Thanks to various factors including favorable policy, quality of demand, upgrading of manufacturing capacity, technological innovation and capital promotion, the medical device industry has become the fastest growing sector in the health industry, and it has also become one of the most promising investment hot spots in the capital market..According to the forecast of the China Medical Industry Information Center, China's medical device market will exceed 600 billion yuan in 2019, and the compound annual growth rate is expected to reach 16.8%.In the future medical device market, innovation will become the most important driving force for its rapid growth, and it will also be the fundamental way to promote structural reforms on the supply side. China's medical device innovation has entered the golden 10 years.
1.How Investment Institutions Grasp the Opportunity of the golden 10 Years
For investment institutions, in the face of a highly diverse medical device industry, how to fully seize the golden 10 years of innovation is a difficult issue, especially for those who are just getting into contact with medical care. Investment institutions in the device industry are even more difficult.It seems that there are many opportunities for investment, but they are relatively scattered; it seems that the market space is not big, but some companies seem to have developed very well in seemingly insignificant directions. So how do you grasp the opportunities in many categories?
There are no short cuts to solve this problem. Only three aspects can be considered: First, the capacity and continuous expansion capability of the subdivided industry in the project; Second, the innovation of the project core product and the disruption of clinical applications and leading market opportunities Third, founders and management teams.The first two aspects can only be clearly understood and determined through systematic industry research.We have divided medical devices into seven sub-sectors, including in vitro diagnostics, imaging, cardio-cerebral vascular, surgical/ orthopaedic, oncology, medical artificial intelligence, and other comprehensive categories. We conducted a systematic industry study of the above sub-sectors, combed almost every important enterprise in each sub-sector, tracked and updated the progress of the company at any time, and followed up on investment in a timely manner. The advantage of this approach is that it fully grasps the progress of the sub-industry, systematically tracks outstanding companies, and makes sure that the first two aspects of the survey are handled with ease and with targeted results.
2.Six investment directions for innovative medical devices
In the medical device sub-sector that we systematically combing, the investment direction of the following six innovative medical devices is worth considering.
（1）Cardiovascular and cerebral sub-sector
There are relatively more hot spots. The stent is no longer the focus of our attention. More focused innovation focuses on transcatheter valve intervention, coronary heart disease diagnostic devices, cardiac pacemakers, drug balloons, radiofrequency ablation devices, and cardiac occlusion devices and other several directions.
（2） Video equipment sub-industry
For general-purpose large-scale equipment, such areas as CT, magnetic resonance, and PET-CT, there are currently few excellent early-stage projects and the valuation is high. With the advent of high-end imaging equipment manufacturers, a new imaging company has not yet formed its own model. Under the influence of external GPS and internal shadows, there is insufficient space for growth.We are more optimistic about the subdivision of imaging equipment, especially the unique hardware and artificial intelligence algorithms with their own application scenarios, such as breast cancer ultrasound, dental cone beam CT and other directions. In addition, we are also optimistic about the upstream companies that have core technologies such as core technologies.
（3）Tumor related device sub-sector
Tumor ablation devices that have been hot for some time, including freezing, radio frequency, microwaves, and lasers, are no longer. In the field of radiotherapy, it will take a long time for domestic companies to make breakthroughs in proton heavy ion technology.The company of electronic linear accelerators deserves attention, but it needs to focus on the ability to develop and produce high-energy machines. Gamma knife is based on the limitations of its own technology, and the limited market space is not the investment direction that we are concerned about.In addition, the rapid growth of tumor interventions in recent years, new drug carrier microspheres worth attention, microsphere delivery system supplies may be a new market growth point in the future, but the technology is not yet fully mature.
（4） Surgical orthopedic device sub-sector
Surgical robots are undoubtedly still one of the important directions. However, due to excessive pursuit of capital in recent years, the phenomenon of price deviation from value is more serious. 3D printing combined with biomaterials is one of the most promising directions.
（5） Medical artificial intelligence sub-industry
Medical artificial intelligence is the direction of medical development in the future. Compared with other industries, the application of artificial intelligence in the medical industry has a good foundation, and the pain points in the medical industry are obvious, such as the lack of high-end medical personnel, unbalanced distribution of resources, and high medical costs;The data is highly electronic, the data is more centralized and the quality is higher; more application scenarios can achieve relative standardization, such as medical imaging. Based on current observations, the artificial intelligence of medical imaging and medical virtual assistants will be relatively mature, and some of the targets deserve attention.
（6） In vitro diagnostic sub-sector
Molecular diagnostics and point-of-care testing (POCT) remains the main direction of innovation. In molecular diagnosis, big data and artificial intelligence will change the overall molecular diagnosis pattern.For example, sequencing services for gene sequencing are facing a new round of reshuffle, and companies with their own databases, core algorithms, and clinical interpretation capabilities will have the opportunity to break through.Localization of upstream related reagents for gene sequencing will also be an important opportunity. Concomitant diagnosis of cancer Currently, market education is basically mature and is one of the directions worth investing.
Whether it is a medical device company or an investment institution, if it seizes the opportunity of this innovative the golden 10 years, the company will become bigger and stronger, becoming a platform giant, and it will be more than just a dream for investment institutions to obtain substantial financial returns.