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In 2020, the impact of IVD raw materials caused by the new crown epidemic, and the pursuit of IVD raw material manufacturers in the primary and secondary markets, raw material companies with comparable or even surpassing international quality in the future will also usher in a broad space for development.

According to the analysis, China's IVD raw material market is highly fragmented, and it is easy for a single enterprise to reach the ceiling. Due to the stable pattern, the supply of reagent raw materials is low in substitutability. The future industry development of IVD raw materials may have the following directions:

1. Provide overall solutions from IVD raw materials, and semi-finished reagents to supporting equipment

2. Taking advantage of IVD raw materials, independently apply for certificates and build a platform to expand downstream

To give full play to the value of its essential raw materials, such companies will not only provide raw materials but will enter the downstream market through independent certification through supporting equipment and test kits.

The advantage lies in the expansion of its business model and the improvement of the market space. After clinical approval of new technologies or scarce markers, it can further drive its raw material business; the disadvantage is that existing customers will choose other raw material suppliers due to competition, or there are risks in downstream development.

3. Focus on the core technology of the IVD raw material industry and expand the brand influence

In addition to extending around the upstream and downstream industrial chains, it is also a good choice to focus on the horizontal expansion of the raw material platform to become a global raw material platform. The multi-dimensional barriers of technology, craftsmanship, production, sales, and branding in the IVD raw material industry are high, and the top raw material suppliers must not follow the technological trend but are committed to the research and development trend.

Such enterprises can cover the whole range from scientific research to IVD raw materials, focus on raw material research and development technology and process polishing, and establish their brand of high-quality raw material suppliers.

4. Horizontal mergers and acquisitions will expand the company's product line and create a global IVD raw material platform

Most of the business directions of Chinese IVD raw material enterprises are relatively single and easy to reach the ceiling. Expanding the scale of operation through mergers and acquisitions, especially overseas mergers and acquisitions, will present many advantages; expand product lines and promote product upgrades; acquire high-quality customers and upgrade customers; revenue and profit; build a brand, master the right to speak in the industry, and lay the foundation for the overall solution.

At present, Chinese IVD companies have begun to emerge on the international stage, and in the future, IVD raw material companies will have every opportunity to compete for global dominance.

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