Domestic Ventilator "Turnover": Overseas Demand Is Breaking Out, Core Components Remain The Key

The spread of the epidemic in the world has completely fired domestic ventilators.

"Domestic ventilator exports ushered in a turn around by the epidemic. Ventilator companies that did not participate in the past are now unable to compete. A Shenzhen level market researcher told the twenty-first Century economic report.

In the past, the ventilator Market in the United States was partitioned by several large multinational companies, such as Medtronic, Delger, Vyaire Medical, Hamilton Medical, Getinge and PHILPS (Philips).

Tang Jun Yu, director of the Department of critical care medicine of Guangdong General Hospital, told reporters on twenty-first Century economic report that in recent years, the development of domestic ventilator has been developing rapidly. With MINDRAY medical and fish diving medical as the representative, the domestic market has gradually replaced imports, which is not the same as ten years ago.

The spread of the epidemic in the world has completely fired domestic ventilators. - Xinhua News Agency

Domestic ventilator turnover

Prior to this, at the press conference of the joint defense and joint control mechanism of the State Council, Xu Kemin, director of the industrial policy and law department, said that at present, there are 21 manufacturing enterprises in our country, of which 8 of the main products have been approved by the EU compulsory CE, and the weekly production capacity is about 2200 units, accounting for 1/5 of the total ball production capacity. At present, a total of about 20 thousand units have been signed. At the same time, there are still a large number of international orders to be discussed every day. According to incomplete statistics, since March 19th, just ten days, while ensuring domestic demand, we have urgently provided more than 1700 overseas invasive ventilators, which has reached half of the total domestic supply this year.

The epidemic has swept the world, and many countries have seen the demand gap for ventilators. Domestic ventilator has become the world's most popular commodity. The original capacity and reserves are difficult to cover the global demand for ventilator.

Some agencies believe that in addition to China, the number of confirmed patients worldwide has reached 680 thousand. About 10% of the critically ill patients are removed. In the remaining patients, even if 1/3 needs ventilators, the demand for ventilators for the new crown pneumonia itself is at least 200 thousand. Meanwhile, according to the American Society of critical care medicine, 960 thousand patients in the United States will need ventilators because of the infection of new crown virus, but only about 200 thousand in the United States.

Multinational countries are facing a huge breathing machine gap, mobilizing domestic capacity and seeking overseas imports to "double pronged" to meet the supply of ventilators. China's epidemic situation has stabilized, and it is originally a large country of ventilator production. Overseas orders for domestic ventilators are coming.

Previously, the ventilator market was originally a niche market dominated by European and American giants. Markets and Markets estimated that the global Respirator Market in 2019 was about $930 million.

According to the global market, half of the world's ventilators are located in the European Union, and other major producers are distributed in the United States and China. Among them, Hamilton in Switzerland has the largest share in the global ventilator Market, reaching 1/4. In addition, Germany Delger, Sweden Getinge group and China's Beijing Yi An and other heads occupy more than half of the market.

Without exception, these large ventilators who are "able to eat" in the global market attach great importance to the development of overseas business. Take Sweden Getinge as an example, it can operate in more than 40 countries. There are many exclusive stores or subsidiaries overseas in China.

The domestic ventilator market is also divided by these "international giants". According to the data released by CITIC Securities Research Report in 2017, Delger, Medtronic and Mai Ke only occupy the market share of 35.8%, 19.2% and 15.8% of the domestic respiratory equipment market, respectively. The MINDRAY medical and Yi An medical companies of the domestic enterprises occupy 1.5% and 1.4% of the market share respectively.

In the more sophisticated ECMO subdivision of the ventilator, its working principle is to pump blood back to the body through the gas exchange device and then pump it back to the body, so as to win the recovery time for the heart and lungs. Therefore, the high-tech threshold of the core components such as ECMO membrane lung and centrifugal blood pump makes the world's only 3 ECMO head Enterprises: Mai Ke Wei, Medtronic and lino. Enamel. In 2015, only the three companies occupied the 65%-70% share of the global ECMO equipment market. At present, only ECMO, a small Tianjin Hui Kang, can produce ECMO.

Core components remain the key

Previously, the global ventilator market has been dominated by ventilator manufacturing giants from Europe and the United States. Now the demand for ventilators has expanded sharply, and the entry threshold has been lowered. However, the domestic ventilator is still facing many challenges to truly occupy the overseas market.

According to the data from the "heaven eye" professional edition, there are 992 breathing machine enterprises in China, and more than half of them are in Guangdong Province, and most of them have survived for more than ten years. The business scope of 90 enterprises in China is "import and export", accounting for about 9%. On February 1, 2020 -3 30, 10 new ventilators were added to our country, compared with 5 in the same period in 2019.

But at present, the domestic production capacity of respirator is also very limited. Many domestic manufacturers are facing the shortage of spare parts. Whether it is a non-invasive ventilator or a invasive ventilator, the core components depend on imports in production.

The domestic manufacturers of ventilators are basically medium manufacturing enterprises. Most of the core components such as turbo compressors, sensors and chips are imported from Switzerland's Micronel, Honeywell of the United States and SMC of Japan. In the invasive ventilator, taking the raw material PMP of membrane lung as the core component of ECMO, for example, the Membrana company under the US 3M company has the ability to supply.

In addition to the drop in capacity of upstream component suppliers, international flights have also drastically reduced, and the production of domestic respirators has been limited. Taking fish diving medical as an example, in response to investor questions in March 30th, he said, "at present, the company's respirator output is mainly controlled by upstream raw material supply. The company has taken various measures to stabilize the supply chain, improve production efficiency and arrange staff overtime production."

On the other hand, even if many countries take the initiative to reduce the entry threshold, the domestic breathing machine industry must develop rapidly in overseas markets, and there must be a localized operation strategy. The development and production of ventilators is only the first step. As a Chinese enterprise, how to overcome the obstacles of culture, language and regulations, and do long-term work such as the installation, training, clinical support and after-sale service of three kinds of high-risk medical devices in the developed countries in Europe and America are the real chapters.

Li Xiting, MINDRAY medical director, once said: "MINDRAY accounted for over 60% of invasive ventilator exports in Chinese hospitals, while less than 2% of the domestic brands accounted for second, and the majority of domestic brand exports accounted for less than 1%." From this perspective, there are not many Chinese ventilator companies that have the ability to go to sea and operate overseas.

More importantly, ventilator is not so simple as "oxygen bottle", but an electronic mechanical device that can replace, control or change normal physiological respiration, increase lung ventilation, improve respiratory function, reduce respiratory power consumption, and save heart reserve capacity. It has higher requirements for production technology.

Most foreign manufacturers of breathing machines have mature technology and R & D mode, leading the global R & D mode in the depth of technology and research direction. The ventilator produced by domestic enterprises is still focused on meeting the needs of the low and middle end market. Most of them are electrically controlled ventilators, which meet the basic clinical needs, and the research and development technology needs to be further strengthened.