It is timely to invest in the medical device industry

The huge market demand in China has brought abundant profits to multinational medical device companies, so many industry giants have clearly stated their intention to establish themselves in China. This year, medical devices have entered a peak period of development, and some multinational companies have expressed their intention to increase investment in the Chinese market, and more social capital will also be invested in the industry.

The development of China's medical device market has been accelerating in recent years, especially last year when the industry made rapid progress and many mergers and acquisitions occurred. However, this year's favorable policies continue to intensify this situation, and the wave of industry mergers and acquisitions is expected to be even higher. Prior to this, the financial crisis had a huge impact on the medical device industry, and mergers and acquisitions were also undervalued. However, in recent years, with the development of the economy and the continuous expansion of market demand, the situation in the industry has also changed. Taking the United States as an example, the country has implemented a new tax system and medical reform plan, which have injected momentum into the industry's development. Medical device companies are waiting for the opportunity to take action, and mergers and acquisitions are gradually heating up.

The current situation in our country is similar to that of the United States. Medical reform is being deeply implemented, and encouragement policies for medical devices have been introduced. The industry is in a period of good development, which has a great attraction for social capital. Multinational enterprises have also recognized this and increased their investment in China. Many companies have established medical device production bases in China, and some medical device giants are no longer satisfied with tracking the high-end market. They have also expressed their intention to sink into the grassroots market. Second - and third tier cities have made corresponding long-term plans, and competition in this field will become more intense in the future.

Industry insiders say that China's medical device market has great appeal to multinational companies, and can be said to be their gold mine. Currently, mergers and acquisitions between domestic companies occur from time to time, and the same is true for foreign companies. In order to accelerate their entry into China, multinational companies are likely to merge with domestic companies, and acquiring foreign companies will bring them tax benefits. Therefore, the industry believes that this possibility is very high, and this year is the peak period of development for China's medical device market, which is a timely opportunity.

However, the medical device industry also has some peculiarities, such as long investment cycles and strict technological barriers. Therefore, in order to enter this industry, funds need to make long-term plans and pay more attention to whether the company's research and development strength is up to par, in order to win better returns.

Source: Global Medical Device Network