NEW YORK, NY / ACCESSWIRE / June 1, 2020 / Thanks to a growing economy in recent years, the income of Chinese people has increased continuously, however at the same time, China's become a rapidly aging society. Under this circumstance, China's pharmaceutical industry has enjoyed a solid development, with an increasing business revenue and sales volumes. Since the epidemic, the demand for related treatment and prevention drugs, and medical resources has also increased. With the recovery of medicine and medical equipment industries, sales revenue in those industries will also be likely to witness marginal growth.
Under the epidemic, many great opportunities will appear in the rapidly developing healthcare industry.
Taking IVD (in vitro diagnostic products) as an example, as one of the leading companies in China, the main business of Snibe is to produce and sell full-automatic chemiluminescence immunoassay instruments and supporting reagents. With a favorable policy, China's IVD industry has made rapid development in the recent few years. The industry scale has increased from 10.8 billion in 2009 to 36.9 billion in 2016, with an annual compound growth rate of as high as 16.6% ,However, the current annual per capita consumption of IVD in China is only $5, as compared with the annual per capita consumption of $30 in developed countries, which means, it still has great potential for growth.
As pointed out by Guosen Securities, the epidemic situation in China has entered a new stage of focusing on prevention and control of external risks, the new focus has gradually shifted to the return of work and production. However, the epidemic outside China has not been brought under control. Currently the number of new patients in major developed countries tends to stabilize, but there is still insufficiency in IVD, consumables and medical devices for detection, protection, and treatment. In the future, there may be further expansion of the epidemic in developing countries. therefore, the epidemic related sectors are likely to witness new changes in terms of performance and valuation
Lou Yitian, a well-known investor in the healthcare industry, said that in the short term, most enterprises are affected to varying degrees, except for some enterprises that can enjoy growth during the outbreak, in the long run, it could be a boost for the healthcare industry. First, the epidemic has provided the government, market, and society a chance to understand the importance of healthcare resources; second, it will promote the localization of healthcare industry. The government will further engage with healthcare industry and encourage local research and development, this will provide better opportunities for qualify enterprises. From the perspective of capital market, the relevant industries that may receive benefits in the short term include most of the molecular diagnosis companies in IVD field, vaccine companies and pharmaceutical companies with R&D achievements in the field of antiviral and enterprises involving the industrial chain related to all aspects of public health. Meanwhile Lou Yitian also pointed out that in the long run, no matter what the opportunities brought by the market seem like, only the best enterprises that can truly create market value will win eventually.
Mr. Tang Haofu, the chairman of Shanghai Creation Investment group, said in an interview with the media, that China has shown the world it's potential as a major manufacturing power during the outbreak, however, over the same time, China's weakness in healthcare systems has also been revealed. This is an opportunity for future development. For example, before the outbreak, few people would pay attention to the production of masks. To defeat the virus, there will need thousands of medical devices and consumables during the prevention, inspection, and treatment, and most of these preparations are inadequate in China.
Healthcare Industry consists of five categories, including medicine, medical equipment, medical service, informatization and medical cosmetology. According to Mr. Tang Luofu, several major problems revealed during the outbreak will inevitably lead to reforms in our hospital systems in future, for example, the hierarchical diagnosis and treatment system will be strengthened. In addition, it's necessary to equip hospitals of level 1 and level 2, and community hospitals with more sophisticated medical equipment, improving their medical service. Secondly, in vitro diagnostic products will be next major focus, meanwhile, the demand for therapeutic devices will also be greatly increased. New drugs for Covid-19 are receiving great attention in the field of drug production. Remote diagnosis and consultation are also under the spotlight. In building the temporary hospitals for patients, the on-site imaging and remote consultation equipment, donated by enterprises, have played a very important role, and shown their values during the outbreak.
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SOURCE: Global News Online
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