Sun Yuanyuan: In 2024, medical devices will go overseas as hot as innovative drugs will go overseas in 2020

Key takeaways:

1. In the future, the export of Chinese medical devices will become very hot like the export of innovative drugs that began in 2020.

2024 cannot be ruled out as the first year for the entire innovative device consumables to go overseas.

2. There are still a lot of investment opportunities and highlights for medical devices in the future.

Some of the products of the precision manufacturing parts equipment company are very competitive in the world. Their sales overseas are growing very fast, basically reaching 50%. In the field of low-value consumables, a very large increase has also been achieved overseas in the past 20 years.

3. For the future of the entire medical industry can be more optimistic, in 2024, both the demand and supply side of the pattern can be better, and the internationalization of Chinese medical companies will be very interesting.

4. In 2024, innovation and going overseas should be very important keywords. Specifically, there are innovative drugs, innovative vaccines, innovative devices, and the innovative drug industry, and some high-quality companies can pay attention to them. The traditional medical industry can also find some high-quality companies.

Recently, Sun Yuanyuan, chief analyst of the pharmaceutical industry of Industrial Securities, shared her views on the investment of the medical track in 2024 in an online live broadcast.

Yuanyuan Sun has 10 years of experience in medical research. The team won the first place in the authoritative selection from 2016 to 2020 and 2023, won the first place in the Golden Bull Award, Crystal Ball, and IAMAC for many times, and won the best analyst of Tianyan profit forecast. He is rich in industry resources, primary market resources and company resources, and is good at in-depth research and forward-looking mining of high-quality companies.

The following is the essence of the investment homework lesson representative (WeChat ID: touzizuoyeben) to share with you:

In the future, China's medical devices going overseas will be as hot as innovative drugs going overseas in 2020

Q: Will there be a greater breakthrough in 2024 in the case of domestic substitution of medical devices?

Sun Yuanyuan: From the perspective of the entire medical device, the gap is gradually shortening, especially in the subdivision of medical consumables, which has a very large amount of surgery, and we think that China will be able to do the first in class or the best in class of these medical device products in the future.

In terms of potential space, in the future, the export of Chinese medical devices will become very hot like the export of innovative drugs starting in 2020.

First, China's medical devices have a very big advantage. We have a large population base and a very large base of surgical volume. Chinese surgeons are very strong because of the many opportunities for training.

Moreover, many new surgeries, including minimally invasive after 2010, have a relatively short development time cycle, and the innovation and changes of this new procedure are actually derived from clinical practice.

Because it originates from the clinic, the doctor's rich clinical experience will feed back the research and development.

The development of medical devices may not be the same as the development of drugs. Drug R&D has a lot to do with basic research, but there will be more cooperation between devices and clinical trials.

Therefore, I think clinical is a very important advantage in the field of medical devices in the future.

These enterprises have the possibility of going overseas

At present, some of the more excellent medical consumables companies in China are actually talking about corresponding cooperation with some overseas large enterprises, and there is also the possibility of going overseas in the future.

I believe that in 2024, it cannot be ruled out that it will be the first year of the entire innovative device consumables to go overseas.

In addition, in the field of precision manufacturing accessories and equipment, such as MRI and CT, a number of excellent companies have emerged in China, such as gene sequencing companies.

Some of these companies' products are very competitive globally. Their sales overseas are growing very fast, basically reaching 50%. And they can be exported to some European and American countries, so we still have a very advantage for high-end series to go overseas.

In addition, there is a class of cost-effective overseas products. Our advantage lies in cost leadership, and China's manufacturing capacity is very strong, so we have done a good job in the field of equipment cost performance advantage.

There is also the area of low-value consumables. In the past 20 years, many of our low-value consumables have also achieved a very large increase overseas. This is because the quality is passable, and the cost is also very advantageous.

So on the whole, medical devices are these big categories. The direction we need to make progress in the future is:

The first is to be able to find points of differentiation. Including the gap in the entire disease spectrum, I think we can go to research and development in this direction, and more innovation.

The second lies in precision manufacturing. Because precision manufacturing has a long history of accumulation, it needs to be given a certain amount of time in the future.

In fact, in some of the precision manufacturing sectors, we have achieved a very good global scale. In the future, there will be more subdivisions to further catch up with the continuous improvement of talents in all aspects and multiple disciplines.

For domestic enterprises, if they can go further, it will open the window of going to sea, so that more products can rely on the platform and word of mouth to achieve more product lines.

Overall, in the field of medical devices, there are still a lot of investment opportunities and highlights in the future.

"Innovation + going global" is an important keyword in 2024

Q: What is the outlook for the future of the healthcare market?

Sun Yuanyuan: First of all, from the overall conclusion, I think everyone can be more optimistic about the future market of the entire medical industry.

Specifically, both domestically and globally, there have been a lot of new supplies in recent years. The pharmaceutical industry is an industry where supply creates demand, and the expansion of demand is often a very core catalyst for changes in the market of the entire sector.

In terms of new technologies, the rise of immunotherapy and ADC therapy in the field of oncology in recent years has brought more means to tumor treatment. At the same time, in the non-tumor field, weight loss, non-alcoholic fatty liver disease and Alzheimer's disease, new technology platforms such as gene therapy, gene editing, and ProTECT new technologies have also appeared.

In terms of demand, the aging population and the higher demand for medical care from the public are always and persistent. Therefore, the innovation of the entire pharmaceutical industry is a very important point to watch in 2024.

Second, the strength of domestic companies in innovation has been greatly enhanced. As a result, China has a large number of products that have been licensed overseas. For 2024, there will be a lot of highlights for the internationalization of Chinese medical companies.

First of all, in the field of drugs, there will be a large number of drugs going overseas and overseas authorization in 2024.

Some high-quality companies have reached the second step of going overseas, gradually establishing their own clinical R&D and sales teams overseas. In 2024 as a whole, in the field of innovative drugs, especially ADCs, we can still see a lot of going overseas.

There are also medical devices, in terms of differentiated innovation, 2024 is likely to be a first year. Previously, there were some differentiated innovations in our innovations, but more of them were still in the manufacturing industry, or in the way of cost-effective advantages. Therefore, I think that the entire medical device going overseas in 2024 is also very worthy of attention.

In 2024, both the pattern of demand and supply can be better.

In addition, from the perspective of the entire cutting-edge technology direction, in addition to going out, we also have the introduction or mapping to overseas. On the basis of a lot of new technologies and directions overseas, China has the advantage of efficiency and R&D, and can start on the same starting line.

Therefore, even though we may still be in the very early stage of some cutting-edge technologies, if some companies can take the lead in doing it, or cooperate with overseas companies, it will have a certain improvement benefit for the entire sector.

Therefore, for 2024, innovation plus going overseas should be a very important keyword.

These quality companies can keep an eye on

Specifically, there are innovative drugs, innovative vaccines, innovative devices, and innovative drug industries, some of which high-quality companies can pay attention to.

In the traditional industries, some consumer medical, traditional Chinese medicine, blood products, and pharmaceutical business tracks will follow the consumption recovery of the overall industry and perform. You can also look for some very good companies.

For example, the core of consumer drugs is to find high-quality companies that can have sustainable brand capabilities in the future, while in blood products, the core is to find high-quality companies that have the ability to obtain collagen and the entire management mechanism can be further improved in the future. Blood products have ushered in a cycle of integration, in which state-owned enterprises occupy a leading role.

Then there is traditional Chinese medicine, on the whole, the pressure on its base in 2024 is not so great, so some companies with good valuation and cost performance still have opportunities.

孙媛媛从业资格证编号：S0190515090001

For more bigwig views, please pay attention to ↓↓↓

Source: Investment Workbook Pro Author: Zhang Shupeng, Wang Li

This article is from Wall Street News, welcome to download the APP to see more