Original title: the core executives left one after another, won the bid far and low, and the "King of Medical Gloves" blue sail cross-border bracket was initially damaged.

Sun Wenqing, the Great Health of Confucian Classics / Wen

June 11, in view of the blue sail medical service a few days ago.When Yang Fan, vice president and general manager of cardio-cerebrovascular business, resigned, the relevant person in charge of Blue Fan Medical responded to Jingguan Health reporter that the cardio-cerebrovascular business had been gradually handed over to Vice President Yu Suhua at the beginning of the year.

According to public information, in January last year, Yang Fan fully took over the operation and management of the Cardiovascular and Cerebrovascular Division of Lanfan Medical, that is, Parkson International Group of Singapore, where he had worked for many years and participated in the formulation and implementation of many strategic decisions. In February this year, Qian Keqiang, vice president of Parkson International Greater China, announced his resignation before the end of his term of office. Within half a year, the two core management left successively, which attracted the attention of the outside world.

For the two personnel changes, Lanfan Medical stated in the announcement that "for personal reasons." This time, the person in charge of the above-mentioned company added to Jingguan Health, "as the company has already made personnel arrangements within the company, so the company's business convergence is smooth, without any impact." The company's established strategy for cardio-cerebrovascular business remains unchanged.

The industry's perception is that Lanfan Medical has been blocked from "cross-border" cardiovascular medical devices from medical gloves, with revenue of 986 million yuan, down 43 per cent from the same period last year, according to financial reports last year. The core reason is that in the first batch of heart stents collected last year, the price reduction of Lanfan Medical far exceeded that of other domestic brands, which it had hoped to seize more land. But in terms of the number of winning bids, it is less than 10 per cent of the total, which is also seen as one of the direct incentives for the departure of the two executives.

Yang Fan mentioned the company's thinking logic when he took over the cardiovascular business. "when a brand product in a track has a global market share of 20%, its development in this field, both in terms of growth rate and space, will begin to slow down." This is why when the head has been achieved in the field of medical gloves, Blue Fan Medical has to "take risks" into an area that has nothing to do with the main business.

Obviously, this road is not easy, although the general trend of "domestic substitution" has enabled Chinese companies to beat foreign companies in the field of brackets and get back 70% of the market share. But the two mountains ahead-- minimally invasive Medical treatment and Lepu MedicalHow to turn over, at present, Lanfan Medical has not found a particularly good way.

Epidemic situation and collecting "double killing"

Blue Sail Medical started the cardiovascular business through mergers and acquisitions, which are commonly used in the industry. Lepu Medical has made more than 30 mergers and acquisitions in the past decade. In 2017, Lanfan Medical spent 5 billion yuan on the cross-border acquisition of Singapore Parkson International, the fourth largest cardiovascular stent company in the world.

Prior to this, the main business of Lanfan Medical, the medical glove business, has been "stable" for many years, with a revenue scale of about 1.5 billion yuan all the year round, with direct competitors-- Yingke Medical, which has recently been reviled by investors because of the large-scale cash out of its management.be roughly the same. Medical gloves belong to the business of low-value consumables with poor expansibility. Apart from the special circumstances of last year's epidemic, medical gloves have not been valued by the industry and capital circles for a long time.

Although the company did not explain in detail why it chose the cardiovascular field, and adopted a highly complex way of cross-border mergers and acquisitions. However, shortly after the completion of the merger and acquisition, the performance improved significantly, exceeding 3 billion yuan in 2019, and the cardio-cerebrovascular business carried nearly half of the revenue. From the perspective of market capitalization, it has also soared from about 6 billion yuan before the merger to more than 20 billion yuan now.

In fact, Lanfan Medical spent not long on integration. In 2017 before the merger, Parkson International had revenue of 1.46 billion yuan in 2015 and 1.63 billion yuan in 2016. By 2019, Lanfan Medical has made 1.7 billion yuan in revenue from this business, keeping pace with the previous scale.

However, last year suddenly "exposed" the success of the integration. Revenue is down 43% year-on-year, and even if epidemic factors are excluded, it can't be compared with direct competition in the domestic market, including minimally invasive medical care, Lepu medical and so on. Lanfan Medical explained in the financial report that it was mainly affected by two aspects. First, after the global epidemic outbreak, the operation can not be carried out normally, and the number of operations has declined to varying degrees. Another impact comes from the collection of coronary stents in China.

In this round of collection, the price paid by Lanfan Medical is much higher than that of other domestic equipment enterprises. Guojin SecuritiesAccording to the research report, Lanfan Medical's coronary stent product quoted the lowest price in the round-469 yuan. The previous listing price of this product was 13300 yuan, second only to foreign company Medtronic. And Lepu Medical, minimally invasive medical treatment is basically from the original price of 8000 yuan to about 500 yuan.

Lanfan Medical is equivalent to spending the most resources on collection, but it does not get the ideal market share. In the first year, the intended purchase volume was 1.07 million (accounting for 80 per cent of the national usage), with minimally invasive medicine winning the most purchases, accounting for 24.2 per cent and Blue Sail Medical accounting for only 9.37 per cent.

Previously, the company had claimed to occupy 21% of the domestic market share, second only to Lepu Medical and minimally invasive Medical. According to the 2019 financial report of Blue Sail Medical, the total sales of stents were 390000. In addition to winning the bid for a stent product, Lanfan Medical has only one approved stent left in China. In terms of sales volume alone, the core product adopted by Lanfan Medical, which won the bid, can only contribute about 25% of past sales.

After winning the bid, Lanfan Medical management did not comment too much on the results, saying only that it had increased the sales network to more than 2200 hospitals, compared with just over 1200 previously, lagging behind Lepu Medical and minimally invasive Medical. But the reality is that competitors also cover the same number of channels because of collection.

At this time, it reflects the overall advantage of competition. Both Lepu Medical and minimally invasive Healthcare have four approved products. Minimally invasive Medical has won two bids, Lepu Medical has won one, and at least two more products of the two companies are not subject to collective price restrictions, so as to balance revenue and profits. Therefore, from the performance point of view, the decline of Lanfan Medical is the most obvious.

The foundation is too thin.

Lanfan Medical doesn't have much to do at the moment. In the reply provided by the above-mentioned responsible person of Blue Sail Medical to the Economist Health reporter, it is expected that this year will be able to break through the 10 billion yuan revenue mark through the high-profile demeanor of protection business such as gloves, and this part of the revenue will be used to counter-feed high-value consumables business to a large extent.

Because Parkson International had a certain influence in the international market, internationalization has always been an important selling point of Lanfan Medical.

one. According to the current business dismantling, the overseas sales revenue of its heart stent series products exceeds 50%.

However, in recent years, the industry "oligopoly effect" in overseas markets is very obvious, especially under the trend of domestic "domestic substitution", international equipment giants, including Medtronic, have shifted their focus to the international market. In fact, the more comprehensive strength of minimally invasive Medical and Lepu Medical do not have much international layout, and their more resources are still invested in the domestic market, and basically do not fight with giants such as Medtronic in overseas markets.

Lanfan Medical's previous overseas market resources are also constantly "consuming". Only in the cardiovascular and cerebrovascular business, the gap between Parkson International and Medtronic has widened from 5 billion yuan in 2014 to nearly 10 billion yuan now. Lanfan Medical did not disclose its strategy in overseas markets, but only mentioned that the company attaches equal importance to its domestic and international business.

The "loss" of gathering and harvesting is too obvious, and Lanfan Medical is too weak in the product end, resulting in a policy change that has too much impact on performance. Since last year, Lanfan Medical has begun to make up. It has set up an R & D center in Shanghai, planning for the landing and overseas introduction of new products such as nerve intervention, peripheral vascular intervention, valves and so on. So far, it has eight R & D centers around the world.

In 2020, it acquired an interventional active valve company called NVT overseas, entering another 10-billion-dollar track. Public information shows that at present, NVT has two active valves have been certified by the European Union CE, and will also enter the Chinese market in the future.

But the competition is also visible to the naked eye. As Peijia Medical has become the fourth domestic manufacturer to be approved, three domestic companies, Qiming Medical, Jiecheng Medical and minimally invasive Medical, as well as Edward, a foreign-funded enterprise, have been approved in the domestic market. No one can crush its competitors technically, and Qiming Medical, as the first domestically approved company, took the lead in making concessions on prices, cutting prices almost once a year and taking the lead in launching a price war. Nine companies, including Blue Sail Medical, are still in the experimental and early stage of research and development.

However, none of these businesses can generate revenue quickly, at least in recent years, Lanfan Medical still has to complete the layout as soon as possible through blood transfusion to other businesses through the medical glove business.

The two companies directly compete for "family wealth" is very thick, Lanfan medical "cross-border" into, just started, one after another in the face of the epidemic and collection of two hurdles. And Lepu Medical and minimally invasive Medical are both "investment experts" and have accelerated their actions in the capital market since last year, which is not good news for Lanfan Medical. The Economist Health reporter will continue to pay attention to whether this intruder can become the "third pole" in the field of medical devices.