1. Introduction to IVD Industry
1.1 Industry definition, ivd assay definition
In vitro diagnostics (IVD) refers to taking blood, body fluids, tissues and other samples from the human body, using in vitro testing reagents, kits, calibrators, quality control materials, etc. to test and verify the samples in order to prevent and diagnose diseases , Treatment testing, late observation, health evaluation,
In vitro diagnosis includes two parts: diagnostic instruments and diagnostic reagents. Among them, in vitro diagnostic instruments are classified as clinical inspection and analysis instruments under the secondary classification of medical devices, and diagnostic reagents belong to the category of biological products in biological medicine products.
IVD refers to products and services that obtain clinical diagnostic information by testing human blood and other tissues and secretions outside the human body. The “testing” in the commonly known “testing and inspection” in our hospitals includes most subdivisions of IVD-such as biochemical diagnosis, immunodiagnosis, molecular diagnosis, POCT diagnosis, microbiological diagnosis, urine diagnosis, coagulation diagnosis, tissue Diagnosis, blood diagnosis, etc. The first three categories are the mainstream IVD methods of medical institutions in China.
2. Industry Catalog
There are many different classification methods for in vitro diagnosis, which can be divided according to the detection principles and methods as follows. Among them, biochemical diagnosis, immunodiagnosis, and molecular diagnosis are still the main methods of in vitro diagnosis in China.
2. Industry chain
1. Industry upstream
IVD raw materials are mainly divided into enzymes, coenzymes, antigens, antibodies, magnetic beads and microspheres, membrane particles, primers and probes. IVD raw materials involve a wide range of fields, and most senior companies in the industry belong to “small and beautiful”. Long-term accumulation in specific areas. IVD raw materials are strategic nodes of the industry. Antigen, antibody, enzyme and substrate related products in domestic IVD raw materials account for three quarters of the IVD raw material market. At present, China’s main raw materials for diagnostic enzymes and antibodies are still heavily dependent on foreign imports. At present, only a few companies such as Antu Biotech and Mike Biotech can realize the self-sufficiency of some upstream raw materials such as enzymes, antigens and antibodies. A group of domestic enterprises such as Park Bio, Apis Bio are also slowly emerging.
2. Midstream of the industry
In the production process, immunodiagnosis, POCT, and molecular diagnosis have developed rapidly in recent years, and will remain mainstream in the market for some time to come. In recent years, the growth rate of biochemical diagnosis has slowed down. Domestic technology has been relatively mature, and product competition has become increasingly fierce. In the channel link, the industry uses the “instrument + reagent” bundling agent sales model, large enterprises have strong bargaining power; sales link, procurement The policy is gradually clear. At present, the policies of various provinces are inclined to domestic products, and the industry pattern has begun to reshuffle.
3. Industry downstream
At present, the domestic biochemical diagnosis and treatment, immune diagnosis and molecular diagnosis and treatment are mainly used in hospitals, and POCT should be mainly used in hospital critical care, primary medical institutions and families. In recent years, the market for IVD products has expanded rapidly in areas such as medical examination institutions and primary-level medical institutions (such as county-level hospitals).
In terms of medical needs, according to international experience, the proportion of prevention, diagnosis, and graded diagnosis and treatment services in domestic medical services will increase significantly in the future, thereby continuing to promote the rapid growth of IVD. In terms of household needs, the general household diagnostic needs in the future include: pregnancy, infectious diseases, blood glucose, myocardial indicators, blood coagulation, blood lipids, etc.
3. Market situation
1. Market size
The global IVD market in 2017 has reached 63.53 billion US dollars. It is predicted that the global IVD industry will grow rapidly at a CAGR of 5.5% from 2017 to 2021, and will reach 78.74 billion US dollars by 2021. At present, the global IVD market is unevenly developed, with North America as the leading factor, and the IVD markets of economically developed countries such as Europe and Japan also occupy a large share. However, due to social and economic reasons in the Asia-Pacific region, its IVD global market share has always been small. However, in recent years, the Asia-Pacific region has a large population base and a high economic growth rate. The continuous increase in medical security input and per capita medical consumption has driven the demand for the IVD market. It is estimated that its IVD market will have the highest annual compound growth rate in the world
At present, China’s per capita in-vitro diagnosis expenditure is only US $ 5 per year, which is a huge gap compared with the per capita expenditure of developed countries of US $ 25-30. In 2017, China ’s IVD market capacity was 65 billion, and it has maintained a growth rate of about 20% in recent years. It is predicted that China ’s IVD industry will grow rapidly at a compound annual growth rate of 20% from 2017 to 2021, and will reach 20% in 2021. 134.7 billion yuan.
4. Industry
(1) Key points of subdivision
1. POCT
POCT, point-of-care testing, refers to a testing method that is carried out at the sampling site and uses portable analytical instruments and matching reagents to quickly obtain test results. In space, it is the test carried out by the patient, that is, “bedside test”; in time, “instant test” can be performed. POCT is a subdivision of in vitro diagnostic devices (IVD). With the advantages of convenience, speed and low overall cost, it can quickly obtain diagnostic results at the patient’s side. China’s POCT market is still in the huge blue ocean market, and domestic enterprises have achieved initial results in import substitution.
The rapid expansion of the domestic POCT market
According to the TriMark report, the global POCT market size was US $ 15.9 billion in 2018, with an average annual compound growth rate of 7.5% over 10 years. In the global POCT market, developed countries in Europe and America account for 80% of the market share, and Asia accounts for about 15% of the POCT market.
Domestic POCT started late, with the characteristics of small base and fast growth rate, and huge development potential. According to China Industry Information Network, China’s 2018 POCT market scale reached 1.43 billion US dollars, with an average annual compound growth rate of up to 24%. The major domestic POCT producers Wanfu Bio, Jiegong Biology, Mingde Biology, etc. have maintained rapid performance growth in recent years, with an average growth rate of over 30%. With the promotion of medical reform and the gradual improvement of primary health construction, China’s POCT market is expected to maintain a compound annual growth rate of about 20%
Graded diagnosis and treatment drive the expansion of primary medical market
Hierarchical diagnosis and treatment have promoted the increase in the number of grass-roots outpatient clinics, and the rapid separation of diagnosis has made POCT widely available in hospitals and departments at all levels. For projects with a low sample size, the single-person single-shot detection method is quick and easy, the professionalism of the operator is not high, and it is convenient for storage and low-frequency use. It is very suitable for primary medical institutions, so the product characteristics meet the general direction of graded diagnosis and treatment . In terms of popularity, conventional blood analysis (hematocrit), protein and enzyme testing (biochemistry) have been popularized at the grassroots level. The policy bonus of POCT products obtained from graded diagnosis and treatment will promote the rapid development of POCT enterprises in the future.
There is a “zero-sum game” with the laboratory
The traditional use of POCT is established in various clinical departments of the hospital. In mainstream medical institutions above Class A, most of the laboratory equipment are automated products, with large sample size and high level of technicians. The use of POCT in clinical departments will divert the income of the laboratory, so there is a game of interest. Because clinical and laboratory departments have different interests, they have limited clinical use.
An important sector where household appliances and medical resources are sinking
At present, most of the POCT equipment is still hospital-use POCT equipment, and the most successful household POCT equipment in the current market is almost only a blood glucose meter, which cannot meet the growing market demand. With the rise of the household appliance market and the enhancement of national health awareness, the market share of household POCT equipment is gradually increasing. In the future, POCT results can be uploaded to the cloud platform to enter the stage of intelligent POCT diagnosis. The boundaries of POCT’s professional and non-professional markets are gradually blurred, making a major contribution to the promotion of precision medical plans.
2. Immunological diagnosis
In 2017, the industry scale of domestic immunodiagnostic reagents exceeded 21 billion, and the industry growth rate exceeded 20%. Immunodiagnostic reagents have been developed overseas for more than 60 years, and the technology is relatively mature. At present, immunodiagnosis is mainly based on chemiluminescence technology. Compared with traditional immunology technology, chemiluminescence has the advantages of high automation, good specificity, high accuracy, and wide detection range. The accuracy and sensitivity are close, and the risk of replacement in the short term is small. At present, the domestic immunodiagnostic market is occupied by Roche, Abbott, Beckman, Siemens four international giants with technological advantages and first-mover advantage. Domestically, new industries, Mindray Medical, Mike Bio, Antu Bio are constantly developing There are huge opportunities for domestic substitution in the future.
3. Molecular diagnosis
In 2017, the domestic scale of molecular diagnostic reagents reached 8 billion yuan, with a growth rate of 24%. Molecular diagnosis is detected at the genetic level, and the advantages of detection sensitivity and accuracy are obvious. It is mainly used for the detection and diagnosis of genetic diseases, infectious diseases, tumors and other diseases. The mainstream PCR technology of molecular diagnosis is said to be lower than the current mainstream immune technology barriers. The domestic market is in a “pseudo-oligarch true red sea” situation; the future prospects of molecular diagnostics applications. With the popularization of targeted therapy for tumors and new targeted drugs, more drug testing (accompanying testing) is required. Non-invasive prenatal testing (NIPT) is expected to be widely promoted in the future. There will also be opportunities for large-scale promotion of gene sequencing in early cancer screening and personal genome testing in the future.
4. Biochemical diagnosis
In 2017, the domestic biochemical diagnostic reagent market scale was about 19.5 billion yuan, with an industry growth rate of 5%. At present, biochemical diagnostic reagents are well-known both domestically and overseas, and the technical barriers are low. They face the risk of being completely replaced by other more accurate and rapid diagnostic technologies. Monopoly power is very strong.
Summary: At present, the domestic IVD industry is still in the early stages of development, and the degree of localization is not high. In the future, there are huge development opportunities in POCT, immunodiagnosis, and molecular diagnosis.