European MedTech and Healthcare Services: Notice on centralized procurement of med. equipment adds to ongoing China headwinds, Elekta most at risk

Research evidence excerpt

European MedTech and Healthcare Services: Notice on centralized procurement of med. equipment adds to ongoing China headwinds, Elekta most at risk

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15 Jul 2026 00:00:00 ET │ 8 pages

European MedTech and Healthcare Services

Notice on centralized procurement of med. equipment adds to ongoing

China headwinds, Elekta most at risk

CITI'S TAKE

On Jul. 14 the Chinese National Health Commission (NHC) published a

notice on centralized procurement of medical equipment, specifying that

Class A equipment will continue to be procured centrally by the NHC, Veronika DubajovaAC

while Class B equipment is procured at the provincial level. What's new: +44-20-7986-4585

1) at least one round of provincial centralized procurement should be veronika.dubajova@citi.com

completed by YE-26, 2) quality, price, service / maintenance should be Giang H Nguyen, CFA

considered. Per the accompanied interpretation, Class A consists of high- +44-20-7986-3903

end radiotherapy equipment, and Class B includes PET/MR, PET/CT, giang.nguyen@citi.com

laparoscopic surgical systems, conventional radiotherapy

equipment. While uncertainties remain, we think this would represent Harry Shrives Ph.D., CFA

most meaningful headwind for Elekta (China is c.13% of group), +44-20-7986-4013

harry.shrives@citi.com followed by SHL (ex-Dx, China is c.9% of group, with c.25-40% in the

affected categories - CitiE). Philips does not compete in RadOnc/PET,

though we note the company is already seeing pressure through

ultrasound centralized procurement (China D&T is c.7% of group).

This development raises further questions about the longer-term revenue and

profitability potential of the Chinese market across MedTech. Over the past c.6

years, we have seen a number of centralized procurement efforts across many