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During the National People's Congress and the Chinese Political Consultative Conference, topic of medical reform has become one of hotspot. This year, deputy to the national people’s Congress, Tencent board chairman and chief executive Ma Huateng suggested establishing grading treatment and isolated island of information by Internet technology, indicating that a key condition to achieve grading treatment is patients’ information sharing.
May 5, prime minister expressed when having government work report: we will advance the coordinated reform of medical services, medical insurance, and the medicine industry. This year, we aim to realize full coverage of the serious disease insurance scheme, and government funding for the scheme will be increased. We deepen the reform of the evaluation and approval systems for medicines and medical equipment. We will move faster to train general practitioners and pediatricians. We will carry out trails for tiered medical services in around 70% of prefecture-level cities. We will encourage more medical resources are channeled toward the community level in urban areas and toward rural areas. And we will encourage the development of privately run hospitals. We will promote the development of traditional Chinese medicine and the medical traditions of ethnic minorities.
Guoyuan securities (000728, Stock) published a research report: By learning government work report, the report has following features in future medical field development:
1. Government funding for the scheme will be increased to promote patients’ pay capacity. The report makes it clear that: This year, we aim to realize full coverage of the serious disease insurance scheme, and government funding for the scheme will be increased to reduce the financial burdens of more people suffering from serious diseases. The central government will allocate 16 billion yuan to be used in both rural and urban areas for medical assistance and subsidies, an increase of 9.6% over last year. We will merge the basic medical insurance systems for rural and non-working urban residents and raise government subsidies for the scheme from 380 to 420 yuan per capita per annum. Industry strategy report indicated affirmatively that major disease insurance level of beneficial residents promoted, and cardiovascular, diabetes and other chronic diseases were segment medical service industry with outstanding benefits. It is worth paying attention to that Lepu Medical (300003, Stock) as platform-based enterprise which develops medical and medicine industry chain such as cardiovascular.
2. We will deepen the reform of the evaluation and approval systems for medicines and medical equipment, and improve effective supply. Improve quality of approval according to establish more scientific and effective appraise and approval system of medicine and medical device to make approved medicine and medical device reach or get close to international advanced level. Specific objectives contain: optimize approval process of innovative medicine, and speed up appraise of urgent clinical innovative medicine. Accelerate consistency evaluation on generic medicine and improve the quality of generic medicine. Encourage to do research and innovation of medical device, apply to registration for innovative medical device which has product core technology invention patent and significant clinical value, and make them included in the special scope of appraise and approval, giving them priority. Improve standard rate of international standard on medical device, and promote domestic medical device product quality. Implementation of new approval system will tremendously upgrade competition of domestic leading enterprises, making Chinese have medical insurance with higher level. Tigermed (300347, Stock) will be profitable as domestic CRO leading enterprise.
3. We will comprehensively promote grading system, and encourage the development of privately run hospitals. We will see that more medical resources are channeled toward the community level in urban areas and toward rural areas. We will move faster to train general practitioners and pediatricians. We will promote the development of traditional Chinese medicine and the medical traditions of ethnic minorities. Through deepening reform of medical system and improving medical service system, we meet medical needs of the mass timely and effectively.
Implementation of grading system will greatly promote the development of primary medical institutions from the respect of scale and efficiency. As many patients of common diseases, frequently-occurring diseases and chronic diseases are shunted to primary medical institutions, lead medical resources as the core of excellent medical staffs to primary medical institutions and drive the change of medicine and device market structure, which will change future development pattern of health industry, lay foundation of optimization on treatment process, and be beneficial to promote accelerated development on relative new health industry. Such as management platform integrated by Internet and major chronic diseases, the third-party independent laboratory, hemodialysis center business, the new financial health insurance.
Guoyuan securities considers that 2016 dynamic estimation of medical service and medical device is in reasonable area currently after continued drop nearly two months. In 2016, medical biotechnology PE for 28, chemical pharmacy, traditional Chinese medicine, bio-pharmaceuticals, medical devices, medical service and other sub-industry are: 28, 22, 37, 40, 46. For current market lack added funds, risks decrease. It is suggested that investors pay significant attention to leading enterprises which has large long-term growth space and steady growth. We continue to prefer: Lepu Medical, AIEE EYE Hospital (300015, Stock), Dian diagnostics (300244, Stock).