On November 2nd, Shanghai Minimally invasive Medical robot was officially listed on the main board of the Hong Kong Stock Exchange (HKEX) under the stock code "2252". A total of 36.2 million shares were issued, of which the Hong Kong public offering was about 163.83 times oversubscribed and the international offering was about 16 times oversubscribed. Hillhouse, Aspex, Eli Lilly, Snow Lake Capital, Yorkool, CloudAlpha and Artisan are also cornerstone investors in the offering.
In terms of share price, minimally invasive Robot issued 36.2 million shares, priced at HK $43.2 per share. On November 1, minimally invasive Robot opened at HK $44, 1.85% higher than the priced HK $43.2 per share, and closed down 7.29% at HK $40.05. Based on the ipo price, the market value of minimally invasive robot will reach HK $41.77 billion. Intuitive Surgical, which went public in 2000 at just $9 a share, is now valued at more than $350, giving it a market cap of $100 billion.
Minimally invasive robotics is regarded as China's intuitive surgery because of its high similarity to intuitive surgery. Can minimally invasive robots replicate the growth myth of intuitive surgery? As of 16:00 on November 10, minimally invasive medical robot reported 56.45 Hong Kong dollars per share, the market value of about 530.44 billion Hong Kong dollars, it can be said that the market for minimally invasive surgical robot cast a good eye.
If, according to Mr Stern Sullivan, Shanghai minimally invasive surgical robot is the only company in the global industry has covered five major surgery specialist (that is, the cavity mirror, bone, blood vessels, natural orifices and percutaneous puncture surgery) product portfolio companies, is committed to research and development, production and commercialization of the surgical robot medical equipment company, currently owns 3 flagship product, These products are endoscopic surgical robot (Tumai), THREE-DIMENSIONAL electronic abdominal endoscope (Dragonfly Eye) and orthopedic surgical robot (HONGhu). These products are all Class III medical devices and have been included in the Green Channel of Innovative Medical Devices by the State Food and Drug Administration. All the way green minimally invasive robot sent to the Hong Kong stock market.
However, it must be faced that the development of surgical robot is not smooth!
First of all, guidelines, suggestions and studies issued by various organizations may not be conducive to the large-scale investment of surgical robot products in current Chinese hospitals. Although the ninth edition of surgical textbooks has included surgical robots in the teaching content, specialized books related to surgical robots also emerge one after another. But here's the thing: government agencies, professional associations, practice management groups, private health and science foundations, and organizations focused on various diseases may issue guidelines, recommendations, or studies that affect existing surgical robots and products under development. High-cost surgical robots can be rendered instantly ineffective by third-party guidance, advice, or research.
In addition, the commercialization of surgical robots may be affected by the possibility of medical insurance reimbursement. The ability of companies to commercialize surgical robots depends in part on the likelihood and extent to which patients will be reimbursed by health insurance for their use. China has a complex health insurance system that is undergoing reform. All sorts of uncertainty, may cause the enterprise not to be profitable.
Of course, the positive factors are also extremely considerable.
First of all, patients are becoming more and more receptive to surgical robots, and the penetration rate of surgical robots in the Chinese market is increasing year by year. Take orthopedic surgery robots for example. In recent years, the global joint replacement robot market has maintained rapid growth, driven by the rising prevalence of arthritis and the demand for improved implant survival. Robot-assisted joint replacement surgery began in the United States in the 1990s and has been updated and improved for generations. China performed its first robot-assisted joint replacement surgery in 2016. Since then, robot-assisted joint replacement has attracted increasing attention for its improved accuracy and consistency in implant positioning, reduced postoperative pain and earlier recovery of function. According to Frost Sullivan, the annual number of robot-assisted joint replacements performed in China rose from zero in 2015 to 243 in 2020, and is expected to grow at a compound annual growth rate of 162.8% from 2020 to 79,964 in 2026. The penetration rate of robot-assisted joint replacement surgery in China was less than 0.1% in 2020 and is estimated to reach 3.1% in 2026.
In terms of market size, the United States is currently the largest market for joint replacement robots. The market size of joint replacement robots in the US increased from us $80.5 million in 2015 to US $526.7 million in 2020, with a CAGR of 45.6%, and is expected to grow further to US $1,754.0 million in 2026, with a CAGR of 22.2% from 2020.
In 2020, the market size of joint replacement robots in China was $14.8 million, which is relatively small due to its introduction in China in recent years. However, the rapid adoption and wide acceptance of robot-assisted joint replacement has strong growth potential given the large number of eligible patients and low penetration rates. The market for joint replacement robots in China is expected to reach $332.3 million by 2026, according to Frost Sullivan.
Joint replacement surgery robots have gradually become popular in China after the country's first joint replacement robot was launched in 2016. The number of joint replacement robots is expected to rise rapidly in the near future.
With the demand of medical development, China's surgical robot industry has the growth drivers with Chinese characteristics and the future development trend, and will continue to promote the rapid growth of China's surgical robot industry.
1. Increased demand for microtrauma surgery. As diagnostic technology improves and per capita disposable income increases, patients are increasingly willing to seek treatment that causes minor trauma. As a result, there is a growing demand for surgical robots, which offer patients benefits such as faster recovery, less blood loss and pain, and a lower risk of complications. In addition, the functions of the surgical robot, such as tremor filtering, THREE-DIMENSIONAL high-definition image and navigation, facilitate the operation of surgeons and promote the increase of the popularity of surgical robots among surgeons.
2. Increase the penetration rate of low-grade hospitals. The growing need for greater surgical accuracy and consistency is expected to drive the penetration of surgical robots. Currently, surgical robots are mainly carried out in large hospitals in First-tier cities in China, mainly due to the limited availability of surgical robots and the relatively high cost of surgical robots. At present, very few Hospitals in China have adopted endoscopic robotic surgical systems (less than 10% of all grade-A 3 hospitals in China, according to Frost Sullivan). As the popularity of surgical robots increases, surgical robots are expected to expand from large hospitals in first-tier cities to low-grade hospitals in first-tier cities, and even to second-tier and third-tier cities.
3. Favorable government policies and support. In response to the growing demand for robot-assisted surgery, the Chinese government has implemented a number of policies to promote the further development of the surgical robot industry. In August 2019, the SFDA issued a notice on deepening the reform of the registration system for medical devices to promote innovation and development of medical devices. The Ministry of Science and Technology has also launched the national 863 Program to support the development of surgical robots and provide funds for research on surgical robots and related underlying technologies. According to the 14th Five-year development plan for the medical equipment industry issued by the Ministry of Industry and Information Technology in February 2021, local governments are encouraged to include robot-assisted surgery in medical insurance reimbursement. In April 2021, Shanghai will be part of the auxiliary cavity mirrors surgical robot (that is, partial nephrectomy,, total prostate cancer radical hysterectomy and colorectal cancer radical) into eligible for health insurance reimbursement in the operation, and can be reimbursed 80% of medical expenses, the future can be according to the requirements of patients and health care funds sufficient conditions for expanding the scope of the reimbursement. Positive government support is expected to continue in the future.
It is expected that Chinese surgical robots will bring great progress to the surgical field in the future:
1. Diversified types of surgery. With the development of surgical robots for various medical applications, as well as the training of surgeons and the acceptance of patients, robot-assisted surgery will become more diversified. For example, more vascularized, transvaginal, and percutaneous surgical robots are expected to be developed and commercialized in the near future.
2. Ability to focus on underlying technologies and provide customized solutions. Surgical robot developers with strong underlying technologies (such as robotic mechanics, control algorithms, electrical engineering, visual navigation and imaging) and the ability to quickly customize robotic products to meet the needs of different surgeries are expected to lead the market. The ability to understand customer needs and provide customized solutions is critical to shortening product upgrade cycles, further expanding the reach of the product portfolio, and creating synergies between robotics products in different specialties.
3. Advances in technological infrastructure. The development of technological infrastructure such as 5G communications, big data and artificial intelligence will drive the simultaneous development of surgical robotics. These underlying technologies allow surgical robots to be more precise when operated remotely by surgeons and more intelligent in understanding and carrying out surgeons' commands.
In the process of understanding nature, human beings are changing nature as well as themselves. Urbanization, mechanization and informatization have been gradually realized. With the continuous development of science and technology, we believe that surgical robots will become more versatile in the future, and look forward to simple and intelligent surgical operations in the future to benefit more patients.
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