Causes 1: On October 13, 2020, the Ministry of Agriculture and Rural Development (MAFRD) issued Announcement No. 342, amending the "Veterinary Diagnostic Product Registration Classification and Registration Information Requirements", which loosened up the veterinary diagnostic market. The document mentions that "clinical trials of in vitro diagnostic veterinary diagnostic products do not need to be approved, and the relevant clinical trial units do not need to report and accept the GCP supervision and inspection of veterinary medicines", which greatly relaxes the threshold of clinical registration of veterinary diagnostic products, and at the same time, there is a greater policy inclination for innovative veterinary diagnostic and improvement of veterinary diagnostic products.
Cause 2: Gazelle released a report about "Myriad Medical's fourth leg", which attracted wide attention in the industry. The report mentioned that on October 23, 2020, Myriad Medical set up a wholly-owned subsidiary, Shenzhen Myriad Animal Medical Technology, with a registered capital of 200 million yuan, and its scope of business includes veterinary medical devices, consumables and biological products. The scope of business includes research and development, sales and technical services of veterinary medical devices, consumables and biological products. Licensed items include veterinary medical devices, consumables and biological products production, officially announced the entry into the field. Counting the life information and support class, in vitro diagnostic class and medical imaging business, the veterinary market is figuratively compared to the "4th leg".
In addition to this, on October 16, 2020, Wanfu Bio's wholly-owned subsidiary, Guangzhou Vandercom Technology Co., Ltd. entered into a strategic cooperation with Beijing Lasso Bio-technology Co. Ltd.; *** with the same to promote the application of POCT and genetic testing in pet diagnostics.
On November 11, 2020, Shenzhen Jinrui Bio-technology Co., Ltd. released the veterinary brand "Genvet" and a new series of professional pet diagnostic equipment, etc., have entered the market, and the continued entry of giants has caused other IVD companies in the industry to feel a sense of "anxiety".
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What does the veterinary diagnostics market say?
If we look at the veterinary medical device market alone, we can roughly divide this market according to the human medical device market into: medical imaging, veterinary diagnostics, veterinary consumables, guardianship, medical information technology, and other five major segments, and currently the main track for medical imaging and veterinary diagnostics two major areas.
Veterinary medical imaging market: This market to medical imaging system products, is also one of the main market of Myriad cut, according to relevant reports, Myriad in October before the establishment of a specialized subsidiary, Myriad in the field of veterinary equipment has made a breakthrough, has released a new generation of veterinary four-classification blood cell analyzer BC-30Vet, more than four veterinary monitoring products, more than 10 veterinary ultrasound products, and so on. products, and more than 10 veterinary ultrasound products. This market is mainly dominated by equipment, such as magnetic **** vibration (MRI), electronic computed tomography (CT), hemodialyzer for animals, endoscopes, ultrasonic emulsifier, surgical microscopes and high-definition teaching system, digital direct imaging system (DR), color ultrasound diagnostic instrument, respiratory anesthesia machine and other equipment.
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Veterinary Diagnostics Market: Veterinary Diagnostics Market is divided into veterinary diagnostic equipment and veterinary diagnostic reagents, diagnostic equipment such as biochemistry, hematology analyzers, immunoassay analyzers, urine analyzers, fluorescence quantitative PCR instrument and other equipment. Diagnostic reagents are one of the core elements of animal disease prevention and control and veterinary science and technology development. Roughly divided into: avian disease diagnostic kits, swine disease diagnostic kits, cattle and sheep disease diagnostic kits, pathogenicity diagnostic kits, mycotoxin kits. In addition, there are commonly used veterinary test strips and so on.
What are the market segments for veterinary diagnostics?
According to different attributes, the veterinary diagnostics market can be divided into livestock diagnostics market, pet diagnostics market and other veterinary market, etc., of which livestock diagnostics market and pet diagnostics market are the mainstream testing market.
The veterinary diagnostic reagent field shows the pattern of Europe and the United States strength, South Korea's emergence, and China is still catching up. Specialized diagnostic reagent companies in developed countries continue to emerge, such as the U.S. IDEXX company, France LSI company, South Korea Anigen company have stable diagnostic reagent products, and occupy a large proportion of China's commodity market share.
According to the research report, there are 35 diagnostic reagent products with valid approval numbers in China, which are produced by 14 manufacturers, 10 of which have obtained GMP veterinary drug certificates. Another 14 diagnostic reagent products are included in the 2017 version of veterinary drug quality standards, and 2 diagnostic reagent products are included in the 2015 veterinary drug quality standards.
Mainstream testing technologies: including antigens and antibodies for agglutination test, antigens and antibodies for hemagglutination test, allergy antigens, latex agglutination antigens, monoclonal antibodies, ELISA diagnostic kits, colloidal gold diagnostic strips, fluorescent PCR and RT-PCR diagnostic kits, viral nucleic acid extraction kits and other technologies.
Livestock Diagnostic Market
The main body of this market is the breeding or animal husbandry, mainly to diagnose poultry disease, swine disease diagnosis, cattle and sheep disease diagnostic reagents, the buyer is the farmer or the relevant units of the Agricultural Bureau, the main purpose of the use of diagnostic reagents in order to timely detection of avian disease and diagnosis of the pathogenic infection.
Market Characteristics: The market is somewhat similar to the CDC market, mostly purchased by the relevant units of the Agricultural Bureau or the farmers themselves, a large customer-type market, with a high degree of relevance to the policy and epidemiological situation.
Market volume: related to policy and epidemics
Main detection targets: avian influenza virus, African swine fever virus, swine foot-and-mouth disease virus, rabies virus, porcine circovirus, brucellosis, porcine reproductive and respiratory syndrome virus, etc.
Main competitors:
PCR class (in no particular order): Harbin WK, Harbin Yuanheng, Beijing Mingrida, Beijing Nabai. Beijing Nabai, Beijing Yisenbao, Guangzhou Yueyang, Harbin Guosheng, Hunan Guojie, Shenzhen Zhenrui, Qingdao Lixin, Shanghai Qiling, Wuhan Keqian, Zhongmu Industry, etc.
Antigens and antibodies (in no particular order): China Maket Industry, Ruipu Biological, Wuhan Keqian, Harbin Guosheng, Harbin Wike, Qingdao Yibang, Ruipu Biological, Shandong Lvdu, Wuxi Tongchuang and so on.
Pet diagnostic market
The main body of this market is mainly cats and dogs pets, the country in recent years to benefit from the GDP per capita and per capita disposable income, the proportion of the urban population, the need for emotional accompaniment of the elderly and the increase in the youth population, superimposed on the social climate implicitly affecting the people's concept of raising pets, in the long run, this is an emerging test market.
Market characteristics: The main consumers in this market are the young community, a new generation of young people than their elders more accepting of raising pets and love pets lifestyle, and young people are willing to spend more money on pets, the main place of consumption in the pet hospital.
Market Volume: Data from the 2018 China Pet Industry White Paper shows that the market size of China's pet industry has reached 178.8 billion yuan, of which the medical part accounts for about 30 billion yuan, so how much will the diagnostic market account for? Let's look at it according to the data of the White Paper, the number of dogs and cats kept in 2019 is about 99 million.
Assuming that under normal circumstances, a pet needs to be tested once a year, and the charge for each test is 100 yuan, of which the share of testing reagents is 30%, the capacity of the pet diagnostic market is about 9.9 billion yuan, and the testing reagent market is 3.3 billion yuan, and if we introduce other parameters to accurately assess this market, we will get a more accurate market capacity. Of course, in addition to diagnostic reagents, medical imaging, monitoring equipment, etc. is also not a small market.
According to Gazelle's data, in 2019, Myriad's global veterinary revenue exceeded ?200 million yuan, most of which originated from foreign countries, with a relatively small domestic share, and Myriad's management's expectation is that in 2024 it will do $200 million in revenue.
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Main targets: Canine distemper virus, canine microvirus, canine coronavirus, toxoplasma gondii antigen/antibody, inflammation (C-reactive protein), inflammation (calcitoninogen), inflammation (serum amyloid A).
Major Competitors: Guangjing Bio, Shanghai Qiling, Shanghai Keeling, Shenzhen Zhenrui, Beijing Zhongke, etc.
Veterinary Diagnostics Market Opportunities and Challenges?
1. The original ecological enterprise scale is small, low efficiency
The original veterinary diagnostic market is mostly small diagnostic companies to produce?ELISA diagnostic kits and colloidal gold diagnostic reagent strips based on the overall scale are not large, the product lack of brand effect, mostly concentrated in the field of animal husbandry, and policy is closely related to the overall efficiency is not high, the lack of integration of resources.
For enterprises previously focused on human IVD products, the barriers to entry are low, while the original product design after fine-tuning, can be applied to the market, while the technology is more advanced, in the product side of the fastest to match the market, the future promotion of the difficulties or from the channel set up and product registration.
2. Unreasonable industrial structure, the lack of core technology
Veterinary testing companies more than a single business in the field of testing products, although a wide range of products, but the sensitivity and specificity of the different products differ greatly between the main profitability of the lack of products, the tendency to plan for the procurement of enterprises to continuously reduce the price of the product as a competitive edge for the research and development of the core technology of the lack of investment.
3. The pet market is emerging, the future is promising
Currently considered a veterinary diagnostics emerging potential market is the pet diagnostic market, the market users have strong consumer spending power, aggregation of high for the diagnosis of the diversity of the requirements of the high, is no longer confined to the epidemic detection, for medical imaging, genetic information, blood cell analysis, monitoring equipment, inflammation detection and other items of great demand, while with the improvement of information technology level, the pet diagnostics market has become a major market. At the same time as the level of information technology, pet intelligent medical, intelligent diagnosis came into being, the market gradually by the test market began to move towards the service market.