Two Sessions Set the Tone for "Anti-Internal Competition": The Transformation and Breakthrough of a Platform-Type Vascular Intervention Enterprise
The 2026 National Two Sessions are destined to leave a profound mark in the history of China's medical industry development.
This year's Two Sessions have, for the first time, designated biomedicine as an "emerging pillar industry," explicitly elevating the strategy of "promoting high-quality development of innovative drugs and medical devices." At the same time, the government’s top-level tone on centralized procurement moves away from a singular governance logic focused primarily on "cost control," clearly proposing to "optimize price governance" and deeply address "internally competitive" practices.
On one side, there is the bold declaration of shifting from单纯 cost control to balancing民生保障 and industrial innovation. On the other side, the increase of 27.8% in the number of中国医疗器械企业 during the “14th Five-Year Plan” period has led to intensified competition. As the industry transitions from “scarcity” to “abundance,” and even局部“oversupply,” the competition among enterprises is no longer about who can endure more内卷, but who can create more value — the underlying logic of a trillion-dollar market is being reshaped from the top down.
In this round of changes,Kesail, founded in 2013 and guided by the development strategy of "rooted in China, radiating globally," has not been caught up in the price war of centralized procurement. Instead, it has continuously demonstrated innovation capabilities and growth resilience centered on clinical needs. Focusing on the hundreds-of-billions pan-vascular intervention market, Kesail is committed to building a platform-type leading enterprise.The growth logic behind it provides a sample worth in-depth observation for China's medical device enterprises to achieve internal rooting and external breakthroughs.
To understand Kossel's breakthrough, it is necessary to first understand the current changes in the market and industry.
Since the establishment of the National Healthcare Security Administration in 2018, six rounds of centralized bulk procurement of high-value medical consumables at the national level have been carried out successively. From the shocking start in 2020 when the first batch of coronary stents saw an average price reduction of 94.6%, to the current inclusion of 142 types of medical consumables across nine categories, the procurement process over the past six years has effectively reduced the public's medical burden and saved expenditures from the medical insurance fund, entering a normalized and institutionalized phase.
At the same time, this policy has also effectively promoted the structural upgrade of China's medical device industry, accelerating market selection and differentiation: a group of enterprises relying on low-price competition and lacking core technologies have been gradually eliminated.Also tempered a group of high-quality enterprises with platform-based innovation capabilities, supply chain resilience, and a global perspective.
The recently launched sixth batch of China's national high-value medical consumables procurement explicitly proposed"Stabilize Clinical Practice, Ensure Quality, Combat Internal Strife, Prevent Bid Surrounding"The core principle, for the centralized procurement in"Normalization and Institutionalization"Against the backdrop of"Rationalization"On the other hand, this round of centralized procurement emphasizes in specific executionNot Using the Lowest Price as the Basis for Price Difference Calculation, but rather introduceComparison Coefficient Based on Clinical Value, allowing companies to break free from low-level and ineffective internal competition, and invest more resources into demand exploration, R&D innovation, and quality improvement. This marks that the centralized procurement has enteredStrategic purchasing and value-based healthcareA New Phase.
As centralized procurement continues to deepen, the market share of domestically produced products is also rising, accelerating the process of domestic substitution. According to research from "The China Medical Device Industry Development Report (2025)," coronary artery stents have progressed from initially being prohibitively expensive and monopolized to achieving a 70% localization rate during national procurement, further advancing to an 80% rate in follow-up procurements. In this process, the scale of China's medical device market has broken through the trillion-yuan mark, ranking second globally and demonstrating strong vitality.
Under the dual pressures of normalized centralized procurement and intensifying market competition,"Going global" to seek the second growth pole is no longer an optional strategy for enterprises, but a mandatory question to measure their supply chain capabilities and global adaptability.
At this year's Two Sessions, "going global" has also become one of the most closely watched keywords. Key phrases such as "guiding enterprises to optimize their global market layout," "guiding the rational and orderly cross-border layout of industrial and supply chains," and "improving overseas comprehensive service systems" have sent out a clear policy signal – Chinese enterprises are embracing the global market at an unprecedented speed. However, beneath the opportunities lie challenges that cannot be ignored: the domestic market’s increasing demands on product quality and supply security due to centralized procurement, coupled with the rising entry barriers and complex dynamics in global markets.
Overall, the medical keywords of this year's Two Sessions convey a clear signal: on one hand, controlling costs and improving quality, while encouraging innovation; on the other hand, ensuring people's livelihood while empowering the industry. At the intersection of these two aspects lies Kexel’s important strategic focus—actively embracing centralized procurement, navigating through cycles, and breaking into the global market with a "platformization" strategy.
In the medical device industry, it is not uncommon to find benchmarks that focus deeply on a single product or track. What is truly rare, however, are platform-based enterprises—those that possess comprehensive capabilities across the entire chain from innovative R&D to market sales, while also spanning multiple细分 fields, with a rich array of business segments and product pipelines that create synergies among each other.
What makes Kossel unique lies precisely in this. After thirteen years of accumulation, this start-up based in Suzhou has transformed into an industry leader with over 600 employees, hundreds of domestic and international invention patents, more than 80 medical device registrations in China and abroad, and the capability to scale overseas operations — a platform-based medical technology group is rapidly emerging.
Facing the price reduction pressure from centralized procurement, Kexier adopts a "self-developed + M&A integration" dual-drive approach to build coverage.Peripheral intervention, coronary intervention (Mixon Medical), cardiac electrophysiology (Haiyu Xincheng)A rich product pipeline in three major细分fields fully meets the diverse needs for interventional consumables categories, specifications, and quality in the diagnosis and treatment of cardiovascular diseases. This also constitutes the core differential advantage of KESAI Medical over companies that focus on a single product or赛道.
"Serving clinical needs is our original intention."Hu Qing, Founder and CEO of KosselEmphasized, "We will not stop researching and producing just because a product has been included in centralized procurement and its price has dropped. Even though many products have been incorporated into centralized procurement, we continue to invest in R&D, upgrade, iterate, and adhere to the clinical value orientation."
Moreover, high-value consumables involve interdisciplinary fields such as materials science, precision machining, and coating technology. The long-term reliance on imports for core raw materials and processes has become a pain point for the industry. To address this, Kesorrel leverages its subsidiary.Haiwang MedicalExtending upstream, focusing on the R&D and manufacturing of polymer tubing for medical devices – this not only addresses the "bottleneck" issues in the upstream industrial chain and reduces production costs but also opens up new revenue growth opportunities for the company.
Kossel Executive President Pan XingzhenIn response, they stated: "The ultimate goal of integrating upstream resources is to return profits to patients. Bulk procurement has lowered prices, but with our mature supply chain and operational system, we have reduced costs while maintaining quality standards, ensuring that patients truly benefit from the dividends of procurement policies."
Relying on the full-cycle value chain that covers innovation, R&D, registration, manufacturing, marketing, and sales, CorSur is guided by the globalization strategy of "Local Base, Global Reach," using the Chinese market as the origin and continuously expanding outward.
As early as 2021, the company completed the forward-looking acquisition of Micell, an innovative Irish biomedical company. This move not only integrated its global clinical data from thousands of cases and supercritical spray technology but also brought the US R&D center and production base into its portfolio, accelerating the implementation of the group's globalization strategy.
The high-value consumables industry is characterized by rapid updates, high consumption frequency, and a large market.Especially in the context of centralized procurement driving price transparency, companies no longer need traditional channel distributors but long-term partners who can co-build an ecosystem.
In January 2026, Kexel successively completed two key moves to strengthen internal and external synergy. One was with a leading listed company in China's medical device distribution and circulation field——Jianfa ZhixinBy reaching cooperation and leveraging its nationwide channel advantages and technical resources, the "last kilometer" of entering hospitals will be打通, expanding market coverage. Secondly, cooperating with global leaders in the medical technology field——MedtronicJoin hands, relying on its marketing network covering all of China, clinical academic promotion system, and accumulated industry resources, to accurately meet global market demands, providing support for the market entry and widespread adoption of innovative products.
Looking back, Kossel's growth logic is very clear - originating from clinical practice and being loyal to patients.
Octoparms, the first umbrella-shaped long-term vena cava filter in China to enter the innovative green channel®For example: The product was initiated for R&D in 2013, approved for marketing in 2021 to fill the gap, and won the first place in Group A during the high-value medical consumables bulk procurement by the Shanxi-Hebei-Shandong-Henan Alliance. By 2025, Octoparms will complete its iterative upgrade.®Ⅱ Caval Filter Officially Approved for MarketingRanked second in the procurement alliance of 23 provinces led by Heilongjiang.
For more than a decade, CorServe has consistently led with innovation, refining its products based on clinical needs and feedback, and practicing the value of long-termism through concrete actions. As of now, Octoparms®As a representative product in the field of venous thromboembolism (VTE) prevention and treatment in China,Has gained deep recognition and application in over 2,200 medical centers across China at a reasonable price, safeguarding the health of tens of thousands of patients.
Another example is the much-anticipated Tanghulu balloon.®, addressing the clinical pain point of frequent dissection in femoral-popliteal artery lesions, Tanghulu®By integrating the dual advantages of constraining balloons and scoring balloons, the design of "overall constraint + local scoring" effectively reduces the implantation of remedial stents, bringing better clinical benefits and lower treatment burden to patients.
More importantly, in order to fully meet the diversified clinical diagnosis and treatment needs of cardiovascular diseases, KESAIL has achieved a leap from a single breakthrough to systematic layout, building a complete clinical solution covering three major fields: peripheral intervention, coronary intervention, and cardiac electrophysiology. In the 2024 Hebei Provincial Alliance's volume-based procurement for vascular intervention products,The company has achieved full-line wins in both neurointervention and peripheral vascular intervention product lines., fully demonstrating the comprehensive competitiveness of platform enterprises.
The shift in policy direction will inevitably lead to deep differentiation within the industry. As healthcare reform enters uncharted waters, the golden window has opened for innovative and platform-based enterprises—those with core innovative technologies, robust clinical data, and comprehensive quality management systems will fully benefit from policy dividends such as accelerated review, priority payment, and market leadership.
"No matter how the market changes, no matter the level of centralized procurement prices, and no matter how industry sentiment fluctuates, Kexel will always adhere to its cultural concepts and values," Hu Qing said in an interview. "We will continue to increase R&D investment, promote technological innovation, accelerate global expansion, and strive to become a leading enterprise in the global vascular interventional device field, contributing to the high-quality development of China's medical device industry."
It is foreseeable that a new future where the medical insurance fund is sustainable, the common people benefit, medical institutions develop, and pharmaceutical enterprises are dynamic, is arriving at an accelerated pace.
References:
1. Centralized Procurement Optimization Reduces Burden, Payment Reform Promotes Innovation, "People's Livelihood Weekly" Magazine
2. Decoding the 2026 Government Work Report: "High-Quality Development of Medical Devices" Included for the First Time, Yitong News