Authors: Liu Jiaying, Jiang Juntao, Hu Xing
Guide: Tan Ying
Data support: Whale Insight
At the beginning of 2019, The General Office of the State Council issued the "Pilot Plan for National Organization of Centralized Procurement and Use of Drugs" on January 17, announcing the arrival of a reshuffle in the pharmaceutical market. Earlier, looking back at the many changes in the medical and health industry in 2018, the tone of reform had already been set, and the trend of the industry towards high-end and localization, technology and innovation-driven development had also been revealed. Taking an overview of the medical and health industry and investment and financing data in 2018, Whale Research Institute will help you interpret the keywords of the medical and health industry and gain insight into the future development trends and opportunities of the medical and health industry.
.01. One of the keywords in the medical and health industry: institutional reform
In March 2018, the State Council ushered in the seventh government institutional reform. For government agencies in the medical and health field, this is the largest adjustment in the past 30 years, which basically establishes the framework and regulatory trends for the future system design of the medical and health industry. From the end of last year to the present, the "volume-based procurement" that has caused shocks in the industry was brewed in the context of the institutional reform of the State Council.
In the institutional reform of the State Council, the family planning functions of the original National Health and Family Planning Commission were weakened, and the new National Health Commission was established with "health" as the core. On the basis of the functions of the original Planning Commission, the National Health Commission has incorporated the responsibilities of the Office of the State Council's Leading Group for Deepening the Reform of the Medical and Health System, the Office of the National Working Committee on Aging, the responsibilities of the "Framework Convention on Tobacco Control" led by the Ministry of Industry and Information Technology, and the national The occupational safety and health supervision and management responsibilities of the State Administration of Work Safety.
In terms of medical insurance, the newly established National Medical Insurance Bureau will not only assume basic medical insurance functions, but also bear the price management functions of drugs and medical services originally performed by the National Development and Reform Commission, as well as the medical assistance functions originally performed by the Ministry of Civil Affairs. As a result, the Medical Insurance Bureau, as an agency directly under the State Council, will form a more powerful payer system with more say, and further influence the price formation mechanism of drugs and medical services to cope with the growing trend of medical and health expenses.
In terms of pharmaceuticals, the functions of the former State Food and Drug Administration were merged into the State Administration for Market Regulation. However, taking into account the particularity of drug supervision, the State Administration for Market Regulation has established the National Medical Products Administration to continue to deepen the reform of the drug approval system, promote new drug R&D innovation and generic drug consistency evaluation, and accelerate industrial transformation and upgrading.
.02. Keyword 2 for the medical and health industry: market reshuffle
Since the second half of 2018, there has been constant controversy about the "capital winter". Entering 2019, the "capital winter" and "economic downturn" are still hotly discussed topics in many industries. In October last year, based on the investment and financing data of the medical and health industry in the first three quarters of 2018, Whale Research Institute released "Everyone is talking about the capital winter. Has the popularity of medical investment declined in 2018?" 》 article, it is judged that the medical and health field will still be an investment hot spot in 2018.
In the new economy industry in 2018, the average interval between rounds before Series B was 520-525 days, while the average interval between rounds after Series C was 415-420 days. Compared with historical data, the intervals between rounds of financing in the new economy industry are within the normal fluctuation range. It can be seen that in the "capital winter", ordinary projects may face difficulties such as financing difficulties, but the new economic industries that have gradually become the pillars of the economy are relatively less affected and have the hard power to survive the cycle. Therefore, when the external environment becomes colder, the competitive advantages of high-quality enterprises will be easier to highlight and further strengthen.
Focusing on the medical and health industry, in addition to the interval time from seed/angel round to round A being 12.8% higher than the new economy industry average, the intervals between rounds after round A are all shorter than the new economy industry average. Especially between rounds C and D, the average interval in the medical and health industry is only 384 days, one month shorter than the average in the new economy industry.
This also reflects that before the A round of medical and health projects, due to the uneven quality of projects, investors were more cautious, so that the interval exceeded the average of other industries; while projects after the A round usually achieved results in experimental data, mechanism verification, business models, etc. With certain progress, it will be more likely to be favored by investors.
Now that 2019 has arrived, looking back at the investment and financing data of the medical and health industry in 2018, it can be seen that compared with the past four years, the overall financing amount of the medical and health industry in 2018 (78.7 billion yuan) is still Rising, with pharmaceuticals and medical services growing the fastest. The total number of industry financing events was 824, a slight decrease compared with 2017, but the average single financing amount increased significantly to 95 million yuan, an increase of about 130% compared with previous years.
In addition, in 2014, 48.8% of financing events were less than 10 million yuan, and in 2018, this proportion was only 20.5%. The proportion of investments above 100 million yuan also increased from 5.3% in 2014 to 16.7% in 2018. It can be seen that investment projects are gradually concentrating on large-scale and outstanding industry innovation targets.
In terms of financing rounds, the proportion of angel round financing events in the medical and health industry decreased sharply in 2018, continuing to decline from 49.5% in 2015 to 22.6%. The proportion of strategic investment increased from 4.6% in 2014 to 9.7% in 2018. The number of mergers and acquisitions increased 10 times compared with five years ago. The trend of industrial integration has accelerated significantly, and the medical industry is becoming mature.
On the one hand, regulatory policies encourage product innovation, promote industrial upgrading, and accelerate the integration of domestic drug and device markets with international standards, thereby improving the quality of domestic services and products in the long term; on the other hand, industry innovation and high-endization have become It is an inevitable trend of development for enterprises to open up key links in the industrial chain through mergers and acquisitions, and transform their main business into a high value-added direction.
.03. The third keyword in the medical and health industry: innovation-driven
With the development of genetic testing, artificial intelligence and other technologies, more innovative products will emerge in the medical and health industry in 2018 and services. Judging only from the popularity trend of whales, molecular diagnosis, antibody drugs, intelligent diagnosis, etc. are popular subdivisions in the medical and health industry in 2018, and most of them are driven by innovative technologies, which is also in line with the government's policy trend of encouraging innovation.
Take intelligent diagnosis as an example. With the development of artificial intelligence and medical big data, intelligent diagnosis systems trained with large amounts of data are expected to become the fastest application scenario of artificial intelligence in the medical field. Data from Whale Insight shows that nearly a hundred companies in China are developing intelligent diagnostic products related to medical imaging, focusing on pulmonary nodules and fundus imaging screening. At present, most intelligent diagnostic products have not yet been truly used in clinical applications, and their application potential in areas such as brain diseases also needs to be further explored.
In the field of digital health, in addition to intelligent diagnosis, with the development of artificial intelligence technology, the government has gradually increased its emphasis on medical big data applications, and the three major state-owned data groups have deepened their involvement in data basic operations. , in the future, it is expected that the difficulty for enterprises and other industry entities to retrieve and use data will be further reduced. On this basis, more innovative products and business models will emerge in the digital medical field, which is expected to reshape the medical and health industry ecology.
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