In 2025, the IVD (in vitro diagnostics) industry is facing difficulties at the beginning, with many companies experiencing a general decline in performance. After experiencing a brief prosperity brought by the sudden epidemic, the industry quickly returned to normalcy and faced a series of severe challenges. The first quarter data shows that the revenue and profit of IVD enterprises have shown a significant downward trend, reflecting the deep-seated survival problems in the industry.

(MOPSO biological buffer)

1、 Policy control fees, market size compressed

Controlling fees in the medical industry is a long-term trend, and the DRG/DIP payment reform has had a profound impact on the IVD industry. In order to control costs, the hospital's laboratory department gradually reduces non essential testing items or splits testing items. At the same time, the continuous promotion of mutual recognition of inspection results has reduced the demand for repeated testing of some inspection items by institutions, further compressing the stock market size of IVD enterprises.

The impact at the policy level is also reflected in the implementation of the centralized procurement policy. The traditional segmented market represented by biochemical diagnosis, due to mature technology, high localization rate, and numerous enterprises, faces fierce price competition under the influence of centralized procurement policies. Although top companies can maintain their market share advantage, their profit margins are limited.

In addition, the 28 province IVD centralized procurement led by Anhui Province is expected to be gradually implemented in the second half of this year. This centralized procurement involves two major categories in the market for cancer biomarkers and thyroid function chemiluminescence reagents, and has reached the majority of the market. Chemiluminescence, as a promising growth sector in the IVD market in recent years, will have a significant impact on the revenue growth of related companies through this centralized procurement.

2、 Long payment cycle and increased financial pressure

The extension of hospital payment cycle is also an important factor that puts pressure on the performance of some IVD enterprises. Accounts receivable remain high for a long time, with a large amount of funds being occupied, leading to difficulties in cash flow for enterprises and even potentially resulting in significant credit impairment losses. A CFO of an IVD listed company said, "Accounts receivable turnover days exceeding 270 days have become the norm, equivalent to more than 70% of annual sales being occupied by hospitals, which directly erodes the company's R&D investment capacity

Financial pressure not only affects the daily operations of enterprises, but also limits their R&D investment and market expansion capabilities. In the context of increasingly fierce industry competition, companies lacking financial support will find it difficult to gain an advantage in technological innovation and market competition, further exacerbating their survival difficulties.

3、 Competition intensifies, making it difficult for small and medium-sized enterprises to survive

During the period of 2021-2023, the surge in demand in the IVD market has attracted numerous participants to enter the industry. Nowadays, with the decline in market demand, the abnormally expanded production capacity urgently needs to be digested, and competition in the industry is becoming increasingly fierce. In this process, the industry is gradually concentrating towards the top, and homogeneous small and medium-sized enterprises are facing enormous survival pressure.

In terms of technological innovation and market competitiveness, there is a significant gap between local small and medium-sized enterprises and top enterprises, and it is difficult to break through in the short term. In the increasingly fierce market competition, small and medium-sized enterprises lack core competitiveness, making it difficult for them to compete with top enterprises in price wars and technological innovations, and facing the risk of being eliminated by the market.

(Luminescent reagent acridine ester NSP-DMAE-NHS)

From the above perspective, the IVD industry is facing multiple survival challenges in 2025, such as policy fee control, long payment cycles, and intensified competition. In this situation, enterprises need to find new performance growth points to cope with industry difficulties by optimizing business structure, strengthening technological innovation, enhancing cost control capabilities, and expanding overseas markets. As an upstream IVD reagent raw material manufacturer, Hubei Xindesheng Company actively seeks ways to break through the severe situation of overall industry performance decline. By optimizing production processes, integrating supply chains, and reducing costs to meet downstream enterprises' demand for price reduction. In the face of fierce competition, we focus on differentiated competition, deeply cultivate segmented fields, such as continuous research and development in acridine ester luminescent reagents, and stabilize our foothold in the market with stable product performance and flexible customized services. If you need IVD reagent raw materials, please feel free to contact us at any time!