What will the normalization of IVD collection bring to the industry?

According to the annual report of China's in vitro diagnostic industry (2022 edition), the market size of China's in vitro diagnostic industry has reached 170 billion billion yuan in 2022, with a growth rate of more than 30% compared with the market size of 130 billion yuan in 2021. China's in vitro diagnostic market has become a red sea.

At the same time, the collection policy has gradually spread to the IVD industry, bringing challenges and opportunities.

What else can IVD collection bring?

IVD reagents and IVD instruments are the two main types of products in the in vitro diagnostic industry. Similar to the high-value consumables industry, my country's IVD industry started late and was monopolized by foreign capital for a long time in the past. Fortunately, since 2010, with the support of national policies, my country's local machinery companies have made major breakthroughs in technology, successfully expanding the market share of low-end immunodiagnostic products, and continue to enter the field of chemiluminescence and molecular diagnostics. ", and strive to achieve import substitution.

In addition, there is another similarity between the IVD industry and the high-value consumables industry: the overall gross margin of IVD reagents is higher. According to the annual report of relevant enterprises, the gross profit margin of IVD reagent even exceeds 90%. Therefore, the price of extrusion IVD reagent moisture is imperative.

In 2021, Anhui to carry out chemical luminescence reagent collection work, achieved "5 categories of 23 projects 88 products" average price reduction of 47.02 percent of the results, domestic medical equipment leader Mairui medical products all won the bid, become the biggest winner. This is the first major collection of IVD industry in China, which can be described as a "small earthquake" in the industry ". At the same time, this has increased the market share of domestic products and broken the monopoly of foreign investment in the field of chemical luminescence.

In addition, in vitro diagnosis requires IVD reagents and instruments to be carried out, so is it possible for IVD reagent collection to drive instrument volume?

Yao Zhi Medical Equipment Data Interviewed Liu, an IVD Industry ExpertHe shared his views on the two major areas of biochemical testing and chemiluminescence testing: "In theory, biochemical testing reagents are unlikely to drive the volume of instruments. The cost of biochemical instruments, especially high-speed biochemical instruments, is much higher than that of chemiluminescence testing instruments, but the output is much lower than that of chemiluminescence testing instruments. Therefore, manufacturers of biochemical instruments will not be willing to put such equipment in."

As for the impact of collection on product sales, Lao Liu believes: "From the perspective of drugs, collection has a short-term role in promoting. But for IVD reagents, sales do not only depend on the collection policy, medical payment reform, DRG/DIP and so on are also influencing factors. Collection only played a role in depressing prices, but from a fair point of view, collection of product sales itself is not likely to promote."

"Both biochemical testing and chemiluminescence testing reagents are in the stock market. If you compare it to a plate, the size of the whole plate has been basically fixed, and the players in the plate are competing with each other, which is nothing more than a question of grabbing more and grabbing less, but it does not have an impact on the plate itself. So the collection is not very likely to contribute to the sales growth of the industry as a whole."

IVD collection and change?

China's IVD industry collection has entered the normalization stage, at the same time, once hovering outside the collection of foreign-funded enterprises are gradually entering.

Recently, according to an article released by Nanjing Medical Insurance, the Medical Consumables Purchasing Alliance of Medical Institutions in Nanjing and Roche Diagnostics reached an agreement after 24-hour negotiations. The overall average price of more than 500 products was reduced by 30.3. According to estimates, the annual purchase fund is expected to be saved by 0.102 billion yuan. In fact, in July this year, Roche Diagnostics and Beckman applied to the Qinghai Provincial Drug Procurement Center for active price reduction of chemiluminescence products, of which Beckman had as many as 20 models. Relevant people speculate that this is a preparation for the collection of chemiluminescence detection reagents in 25 provinces led by Anhui Province recently.

to this,Liu said: "The tone of our IVD industry is import substitution. At present, in the field of biochemical testing, the market share of local enterprises has reached 70%-80%, and has basically achieved 'import substitution '. However, in the field of chemiluminescence detection, foreign companies still occupy a dominant position. Whether domestic companies can seize the cake of foreign companies is still a problem.

The policies of foreign companies are formulated for the world, so foreign companies will carefully consider and choose whether they will lower their prices or even reach very low prices because of China's volume purchases. But at the same time, China's plate is very large, and the chemiluminescence field accounts for a high proportion. Therefore, foreign-funded enterprises will be cautious about the collection of chemiluminescence reagents led by Anhui Province."

Lao Liu believes that the active price reduction of foreign companies' products will not necessarily affect the market share of domestic companies. From the information he has personally obtained, the attitude of foreign companies towards this centralized procurement work is cautious but positive.

Summary

There is no restricted area for centralized procurement. The scope of IVD reagent collection is bound to become larger and larger. Grasping the opportunity of collection, conforming to the industry trend, and constantly improving the technical level will become an important magic weapon for IVD enterprises to achieve evergreen.