared at the merger and acquisition conference as the chairman of Zhongrong Kangjian Capital. He said that compared with drugs, he values the opportunities in the medical device industry more. Because medical devices are quite complex, whether it's CT or MRI, it's a systems engineering project. Foreign companies such as GE, Philips, and Siemens have their own patents in each field, making it difficult for any company to apply for a patent for the entire CT from start to finish. This provides great opportunities for Chinese enterprises.

In the next decade, China's home medical device market will surpass that of the United States, and even earlier, "said Bai Yu, chairman of Beijing Rehabilitation Home Medical Device Chain Operation Co., Ltd. He optimistically predicts that mergers and acquisitions in this field will also flourish." In the next few years, there will be multiple 'snake swallowing elephant' style mergers and acquisitions, such as domestic home medical device manufacturers acquiring a Chinese enterprise of a multinational company or a diagnostic business

Li Bin, Chairman of Bomai Technology, which is engaged in high-end consumables medical devices, said that the prospects of high-end medical devices are broad. In the context of encouraging the development of high-end medical devices, as long as domestic technology can stand firm and has the strength to replace imports, the policy level will naturally strongly support domestic products.

Source: China Pharmaceutical Network