In the next 5 years, precision medicine will promote the outbreak of in vitro diagnostic companies

China's in vitro diagnostic industry is developing at a high speed. In the next five years, CAGR is expected to exceed 20%. Accurate medical care will promote the outbreak of POCT and genetic diagnosis enterprises.

POCT (instant detection) is a future trending technology, and the supply of in vitro diagnostics in China will continue to maintain a growth rate of more than 20% in the next five years.

At present, more than 80% of the disease diagnosis is completed by in vitro diagnosis. China's in vitro diagnostic industry has a small base and a high growth rate: the market size of China's in vitro diagnostic industry has increased from 12.2 billion yuan in 2010 to 21.5 billion yuan in 2013, with CAGR reaching 20.79%. The domestic in vitro diagnostic market has not yet formed, and there are many kinds of domestic diagnostic reagents. Many startups have intensified the game. We judge molecular diagnosis and POCT as future trending technologies.

Under the concept of precision medicine, genetic diagnosis and POCT will shine. In vitro diagnosis can be called the doctor's eye clinically, according to the test principle or test method, in vitro diagnosis mainly includes biochemical diagnosis, immunodiagnosis, molecular diagnosis, microbial diagnosis, urine diagnosis, blood coagulation diagnosis, etc., among which biochemical diagnosis, immunodiagnosis, molecular diagnosis It is the main three major areas of in vitro diagnosis. Biochemical diagnosis is mainly used in routine testing of hospitals, such as the determination of sugars, lipids, inorganic elements, liver function, kidney function, etc., is a basic component of medical testing.

Multi-factors have spawned the development of the industry, and the Chinese in vitro diagnostic market will continue to develop at a high speed in the next five years. The market size of China's in vitro diagnostic industry has grown rapidly from 12.2 billion yuan in 2010 to 21.5 billion yuan in 2013, with a compound growth rate of 20.79%. China's in vitro diagnostic products accounted for 4.2% of the global in vitro diagnostic products in 2013. Considering that China's population accounts for 20% of the global population, we believe that China's in vitro diagnostic market is low, and the market growth rate is expected in the future. With the aging of the population, medical reform, the government's rational guidance to regulate the market, and the improvement of the demand of the middle class, it is expected that the supply of the in vitro diagnostic market in China will continue to maintain a growth rate of more than 20% in the next five years.

China's in vitro diagnostic market has not been established, and the horizontal and vertical integration of the industrial chain has become a trend.

The global in vitro diagnostic market was developed in the 1970s and has grown into a huge market of tens of billions of dollars. The industry is mature, with high technical barriers and good market concentration. It has gathered a number of well-known multinational companies, including Roche, Siemens, Abbott, Beckman, Johnson & Johnson, BioMerieux, Bole, etc. The industry has shown an oligopolistic competition.

As far as the domestic situation is concerned, China's diagnostic reagent industry is still in a weak growth period, and the market is in a pattern of competition. The number of manufacturers is as high as 300-400, and about 20 companies with annual sales exceeding 100 million yuan. There are still relatively few comprehensive enterprises with strong strengths. The enterprises with the top rankings in the industry mainly have competitive advantages in certain sub-technologies. With the advantages of low price and good after-sales service, domestically produced products have expanded into the low-end market dominated by secondary hospitals and primary hospitals.

POCT and molecular diagnostics in the in vitro diagnostic industry are in their infancy and are optimistic about their future growth potential. In in vitro diagnostic techniques, POCT (instant detection) and molecular diagnostic techniques are just in their infancy compared to CT, biochemical tests, blood routines, and so on. After the technical iteration, the two detection techniques meet the patient's requirements for speed and accuracy of detection. Because it is suitable for screening multiple tumor indicators and emergency indications, we are optimistic about the future prospects of POCT and molecular diagnosis.

POCT "small, portable, easy to operate, easy to use, instant report"

The growth rate of the global POCT market is stable, and the consumption scale of developed countries is significantly ahead of developing countries. According to Rncos's Global Point-of-Care Diagnostics Market Outlook 2018 report released in May 2014, the POCT market has grown rapidly over the past five years, reaching $16 billion in 2013 and 8% in 2013-2018. The compound annual growth rate is expected to grow to a market size of $24 billion in 2018.

Differences in health systems and technologies in different regions have led to large regional differences in POCT consumption. In 2013, POCT accounted for 47% of the US market, making it the world's largest POCT consumer; the EU market accounted for 30%, ranking second. In developing countries, the scale of the POCT market in India and China is gradually expanding.

China's POCT market started late, and the current market size is small, but the growth rate is fast and the market potential is huge. According to Rncos's "Global Point-of-Care Diagnostics Market Outlook 2018" released in May 2014, the size of China's POCT market in 2013 was 480 million US dollars, and the global market share increased from 3% in 2007 to 7% in 2013. . It is estimated that by 2018, China's POCT market will reach US$1.43 billion. With the advancement of medical reform and the establishment of a community medical system, China's POCT market is expected to maintain a compound annual growth rate of 20% in recent years.

POCT is mainly used for real-time monitoring of blood glucose and rapid quantitative or qualitative screening of cardiovascular diseases. POCT products are used in a wide range of applications. POCT testing can be used for blood glucose testing, blood gas and electrolyte analysis, rapid hemagglutination testing, rapid diagnosis of cardiac markers, drug abuse screening, urine analysis, dry biochemical testing, pregnancy testing, fecal occult blood analysis, food pathogen screening, Hemoglobin detection, detection of infectious diseases, blood lipids such as triglycerides and cholesterol, and other areas of testing, including real-time monitoring of blood glucose and rapid quantitative or qualitative screening of cardiovascular diseases as the core areas of focus.

Developed countries now occupy a major global position due to their product quality and technological advantages. Representative companies include Alere, Abbott, BD and Roche.