Medical services&devices become a hot investment spot

In the past decade, driven by the government's increased investment in the medical and health industry, China's medical and health market has undergone a rapid development stage. With the continuous implementation of medical reform, the pattern of China's medical market will undergo fundamental changes. Zero2IPO Research Center believes that the pharmaceutical industry as a whole will still maintain rapid growth in the future, but the structure will be more optimized. Since the launch of the new medical reform, governments at all levels have increased investment in the construction of medical facilities and equipment upgrading, coupled with the steady increase in the volume of medical services and treatment in China, the Chinese medical device market has ushered in a era of rapid development. To fundamentally solve the problem of relying on drugs to support medical care will inevitably be forced to increase the price of medical services. Strong demand and favorable policies will promote the rapid growth of the medical service industry, and mobile medicine will drive the development of medical services and related medical device segments.

The golden age of the pharmaceutical industry has passed, and policy dividends are the key.

With the continuous advancement of population aging, changes in disease spectrum, and drug use upgrading, the growth trend of the biomedical industry in the medium to long term remains unchanged. However, in the short to medium term, medical insurance fee control, bidding price reduction, administrative price reduction, and new drug approval efficiency have a more profound impact on the development of the industry; Although the national regulatory policies for the pharmaceutical industry are complex and variable, the industry trends guided by policy changes are still relatively clear, such as strengthening the rationality of drug use, encouraging import substitution of highly generic drugs, and prioritizing the review of clinically urgently needed generic drugs to optimize the industry competition pattern.

Good policy&market demand, medical devices driving into the fast lane of development.

Since the launch of the new medical reform in 2009, governments at all levels have increased investment in the construction of medical facilities and equipment upgrading, coupled with the steady increase in the volume of medical services and treatment in China, the Chinese medical device market has ushered in a era of rapid development. With the improvement of relevant regulations, the policy guidance of the Chinese government in the medical device industry has become increasingly clear, which means gradually improving regulatory efficiency, encouraging innovation, especially domestic key innovation, and strengthening quality and safety.

Medical service is the focus of medical reform, and mobile medicine will drive the development of related industries.

The major advantage in the process of medical reform is privatization (i.e., the restructuring of public hospitals), and medical services will continue to benefit from the institutional dividends brought about by industry changes over this longer period. Currently, the overall proportion of medical services in the medical and health industry is relatively low, and there is basically no policy resistance. The policy environment is superior to the pharmaceutical industry, and there is huge space for the future. With the high growth of the mobile medical market, the evolution from horizontal applications to vertical solutions that connect the value chain of mobile medical services will become the direction of industry development.