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The medical device industry will welcome the new test of price reduction

At the China Medical Device Industry Development Forum, Chen Hongyan, secretary general of the Medical Devices Branch of the China Pharmaceutical Materials Association, said that the Food and Drug Administration is currently increasing its industry supervision of medical devices. At the beginning of this year, five new policies were introduced, including the “Guidelines for On-site Inspection of Daily Supervision of Medical Device Production”, “Special Approval Procedures for Innovative Medical Devices” and “Regulations on Supervision and Administration of Medical Devices”. According to Chen Hongyan, the recent intensive policy is aimed at helping the industry to promote self-discipline, encourage innovation, and promote sound development.

Among the new rules and regulations, the most important thing for enterprises to pay attention to is the centralized procurement tenders that are being carried out in various places. According to the medical device industry expert Qi Hongwu told reporters that since 2013, China's medical equipment industry concentrated procurement is in full swing. “The 14 provinces have begun to bid for the province or the bidding will be carried out. The seven provinces have already discussed the concentration of the province. The bidding and procurement of medical equipment will be the general trend. In 2014, the centralized bidding for medical equipment will be used to solve the price in the industry. The problem of false high is for the purpose."

In Qi Hongwu's view, the experience of drug bidding can lead the way for the bidding of the medical device industry. The drug bidding was the bidding for the medical device industry yesterday.

The general manager of the sales of a medical device company in Hangzhou revealed to reporters that the operation of their own products into the provincial bidding catalogue, to participate in the tender, and sometimes to the hospital, but also to conduct another tender. The cost of the enterprise is constantly increasing. "This is also the case in Guangdong Province. In addition to the provincial tenders, there are seven other county-level cities that are bidding. The company's bidding expenses continue to increase, and it is hard to say." The chairman of a medical device company in Guangdong has suffered a lot.

On the other hand, for listed companies, because of their obvious advantages in quality technology, they have certain advantages in bidding work, and they can “qualify and compete for share”. "After all, big companies can sacrifice some profit margins to get the market. Small business products may not be able to enter the catalog, and they can't afford to cut prices in the catalogue." A medical device marketing expert at the forum yesterday thought so. In the long run, small-scale and low-quality enterprises will undoubtedly be eliminated.

In fact, China's medical device market has broad prospects. According to Wang Hui, a partner of CDH Venture Partners, the aging population and unhealthy lifestyle have made the medical device industry increase tremendously. China is accelerating aging, and medical demand will increase significantly in the next decade. In his view, the leading companies in the domestic medical device market segment are continuing to innovate and are expected to further import substitution.

Under the huge market prospects and the government's supervision, the leading medical device companies will be tempered in the new test.

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