I. Market Environment

At this stage, the distribution of diagnostic products and services in China is in a in vitro diagnostics market competition, with a wide variety of service providers.

According to the operation mode, there are not only dealers who are simple agents, but also comprehensive service providers who give service support services.

By product content zoning, there are not only dealers of a single well-known brand multi-product type, dealers of a single product type of multiple well-known brands, but also service providers of multiple product types with multiple well-known brands.

According to the operation area planning, there are regional service providers and cross-region comprehensive service providers.

Because the end-product users of in vitro diagnostic products, i.e. each pharmaceutical laboratory, are spread all over the country, service providers produce different key coverage areas according to different locality and different distribution well-known brands. At the present stage, most of the Chinese pharmaceutical laboratory service providers are regional enterprises in their own provinces, with a large number of enterprises, lacking the advantages of operating scale, distributing a single well-known brand, and with poor service capability, which can give large-scale supply chain management and comprehensive laboratory services, and a small number of cross-regional service providers with the advantages of operating scale.

In recent years, there are more and more offering enterprises in the field of in vitro diagnostic product distribution, and various VC and PE projects are also active in investment due to the development of the industry, prompting the total number of enterprises with asset merits to continue to rise. In order to better obtain core competitiveness, such enterprises acquire enterprises with technical or platform merits according to the enterprise, in order to generate or perfect their product industry and marketing channels, so as to expand their business scale and product market share. Industry reshuffle is going to come in other words long ago.

From the current enterprises in the field of in vitro diagnostic product distribution, it seems that the key is divided into four categories.

(a) Traditional commodity circulation type enterprises and upstream and downstream producers entering the circulation field

These enterprises are dominated by listed enterprises, with large scale of operation, relative abundance of assets, excellent professional skills and strong environment in the field.

(ii) Third-party laboratory enterprises

Many of these companies have been on sale for a long time and have the advantages of the first type of enterprises, but there is a significant difference in the choice of business operation model, and they occur in large numbers as midstream and downstream enterprises in the field.

(iii) Large and medium-sized pharmaceutical companies involved in in vitro diagnostic distribution

This category includes many oligarchs in the field, which work in an extremely competent manner and have abundant assets, but seem to lack professional skills and other aspects of the industry.

(iv) Small, medium and large channel distribution enterprises

The current stage of coping with the period of scale in the field looks unsuitable in terms of size, assets, expertise and other dimensions, but the ability to work in the way is still an advantage, and the leader in it is the specific overall goal of the first three types of companies corporate M&A.

II. Current situation in capitalist countries

In recent years, along with the worldwide development trend of in vitro diagnostic technology, the level of in vitro diagnostic laboratory reagents and instruments and equipment product research and development has been improving, the world's perfect products have long achieved 1200 various kinds, the level of industrial development has improved, and the scale effect is remarkable. At the same time, a large number of in vitro diagnostic enterprises have emerged in the field, among which the world ranked all ten successively: Switzerland's Roche (RocheDiagnostics), Germany's Siemens (SiemensHealthcare), the United States of Abbott (Abbott), the United States of Johnson & Johnson (J&J), the United States of Beckman Coulter ( BeckmanCoulter, BectonDickinson (commonly known as BD), BioMerieux (France), BayerDiabetes (Germany), Sysmex (Japan) and Bio-Rad (USA). In practice, it seems that the top four in vitro diagnostic companies in the world account for 60.7% of the sales market, and the top ten companies occupy nearly 80% of the world market share, showing an oligopolistic market competition layout.

In the worldwide in vitro diagnostic sales market, North America, Europe and Japan have long been the specific market demand, but along with the rapid development trend of global economic and economic development and the continuous improvement of diagnosis and treatment expenditure, the in vitro diagnostic sales market in China, India, Brazil and other countries is developing rapidly. In actuality, it seems that the highest scale of in vitro diagnostic operation at this stage is the North American sales market, with a share of about 40.15%; followed by the Western European sales market, with a share of about 29.82%; and the Japanese sales market with a share of about 10.45%.

Worldwide IVD field centralization emerging economies oversupply

Worldwide, it seems that the demand for IVD beyond 70% of the market comes from Europe, North America and Japan, but the more developed geographical requirements are basically being reached and the growth rate is relatively slow. And the emerging economies such as Latin America, China and India with large population, high gdp growth rate and high investment and expenditure of diagnosis and treatment funds are improving rapidly and turning into the specific source of the field improvement. In recent years, the worldwide in vitro diagnostic sales market has been improving steadily, with an average annual compound growth rate of 5%-7%. Even in 2008 when the global financial crisis hit, the worldwide in vitro diagnostic sales market still rose against the market and maintained a stable trend of improvement.

Current situation of in vitro diagnostic distribution in capitalist countries

According to the statistical analysis of European Diagnostic Manufacturers Association (EDMA), in vitro diagnostics can jeopardize about 70% of medical management decisions, and the market volume of in vitro diagnostics is related to the population size, basic medical insurance level, average medical expenses, medical technology and service level of each region and country. It is estimated that the worldwide market volume will reach $68.7 billion in 2020, with a compound growth rate of about 6%, still topping all segments. The United States is the world's largest in vitro diagnostic sales market, with a market share of about 40%, and produces and manufactures 80% of the world's IVD products, which is extremely harmful. While Japan ranks second after the United States, this chapter is conducted with the United States and Japan as key examples.