Precision medicine is an emerging approach to disease prevention and treatment that takes into account differences in individual genes, environment and lifestyle habits, and is a new medical concept and model based on individualized medicine and the development of new medical concepts and models with the rapid advancement of genome sequencing technology and the cross-cutting application of bioinformatics and big data science. In March 2016, the Ministry of Science and Technology (MOST) held the country's first expert meeting on precision medicine strategy and put forward China's precision medicine program. The meeting pointed out that by 2030, China will invest 60 billion yuan in precision medicine, of which 20 billion yuan will be spent by the central government and 40 billion yuan will be allocated by enterprises and local governments. With the economic development and the enhancement of residents' health awareness, the demand for high-end, personalized and precise health is growing, and the upgrading of medical consumption will further promote the expansion of the precision medicine market.
Precision medicine, compared with individualized medicine, attaches more importance to the depth of the characteristics of the "disease" and the "medicine" of a high degree of accuracy; it is a high level of medical technology formed on the basis of the depth of knowledge of people, diseases, and medicines. From different levels, precision medicine has unique advantages.
I. Precision medicine industry chain
The industry chain of precision medicine includes upstream instrumentation, consumables, drug synthesis materials and reagents, midstream testing service providers and downstream application areas, and the maturity of different segments of the development time, technology maturity, and high and low barriers are slightly different, thus presenting different investment opportunities.
Precision medical industry chain panorama
Promotion of the valuation of the value of the present day, the bottom of the GEM to come, this section or will determine the market rise new heights!
Source: China Business Industry Research Institute
1, the upstream of the industry chain: diagnostic instruments and reagents
Diagnosis is the core foundation of precision medicine, and molecular diagnostics is the core supporting technology. Molecular diagnostics include a variety of ways, including polymerase chain reaction (PCR) technology is relatively mature accounted for a high percentage of high-throughput gene sequencing with a wealth of information, is currently the fastest growing sub-field, but also the direction of the future. The upstream of the gene sequencer industry is basically in an oligopoly state, with 80% of the revenue monopolized by the giants - at present, sequencing companies worldwide mainly include Illumina, Roche, LifeTech, UW Genetics, and Berry Hutchinson, etc., of which the first three companies account for more than 99% of the of the market.
The gene sequencer market has been developing rapidly in recent years, according to relevant data: the global gene sequencer market size grew from US$2 billion in 2013 to US$3.90 billion in 2018, an increase of 18% year-on-year. It is predicted that in 2020, the global gene sequencer market size will exceed $5 billion.
Promoting 3 kinds of fruits is the big nemesis of gout, often eat to promote uric acid discharge, uric acid back to normal
Data source: Zhongshang Industry Research Institute
2. Industry chain in the middle of the stream: the field of sequencing services growing fast
Precision medical industry chain in the middle of the stream of the sequencing services and data analysis services, the field of the fastest growth, but also the main focus of the domestic enterprise This area is the fastest growing and is the main focus of domestic companies, including UW Genetics, Berry and Kang, etc. It is an inevitable trend that the industry leader will become more prominent and the degree of concentration will increase in the future. In recent years, the application fields of gene sequencing have been rapidly broadened, and the market size of gene sequencing has been growing rapidly. It is predicted that in 2020, the market size of China's gene sequencing industry will reach 14.7 billion U.S. dollars. It is predicted that the market size of China's gene sequencing industry will reach 14.7 billion U.S. dollars in 2020.
Midstream gene sequencing services compared with the upstream, midstream only need to buy sequencing instruments and reagents to provide sequencing services, the threshold is lower, so there are many domestic sequencing service organizations involved. From the layout of gene sequencing service organizations: at present, China's gene sequencing service organizations are mainly distributed in the cities of Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou. Among them, Beijing has the largest number of gene sequencing service organizations, reaching nearly 50 according to incomplete statistics. It is followed by Shanghai (47), Shenzhen (16), Guangzhou and Hangzhou with 15 respectively.
Distribution of gene sequencing service organizations
Source: Open Data Compilation
3. Downstream of the industry chain: broad application, sustained release of demand
Precision medicine downstream application market space is vast, and our country is currently divided into four main directions: prenatal screening, tumor-related diseases, innovative pharmaceutical companies and personal health management. Among them, non-invasive prenatal screening for the more mature and consumer acceptance of the highest degree of product, and with the liberalization of China's two-child policy, the market will have further room for growth; oncology diagnosis and treatment is the most potential for the development of the application of the market, cancer has become the second leading cause of death in the world, and with the arrival of China's aging society, the incidence of cancer in our country will be further increased, second-generation sequencing in tumor The application of second-generation sequencing in the tumor neighborhood will have huge development potential, and the market demand for downstream applications will continue to be released.
(1) Reproductive health services: huge market space
Taking the examination as an example, the number of newborns in China is about 16 million per year, and the market scale is about 2.4 billion yuan/year according to the market penetration rate of 10% and 1500 yuan/visit.
On the premise that the liberalization of the two-child policy has led to a sustained increase in the number of women of advanced maternal age, it is expected that the cost of testing is expected to go downward with the development of technology, and at the same time, affected by the enhancement of residents' health awareness, ability to pay and other factors, the penetration rate is more likely to increase, and it will further open up the market space for reproductive health services.
(2) Tumor continues to be high, laying the foundation of the market
The application of precision medicine technology in the field of complex diseases is mainly concentrated in the field of tumors, specifically subdivided into basic scientific research and clinical applications, basic scientific research is in the study of tumor pathogenesis, and the clinical applications are mainly genetics tumor gene testing, tumor routine individualized drug gene testing and tumor individualized drug guidance gene The clinical applications are mainly genetics tumor gene testing, tumor routine individualized medicine gene testing and tumor individualized medicine guidance gene testing.
China has a large population and a huge number of tumor patients or potential patients. Statistics show that China adds more than 3 million cancer patients every year and causes about 2 million deaths, making it the country with the highest number of cancer deaths in the world. The sustained high incidence of tumor continues to lay the foundation for the application of gene sequencing in the field of oncology, and with the implementation of relevant policies, the market potential is expected to be released continuously. It is predicted that in 2020 China's oncology drug market size will exceed 30 billion U.S. dollars.
(3) New drug development tool, demand gradually released
Gene sequencing in drug development and disease treatment applications are closely related to the close cooperation between hospitals, pharmaceutical companies and gene sequencing organizations to promote the development of the entire industry chain. With the rising importance of gene sequencing analysis in the drug development process, the drug development sequencing services market is also expected to grow at a faster pace. At present, many drug genome program is underway, such as UW Genetics to help Merck Pharmaceutical drug target finding and initial application, CRO leading WuXi Kantei sequencing application company, etc., targeted drugs is a major investment in the new direction.
Comprehensively, the precision medicine industry chain presents a leading vertical integration layout, such as UWGM, Berry and Kang in the upstream and midstream layout, the future with the listing with the help of capital power or further expansion. However, there are still some opportunities in the whole industry chain due to technological upgrades and innovations, such as three-generation high-throughput sequencers, new marker diagnostic reagents, independent testing laboratories, oncology applications and new drug development and other fields. In the context of economic stabilization and slowdown, healthcare and the segmentation of precision medicine will be of great concern.