Recently, the rookie of the Dean diagnosis, the three Sino Biological, Leadman vitro diagnostic industry has gradually become an emerging legion of A-shares, concerned more and more money. When the the hot hype when the eyes of people gathered in the Chinese herbal medicines listed companies related concepts, the other segments of the pharmaceutical industry is quietly out of separate small "cow" momentum. 

Vitro diagnostics, relative to traditional pharmaceutical sector not by investors widely recognized areas, because it is known as the "eyes" of the doctors gradually become a force not to be underestimated by the pharmaceutical sector. In the context of the current drug prices, the in vitro diagnostics industry is evolving policy haven, the stable growth of the space is huge, just listed the field of in vitro diagnostics company with integration advantages, is expected to share the growth of the industry. 

Perhaps in the past we rarely notice it, but each and every one of us should have a real taste of it. In vitro diagnostics, this might be some strange vocabulary has long been widely integrated into modern medicine. It is outside the human body through the detection of human samples (such as blood, body fluids, tissue, etc.) for clinical diagnostic information products and services, including instruments, reagents, calibrators and control materials. 

This segment of the in vitro diagnostics industry involves many aspects of raw materials, production and distribution, and downstream users market. Hospital laboratory, independent laboratory examination centers tend to use accurate, high-throughput large instruments, hospital clinical departments, emergency, community service station, families tend to use fast, portable rapid diagnostic products. Therefore, in vitro diagnostics is referred to as "the doctor's eyes, often play a 70% role in the clinical diagnosis. Treatment of the whole process of its clinical application throughout the initial diagnosis, treatment options, effectiveness evaluation, diagnosis cure diseases. 

Vitro diagnostic equipment companies in the A-share market is not the main force in the pharmaceutical industry, but its market space is huge. In 2010, our in vitro diagnostic market size of $ 12.2 billion, of which approximately $ 2.3 billion market size of in vitro diagnostic instruments, in vitro diagnostic reagent market size of about 9.9 billion yuan. China is currently the second largest in vitro diagnostic automation instrumentation needs of the country, in recent years, annual demand for 4000 sets of biochemical analysis system, 9,000 units of blood analysis systems, 3,000 sets immunoassay system. 

In fact, China's population accounts for about 22% of the world's total population, but the share of in vitro diagnostic reagents, but only 2% of the world. In recent years, a variety of new technologies, the rise of the new method, and integration, to promote the development and application of in vitro diagnostic reagents and upgrading. At the same time, as the masses increase in income and living standards improve, people's health and quality of medical care have a higher demand. All the positive stimulus, in vitro diagnostic reagents industry ushered in the medical history of the development of a "once-in-a-lifetime" opportunity. 

According to the the the Japan Securities Xie Ningning analysis, due to the increase in the degree of health insurance coverage, an increase of nearly 20% in vitro diagnostic market size in 2011. Due to demand, technology, and policy-driven, it is expected that the next few years, the industry will continue rapid growth, to maintain approximately 22% to 25% growth. 

Compared with the pharmaceutical industry brought about the reduction in the integrity of the adjustment, the field of in vitro diagnostic happens to become a haven. In recent years, the Chinese government attaches great importance to the development of biotechnology, and formulated a series of encouraging policies for the entire industry, which includes vitro diagnostic industry to encourage and support measures. 

According to the "Daily Economic News" reporter on the website of the Ministry of Science and Technology, National Development and Reform Commission, combing, and Societe Generale Securities (601,377, stock it) the correlation analysis, since 2005, the NDRC on the organization and implementation of biological vaccines and diagnostic reagents high-tech industry of special notice "mentioned to carry out technology development and industrialization of new diagnostic kits intelligent diagnostic system. 

Since then, the State Council, the National Development and Reform Commission, Ministry of Science and Technology is also 8 file talked about in vitro diagnostics, including "national" Twelfth Five-Year "scientific and technical development plan", "" Twelve Five "biotechnology development plan", "medical devices Technology "12th Five-Year Plan", the support of the national industrial policy to create a good external environment for the development of in vitro diagnostic industry. Particularly valuable in the context of the overall reduction of the current drug prices, in vitro diagnostic industry also has some special advantages. 

Charging of in vitro diagnostic products and drugs in our existing health care system, the hospital there is a fundamental difference Hospital due to drugs is the hospital's main profit source ", for its own sake in the case of the same effects in favor of sales of high-priced drugs, resulting in drug prices artificially high. In the field of in vitro diagnostics, diagnostic reagents is the "cost of entry" of the hospital, the hospital and there is no power to deliberately raising their prices, and therefore under the same conditions, the hospital will tend to use the more inexpensive reagents, which lead the industry product price relative to the market. 

Based on this, an analyst at Societe Generale Securities items Jun believes that in the context of drug prices, Medicare payment reform, the price is not inflated in vitro diagnostic products and there is no significant price pressure, with the ability to resist risks, is the ideal haven. 

Domestic diagnostic industry has three major areas: in vitro diagnostic reagents, test (POCT) in a timely manner and independent medical laboratories, their respective market space of approximately 13 billion yuan, 50 billion yuan (20 billion) of the blood glucose meter, 20 billion. 

In vitro diagnostic reagents is an area of market concentration is relatively the lowest.Kehua, industry leading market share, but 4% of the industry currently has over one hundred diagnostic reagent production enterprises, and the top 20 corporate market share of only about 30%, largely due to the low barriers to entry, investment quick return. Leadman Kehua, Da An Gene, Fine innovation in the A-share market, listed companies. 

Guotai Junan Wang Zhen, from the performance of listed companies, in vitro diagnostic reagents industry growth has remained steady but relatively low level. In the international arena, the industry's growth rate was slightly lower than the level of the pharmaceutical industry as a whole, whether domestic or foreign, its gross margin stabilized at a higher level. From listed longer Kehua, Da An Gene of view, its revenue has maintained a stable growth rate basically stable gross margins. 

From an investment perspective, reagents, instrument integration and product substitution can be seen as the main line of the investment. Instrument launched on performance-driven, on the one hand, direct drive reagent sales, on the other hand to seize the reagent market. Kehua 2011 launched the Excellence 1200/1300 mid-range biochemical analyzer, Leadman is in the instrument introduced early as the end of this year the launch of the 800-speed automatic biochemical analyzer and chemiluminescence immunoassay analyzer, new growth stage will open. The chemiluminescence reagent directly light-emitting technology, the importance of the instrument will become more prominent. In addition, reagent products, the ability to open a new replacement cycle also noteworthy. 

In addition to in vitro diagnostic reagents, timely inspection market is worth close attention to investment opportunities, in particular, occupy most of the space in the blood glucose meter market. Listed companies, the three Sino Biological, Andon Health, diving medical blood glucose meter products. 

Blood glucose meter is a comprehensive combination of technology, as technology advances, accuracy and other key indicators, the gap between domestic products and imported products have been very small. Most of the domestic enterprises using low-cost way to seize the market. "Daily Economic News" reporter learned from relevant channels Taobao Mall, now the three Connaught organisms contains 50 test strips stable blood glucose meter price has been as low as 108 yuan, while imports Johnson contains price stability Optional easy blood glucose meter test strips 50 still Up to 585 yuan. 

For domestic enterprises for the production of blood glucose meter through the channels to seize the share has become the driving force of the expansion, and in the channel, the occupation of the hospital market can be made quickly bigger of the industry, and the home field with the rapid rise in diabetes prevalence , there is also a larger scale increments. 

Independent medical laboratory, the largest four laboratories are chain Laboratory: Golden Mile, Guangzhou, Hangzhou the Aidi Kang, and Dean diagnosis, Da An Gene.Dean diagnostic and Da Anji because listed companies, accounting for over 60% of the four lab, the field is the field of in vitro diagnostics three highest degree of market concentration. 

Domestic currently has more than 1,000 test items, and abroad has more than 4,000, a difference of nearly 3000, a considerable number of niche detection project, with the introduction of these projects, the future characteristics of the detection of growth beyond the existing general detection projects. Chain expansion in industry faces major opportunities, but the relative concentration of competitors, the winner, will improve the service network and a large customer stickiness enterprises may not be a simple rapid expansion of business. 

Today, in the developed areas of the capital city, each chain seize the favorable one institution-building, such as Dean diagnosis in Beijing, Nanjing, Hangzhou, Shanghai and other places with large specialized laboratories, Huaian, Wenzhou, two provinces two medical independent lab. Since mid-2008 to 2010 the whole industry has experienced a massive expansion stage, Wang Zhen, the beginning of this year will continue to contribute to the performance of these new projects, thereby boosting the industry growth. It can be expected, with the growth of the overall size of the market, incomes rise, single-store profitability will improve. And the annual investment of the marginal impact of the new open diagnostic center will decline, the results will be a period of rise. 

Domestic vitro diagnostic listed companies, Leadman forefront of R & D in the field of chemiluminescence. As in vitro diagnostic reagents started enterprises, the company modeled Kehua gradually embarked on the road of the reagents - instrument "reverse integration". 

Instrument, the company's fully automated chemiluminescence analyzer has completed product registration detection, is expected to obtain product registration certificate before the end of 2012, forming and supporting sales of reagents. In addition, the automatic biochemical analyzer system assessment in 2012, registration submitted for approval, is expected is expected to be approved during the year. The advent of these two instruments will effectively promote the development of its existing areas of strength (biochemical reagent) and wishing to enter the field of (chemiluminescence) business, to provide strong support for its reagent sales. 

Today, Leadman in advantage segments (biochemical reagent) phase transition to the integrated in vitro diagnostics company in the reagent, in addition to chemical light has begun to take shape, the company nucleic acid diagnostics (mainly fluorescent quantitative PCR), the POCT business, and production diagnostic enzyme / antibody business is also accelerating, purchasing the instrument business has been carried out (2011 with annual sales of 19 million yuan) self and upcoming market instruments can be expected over the next three years in the company will gradually grow as integrated in vitro diagnostics companies main biochemical and chemiluminescence business, taking into account other market segments, while the next three years to five years will also be the best period of the company's growth, the company is expected to a considerable extent copied Kehua growth path. 

Yesterday (August 17), the company announcement said, will be part of the raised funds to invest to increase production scale projects of 50,000 liters in vitro biochemical diagnostic reagents. 

Societe Generale Securities expects the company's 2012 to 2014 earnings per share were 0.64 yuan, 0.84 yuan, 1.02 yuan. 

The Yangtze River Delta is the foundation of the Dean diagnostic start market, this market is also a national medical market base the best, the fastest-growing, most standardized operation of the market. Therefore, in Jiangsu, Zhejiang and the layout of the five laboratories for fine root secret agents on the market, and extend through the epitaxial expand based on constantly. In addition to the current two two laboratory, the company will further speed up the layout speed, do the market more closely, do not give the opponent more opportunities. 

Expansion in the past few years, has been attached great importance to the integration of the resources of the partners. The test center in Shanghai, Jinan, Harbin cooperation and local ownership of the channel partners. This city belongs to the high-end market in Beijing, Shanghai, centralized resources, the establishment of the channels is very important to find companies in Beijing, Shanghai Roche as a partner in the local agents. With good command resources partners, the company in the development of Shanghai and Beijing very healthy and fully competitive in this market, Dean diagnosis rely on service, quality and technology to shape their own brand. 

In the first half of this year, Dean diagnostic operating income grew 46%, including diagnostic services and product revenue in vitro growth of 53% and 38%, respectively, 58% and 42% of total revenue, net profit of 30.699 million yuan, a year-on-year increase of 35.7 %. High-speed growth of diagnostic services revenue primarily from the comprehensive examination, biochemical luminescence test and immunity test, 81% of the total income of the three types of project, including comprehensive inspection judicial test and special items seized, accounted for 26% of revenue, grew the fastest, an increase of 80.02%, the highest gross profit margin of 62.78%; biochemical luminescence testing revenues accounted for 35%, year-on-year growth of 52.81%; immunoassay revenue accounted for 19%, year-on-year growth of 49.37%. 

GF Securities expects the company from 2012 to 2014 earnings per share of 0.61 yuan, 0.78 yuan, 1.03 yuan. 

The company is in vitro diagnostic reagents leading enterprises instrument + reagents bundling strategy, driven by biochemical reagents to maintain an annual growth rate of about 30%. Biochemical diagnosis is the the hospitals most conventional detection project, with a simple and convenient, fast, low cost, biochemical reagent detection system is mostly open, without the use of instruments and reagents match domestic reagents After years of development, stable quality, cost low, have occupied the domestic biochemical reagents most of the market, but industry concentration is not high, the share is more dispersed. Company biochemical reagents competitiveness lies: The complete product line, improve the marketing network, the ability of the products to market quickly. 

Currently, the most complete the Leadman product line, the share of the first; the Kehua Biosino immediately following. Kehua over 60 biochemical reagent products, 2013 is expected to complete the research and development of more than 40 products, padded biochemical reagents product line listed products reached 100. Biochemical reagents and instrumentation bundling competitive advantage, the biochemical reagent revenue in 2011 increased by 23%. The beginning of this year to launch efforts to increase imports and production equipment, is expected to be the first year of new biochemical reagent sales of 25 million yuan. 

At the same time, the company is the largest enzyme immunoassay reagent manufacturers, hepatitis B ELISA detection reagents 1/3 of the total domestic market, but by the national medical policy implications. Judging from the current situation, after recent years of the policy implications of the detection trips stabilized enzyme immunoassay reagents business overall will remain stable. Chemiluminescence detection sensitivity and accuracy better than ELISA, will gradually replace the traditional ELISA, a large market potential. Chemiluminescence reagents and instrument of domestic late start, reach more than 30 companies in the research products, will have about 10 products to market in 2013, supporting chemiluminescence analyzer also will work together to launch. 

China Merchants Securities is expected in 2012 to 2014 earnings per share of 0.53 yuan, 0.65 yuan and 0.78 yuan. 

In the case of in vitro diagnostic market booming, Humanwell medicine, Xinhua medical, Asia-Pacific Pharmaceutical Edan Instruments have announced, announced that it will test water in vitro diagnostics industry. 

Stakeholders believe that listed companies have a certain degree of market integration advantages and financial advantage more companies to participate, in the case of the rapid growth of the in vitro diagnostics market, which is expected to improve the speed of consolidation in the industry, so dominant enterprises to come to the fore. 

Since June, the pharmaceutical companies for the expansion of the field of in vitro diagnostics becomes more obvious after another four companies to disclose plans to enter the in vitro diagnostic programs. 

First announced this plan is medicine Humanwell. June 14, the company will increase plan, fund-raising will be the acquisition of Beijing medical Barry, so as to enter the diagnostics industry. It is understood that Beijing Barry medical the Shanghai Roche vitro diagnostic products in the country's largest dealer, and thinking up to the Beijing area of the blood clotting products dealer since 2010. In 2011, Beijing Barry medical sales revenue of 408 million yuan, net profit of 97.0368 million yuan. 

July 21, Xinhua medical the fixed growth plan, intended to raise funds of 326 million yuan, for the acquisition of 75% stake in Changchun Brocent. Changchun Bo Xun major transfusion safety in the production and sale of immunodiagnostic reagents detection reagents, is a leader in domestic blood group detection income of 48.77 million yuan in the first half of this year, net profit of 26.14 million yuan. The acquisition Xinhua medical profit this year is expected to thickening about 20%. 

On July 26, the Asia-Pacific Pharmaceutical announced that the proposed acquisition of 100% stake in Thai Special Secretary. With this acquisition, the company will have 68 biochemical diagnostic reagents for the registration certificate, the full range of products, covering nine series of liver function, renal function, blood lipids, enzymes, pancreas, special protein, able to meet the end-user. biochemical testing needs. 

August 16, Edan Instruments announced that the company and a subsidiary of EdanDiagnostics intends to Shixi increase cooperation to jointly invest 50 million yuan in Dongguan, to set up a Sino-foreign joint venture company to enter the in vitro diagnostic products. The Shixi increase has immunity rapid in vitro diagnostic system technology, the product is a combination of magnetic technology, microelectronics, biotechnology and microfluidics technology, establish recognition based on the magnetic signal new immunoassay platform technology. The product can be used to detect the detection of acute heart disease, acute infectious disease testing and malignant detection. Related technology has entered the stage of industrialization, has formed the prototype and ongoing clinical certification. 

Intensive listed companies to enter the field of in vitro diagnostics, clearly showing the in vitro diagnostics industry is dispersed slowly toward centralized, real oligopolistic firms is expected to occur in the process of development, driven by the overall development of the industry. According to data provided by the special committee of National vitro diagnostic manufacturers of in vitro diagnostic reagents in China about 300 to 400, of which nearly 200 above-scale enterprises, the annual sales income over a billion dollars is only about 20 enterprises are generally small-scale varieties.However, at the low end of the market, despite the large number of small businesses, industry competitive, but subject to economies of scale, its never been able to pose a real threat to a second-tier domestic leading enterprises. 

The relevant pharmaceutical analysts believe vitro diagnostic industry in China has entered a growth stage, in vitro diagnostic product sales model diversification will lead to manufacturers and dealers will choose to use a large amount of medical institutions to prevent loss due to usage. Diverse distribution model requires adequate financial support of the manufacturers, the industry will be more fully developed, enhance the promotion of industry concentration degree. The listing of more and more companies join the in vitro diagnostic industry would further contribute to the sound development of the industry.