Life science industry chain and pharmaceutical equipment: the highlight track of the next decade

1. The upstream of the "life science industry chain" mainly includes biochemical reagents, equipment and consumables

1) Biochemical reagents: chemical reagents due to low technical and production barriers, domestic products have price advantages, and import substitution has been basically realized; The biological reagent department started late in China, and the current domestic imported products account for about 80% of the market. With the further optimization of product quality and further enrichment of types, domestic substitution is accelerating related companies such as Novizan, Bypsyth, Yiqiao Shenzhou and Feipeng Bio-matter.

2) Equipment: most of them belong to sophisticated equipment, at present, the basic use of imported products in China, but there are many excellent manufacturers, are making breakthroughs in related technologies and complete machine production, the future is expected to occupy a place, the relevant companies are Suzhou microflow nano, Dongfulong and Chutian Technology

3) Materials and consumables: low-value laboratory consumables have basically achieved domestic self-sufficiency, and some core materials such as nano-microspheres have also begun to be replaced by domestic, related companies have Nano Technology.

Policy support drives the rapid development of industry norms. Since 2016, the national level has included the construction of scientific research conditions to strengthen large-scale scientific instruments and equipment, laboratory animals, scientific research reagents, and innovative methods to ensure research and development into the 13th Five-Year National Innovation Plan, and then issued relevant opinions or plans every year to strengthen basic scientific research construction. This shows that the government attaches great importance to scientific research investment, and China is striving to become a world-class scientific research level.

China is investing in life sciences at a CAGR well above the global average. In 2020, the global life science research investment is 160.1 billion US dollars, and China's life science investment is 94.8 billion yuan, accounting for about 9.2% of the total global investment, which is still a big gap compared with developed countries in Europe and the United States. From the perspective of growth, the five-year CAGR of China's life science research funds (2016-2021) is 16.32%, and the five-year CAGR of the world is 6.27% in the same period. The growth rate of China's capital investment far exceeds the global average, reflecting that China's life science field is in a period of rapid growth. In the future, driven by the active encouragement of basic research by national policies and the continuous empowerment of capital, we believe that capital investment is still expected to maintain a growth rate of 10%+.

At the same time as the accumulation of biological innovation technology in the world, it also opens up the market space of the upstream industry chain of life sciences, and domestic enterprises are expected to create demand from the supply side through high-quality development in the fields of scientific research instruments, life science polymer consumables, biological reagents, and realize domestic substitution and globalization by relying on the response ability and cost advantage of Chinese manufacturing. Open the golden decade of domestic life science industry chain. The specific track mainly includes life science polymer consumables, biomedical upstream production equipment, biological reagents and so on. The high-end instrument industry is expected to accelerate the realization of domestic substitution under the strong support of national policies and realize the autonomy and control of the life science industry chain.

2, the development of biological reagents is in the ascendant, the sword refers to the star

According to the user type of biological research reagents, it can be divided into two categories: industrial users and scientific research institution users. Industrial users generally use biological research reagents for product testing or research and development; Scientific research institutions generally use biological research reagents for teaching or scientific project research, and have high requirements for the detection efficiency, accuracy and quality standards of biological research reagents. In 2019, calculated by the investment capital of biological scientific research reagents, the proportion of users in scientific research institutions in China is 72.4%, and the proportion of industrial users is 27.6%. According to the category of biological scientific research reagents, it can be divided into three categories: molecular, protein and cell, and the market size of the three is about 5:3:2.

It is expected that in 2023, China's biological research reagents can reach 26 billion yuan, and the high-end biological reagents are still mainly imported, and the domestic enterprises are more dispersed due to the small scale competition pattern. Biological reagents are currently dominated by foreign enterprises, domestic enterprises started late, weak technology and brand, small market share, lack of scale benefits, and customers are widely distributed and dispersed, the average order volume is small, it is difficult to achieve batch production and circulation of products.