How does the foreign giant monopolize the domestic manufacturers in the medical device industry?

The long-term monopoly of high-end medical equipment by multinational corporations has led to absolute control over pricing, which is one of the main reasons for the high cost of medical treatment and high medical insurance expenditure.

Foreign giants monopolize the medical device industry How do domestic manufacturers break through?

For example, a 1.5T magnetic resonance system that sells for $750,000 in the United States has a domestic price of up to 12 million yuan. According to the calculation of 8 years of use, it is necessary to add 50% of the equipment maintenance price.

Regarding imported medical equipment, "I am good, I am expensive, expensive after sale, expensive accessories" has long been accepted by major hospitals. The most direct result is that patients no longer dare to go to the hospital to see a doctor.

At the same time, a group of domestic high-end medical device companies in Shenzhen are getting rid of the world's "low-end products, backward technology", and gradually become innovative, and even called foreign brands. However, multiple reasons have made it difficult for domestic brands to enter domestic public hospitals. The “Made in China” in the medical device industry in Shenzhen has made a breakthrough overseas, but it still needs to break through in the face of the domestic market.

According to the "Blue Book of China's Medical Device Industry Development Status 2013" issued by the Pharmaceutical Materials Association, from 2001 to 2012, the sales volume of China's medical device market increased from 17.9 billion yuan to 170 billion yuan, excluding the impact of price factors, and increased nearly 12 years. 9.4 times. According to analysts at Pharmalive Consulting, China's share of the world's medical device market is expected to reach 25% by 2050. The growth momentum is mainly due to the country's new medical reform investment, population aging and the growth of residents' health care demand.

Giant monopoly medical device industry

For a long time, almost 70% of the large-scale high-end medical equipment market such as CT, MRI and PET-CT in all hospitals in China has been monopolized by three multinational companies such as General Electric, Philips and Siemens. Because the English initials of these three companies are "GPS", the industry also refers to this monopoly pattern as "GPS myth". Domestic medical devices can only emerge in non-contact devices and other low-end areas.

Li Zaiwen, general manager of the domestic marketing system of Shenzhen Mindray Biomedical Electronics Co., Ltd., introduced to the author that foreign brands have great advantages in this field. In terms of market segments, Johnson & Johnson is a giant of implantable medical devices; the "GPS" Big Three account for more than 80% of the domestic high-end market in the diagnostic device industry; in the field of inspection equipment, "GPS" also accounts for more than 70% of domestic High-end market share. As the largest medical device company in China, Mindray's proportion in the international high-end medical equipment stage is still very small.

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