Analysis Of Medical Device Industry And Project Investment Methodology In The Perspective Of PE

As one of industries greatly encouraged by China, medical instrument industry which belongs to multidisciplinary hi-tech industry and pertinent to people's health, is of high social and economic value. Medical instrument industry in China has made great achievements with many years of development. In the year of 2015, the market share of medical instrument reached to 308 billion, which makes China the second largest global medical instrument market. However, like other manufacture industries, the medical instrument industry in China has many problems. Such problems are:the industry is large but weak; the companies are generally small; the market is too divergent; the competition among low-end products is high while that among high-end ones relies on import; and the industry lacks flag-enterprises that is innovative, influential internationally and capable of creating market rapidly. With the population aging, the number of need at home increases, the money input by customers escalates, the trend of using home-made instruments to replace imported ones is apparent, and the Chinese government supports the field more than before. All of the advantages above shows the development space of China's medical instrument industry is large.Medical instrument industry is one that needs high input, long running term and intensive capitals and human personnels. And the future of a company or industry mainly relies on the capabilities of research and development. Since the characteristic of high-risk, companies in the medical instrument industry gains capitals generally by stocks. The risk capitals is the main source of medical instrument companies that haven't sold shares in the stock market. In the program of medical instrument production, the docking of production to capital is promising, according to the characteristics of market of medical instrument industry and taking the trend of development and innovation in China's medical instrument industry into consideration.There are many articles and industrial analysis on the topic of medical instrument industry, but many of them are focusing on macro-conditions, policy-making, and secondary market investment suggestions, and etc., and few of them research on the investment to the program of medical instrument industry. Herein, a selected refined field which is of the greatest investment value is given by analyzing the current development and competition conditions of medical instrument industry in China and investment key-points. Finally, an investment scheme with considering using risk capital is formed based on program investment selection theories and a case analysis is given to illustrate how to apply it.The research on and analysis of medical instrument industry is primary from my practice experience in a Medical PE Funds, which lasts for nearly half a year. Considering my limited experience and ability, there are flaws both in my knowledge of medical instrument industry and in analysis of program investment selection method, which will be improved in my later studies or at work.