The medical device industry in the Year of the Horse is thriving and developing rapidly

The medical device industry is booming. According to statistics from the National Bureau of Statistics, the revenue of enterprises above designated size in China's medical device industry reached 156.5 billion yuan in 2013, with an average annual compound growth rate of over 20% The average growth rate of the future medical device industry will be higher than that of the pharmaceutical industry.

The medical device industry is working hard to move forward with full force

We will support 10 to 15 large medical device enterprise groups, 40 to 50 innovative high-tech enterprises, and establish 8 to 10 medical device technology industry bases and 10 level innovative medical device product demonstration and application bases. 

At present, the medical device market in China accounts for 14% of the total pharmaceutical market, which is far from the global level of 42%. This also shows the huge potential for investment in this field. Chen Penghui, Managing Director of Everbright Holdings, believes that the activity of the medical device M&A market has also provided more investors with opportunities before the IPO opens. 

Industry insiders say that there are relatively few high-tech talents in the pharmaceutical industry, and there are relatively greater opportunities for high-end chemical generic drugs and children's medication. However, pharmaceutical companies have a large initial investment, long product approval cycles, and high requirements for technology and talent, which set an intangible high threshold for them. 

Moreover, investment in small molecule chemical drugs should not only be cautious, but also bear the risk of low success probability. Therefore, the company is more optimistic about investing in medical devices and services, and does not pay much attention to traditional biopharmaceuticals. 

In addition, the new GMP plan has also played a driving role in the development of the pharmaceutical machinery industry. The new GMP has high requirements for sterile formulation enterprises, requiring all to pass by the end of 2013. Therefore, pharmaceutical companies will develop towards higher requirements and will inevitably pursue high-end medical machinery. With the gradual upgrading of technology, domestically produced high-end medical devices have gradually gained the ability to replace them. 

In the future, the market share of medical machinery is bound to continue to increase. The industry should have firm confidence, constantly move closer to foreign high-end equipment, and enhance the competitiveness of domestic equipment.

Source: Global Medical Device Network