UBS: Japan Medtech/Healthcare Sector — Focus on Companies Achieving Overseas Growth with Differentiated Products
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UBS published a Japan Medtech and Healthcare sector report on April 13, 2026, focusing on companies leveraging differentiated products for overseas expansion. The report covers 14 companies, assigning Buy ratings to eight and Neutral ratings to six.
In the United States, the most critical market for Japanese medical device manufacturers, surgical case volumes and patient numbers remain healthy. Mergers and acquisitions are particularly active in high-growth areas such as surgical robotics, ablation therapy, and structural heart devices. Meanwhile, rising healthcare costs remain a pressing social issue, with US medical spending accounting for 19.7% of GDP compared to 8% in Japan.
In Japan, the key focus is the FY2026 medical fee revision, which includes higher charges for intensive care hospitals, flexible fee adjustments for inflation and wage growth, and potential additional payments for medical digital transformation and data sharing. In China, healthcare system reforms and local procurement preferences continue to reshape the competitive landscape. The expansion of centralized procurement and DRG/DIP payment controls are effectively constraining medical expenditures.
Buy-rated companies and their respective target prices include M3 at JPY 2,580, JMDC at JPY 4,460, Terumo at JPY 2,910, H.U. Group HD at JPY 4,370, Nihon Kohden at JPY 2,000, Shimadzu at JPY 4,800, Asahi Intecc at JPY 4,060, and Nipro at JPY 1,940. Based on closing prices from April 10, 2026, notable upside potential includes 61.4% for M3 and 36.0% for Terumo.