The data show that the first three quarters of 2012, total 18 medical device companies achieved total revenue of 8.432 billion yuan, an increase of 16.89%; together to achieve a net profit of 3.018 billion yuan, an increase of 10.25% performance increase ranking pharmaceutical and biotech sub-sectors bit.

And the the single quarterly financial indicators show that the medical equipment sector since the outbreak of the international financial crisis in 2008, only six sub-sectors of the pharmaceutical and biotech has not been seen decline in performance of the sector.

Qing dynasties Research Center data provided by the China Securities Journal reporters on Nov. 1, the size of the domestic medical equipment market accounted for 14% of the total pharmaceutical market size, with 42% of the world accounted for the level of difference between the larger. In addition, compared with the level of global per capita consumption of medical equipment, the domestic per capita consumption of 5-6 times room for improvement. Consumption upgrading and replacement demand will lead to investment in the field of medical equipment to heat up.

Add 200 billion yuan output value of pushing up earnings

Medical equipment most stable profitability, gross profit margin maintained at about 42% for three consecutive years, ranking the upstream level in the A-share industry. First three quarters, 14 of the 18 listed companies in the medical equipment to achieve the net profit year-on-year rise. The gross profit margin of stability and market just need to expand the medical equipment sector performance is gratifying.

The industry believes that the new health care reform will go deeper external factors pushing up the results of the medical equipment sector. Primary health care sector is the main consumer of China's medical equipment market, conventional medical equipment needs of the rural areas will also be quick release. Planning advice in accordance with the Ministry of Science and Technology in 2012, "Twelve Five" during the period of new medical devices is expected to reach 200 billion yuan output value. Policy level, strengthen the innovation guide, increasing government spending, to co-ordinate multi-channel financing and many other initiatives to support the implementation of the rapid rise of the industry output value is expected to boost.

Growth and expansion of the domestic high-end medical equipment, compared with the development of the industry to increase endogenous motivation. The data show that the first three quarters of net profit increase of 10 A-share medical equipment companies, more than six of the company's main business of high-end medical equipment. Gross profit margin of more than 50% of the company exclusively occupy the high-end medical device company, which main meningeal the build - biotypes hard brain membrane patch (ridge) crown Hao biological (300,238) Gross margin on sales of up to 93.70%.

A long time, the domestic high-end medical device market is foreign-funded enterprises monopoly, is the pain of the rise of the industrial constraints. According to data of the Ministry of Medicines and Health Products Import and Export Chamber of Commerce, medical equipment, only five companies in the field of CT equipment, Siemens, Philips, Toshiba and other share of the domestic market share as high as 90%.

In this context, the policy level to support efforts to increase domestic medical device companies is expected to make more shares in the share to 200 billion yuan in the "cake". Ministry of Science and Technology, said in early 2012, will promote the merger and reorganization of medical device companies, optimize the industrial structure, to support of 40-50 innovative high-tech enterprise, significantly improve the international competitiveness of the medical equipment industry, focusing on the development of demand, a wide range of applications and mainly relied on imports of medical equipment and medical materials to support the development of innovative medical device products. These measures will stimulate more medical equipment enterprises to improve competitiveness in the industry chain.

Acceleration of investment and financing to stimulate venture capital enthusiasm

Solid prospects for the development of medical devices, will undoubtedly attract more attention of the capital from various quarters.
Qing dynasties Research Center data show that in the context of sluggish economic downturn domestic VC / PE investment, the investment in the first three quarters of the medical device industry is still steadily push forward the 24 investment cases occurred, Qiming Venture Partners, Warburg Pincus, awe-inspiring capital Softbank China, Tianyi capital and many other well-known institutions in the industry participation. Judging from the type of investment, the majority of VC / PE investment growth stage medical device companies more willing to. In the 2012 case, 11 to invest in growth stage companies, six to invest in start-up company, to invest in mature companies. This investment trends and characteristics of industrial development and the improvement of the investment and financing pattern are closely related.

Pharmaceutical R & D compared to such companies, medical device industry showed a short development cycle, fast return on investment, low risk factor investment advantages, they have been optimistic about the VC / PE. Softbank China an investment partner, pharmaceutical R & D cycle is very long, high risk, and the cycle of the Fund is limited, so the growth stage medical device companies showed high enthusiasm.

From the macro-environment, the rapid growth of the medical device market accelerated to attract capital in the entry. Fang Min, executive director of Warburg Pincus said earlier that the real market demand for medical devices is far from met. The entire medical device company which the market value and the market value of the pharmaceutical companies in the United States, very close; while in China, this proportion is less than one-third.

In addition, the improvement of domestic pharmaceutical and biotech investment and financing pattern also contributed to the capital from various quarters dare to increase the pace of investment in medical equipment.
Insiders said that the lack of pharmaceutical and biotech investment and financing mechanism was a huge obstacle restricting the domestic pharmaceutical industry and expansion of R & D results the low level of market liquidity, resulting in equity flows are not smooth enough, part of the VC / PE discourage start-up stage companies, the capital " relay "can not be formed.

With the strategic emerging industries to support the implementation of the initiative, this situation is reversed, diversified investment and financing channels began to emerge gradually reinforce confidence in the VC / PE investment.

The data show that the capital markets to support the medical device industry has begun to speed up. The last century, the A-share market is only China Resources Wandong (600055), a medical device company listed on into the 21st century, the rapid increase in the number of medical devices listed companies by 2010 six companies listed, and enter the "12th Five-Year" only in 2011 and 2012, there are 11 companies landing A shares capital markets, of which 10 achieved in the GEM Listing. Exit channels of communication open, and will no doubt help their fists VC / PE medical device industry.

In addition, the diversification of investment and financing channels will enrich the main investment in the field of medical equipment. China Securities Journal reporter learned that the China Development Bank "Twelve Five" period financing the pharmaceutical and biotech industry will reach 100 billion yuan, while many commercial banks launched innovative financial products and services in medical devices and other scientific and technological enterprises, such as the Bank of Beijing (market share) in 2011 of the flow of funds 96 billion line of credit for the pharmaceutical and biotech industries, cooperation with government departments, VC / PE, investment banking and other services to provide enterprises with support. Medical device companies will undoubtedly benefit.

Three new board expansion is also an important channel to support the development of the medical device industry, medical device company vision (430140) to become one of the expansion after the first landing of the three new board of the company, its shareholders students in Shanghai Venture Capital Co., Ltd., Shanghai Venture relay investment Center debut, to some extent, improve the heat on the investment of capital from various quarters of medical devices.