Source: Longma Capital Research Team Author: Min Yue
POCT (Point-of-Care Testing) is a sub-sector of the in vitro diagnostics industry, referring to rapid diagnostics performed at the patient’s side. It involves immediate analysis at the sampling site, eliminating the complex processing procedures required during laboratory testing, thus providing a new method for quickly obtaining test results. In terms of application areas, POCT products can be used in clinical testing, chronic disease monitoring, emergency anti-terrorism, disaster medical rescue, infectious disease monitoring, inspection and quarantine, food safety, drug testing, and other public health fields.
In 2018, the global POCT market size was approximately $17.5 billion, with an industry growth rate of about 10%. In 2018, China’s in vitro diagnostics market size was approximately 60.4 billion yuan, a year-on-year increase of 18.43%. The POCT (non-glucose) market size was about 9.9 billion yuan, with an annual compound growth rate of over 20%, and it is expected that the domestic POCT market will exceed 10 billion yuan by 2020.The main growth drivers for the industry in the future include a serious aging population, a large base of patients with cardiovascular diseases and infectious diseases; the hierarchical diagnosis and treatment policy promoting the demand for POCT devices; the advantages of POCT products leading to clinical demand; and the development of science and technology expanding POCT applications.The domestic POCT market is still dominated by foreign companies. According to third-party data, in 2017, the top ten companies in China’s IVD market accounted for a combined market share of 66.5%, with the top five being foreign brands, accounting for a total of 56.2%. The market share of domestic companies remains relatively small.China’s in vitro diagnostics industry is still in a growth phase, with a low industry concentration, mainly consisting of reagent manufacturers, most of which are small and medium-sized enterprises with a limited variety of products and a large number of manufacturers. Currently, the main domestic POCT manufacturers include Wantai Biological Pharmacy, Genscript Biotech, Ruile Biotechnology, Mindray Bio-Medical Electronics, and Oriental Bio.Table of ContentsPart One: Basic Concepts of the Industry1. POCT is an important concept under in vitro diagnostics (IVD) 2. Diverse application scenarios for POCT 3. The modern history of POCT is relatively short, benefiting from technological iteration 4. The main products in the POCT industry include diagnostic reagents and testing instruments 5. The upstream of POCT includes the electronic information and biochemical industries, while the downstream includes distributors, medical institutions, and householdsPart Two: Market Capacity and Growth Analysis of the Industry 1. In vitro diagnostics is the largest sub-market in the global medical device market, with the fastest growth in China2. The proportion of POCT in the in vitro diagnostics market is rapidly increasing3. The global POCT market capacity exceeds $17.5 billion4. The Chinese POCT market capacity exceeds 10 billion yuan, with a growth rate exceeding 20%5. The main growth drivers for the industry in the future include an aging population, hierarchical diagnosis and treatment policies, advantages of POCT products, and scientific and technological developmentPart Three: Competitive Landscape of the Industry1. The domestic POCT market is still dominated by foreign companies2. Introduction of major companies in the industry3. The main competitive barriers in the industry include access, technology, channels, capital, and talent4. The future development trend of the industry is technological advancement and domestic substitutionPart Four: Major Risks in the Industry1. Market competition risk2. New product development and registration risk3. Policy riskPart Five: Major Listed Companies in the Industry1. Wantai Biological Pharmacy (300482.SZ)2. Genscript Biotech (603387.SH)3. Mindray Bio-Medical Electronics (002932.SZ)4. Oriental Bio (688298.SH)Part Six: Introduction of Major Unlisted Companies in the Industry1. Hangzhou Anxu Biotechnology Co., Ltd.2. Hangzhou Aotai Biotechnology Co., Ltd.3. Shenzhen Ruile Biotechnology (Shenzhen) Co., Ltd.4. Boao Sciences Biotechnology Co., Ltd.5. Chengdu Aixing Biotechnology Co., Ltd.6. Shanghai Aopu Biomedical Co., Ltd.7. Hangzhou Yousida Biotechnology Co., Ltd.8. Hebei Biological Technology Co., Ltd.9. Xiamen Baotai Biotechnology Co., Ltd.10. Shenzhen Tianshen Medical Devices Co., Ltd.11. Nanjing Lanyu Biotechnology Co., Ltd.Part Seven: Summary of Investment Logic in the IndustryIn the future, the trend of two-polar development of in vitro diagnostic products is clear. On one hand, there is the development of high-throughput, high-precision immuno-biochemical production lines to improve the efficiency of hospital laboratories; on the other hand, there is the development of point-of-care testing (POCT). POCT products have characteristics such as being small, portable, easy to operate, convenient to use, and providing immediate reports, without the need for large testing instruments, and POCT testing instruments are generally low in price. The future development of the industry will benefit from the aging population in China, the gradual implementation of hierarchical diagnosis and treatment policies, and the rapid technological advancements leading to a richer product line, with POCT expected to maintain a growth rate of over 20% in the coming years.From the perspective of industry-related companies, Wantai Biological Pharmacy and Genscript Biotech are currently leading companies focused on POCT, with Wantai having a more diverse product line and being about twice the size of Genscript, making it the absolute leader in the industry. Genscript has a clear advantage in cardiovascular POCT products but needs to expand its product line. Other listed and unlisted companies involved in the POCT industry have certain gaps compared to these two leading companies in terms of product richness, product advancement, brand recognition, revenue, and profitability. Unlisted companies generally face issues such as a relatively single product line, ongoing R&D capabilities, and profitability that need to be validated.Additionally, traditional IVD industry leaders such as Mindray Medical and Antu Bio have already entered or plan to enter the POCT field, which may intensify competition in the future.References:1. Huaxia Jishi White Paper on the Development of Listed Companies in China’s Medical Devices: In Vitro Diagnostics2. Mindray Bio Prospectus3. Oriental Bio Prospectus4. New Industry Prospectus5. Genscript Bio Prospectus6. Anxu Bio Prospectus7. Aotai Bio Prospectus8. Guolian Securities Report on the In Vitro Diagnostics Industry: Spring Brings Dew, All Things Shine9. Boao Securities Report on the POCT Industry: Quantity and Quality Rise Together, Import Substitution Continues to Advance10. Chuan Cai Securities Report on the POCT Industry: Demand Expansion in Grassroots, Innovation Leads Domestic Substitution11. Minsheng Securities Report on Wantai Biological: Product Advantages Combined with Decentralization, Entering a Long-term Development Cycle12. Chuan Cai Securities Report on Genscript Bio: POCT Supports Grassroots Medical Care, Biochemical Luminescence Strategy Promotion(Disclaimer: The information or opinions expressed in this research report do not constitute investment advice to anyone.)Recommended Hot Videos📹Attention!
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