Medical device industry policy constantly, what are the good coming?

With the policy of good spring breeze, medical equipment plate appeared more obvious rebound trend. From the news point of view: "for hospitals and other equipment purchase and renovation of new loans, the implementation of phased incentive policies, the central government discount 2.5 percentage points, the term of 2 years, the application for discount as of December 31 this year." This means that the pressure on hospital funds is eased, so medical device and pharmaceutical companies will pay back faster, and pharmaceutical companies will have more funds to equip new equipment and drugs, which is a direct benefit to pharmaceuticals and suppliers.

In recent years, under the promotion of China's policies to encourage the development of the pharmaceutical industry, some foreign-funded enterprises have actively invested in the pharmaceutical manufacturing industry, and related production and R & D projects have been implemented. Foreign pharmaceutical companies accelerate the localization strategy, from R & D to manufacturing, and even the supply chain to localization, to promote the optimization and upgrading of the pharmaceutical industry chain in China. Its representatives are many international medical device giants that have localized high-end devices, such as Siemens and Boston Scientific.

The Health and Health Commission proposed that according to the size of the local population, sufficient beds should be provided for treatment. At the same time, the construction of ICU (intensive care unit) should also be strengthened, and ICU beds should be required to reach 10% of the total number of beds.

From the situation of these two years, ICU can greatly improve the survival rate of critically ill patients and buy time and opportunity for further treatment of critically ill patients. At present, there are many problems in ICU construction of hospitals at all levels in China, such as insufficient beds and insufficient medical staff.

Ride the bull to see the bear found that according to the current number of ICU beds in China, the number of beds available for the treatment of critically ill new crown patients per million population in the intensive care department ranges from 3.08 to 9.26. Speeding up ICU construction may become the center of gravity of the epidemic disposal chain, determining the rigid adjustment speed of front-end prevention and control measures, and is expected to lay the foundation for the adjustment of front-end prevention and control of epidemic treatment.

The total contracted amount of Shenzhen equipment renovation loans is 0.148 billion yuan, and the total amount of loans issued is 0.105 billion yuan, involving new infrastructure, industrial digital transformation, health and other fields, with a total investment of 1.36 billion yuan. It is proposed to use financial discount loans to update and transform medical equipment. The central government has a 2.5 per cent interest discount for a period of two years. The direction of loan use clearly recommends the purchase of medical equipment related to diagnosis and treatment, clinical testing, severe illness, rehabilitation, scientific research transformation, etc.

All localities and departments should further strengthen the work of serving foreign trade and foreign investment, speed up the examination and approval of drugs and medical devices on the basis of the examination and approval of epidemic prevention drugs and medical devices, strengthen the quality supervision of anti-epidemic products, and solidly promote the landing and production of key foreign-funded projects in medicine.

Ride the bull to see the bear found that discount loans stimulate the golden window period of medical equipment, policy support overlay domestic infrastructure will stimulate strong demand. For a long time, most of my country's high-end medical devices have relied on imports. In recent years, discussions on the localization of medical device procurement have never stopped. Some provinces and cities have issued water testing policies. In response to potential changes in procurement trends in the Chinese market, many foreign-funded companies are also actively considering The original imported products are transferred to localized production.

​

The trend of medical device companies is related to the sharp drop in valuation, in fact, the importance of the epidemic for medicine for more than 2 years is self-evident, however, medical device companies increase profits, the company's share price is falling, which caused a logical mistake. In addition, in the third quarter, pharmaceutical companies have seen substantial growth in performance, which is also a major reason for institutional funds to enter the market again.

For ordinary investors or not to rush to catch up, once high "blowing" experience is forgotten? Even if optimistic should also be low intervention, the market still lacks confidence in pharmaceutical stocks, the temporary rebound is not a real reversal, concern after the national policy for the medical device industry changes.