The State Food and Drug Administration has recently promulgated 104 medical device industry standards (including 31 mandatory standards and 73 recommended standards) and two medical device industry standard revision lists, such as "General Requirements for Silicone Rubber Surgical Implants". Some analysts believe that this move will accelerate the development of my country's medical device industry, and promote the merger and reorganization of listed companies in the medical device industry to enhance competitiveness.
This is the first time since the establishment of the General Administration of medical device standards. Compared with the past, the standard promulgated this time has marked the standard application conditions and basic information in the announcement, which makes the content of the announcement more substantial and facilitates a quicker grasp of the general situation and application scope of the standard. This will not only raise the entry threshold of the medical device industry, but also lay the foundation for the centralized supervision and unified procurement of medical devices such as high-value consumables.
The medical device industry is a strategic emerging industry supported by the state, and it is also a focus area of various industrial funds. The ratio of the use of drugs and medical devices in developed countries is close to 1:1, while the gap is far behind in China. In the medium and long term, with the improvement of residents' consumption level and the implementation of the state's policy of encouraging social capital to run medical care, the demand for medical devices by the majority of residents and various medical institutions will gradually be released, and there is still a lot of room for improvement in the medical device industry.
According to reports, at this stage, the development of my country's medical device industry is still in a small and scattered state. The medical device market has long been occupied by international medical device giants such as Johnson & Johnson, Medtronic, GE, Philips, etc., and there is a large market space for product import substitution.
At present, the product lines of medical device companies in A-share listed companies are still relatively simple. Therefore, there is an urgent need for such companies to expand their product lines through mergers and acquisitions. There are frequent news of various mergers and reorganizations of listed companies in the medical device industry, and the industry has entered a period of rapid expansion. For example, Biolight has gradually realized its strategic layout in the field of hemodialysis through acquisitions after its listing, reducing its reliance on traditional monitoring products. In addition to large medical devices, household and wearable medical devices are also market segments actively deployed by companies in the medical device industry. Yuyue Medical deploys household air purifiers, Sinocare expands to mobile blood glucose monitoring, and Jiu'an Medical's mobile medical electronic products Fingertip oximeter, etc.
As far as market performance is concerned, since November, medical device companies such as Tofflon and Kailitai have shown strengths one after another, stimulated by the acquisition news. Driven by the strong performance of companies in the industry, the enthusiasm of various funds to intervene in medical device concept stocks has also been stimulated. Hejia and Jiu'an Medical have recently entered the data dragon and tiger list, and funds have shown a net inflow. On November 25, Lepu Medical's announcement of a major shareholder's reduction in holdings stimulated the company's stock price to surge by more than 7%. The announcement shows that Lepu Medical's major shareholders reduced their holdings of 4.187% of the company's total share capital at a price close to the market price, of which 3.054% of the shares were reduced to Xingquan's specific strategy No. 18 asset management plan participated by the company's founder Pu Zhongjie. This move is interpreted as positive by industry insiders. Not only has the shareholding ratio of the founder team been effectively increased, but the market price transfer has also made the market full of expectations for the company's future development.