The driving force for the development of molecular diagnostics industry

The underlying requirement of molecular diagnosis is the detection of germline variation (hereditary) and somatic variation (acquired) of genes. The driving force of industry development is to promote the clinical application of molecular diagnosis based on the demand side, technology side, and policy side.

Demand side: the concept of disease prevention + increase in per capita income + demand for improvement in curative effect, which promotes the upgrading of medical consumption.

With the intensification of population aging and the increase of residents’ awareness of medical care, residents’ demands for health checkups continue to increase, which in turn promotes the upgrade of medical consumption from pre-existing treatment to non-diseased prevention. According to public statistics, from 2010 to 2015, the size of China's medical examination market has increased from 29.5 billion yuan to 94 billion yuan, with CAGR=26.08%; if estimated at CAGR=20%, the size of the health examination market is expected to reach 240 billion yuan by 2020 yuan.

According to the data calculated by the World Health Organization, accurate diagnosis and screening services are provided in the early stage of the disease. For every RMB 1 invested, the medical expenses of 8.5 RMB for follow-up treatment and 100 RMB for rescue can be saved. The popularization and use of accurate diagnosis can reduce invalid costs caused by misdiagnosis and greatly reduce the waste of medical insurance funds. According to data from the National Bureau of Statistics, from 1999 to 2015, the national per capita disposable income increased from 5854 yuan to 31195 yuan, an increase of 5.33 times. As a result, the ratio of test prices/per capita disposable income continued to decline, and molecular diagnostics also showed Higher cost performance.

The causes of current refractory diseases (such as tumors, Alzheimer's disease, osteoporosis, etc.) are complicated, and the application of precision medicine will subvert traditional treatment methods. Relying on molecular diagnostic technology, precision medicine makes precise diagnosis of diseases, realizes personal genome analysis, and provides personalized diagnosis, which is far superior to other diagnostic methods in accuracy and information density.