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Since the outbreak of the new crown epidemic, policies have continued to help the development of medical devices, especially under the wind of medical "new infrastructure", China's medical device industry is ushering in a new golden period of development
.
At the same time, in order to deepen the Chinese market and cope with the new wave of localization, multinational medical device companies are continuing to increase their localization strategies
.
Recently, Wang Hao, President of Siemens Healthineers Greater China, said that for multinational medical device companies, if they want to seize the opportunities in the Chinese market, they need to quickly meet market demand
.
Therefore, we are constantly carrying out the strategic layout of localization of imported products, we must not only do localization, but also accelerate localized innovation
.
"In the past, multinational medical device companies would regard China as a market, the main purpose was to sell products, but future development does not allow us to only regard China as a market in the global layout, the Chinese market is very important for our future development, we must take root
here.
" This requires us not only to be able to produce products, but also to strengthen communication with suppliers and customers to produce truly meaningful original products
.
Wang Hao said that China has a huge medical system, which inevitably needs innovative products and advanced technologies to continuously promote market development
.
Three fundamental aspects of the Chinese market
Three fundamental aspects of the Chinese marketLarge-scale medical diagnostic equipment, monitoring equipment, and treatment equipment are the largest market segments in China's entire medical device industry, and the number of their manufacturers accounts for more than
half of the tens of thousands of medical device manufacturers in China.
Due to the technical barriers of high-end equipment, most of these enterprises have low revenue and low value-added products, and the status quo of large quantities of large-scale equipment imported from foreign countries in hospitals at all levels in China has not changed
.
Among the imported equipment purchased by major hospitals, the largest amount is diagnostic equipment, such as CT and MRI
.
"From the field of medical imaging diagnosis, laboratory diagnosis, interventional therapy, etc.
, we are accelerating our layout, especially last year, we completed the merger with Varian, bringing more possibilities
to the entire market.
In the process of introducing innovative products to the Chinese market, we are also constantly promoting localization and strengthening local capabilities
.
Wang Hao said that the Chinese market has three most basic elements:
First, market growth demand
.
China has a huge population base and a very large number of patients, and the prevalence of tumors and cardiovascular diseases accounts for a large proportion of the world, which is the most basic and rapidly growing demand
.
Second, China has many unmet clinical needs
.
For years, healthcare reform has wanted to promote universal access to primary care, also due to the huge unmet need
in the primary care market.
For example, in terms of CT, linear accelerator, and ultrasound per million population, China is still far below the international average
.
Third, the demand for payment has been continuously strengthened
.
With the rapid development of the economy, China's GDP is constantly growing, and the corresponding ability of Chinese people to pay is also increasing
.
"Based on these three most basic factors have not changed, we still have great confidence
in the development of the Chinese market.
" Wang Hao said
.
According to EY Consulting's observations, medical device innovation in the true sense needs to be based on treatment theory and scientific research, combined with clinical needs, materials, technologies, etc.
, to integrate new medical devices, and then achieve the expected results
in clinical applications.
After the development of the medical device industry to a certain extent, more medical device companies will launch original clinical application technologies and device products, put them on the market, achieve the expected results, and then promote
them to the world.
After the opening of the "green channel" for the approval of innovative medical devices, a number of medical devices with strong innovation and high technical content to meet urgent clinical needs have emerged, filling the gaps in related fields and enriching patients' clinical treatment options
.
The rise of domestic devices has become a trend
The rise of domestic devices has become a trendDriven by innovation incubation, China's medical device industry has ushered in a high boom
.
According to data from the State Food and Drug Administration, since the launch of the special review process for innovative medical devices in 2014, as of the end of 2019, a total of 73 innovative devices have been approved, of which 72 are made in China, accounting for 98.
63%.
In the subdivisions such as TAVR, colorectal cancer early screening, absorbable stents, ventricular assist devices (artificial hearts), innovative medical devices of domestic enterprises have been approved before foreign companies, which means that the incremental market for Chinese devices is likely to be dominated
by domestic products in the future.
Especially in the field of traditional equipment, domestic enterprises have gradually broken through in the high-end field, PET/CT, high-end color Doppler blood flow imaging, chemiluminescence, high-end monitors, bone and joint instruments and other market segments domestic upgrade rate continues to increase, China's medical device stock market domestic upgrading has begun to have qualitative changes
.
On September 26, China's first domestic proton therapy system was approved for marketing
.
The State Food and Drug Administration pointed out that the approval of this product for marketing marks another step towards the localization of China's high-end medical equipment and equipment, which is of great significance
for improving the diagnosis and treatment methods and level of medical tumors in China.
Some industry analysts pointed out that in the past three years, the structure of China's medical device market has tended to be optimized, but the structure is still seriously unbalanced, and the high-end medical market will become the next force point
.
In addition, in the future, with the support of national policies, the expanding market demand, the acceleration of the aging of the Chinese population, and the technological development and industrial upgrading of the medical device industry, medical equipment is expected to continue to maintain a good trend of rapid growth, and realize the vision
of upgrading imports from the low-end market to the high-end market.
iResearch's data also shows that the direct digital X-ray imaging equipment that began to be upgraded domestically has reached a 90% domestic upgrade rate by 2021, while medical ultrasound instruments are about
25%.
。 In the field of CT equipment, the localization rate of CT equipment below 64 rows will reach 40% in 2021, the localization rate of 64-row CT equipment will be about 20%, and the localization rate of MRI equipment will also reach more than 20%.
In medical imaging equipment, the market of angiography equipment has long been dominated by three international medical device companies, Siemens Healthineers, GE Healthcare, and Philips, known as "GPS" in the industry, with a localization rate of only 3%, and domestic high-end digital subtraction angiography (digital).
Subtraction angiography, DSA) equipment still has a certain gap with imported equipment in terms of technical level and performance, and it will take time to complete catch-up
.
However, despite this, from the perspective of the strategic layout of the market, multinational medical device giants have to accelerate the localization layout to cope with the market challenges
that come at any time.
For example, in the localization of core components, Dr.
Kong Jun, general manager of Shanghai Siemens Medical Equipment Co.
, Ltd.
, said that a very core component - tube has been produced in the Wuxi factory, which is also the only foreign-funded enterprise among multinational medical device companies that puts the tube in China, and the depth of localization is very high
.
How supply chain assurance is achieved
How supply chain assurance is achievedMedical devices have strong manufacturing attributes, and Chinese enterprises have advantages in manufacturing costs, industrial supply chain support, engineer dividends and other aspects, China's medical device industry from imitation gradually to independent innovation, domestic upgrading and overseas export breakthroughs are promising, the future must be oriented to the
global market.
The new crown pneumonia epidemic has exposed the shortcomings of China's public health services to a certain extent, and the investment in hospital construction after the epidemic will increase, whether it is hospital construction or the quality improvement of medical service institutions, there will be a large demand
for medical equipment.
From the perspective of securing the supply chain, Yu Zilong, Partner, Head of Life Sciences, KPMG China, offers six recommendations:
The first is to sort out the cost of supply chain procurement
.
Medical device enterprises should sort out the total cost of the existing supply chain through digital means, clarify the cost structure of different categories, and use the analysis results as the basis
for subsequent supply chain adjustment and cost optimization.
Therefore, accurate and transparent supply chain procurement spend data will play an extremely important role
.
The second is the feasibility analysis
of global procurement.
Through the three steps of global procurement feasibility study, matching of potential categories with overseas countries, and pilot category selection, combined with accurate and transparent procurement expenditure data, the analysis session helps enterprises judge the feasibility of overseas procurement by category, and gradually screen out pilot products/categories
.
The third is to identify potential suppliers
.
Strengthen cross-functional team collaboration to further identify overseas suppliers with competitive advantages by clarifying procurement needs, supplier screening, and identifying potential/alternative suppliers
for effective supplier sourcing and evaluation.
The fourth is to establish an overseas procurement office
.
The establishment of an overseas procurement office can effectively align with the offshore production model, help pharmaceutical companies manage global procurement expenditure, and further optimize the total cost and responsiveness of the supply chain
.
Businesses can set up an overseas procurement office
around five key factors: process, organization, location, legal form, and cost analysis.
Fifth, improve the supplier database
.
After the above steps are completed, new suppliers can continue to be developed through overseas procurement offices or third parties, and new suppliers can be trained accordingly to carry out continuous supplier management to ensure the strict production quality specifications and compliance
of the whole procurement process in the pharmaceutical industry.
Sixth, strengthen outsourcing
.
Outsourcing may involve subcontracting to a manufacturer
in a neighboring or another country.
The act of outsourcing to another country is often referred to as offshoring, and is usually a "make-or-buy" based on a combination of cost, quality, or operational priorities
Decision
).
Although there is still a big gap between China's medical device enterprises and some countries and regions, after 30 years of sustained and rapid development, China's medical device industry has initially built an industrial system
with complete professional categories, perfect industrial chain and strong industrial foundation.
China has surpassed Japan to become the world's second largest medical device market, and the rise of China's
innovative medical devices in the future is undoubted.
"In China, we will further expand our supplier network, from the components themselves and the technology itself
.
We also hope to further expand the upstream and downstream cooperation of the industrial chain through the development of the innovation center, and make further breakthroughs in deeper core technologies, which I believe is an important measure
for multinational medical device companies such as Siemens Healthineers to develop their strategies in China in the future.
" ”
Kong Jun said
.
