2017 medical industry policy continues to be positive

According to CVSource statistics of financial data products under the investment information, the number of VC/PE financing cases in the medical and health industry in 2016 was 204. On the whole, compared with the previous year, the number of financing cases and the total size of financing have declined significantly, but the average financing scale has increased. Compared with previous years, the financial health industry financing market remained relatively active and active in 2016. Although the market conditions declined slightly, it was also in the normal fluctuation range.

In 2016, as the first year of the “13th Five-Year Plan”, the pharmaceutical bio-industry policy related to “Healthy China” continued to fall, and the industry also ushered in historic development opportunities. Judging from the overall development space of the industry, China's health industry currently accounts for less than 5% of GDP, and the gap is still large compared with developed countries. Industry insiders predict that by 2020, the scale of investment in health industry brought by “Healthy China” is expected to reach 10 trillion yuan. In response to the “Healthy China” development strategy, the health care industry has introduced a number of policies that have kept the industry in a state of constant heat since 2015.

Financing market fell slightly, and the pharmaceutical industry dominated

According to CVSource statistics of financial data products under the investment information, the number of VC/PE financing cases in the medical and health industry in 2016 was 204, which was 38.37% lower than the previous year's 331 financing; the financing scale reached 5.634 billion US dollars. Compared with the previous year's 7.245 billion US dollars, the ratio decreased by 22.23%; the average financing value reached 2.762 billion US dollars, an increase of 26.19% compared with the previous year's 2.189 billion US dollars. On the whole, compared with the previous year, the number of financing cases and the total size of financing have declined significantly, but the average financing scale has increased. Compared with previous years, the financial health industry financing market remained relatively active and active in 2016. Although the market conditions declined slightly, it was also in the normal fluctuation range. (see picture 1)

2017年医疗行业政策持续利好

Figure 1 VC/PE financing situation of China's healthcare industry in 2011-2016

In terms of the distribution of industry segments, in the medical and health industry in 2016, the pharmaceutical industry and the medical equipment industry ranked the top two with a financing scale of US$2.056 billion and US$1.833 billion, respectively. At the same time, the number of financing cases is also ahead of other segments. Especially in the pharmaceutical industry, the development momentum is fast and good. In conjunction with the 2016 government's efforts to promote the development of traditional Chinese medicine, adhere to the emphasis on both Chinese and Western medicine, promote the complementary and coordinated development of traditional Chinese medicine and western medicine, and strive to achieve creative transformation and innovative development of Chinese medicine health and wellness culture. Medicine inherits innovative projects, promotes the modernization of Chinese medicine production, and builds Chinese standards and Chinese brands. It is not difficult to see that in promoting the development of the pharmaceutical industry, although the Chinese medicine field has not yet been reflected in the front end of the market, there are still many policies. To protect the development of the medical and health industry, adding new colors and development direction to the market. (See Figure 2)

2017年医疗行业政策持续利好

Figure 2 Distribution of VC/PE financing in the domestic medical and health industry segment in 2016

One Piece Ostomy Bag

Wenzhou Celecare Medical Instruments Co.,Ltd , https://www.celecaremed.com