Medical network - on November 24, whether it's doing in the primary market investment or secondary market investment, investment managers to big industry the basic framework of cognition is the basic requirement, only of a basic grasp of the industry, to know the company's position in the industry chain and value. The following figure of medical health industry industrial chain each link, for example:
The author team invested above the drug companies, equipment manufacturers, circulation enterprises, companies in sectors such as third-party diagnosis in many segments of the first three companies, and research all other major industrial chain link. According to new research information to every link of the whole industry to do a brief combing, mainly self organize large industry investment logic.
CRO
▌ subdivision industry the basic logic:
CRO refers to a Contract Research Organization (Contract Research Organization), the company offers from each link such as drug discovery, clinical trials to service. Due to the pharmaceutical industry is administrative controls industry, medicine listed need regulatory approval (domestic CFDA), get the registration certificate to go on sale. Itself at the same time, the drug development process is relatively complex, small molecule drug innovation, for example, need to go through the discovery of compounds, compound optimization, pre-clinical animal experiments, clinical phase I and phase II, phase III, application of new drugs and other process. A successful listing of innovative medicine, have the cost of the $1 billion level, so there will be various r&d link corresponding to the existence of the company.
▌ niche business inside of a typical company:
Typical of this kind of company business including provide compounds screening and optimization for pharmaceutical companies, animal experiment and clinical research, etc. Represented by wuxi, the company started to pharmaceutical company providing services such as compound screening, according to the head to collect fees, or charge according to the compound. This kind of company business model is the nature of research and development outsourcing, such as pharmaceutical companies in accordance with the price of $10 w per person per year to pay the cost of research and development, the company in accordance with the 20 w RMB each year to hire the price of the domestic researchers, enjoy the "engineer dividend" is domestic. With domestic competition, r&d outsourcing margins have also been falling fast, and have formed a few big companies headed by wuxi oligarch competition situation.
▌ development direction and investment opportunities:
CRO link is already relatively mature, development direction including new development platform and adapt to the downstream development model transformation. Mostly mature company has been listed, wuxi will privatization regression, Kang Long into also proposed, such as industry mergers and acquisitions will be the trend in the future.
CMO, API API
▌ subdivision industry the basic logic:
Along with the advancement of research and development to the drug, the drug compounds and the requirements of raw material to produce more and more is also high, from a few grams, compounds found in the early to late animal experiments, clinical, large quantities of listed a few kilograms, dozens of kilograms, tonnage of production requirements, therefore a CMO (outsourcing Contract processing, Contract Manufacture Organization, main is accepting the entrustment of Pharmaceutical companies to provide needed for production technology development, the formula of drug development, clinical trials, chemical or biological synthesis of Active Pharmaceutical ingredients, intermediates manufacturing, production preparation, etc.) and API apis (Active Pharmaceutical Ingredient, aims to create any of the material used for drug or a mixture of substances, and when used in Pharmaceutical, become a kind of Active Ingredient of the drug) will follow. Its essence is the pharmaceutical intermediates and raw materials.
▌ niche business inside of a typical company:
CMO's typical company wuxi subsidiary in the pharmaceutical industry, such as the a-share listed company bo teng pharmaceutical industry. Together the whole pharmaceutical industry as the main body of wuxi United States listed subsidiary, to return to the new three board also created a new three board listed companies in the United States to return to the first first, cicc do listed financing, credit is still very tight at that time.
API companies such as shiyao group enterprise scale is very big, the antibiotics, vitamins, and other enterprises do have very mature, also have been listed for many years.
▌ development direction and investment opportunities:
Is the core competitiveness of pharmaceutical intermediates production quality and capacity, on the one hand, requires excellent quality control, on the other hand need to have enough capacity to meet the needs of downstream. Industry quality enterprise inside, need to bind the downstream pharmaceutical companies and good varieties. This link is a typical capital-intensive, suitable for strategic investment, in view of the industry is relatively mature, mergers and acquisitions will become the main trend.
Traditional Chinese medicine
▌ subdivision industry the basic logic:
Chinese medicine yinpian industry is an industry with a long history, since the development of traditional Chinese medicine in China for so also cultivates numerous readers of doctors and community. Chinese medicine yinpian itself is soil, soil to dig the medicinal materials from the ground, everybody would be strong agricultural properties, now of course there is also a very modern cleaning, slicing, drying equipment. And evil people mixed up in this industry, the cheapest notoginseng, radix isatidis, there are also expensive to mahle's rare medicinal herbs such as cordyceps, saffron. Due to the broad mass base, nature has great market space, the country boasts four medicines are bozhou in anhui, jiangxi, hebei amara camphor trees, henan jin. Is bozhou hua tuo home and four first of all, the author has felt the bozhou market trading atmosphere of the scene, is basically feel like a crowded market, adb industry veteran it hard to judge medicinal materials quality, and the local play has held a variety of medicinal materials to identify each year.
▌ niche business inside of a typical company:
Sig pharmaceutical industry leading enterprises, acquisition of bozhou the old Chinese herbal medicine market, and cost 1.5 billion yuan to build the new sig city hua tuo international (bozhou) traditional Chinese medicine, but its basic business attribute has real estate properties. Industry is simply to do Chinese medicine yinpian listed companies is less, represented by sichuan listed is no new lotus, agricultural properties, not standardized, and many other reason is that hinder the restricting factors in the development of the industry.
▌ development direction and investment opportunities:
Chinese medicine yinpian processing modernization, standardization is a trend, now meet the listing standards of the first echelon of pure Chinese medicine yinpian enterprise is preparing for listing. With the first echelon of big companies listed, will usher in a variety of acquisition.
Pharmaceutical companies
▌ subdivision industry the basic logic:
Pharma pharmaceutical company is one of the main core of the entire health care industry, including medicine, biology, medicine, proprietary Chinese medicines, vaccines, blood products, production of products for the patients and consumers in the end. From business logic, is shouldering the main drug research and development and the registered public functions, is the whole industry chain for the drugs themselves understand the deepest role, also holds a certain drug extension and the function of doctor education, is the most important source of value creation on the whole industry chain and the driving force.
▌ niche business inside of a typical company:
As a whole, in addition to the traditional Chinese medicine (TCM) and parts of all varieties of foreign investment, foreign companies such as novartis, Pfizer, roche, sanofi, etc in both the research and development strength, the company scale is far more than the domestic pharmaceutical enterprises, especially in the biological medicine. According to Forbes list, published in 2015 in the world's top drug firms 54 only five companies in China, fosun international (investment), its respectively (distribution) and medicine (distribution), yunnan baiyao (consumer), sig (trade). Domestic companies also pay more and more attention to the innovation ability, represented by hengrui domestic drug firms also gradually in the innovation drive in the direction of development.
▌ development direction and investment opportunities:
In recent years, whether foreign or domestic pharmaceutical companies as a whole are not better than, the main reason for GSK commercial bribery investigation and drug bid prices continued to decline for the typical. Short-term inside a few years in the foreseeable, drug prices decline is inevitable, and drug sales and market share will still be the core target of pharmaceutical companies. Pharmaceutical r&d innovation requires a lot of money, doomed can only do, is the industry's giants will be after the strong stronger, but it is because the new drug r&d, including foreign companies, pharmaceutical companies are in the introduction of new products by means of external cooperation, promoting the proportion of r&d in this way will be bigger and bigger. For a small company, with potential new species will likely get the favour of big pharma or risk investment institutions.
Medical device manufacturers
▌ subdivision industry the basic logic:
Medical equipment is an integral part of disease diagnosis and treatment, the typical such as image diagnostic equipment, orthopedics and implantable medical devices, etc., small to infusion, injection to scalp the belly require medical apparatus and instruments, as close to the clinical, and industrial chain on the important link of value creation.
▌ niche business inside of a typical company:
Similar to the pharmaceutical industry, medical equipment manufacturer in foreign manufacturers have a large lead in many areas, such as GPS in the field of medical imaging (GE/philips/Siemens). However, as the domestic policy encouragement and promotion of the technical level of the domestic equipment manufacturers, import substitution is a big trend in this field, on behalf of the domestic equipment national enterprises such as mindray also has great influence on the international, also in privatization from the United States.
▌ development direction and investment opportunities:
In the pharmaceutical industry under the background of the downturn, the domestic medical instrument enterprise overall situation is relatively better,
On the one hand, due to the hospital and equipment related fees most fees according to the service fee, in removing medicine for under the background of the reform of medical health service itself, it becomes more important for hospital to diagnose represented by the proportion of income in the hospital and the absolute are on the rise;
On the other hand, domestic equipment makers to replace imported equipment is also a policy to encourage, some grassroots hospital tender, have made it clear that no import equipment. In such a big background, the domestic equipment and consumables sought after by investment institutions, especially the instruments of high technical content and high value of consumables.
dealers
▌ subdivision industry the basic logic:
Medicine circulation industry is a critical one link in the whole industry chain, as an important intermediary, it is a link pharmaceutical manufacturers and end consumers (including hospitals and retail pharmacy pharmacy, mainly hospital) of the bridge. Because of historical reasons, the medicine circulation enterprises are mainly composed of state-owned enterprises, now has formed a national and regional circulation enterprises.
▌ niche business inside of a typical company:
National medicine circulation enterprises such as characters, kyushu, regional wide such as medicine, medicine, etc.
▌ development direction and investment opportunities:
Economies of scale, improve efficiency, optimize the varieties is the link of the keywords, circulation and distribution enterprises due to directly to the hospital, more or less have some pharmaceutical manufacturing operations to form a synergistic effect. Great theme of the current industry mergers and acquisitions, some listed companies are also seeking a regional scale.
Hospital and medical center
▌ subdivision industry the basic logic:
The necessity of the hospital and medical center is beyond doubt.
▌ niche business inside of a typical company:
Hospital system in tertiary hospital, secondary hospital, hospital level and below is a typical system, the topic of the whole system is derided has lasted for many years, including the uneven distribution of medical resources, medical treatment cost, medicine for healing, d noise problems and so on. It is worth noting that the phoenix medical listed in Hong Kong, finally ushered in the first private hospital. Major medical companies have been done at home and abroad, has entered the oligarch competition situation.
▌ development direction and investment opportunities:
Both public hospitals and private hospitals, relevant investment and merger and acquisition has numerous industries and PE capital in the layout. Finds peace in his home as a representative of the high-end private clinics, spring rain, doctor visits and offline clinic trials, represented by the Internet all kinds of doctors want to be free from system group in trying to break the original public hospital and the doctor's walls, and therefore investment and m&a opportunities in all directions.
Retail pharmacies, and online pharmacies
▌ subdivision industry the basic logic:
Retail pharmacies existing business logic is not here.
▌ niche business inside of a typical company:
Drugstore chain the listed companies have been listed, such as the big stars, such as tongrentang, represented by the large national chain of retail pharmacy. But the industry as a whole pharmacy differentiation between serious, chain pharmacies to also have the consumption properties of dense, and coverage, coverage, and the ability to pay, the competition number of pharmacy, etc. Because the industry is relatively mature, most drug profit ability generally or loss, so there is also a giant in the globe for pharmacy chains.
▌ development direction and investment opportunities:
Chain as a mature industry, pharmacy industry is given priority to with mergers and acquisitions subject, in recent years, the Internet selling is relatively hot, such as medicine and mobile medical to silent chain pharmacies brought some new elements, such as the kernel and the pharmaceutical industry's JPM medicine can APP in the main first-tier cities do door to door delivery within 30 minutes. Most Internet medicine enterprise's development have a great distance away from the expected or, actual sales is given priority to with family planning supplies, contact lenses, after the outbreak of the point lies in the prescription of the liberalization of the Internet marketing and electronic prescription. |
