Since the second half of last year, the pharmaceutical sector has been in a pullback, but when the overall shock of the industry is brewing, differentiation also begins to appear. A number of high-quality targets began to emerge in each subdivision track, and the accumulation in the past has become the driving force for enterprises to stand out during the evolution period of the industry.

From the experience of the more mature U. S. stock pharmaceutical sector, in all segments, the medical device sector is the most likely to appear Daniel stocks track. The author is concerned that Jingfeng Medical, a global leader in the field of endoscopic surgery robots, recently submitted to the Hong Kong Stock Exchange, which is worth studying.

Why should we pay more attention to "weapons"?

Before we analyze Jingfeng Medical, let's understandWhy are bulls most likely to appear in the field of medical devices? One of the viewpoints is that "medicine is not as good as arms" in the field of medicine for two reasons:

First,In essence, innovative drugs sell patents, but innovative devices essentially need to superimpose complex precision manufacturing systems in addition to patents.Second,Innovative drugs have a relatively clear life-and-death node in the process of research and development, but on the contrary, the innovation of medical devices is a spiral process.

In the field of medical devices, surgical robot is the most noteworthy field at present, among whichEndoscopic surgery robot track is the largest market segment of surgical robots in the world.At present, compared with the United States, the endoscopic surgery robot market in China is more popular in endoscopic surgery.The permeability is obviously low, only 0.5%, which is 26.6 times lower than that of the United States, in which there is huge room for development.

In addition to the track itself has been in a state of rapid development of the blue ocean, in recent years, the national policy is also actively promoting.First, in May 2021, the "license separation" reform of the allocation of large-scale medical equipment released the huge demand for social-run medical institutions.

Subsequently, in the release of the "14th five-year Plan for the Development of Medical equipment Industry" at the end of 2021, the localization and terminal promotion of surgical robots became the focus of the document.

In addition, a series of policies have been issued in various places, among which the encouragement and support for surgical robots are more clearly defined. For example, Chongqing recently released the 14th five-year Plan of the medical and health service system, which clearly made a plan for the configuration of the control system of endoscopic surgical instruments, which is expected to reach 46 sets in 2025, a substantial increase compared with the 6 sets planned during the 13th five-year Plan period.

Another thing worth mentioning is "domestic substitution". We note that the Anhui Provincial Medical Insurance Bureau issued the notice of the Medical Security Bureau on regulating the government procurement of imported products by public medical institutions on April 28, which clearly pointed out that starting from June 1, 2022, public hospitals need to obtain audit management and government approval when purchasing imported medical devices. The pilot policy is expected to encourage more hospitals to start purchasing domestic equipment and accelerate domestic substitution.

Thus it can be seen that the current surgical robot plate, no matter the industry logic, or policy logic, has been very smooth, the track high-view demeanor is clear.So which companies on the track are more competitive at the moment?

From the perspective of market competition patternPay attention to the domestic enterprises, this delivery table ofJingfeng Medical treatmentAs a leader in this field, key clinical trials of porous and single-hole endoscopic surgery robots have been launched.It is one of the first companies in China and only two companies in the world. The other one isIntuitive surgery, the company currently has a market capitalization of about $90 billion.

At present, Jingfeng Medical has completed the design and main research and development of porous endoscopic surgery robot MP1000 and single-hole endoscopic surgery robot SP1000. And, according to Frost Sullivan data, the company has 201 authorized patents and 209 patent applications in China.Ranking first in the same industry in quantity, with strong competitiveness。

It can be seen that in the field of endoscopic surgery robot, with the improvement of domestic permeability, Jingfeng Medical, which has a great lead in technology, is one of the most promising enterprises to become the leader of surgical robot in China.

Technical strength leads the industry, and commercialization of core products is imminent.

So what is the lead between Jingfeng Medical and the companies in the same industry in detail?

Picture: Jingfeng medical product pipeline

From the core products of porous endoscopic surgery robot system MP1000 and single hole endoscope surgery robot system SP1000 to analyze specifically.

Let's take a look at the field of MP1000's porous endoscopic surgery robot.The more surgical robots with robotic arms, the more complex operations can be performed. At present, the highest technical standard in the world is four arms. In this field, at present, among domestic enterprises, only Jingfeng Medical and minimally invasive Robotics have four-arm robots.

Picture: an overview of the market competition pattern of porous endoscopic surgery robots

Among them, Jingfeng Medical is more competitive, recruiting subjects including several patients diagnosed with T3 or T4 prostate cancer.The only oneA Chinese company that included T4 advanced cancer in key clinical trials of urology in China.

Figure: Overview of clinical data of MP1000

In terms of clinical resultsThe overall success rate of MP1000 operation is 100%.And in theHead-to-head comparisonIt shows thatNot inferior to the effectiveness and safety of Leonardo da Vinci's surgical system, the world's leading surgical robot.。

At the same time, from the secondary effectiveness point of view, Jingfeng Medical is not inferior to Leonardo da Vinci's surgical system. In the intraoperative blood loss and other aspects, the performance is even more outstanding.

Figure: Overview of clinical data of MP1000

In addition, the author also compared other similar products on the market, according to the author's observation, only from the clinical trial data, Jingfeng Medical MP1000 has been significantly ahead of the major domestic enterprises. In addition, the product has been applied for listing, which is only one step away from commercialization.

Let's take a look at another core product of the company, SP1000, which represents the highest technology of endoscopic surgery robot at present.China is the first to start and the only one to enterSingle-hole surgery robot in the critical clinical trial stage of gynecological surgery.

Picture: market competition pattern of single-hole endoscopic surgery robot

Compared with intuitive surgery and minimally invasive robots, Jingfeng's SP1000 also achieved"Green Channel"Qualifications can be quickly reviewed with the help of the green channel. In comparison, Jingfeng's advantages in single-hole robots areThe absolute lead in China.。

It is worth noting that the company'sPorous and single-hole surgical robots complement each other and can provide different choices according to different needs.And the two are compatible with each other and can share the doctor's console and 3D HD influence system, which makes it more convenient to provide comprehensive solutions for all kinds of operations and reduce procurement costs for hospitals.

With the steady progress of R & D, the commercial layout of the company is also actively carried out.The established production facility has an annual production capacity of about 80 surgical robots, and the planned new production facility in Shanghai is expected to have an annual capacity of more than 500.It is expected to become the largest production base of surgical robots in China in the future.

In terms of sales and marketing, the company has set up a professional commercial team led by Mr. Chen Zongxi, who once served as the general manager of the CT business department in GE and has more than 20 years of sales and marketing experience, and cooperated with the Urology Branch of the Chinese Medical Association and the top third-class hospitals. It includes top hospitals such as the first affiliated Hospital of Zhengzhou University, the first affiliated Hospital of Nanchang University and the second affiliated Hospital of Xi'an Jiaotong University.

Through cooperation, Jingfeng Medical has established a training network covering all major regions of China.And relying on a standardized and modular training system, the company is expected to train hundreds of surgeons skilled in operating its surgical robots every year. In this way, on the one hand, it can greatly improve the market awareness of the product, expand the scope of use, and on the other hand, enhance the stickiness and loyalty of doctors.

Finally, pay attention to the current financial situation of the company.At present, the capital boom of the whole market has faded, and the viability in the "cold winter" has also become a major factor in judging the value of the company.

As can be seen from the announcementJingfeng Medical currently has plenty of cash.As of February 28th, 2022, the company's current assets have exceeded 1.8 billion yuan. As a technology-driven company, Jingfeng Medical used to spend mainly on research and development, accounting for 88.2% and 79.9% of R & D investment in 2020 and 2021, respectively. Among them, compared with 2020, Jingfeng Medical's R & D expenditure increased sharply in 2021, an increase of 278.1% compared with the same period last year.

A close study of the company's report data shows that Jingfeng Medical has excellent performance in R & D efficiency and cost control. In 2020 and 2021, the company's net losses were 79.366 million yuan and 349 million yuan respectively. After deducting equity incentives, interest on financial instruments with priority and other one-time and non-operating expenses, the adjusted net loss was 39.762 million yuan and 115 million yuan respectively.

Excellent cost control will help the company to better control its cash flow and support its long-term R & D and technological innovation.

In the future, with the further replenishment of funds after the listing of the company, as well as the blessing brought by the relevant possible strategic cooperation, Jingfeng Medical's advantages may become more obvious.Based on the characteristics of medical device industry barriers, such as "long construction time", "high technical difficulty", "attaching importance to first-mover advantages" and so on, Jingfeng Medical has revealed its potential that is worth looking forward to.

Write at the end

At present, at a time when the overall performance of the secondary market is mediocre, some high-quality companies that are about to be listed are more worthy of attention, and they are very likely to become the fuse to ignite the industry mood. In the field of surgical robots, in the future, Jingfeng, minimally invasive and other domestic brands will continue to promote domestic substitution based on gradually leading technology. The industry leader will lead the local medical device innovation into a new stage and create a surgical robot brand that belongs to China.

Now, the first year of endoscopic surgery robot in China has come. Jingfeng Medical, as a leading enterprise in China and even in the world, has attracted a kind of well-known institutions, including Boyu, Temasek, Sequoia Capital, Sanzheng Health, LYFE Capital, China State-owned Enterprise mixed ownership Reform Fund and OrbiMed. The follow-up development of the company is worthy of close attention.