In-depth research report on China IVD industry : new opportunities for development

Most companies in the IVD industry performed well during the COVID-19

In terms of revenue, the disclosed financial report for the third quarter of 2020 shows that there are 11 IVD enterprises with revenue of more than 1 billion yuan and 4 IVD enterprises with revenue of more than 5 billion yuan.Among them, Mindray Medical led the industry with a revenue of 16.064 billion yuan.In terms of revenue growth, four enterprises in the third quarter had more than doubled year-on-year. In 2020, Shengxiang bio  achieved more than 10 times that of the same period last year, with a growth rate higher than that of its peers.In terms of growth  of net profit, the net profit of six enterprises in the third quarter increased by more than one time over the same period of last year, and three of them obtained more than 10 times of net profit in the same period of last year. Shengxiang bio’s net profit growth was brilliant, with a year-on-year growth of 10702.39% in the third quarter.According to the disclosed annual report, in 2020, it was not uncommon for IVD enterprises to obtain several times the operating income and net profit of the same period of the previous year: BGI came to the top with the performance of 8.432 billion yuan, Da ‘an Gene and Shengxiang Biological followed closely with the performance of 5.345 billion yuan and 4.767 billion yuan respectively.In terms of revenue growth, Shengxiang Bio and Dongfang Bio took the lead with 1204.67% and 787.92% growth rates respectively. Shengxiang Bio’s rapid development benefited from the promotion of the epidemic, as well as the unique industry advantages of  IVD business under this background.

Analysis on market scale and growth of IVD industry in China

China’s IVD industry started late, but develops rapidly.Compared with developed countries, IVD industry in China is still in the early stage of development, and the market development space is huge.According to the estimation of the Institute of Medical Devices, the market size of IVD in China in 2018 was about 60.4 billion yuan, with a year-on-year growth of 18.43%.In 2019, the market size of China’s IVD industry was about 70 billion yuan, and Roche, Danaher, Abbott and Siemens together occupy a large share of the global IVD market.In the past five years, the CAGR of China’s IVD industry has reached 15.91%, and it is expected that the industry will continue to maintain a high growth rate in the next three years.Compared with Europe, the United States, Japan and other developed regions and countries, China’s IVD market has a huge space to improve.Although it has maintained a high growth rate, the penetration rate of China’s IVD market is far lower than that of developed countries.In terms of the per capita consumption of IVD products, the per capita annual consumption of IVD products in China in 2018 was 47 yuan, less than 1/10 of that in the United States, and compared with the developed countries in Western Europe, there is still 3-4 times room for improvement.

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