Guosen: Mainstream brands of both domestic and foreign cochlear implants are selected. The collective procurement is expected to promote market expansion and the process of domestic substitution.

Guosen released a research report stating that the highest effective declared price for artificial cochlear implants in this centralized procurement has significantly decreased compared to before, and it is expected to greatly increase the accessibility of artificial cochlear implant products and open up a broader market space. From the selected results, the price reduction of artificial cochlear implants compared to the highest effective declared price is relatively manageable. Domestic brands, such as Luocan and Nuo'erkang, are expected to increase their market share with this centralized procurement, gradually initiating the process of domestic substitution for artificial cochlear implants. Event: On November 29, 2024, the National High-Value Medical Consumables Joint Procurement Office issued the "National Centralized Quantity Procurement Notice for Artificial Cochlear Implants and Peripheral Vascular Stent Medical Consumables (No. 2)", with the main product categories being artificial cochlear implants (implants, speech processors) and peripheral vascular stents (lower limb artery stents, non-lower limb artery stents, venous stents). On December 25, 2024, the National High-Value Medical Consumables Joint Procurement Office issued a notice announcing the selected results of the national centralized quantity procurement of artificial cochlear implants and peripheral vascular stents, with mainstream domestic and foreign brands of artificial cochlear implants being generally selected. Guosen's main points are as follows: Selected results of the national centralized quantity procurement of artificial cochlear implants and peripheral vascular stents were announced, with mainstream domestic and foreign brands of artificial cochlear implants generally selected. On November 29, 2024, the National High-Value Medical Consumables Joint Procurement Office issued the "National Centralized Quantity Procurement Notice for Artificial Cochlear Implants and Peripheral Vascular Stent Medical Consumables (No. 2)". The main product categories for this procurement are artificial cochlear implants (implants, speech processors) and peripheral vascular stents (lower limb artery stents, non-lower limb artery stents, venous stents). In terms of annual procurement demand, for artificial cochlear implants, the demand for implants is 11,239 units (2,911 units domestic, accounting for 25.90%), and the demand for speech processors is 10,943 units (2,809 units domestic, accounting for 25.67%); for peripheral vascular stent medical consumables, the demand for lower limb artery stents is 123,449 units (2,920 units domestic, accounting for 2.37%), the demand for non-lower limb artery stents is 101,139 units (121 units domestic, accounting for 0.12%), and the demand for venous stents is 33,897 units (7,363 units domestic, accounting for 21.72%). In terms of reported quantities, the domestic market share of artificial cochlear implants is better than that of peripheral vascular stents. The highest effective declared price of artificial cochlear implants has significantly decreased compared to before, and it is expected to greatly increase the accessibility of artificial cochlear implant products and open up a broader market space. In this procurement of artificial cochlear implants, the highest effective declared price for implants (compatible with 3.0T MRI) is 60,000 yuan/unit, and the highest effective declared price for speech processors (integrated) is 15,000 yuan/unit. Compared to imported artificial cochlear implants priced at 200,000 to 300,000 yuan in the market, the price reduction is significant. Furthermore, the competition in this centralized procurement of peripheral vascular stents is fierce, with a high price reduction, which is expected to accelerate the entry of products into hospitals. It is hoped that domestic manufacturers will increase their market share through product iteration and innovation in the future. It is recommended to pay attention to Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd., a leading domestic company in the field of peripheral vascular intervention. From the selected results, the price reduction of artificial cochlear implants compared to the highest effective declared price is relatively manageable. On December 25, 2024, the National High-Value Medical Consumables Joint Procurement Office issued a notice announcing the selected results of the national centralized quantity procurement of artificial cochlear implants and peripheral vascular stents. Taking Med-El as an example, the price for a set of implants (compatible with 3.0T MRI) and speech processors (integrated) is 46,666 yuan (different brands of implants and speech processors generally cannot be compatible with each other), representing a 37.78% price reduction compared to the highest effective declared price. Only Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd., Medtronic, and Guichuang Tongqiao were selected among domestic brands of peripheral vascular stents, with a relatively lower market share. The price reduction for peripheral vascular stents compared to the price limit is over 50%. The potential market space for artificial cochlear implants is huge, and centralized procurement is expected to promote market expansion and the process of domestic substitution. China has a large number of hearing-impaired individuals, and artificial cochlear implants are currently recognized as the only effective device to help deaf and hearing-impaired patients restore their hearing. According to data from the China Disabled Persons' Federation, in 2024, the number of people with hearing impairments in China is approximately 27.8 million, accounting for over 30% of the national disabled population and ranking first among the five major categories of disabled people in China. According to the "China Birth Defects Prevention Report", there are about 30,000 congenitally deaf children born in China each year, ranking high among birth defects in the country. Artificial cochlear implants consist of an external part and an implanted part. After collecting sound signals and processing and encoding them, the external part transmits the signals wirelessly to the implanted part, which then delivers the corresponding electrical signals to the stimulation electrodes, triggering nerve impulses in the auditory nerve. According to statistics from the "2021 China Artificial Cochlear Implant Market Status and Development Trends" report, the postoperative effects of artificial cochlear implants are good, with an average speech recognition rate of over 80%. According to Frost & Sullivan's forecast, China's artificial cochlear implant market sales are expected to reach 1.538 billion yuan by 2025 and 2.825 billion yuan by 2030, corresponding to a CAGR of 18.8% for 2020-2025 and 12.9% for 2025-2030. In terms of market share for domestic and foreign brands, Cochlear, Advanced Bionics, and Med-El collectively hold about 65% of the domestic market share. After this centralized procurement, the accessibility of artificial cochlear implant products is significantly improved, and it is expected to drive a continuous increase in the number of domestic artificial cochlear implant implants. Risk Warning: Risks of R&D failure; risks of commercialization falling short of expectations; risks of deteriorating competitive landscape.