Artificial intelligence in domestic medical companies

Domestic orthodontic brands’ artificial intelligence goes overseas

Orthodontics refers to correcting teeth and removing misaligned teeth and deformities. Invisible orthodontics is also called "invisible bracket-less correction". It does not require traditional wires and brackets, does not affect the appearance, and combines computer-aided three-dimensional diagnosis, personality design and digital molding technology. In fact, 3D printing and digital operating systems are important tools for invisible orthodontic treatment. This is determined by the diagnosis and treatment process: the dentist uses an oral laser scanner to scan the entire tooth, and then uploads the data to the orthodontic platform. The platform uses AI algorithms to design the teeth, formulate a personalized treatment plan, and 3D prints invisible braces. Finally, Use by dentists as directed by patients.

When it comes to invisible braces, the competitor Invisalign cannot be ignored. This product belongs to invisible orthodontic Align Technology (Align), which has been listed in the United States with a latest market value of US$48.537 billion. Its stock price has increased 30 times in the past 10 years. China's local brands have become the protagonist of the times, ranking second in the domestic market, following the pace of Invisalign. According to data from CIC (Chongshi Consulting), calculated based on cases, the total domestic market share of the two is as high as 82.4%, of which Times Angel accounts for approximately 41%, which is slightly lower than the number one Invisalign by 0.4 percentage points. . In 2018, Times Angel entered an era of rapid growth. Revenue increased from 490 million yuan in 2018 to 810 million yuan in 2020, with an average annual growth rate of more than 26%; gross profit increased from 60 million yuan to 230 million yuan. , the net profit margin increased from 12% to 28%, maintaining a high annual profit growth rate of about 50%; the gross profit margin increased from 64% to 70%.

Compared with other medical industries, the invisible braces market is still in its initial growth stage, with fewer mature competitors. For emerging markets like China, the current penetration rate is very limited compared to traditional orthodontics. The reference price range for Invisalign is generally between 40,000 and 60,000 yuan. In comparison, the recommended retail prices of Times Angel's four products during treatment are 35,000 yuan, 40,000 yuan, 28,000 yuan and 25,000 yuan respectively. However, compared with the current high price of invisible braces, whether they are suitable for emerging markets Whether it can maintain sustained growth is highly controversial in the industry. Looking forward to future development strategies, Times Angel stated in the prospectus: strengthen research and development capabilities and continue to innovate orthodontic solutions; further intelligentize and digitize its own systems to improve operational efficiency; optimize medical services to enhance user experience; increase production capacity and improve Production efficiency; consolidating domestic market position by expanding sales network and increasing brand awareness and academic influence, but did not mention any overseas expansion.

Although Times Angel and Aiqi Technology have almost the same status in the domestic market, their status in the international market is completely different. In 2020, Times Angel's revenue was 817 million yuan, with foreign countries contributing only 0.1% of sales; the total revenue of Invisalign's companies was 16.129 billion yuan (1.304 billion yuan of revenue came from mainland China), and foreign revenue accounted for 92% about.

Currently, Invisalign is still firmly positioned as the leader in the invisible orthodontics industry. According to previous annual reports, Aiqi Technology has always placed international expansion at the top of its business strategy. At the same time, international expansion is also the main driver of its growth. Since 2017, in addition to the North American market maintaining steady growth, China and other markets have begun to rise. However, it is worth noting that in comparison, Times Angel’s R&D expense rate in the past three years was higher than that of Aliqi Technology, which were 10.3%, 12.5% ​​and 11.4% respectively. However, this figure of Aliqi Technology has remained at 11.4% in the past three years. Lower proportion. In fact, this is also a common feature of the orthodontic industry: once the initial product is successfully developed, subsequent R&D investment does not need to be too high. As digital orthodontic technology gradually becomes the mainstream technology in the invisible correction industry, relevant data becomes increasingly critical for subsequent product development. It is understood that Times Angel currently has nearly 700,000 dental big data.

Statistics show that in 2019, there were 96,000 active invisible correction doctors in the United States, including about 6,700. As of now, the number of members of the American Association of Orthodontists (AAO) is 19,000, so Dr. Aiqi’s penetration rate in the AAO is one-third. However, with the increase of new entrants, the penetration rate has been declining.

If you want to find your own way, you must find your differentiated advantages. Currently, many patents in the contact lens industry have expired and lost patent protection, which provides new opportunities for more players. At the Medical Digital Conference held in Germany, we saw strong challenges from some entrants around the world who have made new breakthroughs in science and technology. In the report of the local media Dutch Time (German Times), the little-known U-Lab Two invisible braces technology companies, Klare Smile and Klare Smile, were mentioned. At this conference, we also rarely saw large German dental companies, contracted scholars and experts explaining and analyzing the technologies of new entrants, and openly being surprised by the new breakthroughs in invisible braces technology.

What is interesting in the German Times report is that Klare smile is mentioned as a Chinese company, but we only found a Klare smile in Oslo, Norway in Google Maps, and the address of the dental company with the Chinese name Yinle, and According to some rare sporadic reports in China, the Chinese brand name Yinle Orthodontics is closely related to Klare smile. Shenzhen Aixiao Dental Medical Management Co., Ltd. registered in Shenzhen registered the trademark, and Jingxuan, a natural person of klare smile, is the actual controller of the company. The report mentions that the actual controller is the son of the actual controller of a domestic dental giant. The In-align invisible braces brand mentioned in the report has the same controlling shareholder as klare smile. According to public information inquiry, it is an invisible orthodontic company registered in the UK. Based on the rare public information, we can inevitably assume that Chinese-funded dental companies have made breakthroughs in the new technology of invisible braces and have begun to expand into overseas markets.

The core and most difficult point for invisible braces is the establishment of the AI ​​computing system in the early stage and the sufficient accumulation of the number of cases. This is the biggest challenge for many new entrants who want to participate. We don’t know whether Chinese-funded enterprises have opened up overseas markets by indirectly acquiring and controlling foreign high-tech orthodontic companies, but we quoted a British orthodontist who attended the conference from Silicon Valley:

"The age of AI is here, they will never tell you, they just want to replace you, we all know it will be in real time, it's just that no one wants to lose their job by admitting it."

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