As the economic development gradually transitions from a high-growth model to a new stage centered on high quality and sustainable development, the healthcare industry, as an important sector related to national economy and people's livelihoods, is also a key area involving the allocation of public resources. Promoting lean management of healthcare institutions centered on digital construction and the intelligent upgrading of the medical supply chain have become an inevitable trend. The informatization service of medical device supply chains realizes improvements in production efficiency, cost reduction, product and service innovation through the Internet and digital technology, and promotes collaborative cooperation and innovation among all links of the supply chain. Among them, PanGu Medical, as an outstanding domestic provider of informatization services for medical device supply chains, has played an important role in promoting the lean, intensive, and standardized management of the healthcare supply chain.
Against this backdrop, Frost & Sullivan (Frost & Sullivan, referred to as 'Frost & Sullivan') released the '2023 Medical Device SPD Industry Research Report' and the 'In-depth Research Report on PanGu Smart Healthcare Technology Companies'.
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The digital and intelligent upgrade of the medical supply chain has become an irresistible trend.
1) The anti-corruption drive in healthcare and the smart hospital trend are driving sustainable industry development
In recent years, the state has actively promoted stabilizing the policy tone, intensifying the centralized rectification of medical corruption, and making corrections and improvements. Strategically, it has advanced the construction of an 'accurate' and 'normalized' sustainable development style. Driven by the 'two-invoice system,' the circulation link of drugs and medical devices has been further standardized, reducing circulation costs and improving efficiency, and is expected to develop further towards a 'one-invoice system.' At the same time, the expansion of primary healthcare markets through hierarchical diagnosis and treatment has guided high-quality medical resources to the grassroots level, promoting equalization of basic medical services. The broad incremental space in the underserved market brings development opportunities to the industry.
2) Centralized volume-based procurement to lead the development trend of new industries
Centralized volume procurement squeezes out the price premiums of medical consumables, placing higher demands on the cost control and refined management of their supply chain. How to cope with supply chain flattening and achieve innovative development will become the key for the survival of future medical device companies. The above situation also directly affects the pattern and direction of the medical device supply chain service market, with specialization, diversity, and innovative services becoming trends.
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Introduction to the Medical Device Supply Chain Informatization Service Industry
1) Definition and Classification of Informatization Services for Medical Device Supply Chains
The informatization services for medical device supply chains are mainly divided into full-process supply chain services and in-hospital SPD services. Full-process supply chain services are further categorized into three major services: market, warehousing and logistics, and finance. With the digital empowerment of SPD, technologies such as big data and cloud computing support the development of a one-stop digital supply chain business collaboration platform, driving the overall development of informatization services for medical device supply chains.
2) Industrial Map of Informatization of Medical Device Supply Chain
Upstream are medical device manufacturers, with a large number of domestic manufacturers, totaling over 30,000 as of 2022. Medical devices have significant demands for specialized services and data confidentiality. At the same time, the 'Regulations on the Supervision and Administration of Medical Devices' clearly propose to promote the full lifecycle quality management of medical devices, unify coding, strengthen lean operational management in hospitals, and drive the demand for standardized, efficient, and lean supply chain services.
Medical supply chain service platform providers are located in the midstream of the industrial chain, mainly divided into comprehensive medical circulation enterprises, full-linkage digital solutions providers for the medical supply chain, and software and hardware solution providers. Comprehensive medical circulation enterprises include Sinopharm, China Resources Pharmaceutical, etc., while full-linkage digital solutions providers for the medical supply chain include Jiuzhou Tong, Guoke Hengtai, PanGu Medical, etc. Among them, PanGu Medical's SPD service covers 30 tertiary hospitals nationwide. In terms of the number of tertiary hospitals implementing the SPD project, PanGu's market share is 6.1%. Leading manufacturers in the industry have achieved service extension and value penetration based on the supply chain. By empowering upstream and downstream suppliers and partners in the industrial chain with equipment interconnection, business interconnection, and data integration, they provide full-linkage medical supply chain solutions to enhance profitability and expand brand influence.
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PanGu Medical Company's In-depth Research
PanGu Medical was established in December 2016, dedicated to providing comprehensive solutions for information systems in the medical supply chain industry. Its market scope covers more than twenty provinces and cities, serving a full range of roles including manufacturers, distributors, hospitals, etc. By maintaining the core strength of research and development and data, the company has established a competitive resource network and service barrier, providing comprehensive medical supply chain informatization services across the entire chain for producers, distributors, medical institutions, and other sectors in the healthcare field.
1) R&D strength advantage
The company has over 8 years of professional experience in the medical field, focusing on independent research and development. It has a large R&D team of over 100 people, accumulating rich R&D advantages. The company's products are mainly divided into three categories: hospital SPD systems, medical device ERP systems, and platform value-added services.
The SPD system effectively empowers, enhances intelligence, and adds value to the hospital's consumables/drug supply chain management, achieving supply chain optimization. The company's SPD system technology is leading, equipped with a rich variety of intelligent hardware to ensure the system's intelligence, refinement, and advancement. Secondly, the company's medical device ERP system has the advantages of flexible customization and advanced compliance. Relying on collaborative services, it enables multi-terminal collaboration through mobile and computer terminals, breaking down internal and external data barriers within the enterprise and achieving cross-platform resource integration. The platform's value-added services mainly rely on the company's massive data and powerful data mining capabilities, providing professional services and intelligent tools for the medical industry to achieve intelligent supervision around aspects such as warehousing markets, logistics real estate, industry development, and competitive analysis.
2) Advantages of the data value system
The company's data value system has advantages such as high openness and sharing, in-depth exploration of industry data, leading the development of the industry, and comprehensive service to people's livelihoods. Based on the PanGu Smart Medical Flow Big Data Platform, PanGu Medical adopts a highly 'open and shared' model, and with the concept of 'participants are beneficiaries', constructs industry data standards and industry data warehouses; through the Ulink system, Lingke system, and unified data interface platform, it realizes the integration of 'five flows' data (business flow, capital flow, logistics, information flow, and document flow) from hospitals to distributors, achieving data standardization, value sharing, resource integration, and broad benefits.
3) Full-link service advantages
By integrating the medical industry's supply chain and adopting advanced technologies such as the Internet of Things and blockchain, PanGu Medical has achieved comprehensive connectivity from business flow to invoice flow, rapid traceability, and real-time monitoring, promoting sustainable development in the industry. As a leading medical device supply chain information service platform in the industry, PanGu Medical Services provide information systems, intelligent hardware, internet collaboration, professional services, supply chain finance, and other support for internal and external management of customer supply chains to medical institutions, Class I/II/III medical device distributors, medical device manufacturers, government regulatory authorities, and third-party warehousing and distribution service enterprises for medical devices.
4) Resource network advantages
PanGu Medical's resource network advantages include extensive market coverage, diverse customer groups, and numerous capital investors. The company's sales network spans the entire country, covering more than twenty provinces and cities including Sichuan, Beijing, Shanghai, Yunnan, Guangzhou, and Chongqing. By utilizing its own platform, the company achieves multi-industry integration within the industrial chain as well as extension and complementarity, extending its reach to more terminal customers. The scale advantage formed will enhance its core competitiveness in the medical supply chain field.
In addition, the company collaborates closely with Lianzong Yunnan Investment Holdings (Group) Co., Ltd. (referred to as 'Lianzong Capital'), deeply constructing a virtuous empowerment ecosystem. Lianzong Capital's main businesses include equity investment, enterprise value-added empowerment, and listing incubation. Adhering to the mission of 'implementing ESG concepts and continuously contributing capital to the high-quality development of the economy and society', and with the vision of 'solidifying exploration and companionship capabilities to become an excellent investment and enterprise value-added empowerment institution', as the lead investor in the Series A financing of PanGu Medical, it will provide sustainable, high-quality empowerment for PanGu Medical and share the fruits of high-quality economic development with outstanding entrepreneurial enterprises. With a good resource network and ecological empowerment, PanGu Medical is expected to further build an interconnected industrial platform for the informatization of the medical supply chain, continuously empowering the high-quality digital and intelligent upgrading of the medical industry.
In the long term, PanGu Medical will adapt to the wave of digital and intelligent upgrading of the medical supply chain, aiming to reduce costs and increase efficiency. It will persist in building high-quality products with leading technology R&D capabilities, promoting the high-quality, lean, and specialized development of the entire medical industry with digital and intelligent operation concepts. It will drive services with products, focus on customer needs, take digitization as a breakthrough point, prioritize industrial integration, technological empowerment, innovative marketing, and entrepreneurial platforms. By working together, it is committed to creating a leading national medical supply chain information service platform.
PanGu Medical, a promising future ahead.
