Medical Technologies & Services Sector: China and Japan market conditions are bottoming out; US tariff rebates are a tailwind; beware the risks from a sharp surge in AI-related investment

Research evidence excerpt

Medical Technologies & Services Sector: China and Japan market conditions are bottoming out; US tariff rebates are a tailwind; beware the risks from a sharp surge in AI-related investment

Impact of medical device policy in China: Volume based procurement has come to an

end, and domestic preferential treatment is a short- to medium-term risk

Ticker Company name Volume-based procurement (VBP) Preferential measures for Chinese products

・Regarding diagnostic imaging equipment, while some media sources report

the need for 100% localization, the actual situation is different, and there is

4901 Fujifilm ・There is no sign of new impact at this time. unlikely to be direct impact for the time being.

・For products other than endoscopes, Fujifilm plans to gradually proceed with

production in China.

・In November 2020, the price of drug-eluting stents (DES) declined by 90%. In

March 2024, the price of access products fell 50%. With decline in the price of

・Impact is limited because China mainly utilizes disposable products.

guidewire producing holding in the 40-50% range, it is possible for distributors to

4543 Terumo ・Since preferential domestic production policy have been in place for 10 years,

absorb the impact.

Terumo has already promoted production in China. There is no new impact.

・There is potential for a positive impact too, as lower prices boost the number

of catheter surgeries and this lifts sales volume.

・Subsidiary Shanghai Koden develops and manufactures products, and this

entity can participate in auctions for preferential domestic production too.

6849 Nihon Kohden

・Nihon Kohden plans to expand the lineup of products manufactured in China,

including high-end blood cell counter models.

・There is an impact on hematology equipment sales. Some customers have