Development Status and Prospect of Mass Spectrometry Market in China
2022-07-29
According to the report, the market size of clinical mass spectrometry in China exceeded ten billion yuan in 2021, based on the number of people who received mass spectrometry testing projects every year and the charging price. With the increase of the penetration rate of routine application of clinical mass
spectrometry, as well as more emerging projects and technical platforms such as endocrine hormones, catecholamines, children’s drugs, trace elements, drug genomes, toxicology analysis, etc. put into clinical practice, the market scale will grow exponentially.
There is also a saying of “hundreds of billions of blue oceans” in the industry. Relevant data show that the detection of endocrine hormones, drug genomes, Alzheimer’s disease, cardiovascular diseases, and tumors is an important incremental market of clinical mass spectrometry. The market scale will reach tens of billions in 2025, and the potential market space will exceed 100 billion.
An industry source said, “the market size of clinical mass spectrometry in China is generally overestimated. At present, the commercialization of the industry is in the early stage. According to our internal calculation, the actual market size at this stage is about 1billion.
An early investor in China’s clinical mass spectrometry track also said that in the past few years, the development of the clinical mass spectrometry track has not met his expectations.
Although some people in the industry have different views on the market size and industry space, the investment side has shown great enthusiasm for the clinical mass spectrometry market.
In the first half of 2022, the investment market was sluggish. According to the Data Briefing on China’s Equity Investment Market in the First Quarter of 2022 released by Zero2IPO Research Center in April, in the first quarter of 2022, the number and amount of investment cases in China’s equity investment market decreased by 27.5% and 47.1% year-on-year, respectively.
Clinical mass spectrometry is a rare contrarian track in 2022. In five months, a total of ten financing transactions occurred at the clinical mass spectrometry track, with a total financing of more than 540million yuan.
In addition, in the clinical mass spectrometry industry, one capital has invested in one company for many times, and the phenomenon of extensive distribution and investment in multiple companies is more prominent. Watson invested in Health Biotech, Panomix, Reign Bio and Imsynp; IDG Capital invested in Qlife-lab.; Hillhouse Venture Capital and Yuanbio Venture Capital invested in Yingsheng Biotechnology Co., Ltd.
From the perspective of financing, China’s clinical mass spectrometry industry has undoubtedly ushered in a tuyere.
In 2015, Saifpartners Investment Fund invested in Bioyong Mass Spectrometry, and Fong Capital Partners invested in Health Biotech in 2017. The industry is hot in 2020. Imported equipment manufacturers and domestic clinical mass spectrometry companies have begun to register instruments for cooperation, such as AB SCIEX and Calibradx, Agilent and Qlife, etc. The liquid chromatography tandem mass spectrometry equipment has initially completed localization, and clinical recognition has been completed. Awareness has also increased significantly.
Although since 2015, investors who are concerned about in vitro diagnostics have basically paid attention to the trend of clinical mass spectrometry, and occasionally a small number of VC are investing, but the real investment of investors has been concentrated after 2020 and reached a new peak in 2021.
According to statistics, the financing amount, and the number of financing events in the field of clinical mass spectrometry are on the rise as a whole. There was only one public financing event in 2015, and there has been a significant increase since 2016. In 2021, the number of financing events reached seventeen, and the annual financing amount exceeded 1.15 billion yuan, the highest in the past 10 years. In 7 months of 2022, there have been thirteen financing events, and the entire industry has maintained a rapid growth trend.
The increasing acceptance of clinical mass spectrometry technology and the increased attention of the regulatory level are important reasons why clinical mass spectrometry is sought after by the capital market. Previously, only a few head hospitals and a few big doctors used mass spectrometry technology at the scientific research level. With the substantial increase in the number of approved equipment and reagents, a large number of tertiary and secondary hospitals are now bidding for mass spectrometry products, and a large number of doctors are using mass spectrometry The penetration rate and coverage of mass spectrometry technology in the clinic have been significantly improved.
Another key reason is that the head companies have grown up, which has initially verified the commercialization prospects of clinical mass spectrometry. The products of the first -tier enterprises have been improved, and they have made some progress in the research and development of domestic equipment, routine detection applications, and innovative omics applications. The products are rapidly increased, and the cost of mass spectrometry detection has also been reduced.
According to industry sources, in recent years, the revenue scale of leading companies is about to exceed 100 million, which was generally in the tens of millions before. From the perspective of revenue scale and capital enthusiasm, clinical mass spectrometry has ushered in the trend.
In particular, with the increased support from the capital market, clinical mass spectrometry companies have more funds to invest in R&D, certification, and sales, and the scale of the clinical mass spectrometry market continues to grow.
From the perspective of terminal detection revenue, the market size of clinical mass spectrometry has exceeded ten billion yuan in 2021, and the potential market in the medium term will reach thirty billion yuan; the current installed capacity of the equipment side is about 200 units per year, and the market size has also exceeded 10 billion yuan. -30 billion; considering the precision omics special inspection project with great market potential, the overall market size of China’s clinical mass spectrometry is expected to reach one hundred billion in the future.
According to the estimates of the number of instruments and reagents sold each year, China’s clinical mass spectrometry market currently has a market size of billions, and it is expected to exceed ten billion in the next few years.
Even though different investors have different views on the market size data, everyone has high expectations for the prospects of clinical mass spectrometry.
The clinical mass spectrometry industry chain includes instruments, reagents, testing services, etc. The instrument side is mainly imported OEM equipment, and localized equipment is starting. The detection application is the main battlefield for enterprises to differentiate their advantages at this stage, which is divided into conventional detection application and innovation Omics applications.
Routine testing applications focus on upgrading existing methodologies. In terms of routine testing applications, the first -tier enterprises have approved more than ten kits, which have been landing in more than one hundred hospitals.
The application of innovative omics aims at the incremental market of clinical mass spectrometry. Health biotech has developed a variety of ceramide determination applications, early Alzheimer’s disease screening and monitoring applications, and urinary system disease detection applications.
At present, there are certain differences in the layout direction and progress of enterprises in the application of innovative omics.
An industry insider said frankly: “Although clinical mass spectrometry has ushered in the wind, it has not really taken off, at least not at the expected time point, reaching the height of capital expectations.”
The first is the common problems faced by emerging technologies—supervision, the need to apply for a certificate for test kits, and the need to obtain price approval for admission to the hospital. These are all existing challenges. In particular, the application of innovative omics has a lengthy period of forensics, which requires continuous communication between enterprises and regulatory authorities.
In addition, clinical mass spectrometry still lacks “killer” applications and lacks scenes in terminal clinical practice. “Vitamin D detection, microbial identification and other routine detection applications have a certain amount, but they are not ‘killer’ applications and do not have enough impact.”
Finally, there are still many contradictions in the business model of enterprises, such as whether to sell or put in equipment, how to solve the problem of cost and price in the hospital model, and how to meet the compliance standards of domestic IPOs as much as possible while expanding the scale of the delivery model.
Now, clinical mass spectrometry is standing at a key node in the transformation from scientific research to clinical large-scale application. Next, the focus of investment institutions on clinical mass spectrometry focuses on two aspects. The first is commercialization capability. Investors are most concerned about when mass spectrometry technology can achieve breakthrough clinical applications. The second is innovation capability, expanding the application of clinical mass spectrometry through innovative omics, and realizing localization, automation, and intelligence of mass spectrometry systems.
Clinical mass spectrometry is growing rapidly, but it will not break out in two or three years. It is a long track, and companies must be prepared for a protracted battle.
BradyKnows localization team has extensive experiences in facility establishment, audit, supplier evaluation, manufacturing, registration, and marketing in China. Pls feel free to let us know any questions on China entry via info@bradyknowsmedical.com
