Goldman Sachs: China Healthcare Device VBP #4 — Full Consumables Coverage on Track
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Goldman Sachs notes that China's volume-based procurement program for medical consumables accelerated in late 2025. Driven by the sixth national tender and regional alliances, the program is expected to cover the vast majority of consumables by the end of 2026. Simultaneously, VBP is gradually expanding into capital equipment, with ultrasound devices piloted across several provinces. However, implementation remains fragmented due to varying regional fiscal capacities and hospital procurement practices.
The investment bank emphasizes that VBP rules have matured significantly. Clearer bidding groups, ceiling prices, and revival mechanisms suggest that VBP acts as a one-time price reset rather than a source of continuous margin pressure. Contract renewals for categories like intraocular lenses and dental implants further reinforce this view, showing significantly smaller price cuts compared to initial rounds.
Structurally, the policy accelerates industry consolidation, pushing market share toward leading domestic firms while improving product accessibility. However, channel destocking and ongoing DRG reforms continue to drag on volume recovery. Goldman Sachs advises investors to shift their focus from pricing risks to structural winners equipped with scale, innovation, and overseas expansion capabilities. Preferred stocks include Angelalign, United Imaging, Mindray Medical, and SNIBE, all rated Buy. Weigao and Boston Scientific are also favored as their respective VBP headwinds dissipate.