Investment opportunities in the medical device industry

Release Time:

2023-01-31


In the past decade, the US stock market has produced a total of 14 medical stocks with a market value of over 10 billion US dollars, of which 8 are medical devices, 3 are innovative drugs, and 3 are medical services. This indicates that medical device companies have high growth potential. The average research and development cycle of innovative drugs is 10 years, with a research and development cost of over $1 billion and a success rate of about 10%. In addition, innovative drugs have a patent protection period of about 10 years after their launch, and after expiration, their sales of original research drugs have significantly decreased due to the use of generic drugs; Patent Cliff;. Compared to drugs, medical devices have a shorter research and development cycle (it takes about three to five years from research and development to approval for listing), less investment, and fast returns. At the same time, due to brand and doctor usage habits, product substitutability is weak, product life cycle is longer, patent expiration does not allow competitors to quickly erode the market, and investment risk is lower. This is also the reason why the proportion of medical device companies listed on the A-share market is increasing in recent years