Medical device industry policies continue, what are the benefits?
With the continuous spring breeze of favorable policy, the medical device plate has a more obvious rebound trend. From the point of view of the news: "For the new loans for the purchase and renovation of hospitals and other equipment, the implementation of phased encouragement policy, the central financial discount of 2.5 percentage points, the period of 2 years, the application of discount interest as of December 31 this year." This means that the financial pressure of hospitals is relieved, then the payment of medical equipment and pharmaceutical companies will be faster, and pharmaceutical companies will have more funds to equip new equipment and drugs, which is a direct benefit to medicine and suppliers.
In recent years, under the promotion of China's relevant policies to encourage the development of the pharmaceutical industry, some foreign enterprises have actively invested in the pharmaceutical manufacturing industry, and relevant production and research and development projects have landed. Foreign pharmaceutical companies accelerate the localization strategy, from research and development to production and manufacturing, and even the supply chain to localization, to promote the optimization and upgrading of the pharmaceutical industry chain in China. It is represented by many international medical device giants that localize high-end devices, such as Siemens and Boston Scientific.
The health Commission proposed that according to the size of the local population, adequate treatment beds should be allocated, and the construction of ICU(intensive care unit) should also be strengthened, and ICU beds should reach 10% of the total number of beds.
From the perspective of the situation in these two years, ICU can greatly improve the survival rate of critically ill patients, and buy time and opportunity for critically ill patients to undergo further treatment. At present, there are many problems in ICU construction at all levels of hospitals in China, such as insufficient beds and insufficient staffing of medical staff.
We found that according to the current number of ICU beds in China, the number of ICU beds available to treat severe COVID-19 patients per million population ranges from 3.08 to 9.26. Accelerating the construction of ICU may become the focus of the epidemic treatment chain, determine the rigid adjustment speed of front-end prevention and control measures, and is expected to lay the foundation for the adjustment of front-end prevention and control of epidemic treatment.
All localities and departments should further strengthen the work of serving foreign trade and foreign investment, accelerate the review and approval of drugs and medical devices on the basis of doing a good job in the approval and supervision of anti-epidemic drugs and medical devices, strengthen the quality supervision of anti-epidemic products, and solidly promote the implementation of key foreign-funded pharmaceutical projects.
We found that discount loans stimulate the golden window for medical equipment, and policy support combined with domestic infrastructure will stimulate strong demand. For a long time, most of China's high-end medical devices rely on imports, in recent years, the discussion on the localization of medical device procurement has never stopped, some provinces and cities have issued a test water policy, in response to potential changes in the Chinese market procurement trend, many foreign enterprises are also taking the initiative to consider the original imported products to localize production.
The trend of medical device companies is related to the collapse of valuation, in fact, the importance of the epidemic for more than 2 years is self-evident for medicine, but medical device companies increase profits, the company's stock price is falling, which caused a logical mistake. In addition, the 3 quarterly report of pharmaceutical companies have a substantial growth in performance, which is also a major reason for institutional funds to enter again.
For ordinary investors or do not swarm to chase up, once high "blow" experience has forgotten? Even if you are optimistic, you should intervene on dips, the market still lacks confidence in pharmaceutical stocks, the temporary rebound is not a real reversal, and the national policy changes for the medical device industry are concerned.
