Report: the Scale of China’s Health Industry Reached About 10 trillion Yuan in 2021
Recently, Yikai Capital released the 2022 white paper on China’s health industry of Yikai capital (hereinafter referred to as the “report”), which estimates that China’s health industry initially reached a scale of about 10 trillion yuan in 2021. The report released this time reviews the important changes in China’s health industry since 2021 from the perspectives of policy, industry and capital market, and predicts the important investment themes and hot tracks of China’s health industry in 2022.
According to the report, the intensification of the aging of China’s social population structure is still the most important underlying logic and driving force of China’s health industry. Coupled with various driving forces such as the attention and investment of the government and the public in the health industry in the post epidemic era, it is estimated that China’s health industry has initially reached about 10 trillion yuan in 2021, of which the market scale related to drugs is about 2.5 trillion yuan and the market scale of medical devices and diagnostics is about 1 trillion yuan, The market scale of medical services, digital medicine and pan health is about 5.5 to 6.5 trillion yuan.
Looking forward to 2022, from a macro perspective, the report believes that drug & device companies with high growth potential, low localization rate, originality and leading technology platforms, and continuous innovation and R&D capabilities, as well as new-generation companies in the elderly care industry , brain science, digital therapy and medical consumption will be the four major investment themes in China’s health industry in 2022.
The report believes that a new generation of elderly care industry centered on big data and artificial intelligence, remote intelligent diagnosis and treatment systems, and commercial insurance payment is rising strongly. The silver-haired economy is not only a rigid demand, but also a huge potential market, which will breed new opportunities from consumption, medical care, technology, finance and other aspects. In addition, the report judges that, as one of the most important scientific fields in human history, brain science will become the next field that will bring a subversive impact on human society. From the perspective of various segments, in the field of medicine and biotechnology, cell therapy, antibody-drug conjugates, upstream and downstream raw materials, synthetic biology, RNA editing, and biological phase transition will become investment hotspots in 2022.
In the field of medical services, specialized medical services, medical imaging, equipment management services, and elderly care and rehabilitation will receive more attention from capital.
In the field of medical devices, surgical robots, heart failure, electrophysiology and rhythm management, mass spectrometry, new technologies related to genetic diagnosis, new materials for tissue engineering, optometry and eye surgery, core raw materials and accessories will become investment hotspots in 2022.
In the field of digital and AI health, AI drug research and development, smart pharmaceutical companies, smart hospitals, brain-computer interfaces, digital therapy, medical consumption, early disease screening, women’s health technology, and psychiatry, ophthalmology, oral and The field of rehabilitation will be an important investment direction in 2022.
Projects held by financial investors need to constantly look for opportunities for extensional expansion, and strategic investors need to improve the industrial chain layout through mergers and acquisitions to face the challenges brought by the reform of the payment side such as centralized procurement, which have become the main buyer-driven factors to promote the development of the mergers and acquisitions market.
In the field of medical mergers and acquisitions, financing difficulties for small and medium-sized enterprises, funds seeking to exit due to maturity, the stock price of listed companies falling short of expectations, and the sharp drop in the stock price of Chinese concept stocks are the main seller-driven factors that promote the development of the merger and acquisition market;
In addition, the key trends in the medical M&A market in 2022 include: the integration of innovative pharmaceutical companies and traditional pharmaceutical companies, the platform development of device companies, and shareholder exit-driven M&A opportunities in digital health and services.
[source] China News Network
Edited and translated by bradyknows
BradyKnows provides turn-key solutions to help overseas manufacturers facing the regulatory challenges in China. Pls contact us for any questions via info@bradyknowsmedical.com
