Just now! The results of centralized procurement of Class III consumables have been released, and a large number of imported products have been phased out
Just yesterday (December 25th), the Wuhu Healthcare Security Bureau issued a Notice on the Announcement of the Results of Medical Consumables Procurement with Volume Such as Disposable Radiofrequency Plasma Knife Heads in Anhui Province (hereinafter referred to as the “Notice”).–
The Notice specifies Class III medical consumables: plasma cutting heads, radio frequency cutting coagulation cutting heads, and electric cutting rings. 94 products were reported for quantity, and 60 products were ultimately selected, with a elimination rate of 36%.
And from the perspective of the final selected price of the enterprise, compared to the enterprise’s bid, the highest reduction was 75%, and 48 products have not been reduced in price. From this perspective, the price reduction in this centralized procurement was not the core. However, the selection of relevant enterprises was a major highlight.
Class II certified plasma cutting heads, 34 products reported, 23 selected, with a elimination rate of 32.4%, all selected enterprises were domestically produced.
The plasma cutting heads with Class III certification had 13 product reports, and 8 have been selected with a elimination rate of 38.5%. All selected enterprises were domestically produced. Of particular concern is that only two import companies, Medtronic and Smith Nephew, have been eliminated, and Smith Nephew’s “National Machinery Registration Import 20153014003” product had a reported volume of 1580, ranking first.
Class II certified RF plasma cutting heads, with 24 products reported, selected from 18 companies with a 25% elimination rate, all of which are domestically produced.
Unipolar cutting ring, 6 products reported, 1 company was selected, with an elimination rate of 83.3%. The only selected enterprise was domestically produced, and Olympus with the highest reported volume was eliminated;
Bipolar and plasma cutting rings, 15 products reported, 11 selected, with an elimination rate of 26.6%, all selected enterprises are domestically produced. It is worth noting that Olympus, the only import enterprise with the highest reported volume, had 2374 products reported for “National Machinery Registration Import 201920111622″was eliminated.
It is not difficult to find that in this centralized procurement of Class III consumables, domestic products have fully started import substitution, and imported brand products have been eliminated!
The 10bn energy device market is starting to get fully reshuffled
Among the three major energy equipment submarkets of high-frequency electric knife, ultrasonic knife, and plasma knife, the market growth rate of plasma knife is the fastest. In 2021, the market size reached 7.65 billion yuan, and it is expected that the domestic plasma knife market size will reach 17.717 billion yuan by 2025. The expected compound annual growth rate from 2021 to 2025 is 23.36%.
At present, the domestic plasma knife market imports account for about 30%. Smith & Nephew is the absolute leader, JESWIS, Forerunner Medical, Nanos Medical. It is also a major market player.
However, based on the volume procurement of plasma knife heads in Anhui Province, almost all imported products have been eliminated, and domestic products have begun to accelerate their replacement comprehensively.
In addition, the National Healthcare Security Administration requires that by 2025, all inpatient departments of public medical institutions across the country must pay and settle all types of diseases through DRG or DIP. With the nationwide implementation of DRGs reform, medical insurance payment will shift from project-based payment to value based payment, and from passive buying to active buying.
Transformative Technology Products! Multi-disciplinary applications pry new markets
At the same time, DGRs payment promotes the development of domestic surgery in the direction of refinement. Changes in Medicare payment methods will push hospitals to adopt surgical tools and treatment programs that use less trauma and faster recovery, and in this regard, minimally invasive surgery and energy devices have certain advantages. At the same time, in order to achieve effective cost control, domestic hospitals will also choose domestically produced energy equipment products with high cost-effectiveness.
On the one hand, the rapid development of relevant departments has become the main driving force for the growth of plasma knives. Previously, the National Health Commission required every tertiary hospital to establish a sports medicine specialty, but currently only provincial-level tertiary hospitals have established sports medicine specialties. In the future, with the booming development of sports medicine in China, more cities and hospitals will popularize sports medicine specialties, and the number of related surgeries will rapidly increase. In 2019, the annual operation volume in the field of sports medicine in China has exceeded 1 million cases, and the annual growth rate of operation volume is expected to remain at about 20% by 2025. As an essential surgical tool under arthroscopy, plasma knife has a huge growth potential.
On the other hand, the widespread use of minimally invasive surgical methods and the expected price reduction through centralized procurement have jointly driven a significant increase in the application of plasma knives in spinal surgery. Minimally invasive spinal surgery is developing rapidly in China, with more than 900,000 operations in 2019, an increase of 12% compared to 2018
China is encouraging China end uses for more domestic products in latest years. Thus, more and more overseas manufacturers are planning localization in China. 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
Source Medical Device Distributors Alliance
Translated & edited： Bradyknow
