Industry Analysis|Health care wave, is it an opportunity or a challenge?
The “Healthy China 2030” Planning Outline promulgated last year stated that the total scale of China’s health service industry will reach 8 trillion yuan and 16 trillion yuan respectively in 2020 and 2030. Based on such a large market scale, both the old-fashioned equity investment institutions with brilliant achievements and the new investment institutions with their famous names will pay more attention to the investment in the medical and health fields.
The huge market and the continued favorable policies have made the medical and health industry in the Chinese market prosperous, and it is only natural that it is favored by capital. In 2016, the number of investment institutions in China’s professional investment in the health care industry has exceeded 262, twice as many as five years ago. The accumulation of investment institutions has led to high valuations in the health care sector (especially medicine). Zheng Weihe, the chairman of Tongchuang Weiye, even expressed the feeling that “the valuation bubble of medical projects can even be compared with the Internet valuation bubble of the previous two years.” But it is undeniable that there is indeed a huge opportunity in the medical and health industry.
1. There are real opportunities for medical health
With the natural growth of China’s population, the aging of the population and the growing awareness of residents’ health care, China The pharmaceutical manufacturing industry continues to grow rapidly.
The growing age of the population will directly lead to a significant increase in the demand for medical health services in China. According to the calculation of the Southern Food and Drug Administration of the State, in the country, the elderly as the largest consumer group of pharmaceutical products, the per capita medication level is three to four times the level of per capita medication in China. And because the elderly population has low resistance and suffers from multiple diseases, the absolute demand for drugs is relatively higher. Due to the potential changes in China’s demographic structure, the degree of aging has continued to deepen, and the demand for medical health has continued to increase. The medical and health fields have continued to develop, and the medical and health industry has blossomed in recent years.
Ma Yun said that in the next decade, health problems will plague every family, especially stomach cancer, liver cancer and lung cancer, and Ali Health is carrying the “healthy dream” of Ma Yun, aiming to bring people More convenient, high-quality medical services, and resource optimization and efficiency improvement for some high-quality state-owned hospitals.
The health care industry is more stable, more rewarding and more valuable than the “faster and better” investment in the Internet industry. With the improvement of living standards in the health industry, the future personalized health industry for individuals will definitely only make more money. The pharmaceutical industry is known for its huge profits. In the future, healthy foods and medicines are extremely important. People will be more willing to spend a lot of money on health. It is definitely indispensable to make money.
2.Technology for health care
In the social environment where Internet popularity and new technologies are heating up, medical health is gradually Converged with the big environment, there are more forms in the form.
A. Internet + Big Health
Health Insurance will further take advantage of digitization. We will see that the Internet as a channel plays a greater role in the health insurance market, and digital technology is widely used in health insurance claims, payment, risk control, and service provision.
Health insurance companies will build a health platform that integrates fragmented health and medical services to cover the entire life cycle of consumers, including diagnostics, treatment, health education, disease management, and retirement.
B.Artificial Intelligence+Medical Health
Robots are becoming more and more popular in the medical field. In the United States, approximately 80%-85% of prostatectomy is performed by robots, and robotic assisted surgery is the most common type of prostatectomy.
In addition to robotic surgery, “robot doctors” or “robot outpatients” have emerged in recent years. In August last year, Watson, an intelligent cognitive system developed by IBM, was registered in China. On February 4 this year (World Anti-Cancer Day), the robot doctor Watson first “discovered” in China, but it mainly served as a robot assistant for human doctors. The popularity of robotic doctors is not without reason. It has found a diagnostic plan for an incurable Indian cancer patient with advanced disease. It took only 10 minutes to diagnose a rare leukemia in Japan.
With the development of artificial intelligence, robotic brains are becoming more and more powerful. They not only have strong memories, but also can quickly read and grasp patient information and assist human doctors in analyzing.
3.Medical health mergers and acquisitionsContinuous warming
The hot medical health industry has always existed The situation of “one small, two more, three lows”: one small means that the scale of the enterprise is small, accounting for 80%; the second refers to the number of enterprises, and the corresponding low-end products have more approvals; Low profit margin and low management efficiency.
M&A is the trend of medical health in 2016. M&A in 2017 is still a major trend, and the “ceiling” of PE institutions is far from being achieved. The characteristics and difficulties of pharmaceutical mergers and acquisitions also exist. Huang Qing, the managing partner of Gaotejia Investment Group, believes that the difficulties are mainly in these three aspects:
First, the investment in medical and health industry is greatly affected by policy factors. And many of China’s policies are usually not predictive, which is the biggest and difficult point.
Second, biomedicine is a technology-intensive industry with high professional requirements. Investors need to have a deep understanding of industry trends, industry policies and corporate R&D, products, sales and applications. Even many projects require a longer-term strategic vision than corporate leaders.
Third, if mergers and acquisitions meet or exceed expectations, the integration after mergers and acquisitions is the most critical. The full competition and high-tech barriers in the medical and health industry make the integration after mergers and acquisitions more difficult than the general industry.
Opportunities and challenges coexist. The tide of mergers and acquisitions in the medical and health industry is unstoppable, and the medical and health enterprises themselves are also very strong: on the one hand, some enterprises that cannot be listed through IPO hope to land in the capital market; on the other hand, companies that have already listed want to take advantage of the business field and optimize the industrial structure. Gain a competitive lead. In addition, due to factors such as GMP and standard upgrades, a large number of enterprises will be eliminated. The demand for these three industries means the arrival of M&A opportunities. Many companies in the healthcare industry rely on mergers and acquisitions to expand, and rarely rely on a single product to enter the market pattern of ‘winners eat all’.
In terms of challenges, the health care industry’s mergers and acquisitions have become very popular, which has brought more competition to investment mergers and acquisitions. But the level of competition is ultimately reflected in the professional and superior aspects of each institution.
The field of private equity investment will also follow the upgrading of the medical and health industry to enter the process of big waves and sands. The future must be the situation of strong and strong inferior.
Source: Venture Capitalist (WeChat public number: fxtzr2017)
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