According to online data, in 2021, a total of 12 companies in the field of IVD raw materials have completed 15 financing events, with a total financing of over CNY 3.4 billion yuan, of which 10 financings exceeded CNY 100 million yuan.
With the rapid development of China's in vitro diagnostic industry, the market demand for in vitro diagnostic raw materials in the upstream of the industrial chain has rapidly expanded. The market size has grown from CNY 3.3 billion in 2015 to CNY 8.2 billion in 2019. The market size is expected to reach CNY 20 billion in 2024. With the continuous improvement of the technical level of enterprises and the increasing emphasis on the localization of the biotechnology industry supply chain, it is expected that the market size of China's IVD raw materials will increase to CNY 2.7 billion yuan in 2024 at a compound annual growth rate of 23.3%, gradually reduce the import of raw materials.
The quality of IVD raw materials has a great impact on the performance and accuracy of diagnostic reagents. In order to ensure stable quality, 90% of the dominated materials are still imported. In recent years, China's IVD industry has developed rapidly. The size of the in vitro diagnostic market has grown from 42.75 billion yuan in 2015 to CNY 80.57 billion yuan in 2019. It is estimated that by 2030, China will become the largest consumer of in vitro diagnostic products.
The COVID-19 epidemic has further exacerbated the tension in the global supply chain. The shortage of IVD core raw materials, supply cuts and price increases have exposed the shortcomings of long-term dependence on imported raw materials. Chinese manufacturers have gradually realized the importance of mastering the core industrial chain. They began to gradually reserve domestic supplier resources to establish a better supply chain.
With the implementation of centralized procurement policy, cost reduction has become a top priority for manufacturers. Several companies have switched local raw material suppliers to reduce the cost of reagents. In Anhui's centralized procurement, some mainstream foreign-funded enterprises abandoned their bids, which also accelerated the process of localized raw material substitution.
Under the dual influence of the COVID-19 epidemic and the China–United States trade war, international logistics has been greatly affected. In 2020, the revenue growth rate of imported brands Thermo Fisher and Abcam in China has declined significantly, reflecting the risks in the supply chain of importers. The epidemic may break the long-term monopoly of imported brands in China's IVD raw material market and accelerate the development of China's local raw material industry.
The development time of China's in vitro diagnostic reagent raw materials industry is relatively short, and there are still many difficulties in realizing domestic substitution, mainly in the following aspects: gaps in R&D capabilities and technical process levels, highly fragmented industry competition, and low brand trust.
For IVD industry, there will be four major development trends in the future.
First, integrating instruments and reagents to provide integrated solutions is a major development direction.
Secondly, the highly fragmented market provides participants with ample room for growth and integration. Mergers and acquisitions will be more frequent in the future.
Thirdly, take the advantage of raw materials, and expand the platform for independent application for certificates to build downstream.
Finally, focus on the core technology of the raw material industry and expand the brand influence.
2021 is destined to be an extraordinary year for the IVD raw materials industry, and for 2022, let’s wait and see.
