Large-scale analysis of the development path of in vitro diagnostic industry

In vitro diagnosis is the largest segment of medical devices. In 2016, the global in vitro diagnostic market capacity was approximately $61.4 billion, and the global growth rate was 4% in 2013-2018. As a representative of emerging markets, China's growth far exceeds the international average. According to a survey of 94 companies, the market capacity of China's in vitro diagnostic industry exceeded RMB 58 billion (manufacturing) in 2016, with an industry growth of 16%. The domestic ratio is about 40%. With the development of the industry, different companies choose different development paths, the watershed of enterprise development is gradually presented, and the concentration of the industry is also constantly improving.

体外诊断行业发展路径大解析

In vitro diagnostic listed companies are divided into three types of models, and the development path and characteristics are different. According to the profit model of different companies, they are divided into manufacturing, third-party medical laboratories and mining suppliers. The characteristics and development trends of different models are different.

体外诊断行业发展路径大解析

First, manufacturing enterprises: industry shuffle, leading to accelerated differentiation of enterprises

There are many subdivisions in the in vitro diagnostic industry, and the characteristics of each subdivision are inconsistent. However, due to the high overall gross profit level and low entry threshold, it has developed rapidly and barbarically in 2009-2014. Some sub-sectors have entered the deep water area of ​​the Red Sea, such as biochemical reagents. After 2014, industry regulation quickly tightened and the industry became a watershed. Medical products , from the early undifferentiated price competition, gradually move toward product and R&D-driven brand competition, and the best currency and bad money must be the mainstream values ​​of the future. Enterprises that have long adhered to quality as the core and R&D for life will be able to cross the storm in this round of reshuffle, and Nirvana will be born again.

1. R&D is the lifeblood of manufacturing companies for active head water. With products as the core of the company, R&D strength and investment are the source of future growth. The long-term high growth of single products is theoretically difficult to achieve, especially for industries with more in vitro diagnostic branches, so the injection of new products is a necessary factor for future growth. Rather than capitalized research and development, it further demonstrates the company's development confidence and excellent cash flow.

2. The era of imitation and reproduction has passed, and later generations must be driven by technological innovation. With the accelerated pace of in vitro diagnostics companies landing in the capital market, companies that are first registered in the capital market will seize the opportunity of capital. After copying the imitation of the enterprise, after logging into the capital market, the financing capability has made a qualitative leap. Through R&D and internal management of the enterprise, it has moved to the regular army. The era of copying and imitating is gone forever, and new entrants must strive for a place with technological innovation and differentiation.

3. The merger and merger between listed companies is not far from the future. As the competitive position and pattern continue to diversify, some enterprises cannot quickly adapt to changes in the market and gradually lose their territory, and even continue to experience negative growth. As developed countries in Europe and the United States, the integration of listed companies will be carried out in the future, and industry concentration will continue to increase.

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