BLUE SAIL MEDICAL(SZ:002382)2022-11-11 07:57Financial Performance - In the first half of 2022, the total revenue of Blue Sail Medical was 2.574 billion CNY, with a loss of 180 million CNY, primarily due to significant price drops in cardiovascular products affected by centralized procurement [1] - The cardiovascular division incurred a loss of 157 million CNY, largely due to the decline in prices of heart and brain vascular products [1] - The company reported an investment loss of 16.28 million CNY from its associate, Weisi Medical, due to stock price declines [1] - R&D expenses for the first half of 2022 totaled 106 million CNY [1] Market Dynamics - The previous round of centralized procurement for cardiac stents lasted from January 1, 2021, to December 31, 2022, with significant changes expected in the pricing mechanism for the upcoming round [2] - The company has expanded its sales channels to over 2,300 domestic hospitals, significantly enhancing its market presence post-centralized procurement [3] - The annual sales volume of cardiac stents increased from approximately 280,000 units before centralized procurement to over 400,000 units in the first year after [3] Product Development and Innovation - The company is set to launch its self-developed coronary drug-coated balloon (DCB), which is expected to be the first rapamycin DCB on the market, targeting small vessel indications [2] - Ongoing R&D includes a second-generation DCB and various products for treating chronic occlusions and calcified lesions, with approvals expected within two years [2] - The Allegra™ heart valve has seen over 400 implants in the first half of 2022, marking a growth of over 110% compared to the same period last year [3] Competitive Landscape - The company’s heart and brain vascular business has emerged from the lows of the past two years, with new products and a favorable competitive landscape expected to drive growth [3] - The company holds a significant market share in the PVC glove export market, approximately 18%, and has seen a rapid increase in nitrile glove market share from under 5% to over 20% in the first half of 2022 [4] - The pricing for cardiac stents in the procurement process ranges from 500 to 700 CNY, while the market price for non-procurement products is around 7,000 CNY [6] Strategic Focus - The company aims to continue expanding its market share in the post-pandemic era, focusing on cost management and operational efficiency [5] - R&D investments will remain robust, particularly in the heart valve and full calcification treatment areas, with plans to maintain current spending levels [5] - The company emphasizes its global sales network as a key competitive advantage, with significant market shares in Europe and Southeast Asia [6][8]