Ultra Comprehensive Analysis on the Substitution of Domestic Medical Devices for Imported Ones (IVD Type Included)

  • 2019-11-20
At present, domestic medical equipment has gradually broken through multiple technical barriers. The subdivided fields that have basically realized import substitution (domestic products accounting for 50%) include: 1) cardiovascular stent, cardiac occluder, artificial meninge in implantable consumables and trauma-based and spine-based products in orthopaedic implants; 2) monitors, DR, and others in large and medium-sized medical equipment; 3) biochemical diagnosis in the field of in vitro diagnostics (IVD); 4) oxygen generators, sphygmomanometers and others in domestic medical devices.
We believe that import substitution will still be the guiding principle of China’s medical device development in the next ten years, which requires the innovation and upgrading of our own technology. Reviewing the successful experience in the field of import substitution will provide valuable guidance for the future development of China’s subdivided sectors that have not achieved such goal.
Complete import substitution of cardiovascular stent within four years
In 2008, the top six enterprises in the market share of coronary stent system in China included MicroPort Scientific Corporation, Lepu Medical, Shandong JW Medical Systems, Johnson & Johnson and Medtronic, accounting for about 93% of the market share. In the list, domestic manufacturers are increasingly competitive. As of 2017, domestic brands Lepu Medical, MicroPort Scientific Corporation, and Shandong JW Medical Systems respectively occupied 24%, 23%, and 20% of the market of cardiac stent, accounting for 67% of the total market share. Yet, Abbott, with the highest share as the imported brand, only comprised 13%. Domestic brands have begun to dominate the market of cardiac stents.
Mindray-led domestic manufacturers promote the import substitution of monitor
At present, the global suppliers of medical monitors mainly include Philips, GE and Mindray, forming monopolistic market structure. The domestic market is mainly divided into three echelons: Mindray the absolute leader in the industry, accounting for 64.80% of the market share, the second echelon a company represented by Philips; the third one the enterprises represented by Edan and BIOLIGHT.
Gradually accomplishment of import substitution of biochemical diagnosis with reagent as the entry point
In the global IVD market, Roche, Danaher, Siemens and Abbott account for nearly 50% of the market share. In China’s biochemical diagnostics market, these international giants only account for about 30% of the market share, and domestic enterprises hit 70%. However, domestic enterprises have not formed market concentration, with relative low market occupancy respectively. The main enterprises include Mindray, Kehua Bio-Engineering, Beijing Strong Biotechnologie, etc.
DR: technological advance is the determinant of import substitution
Since 2003, Chinese hospitals have started to utilize DR products, and immediately began the substitution of the analog X-ray photography equipment. At present, DR equipment has been widely applied at general hospitals in major cities and developed areas. At present, foreign-invested brands of DR sold in the Chinese market mainly include Siemens, Philips, Carestream, GE, Shimadzu, Toshiba, etc. The number of domestic DR brands is much larger than that of international brands. Currently, there are over 50 domestic DR brands on the market, and the number keeps increasing. Wandong, the leading domestic enterprise in DR sector, achieved annual sales of DR of 1800 units in 2018, accounting for nearly 20% of the market share. We believe that the global large-scale medical equipment has entered the stage of technology research and development, which will definitely bring opportunities for Chinese manufacturers to quickly follow up. Hopefully, the domestic market share will further expand in the future.
For the original article, please refer to the original link of the Chinese website.

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