Medical device industry will meet the tender tough price reduction

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At the beginning of this year, five new policies and regulations were introduced, including the "Guidelines for Daily Supervision and On-site Inspection of Medical Device Production", "Special Approval Procedures for Innovative Medical Devices", and "Regulations on the Supervision and Administration of Medical Devices. According to Chen Hongyan, the main purpose of the recent intensive policy is to help the industry improve self-discipline, encourage innovation, and promote sound development.
Among the new policies and regulations, the most important thing for enterprises is the centralized procurement bidding that is being carried out in various places. According to Geng Hongwu, an expert in the medical device industry, since 2013, the centralized procurement of medical devices in China has been in full swing. "Fourteen provinces have started bidding or are about to bid on a provincial basis, and seven provinces have discussed the concentration on a provincial basis. The bidding and purchasing of medical devices will be the general trend. The centralized bidding and purchasing of medical devices in 2014 will be aimed at solving the problem of inflated prices in the industry."
In Geng Hongwu's view, the experience of drug bidding can lead the way for the bidding of the medical device industry. Yesterday of drug bidding is today's bidding of the medical device industry.
The sales general manager of a medical device company in Hangzhou revealed to reporters that the operation of his own products into the provincial bidding catalog, to participate in the bidding, and sometimes to the hospital, there is another bidding. The cost of the enterprise is increasing. "The same is true in Guangdong Province. In addition to provincial bidding, there are seven other county-level cities bidding. The bidding expenditure of enterprises continues to increase, which is miserable." The chairman of a medical device company in Guangdong is bitter.
On the other hand, for listed companies, because of their obvious advantages in quality and technology, they have certain advantages in bidding work, and they can "compete for qualifications and share". "After all, large enterprises can sacrifice some profit margins to gain market. The products of small enterprises may not be able to enter the catalog, and they cannot afford to reduce prices even if they enter the catalog." Yesterday the forum site of a medical device marketing experts think so. In the long run, small-scale low-quality enterprises will undoubtedly be eliminated.
In fact, China's medical device market has a bright future. According to Wang Hui, a partner of CDH venture capital, the aging population and unhealthy lifestyle have made the medical device industry increase greatly. China is accelerating the aging, and the medical demand will increase significantly in the next decade. In his view, the leading enterprises in the domestic medical device market segment are continuing to innovate and are expected to further realize import substitution.
In the huge market prospects and the government to strengthen the supervision of the environment, leading medical device enterprises will be tempered in the new test.