IFLYTEK enters medical device market, bringing fiercer competition

2020-07-29
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ChinaMedical

IFLYTEK enters medical device market, bringing fiercer competition
China's medical device industry is growing rapidly, far exceeding the growth rate of the global medical device industry. In 2017, China's medical device market has exceeded 400 billion yuan, making it the second largest market in the world. In recent years, the growth rate of China's medical device market has exceeded 20%,


Recently, a business registration change of IFLYTEK has attracted market attention.


According to Tianyancha data, IFLYTEK officially changed its business scope and added medical device sales and other businesses.


This is another giant company entering the medical device industry since the epidemic.


According to information from Tianyancha, IFLYTEK changed the company's business scope on July 24 and added medical device (Type II and Type III medical device R&D) services.


According to data, IFLYTEK was established in December 1999 with a registered capital of approximately RMB 2.198 billion. The legal representative is Liu Qingfeng, chairman of IFLYTEK. Its business scope includes value-added telecommunications business, professional and technical personnel training, computer software and hardware development, production and sales, and technical services.


This change of business scope represents the official entry of IFLYTEK into the medical device industry.


IFLYTEK, as an AI technology company mainly oriented to businesses and developers, had left a rather vague impression to ordinary people. Many only know that IFLYTEK has a very useful and precise voice input called "iFlytek Voice Input Method".


In fact, IFLYTEK has advantages not only in the input method.


In the grassroot-level medical field, IFLYTEK uses artificial intelligence to benefit primary medical audiences and provide artificial intelligence-assisted diagnosis and treatment services for primary doctors.


IFLYTEK's Smart Medical Assistant has provided more than 33 million times of auxiliary diagnosis and treatment services in more than 100 districts and counties across the country, more than 1,200 township-level medical institutions, and more than 12,000 village-level medical institutions.


Well-known Chinese companies have entered the medical equipment industry this year.


Alibaba began to get involved in medical device sales this year


On May 13, according to Qichacha.com data, Alibaba Cloud Computing has changed its business scope and added second-class medical device sales.


According to the data, Alibaba Cloud Computing was established in April 2008 with a registered capital of 1 billion yuan. The legal representative is Zhang Jianfeng, the president of Alibaba Cloud Intelligence. The company's business scope includes operating telecommunications services and selling Type-II medical devices.


On April 14, Alibaba established Nantong Runhan Commercial, with a registered capital of 10 million yuan, and its business scope includes the sales of Type I medical devices and the sales of Type II medical devices. The wholly-owned shareholder is Shanghai Hexiaoma Network Technology.


In May of last year, the business scope of Hema Supermarket, a subsidiary of Alibaba, also changed from the previous Type II medical device to the Type III medical device in its business scope. It can be seen that Alibaba has continued to advance in the field of medical equipment.


Huawei set up a 100% holding company involving medical devices


On April 1, Honor Terminal invested by Huawei was established with a registered capital of 300 million yuan. The company is wholly-owned by Huawei Investment Holdings, and Huawei’s consumer business CEO Yu Chengdong serves as the company’s chairman.


According to the company's investigation, the company's business scope registered in the industrial and commercial sector involves the development, production, and sales of medical devices (Type 1, Type 2, and Type 3 medical devices).


According to the analysis of Iyiou.com, for the sales of medical products, from company registration to product sales, there are also compliance issues. In the field of medical devices, it is not a small challenge to obtain approval for the sale of Type II and Type III medical devices.


Baidu entered the medical field again


On March 12, 2020, Baidu’s operating entity, Beijing Baidu Netcom Technology Co., Ltd., established a wholly-owned subsidiary, Baidu Health (Beijing) Technology Co., Ltd., to sell disinfection supplies and medical equipment.


Baidu seems to be "coming back" to Internet healthcare. In fact, according to Baidu's business activities in recent years, it has never let go of its persistent investment in Internet healthcare.


In just six months, many big investors have entered the medical device industry.



China's medical device industry has huge development potential


With the advancement of China's hierarchical diagnosis and treatment policy, the number of beds and the number of patients in primary medical institutions will continue to increase, and the demand for primary medical devices will also increase.


According to China's Deepening the Reform of the Medical and Health System by 2020 of Thirteenth Five-Year Plan, it will strive to cover all community health service institutions and township health centers, as well as 70% of village clinics that have the ability to provide Chinese medicine services and have corresponding medical rehabilitation capabilities. .


This also shows that among the vast number of primary medical institutions in China, the demand for low-end medical equipment will continue to increase, and the domestic medical equipment market will continue to expand.


Both the policy environment and medical and healthcare needs are driving the growth of the medical device industry.


China's medical device industry is growing rapidly, far exceeding the growth rate of the global medical device industry.


In 2017, China's medical device market has exceeded 400 billion yuan, making it the second largest market in the world.


In recent years, the growth rate of China's medical device market has exceeded 20%, which is much higher than the growth rate of the global medical device industry, and also higher than the growth rate of about 10% of China's pharmaceutical market.


The medical device industry has huge market potential and high profit margins. Coupled with policy blessings, it is destined to be a gold mine in the eyes of capitals. We can keep watching this and see which other big investors will enter this game in the future.


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