What is the future of the medical device industry?

Recently, the Guangdong Provincial Food and Drug Administration issued the "List of Pilot Varieties of Medical Device Registrants in Guangdong Province". In the 61st item in the variety list, Huawei Terminal Co., Ltd., as the applicant registrant, applied for the medical device-wrist single-lead ECG. Collector (VID-B99). This means that at present, Huawei has obtained a registration certificate through the Guangdong Province registrant pilot, and it has become a fact that it has entered the field of medical devices.

Huawei expands its layout in the medical device field

According to the inquiry, the product registration number is Guangdong Machinery Registration 20202071705, the registrant is Huawei Terminal Co., Ltd., and the product management category is Category 2. The scope of application or intended use: for the collection of adult wrist single-lead ECG data.

In fact, as a representative of domestic technology companies, Huawei has already begun to deploy in the medical field. According to the information from Tianyancha, Huawei Terminal Co., Ltd., which is actually controlled by Huawei Terminal (Shenzhen) Co., Ltd., changed the company's business scope on March 21, 2019, adding new businesses such as medical device (Class 2 medical device) sales.

After the change, the business scope of Huawei Terminal Co., Ltd. is to develop, produce, and sell: communication and electronic products, computers, satellite TV receiving antennas, tuners and supporting products for the aforementioned products, and provide technical consultation and after-sales service; sales: medical Devices (Class 2 medical devices), etc.

At the end of November 2019, the business of Deep Thinking Artificial Intelligence Robot Technology (Beijing) Co., Ltd. invested by Hubble Technology Investment Co., Ltd., a wholly-owned subsidiary of Huawei, also changed. Copy the device.

At present, in addition to the field of medical equipment, Huawei also has different layouts in the fields of digital hospitals, regional health informatization, and hierarchical diagnosis and treatment. Industry insiders believe that as Huawei continues to compete in the medical field, in the future in the field of medical devices, it may also develop and produce representative works of domestically produced devices.

Well-known companies have entered the medical equipment industry

In fact, with the advancement of my country's hierarchical diagnosis and treatment policy, the number of beds and the number of patients in primary medical institutions continues to grow, and the demand for primary medical devices is increasing. The data shows that the overall market size of China's medical devices has grown from 255.6 billion yuan in 2014 to 530.4 billion yuan in 2018, with an average annual growth rate of around 20%, and both operating income and net profit have maintained rapid growth, which belongs to medical devices. In the golden period of industry development, it is estimated that by 2022, the scale of China's medical device market will exceed 900 billion yuan.

In the context of huge demand, many well-known companies are also entering the medical equipment industry like Huawei. For example, on February 11, 2019, Baidu Online Network Technology (Beijing) Co., Ltd. changed its business scope, increased the sales of Class II and Class III medical devices, and invested in Neusoft Medical on March 19. Baidu's move into the medical device industry is unstoppable. Combining Baidu's AI industry layout, entering the medical industry is a more far-reaching strategic plan.

On the same day, Sinopharm Holding also announced that it will expand the company's business scope and increase the medical device industry. In fact, as early as September 2018, Sinopharm Holding purchased 60% equity of China Scientific Equipment Co., Ltd. (hereinafter referred to as Sinopharm Equipment) held by China National Pharmaceutical Group Co., Ltd. (hereinafter referred to as Sinopharm Group) for 5.108 billion yuan. The value is 8.513 billion yuan.

In April 2019, according to information from Tianyancha, an investment fund company under the Wanda Group also invested 40 million yuan in a medical device company on the New Third Board. This means that Wanda has also officially entered the medical device industry.

Of course, in addition to this, technology giants such as Lenovo, Alibaba, and Tencent, as well as well-known companies such as Fosun Pharma, have also made moves in the field of medical devices. The industry expects that with the continuous expansion of the medical device market in the future, more companies will enter the field. But it is worth noting that a market war will be inevitable in the future.

Epilogue

In general, in the future, with the support of national policies, the expanding market demand, the accelerated aging of China's population, and the technological development and industrial upgrading of the medical device industry, medical equipment is expected to continue to maintain a good momentum of rapid growth, and achieve a moderate growth rate. The vision of import substitution from the low-end market to the high-end market.