By Fineline Cube China’s National Healthcare Security Administration (NHSA) conducted the 6th volume-based procurement (VBP) tender for high-value medical consumables this week, expanding the program to 12 new product types across drug-coated balloons and urological interventional products for vascular and urinary system interventions.
Regulatory Milestone
| Item | Detail |
|---|---|
| Agency | NHSA (China) |
| Procurement Round | 6th VBP for High-Value Medical Consumables |
| Location | Tianjin |
| Product Categories | Drug-coated balloons, Urological interventional products |
| Total Product Types | 12 |
| Clinical Applications | Vascular stenosis treatment, Urinary system stone surgery |
| Implementation Timeline | Tender results expected Q1 2026; hospital adoption by Q3 2026 |
Program Expansion & Historical Context
- Five Prior Rounds: Since 2020, NHSA has executed VBP for coronary stents, artificial joints, spinal implants, intraocular lenses, sports medicine, cochlear implants, and peripheral vascular stents
- Treatment Coverage Evolution: Cardiology → Orthopedics → Ophthalmology → ENT → Vascular Surgery → Interventional Radiology/Urology
- Cumulative Impact: Previous rounds achieved 50‑90% price cuts, saving China’s healthcare system ¥120 billion ($16.7 billion) through 2025
Market Impact & Financial Projections
| Parameter | Drug-Coated Balloons | Urological Interventions | Total Market |
|---|---|---|---|
| Pre‑VBP Market (2025) | ¥1.8 billion ($250 M) | ¥1.2 billion ($167 M) | ¥3.0 billion ($417 M) |
| Expected Price Reduction | 65‑75% | 55‑65% | 60‑70% |
| Post‑VBP Market (2027E) | ¥540 million | ¥480 million | ¥1.02 billion |
| Affected Manufacturers | 8 domestic, 4 multinational | 6 domestic, 3 multinational | 21 total |
| Projected Annual Savings | ¥1.26 billion | ¥720 million | ¥1.98 billion ($275 M) |
- Domestic Share Shift: Prior VBP rounds increased local manufacturers’ share from 35% to 72%; this round expected to exceed 75% in these categories
- Supply Consolidation: Typical VBP reduces approved suppliers from 15‑20 to 2‑4 winners per product, forcing market consolidation
Competitive Landscape
Key Domestic Players:
- Drug-Coated Balloons: MicroPort (SHA: 688016), Lepu Medical (SHE: 300003), SinoMed
- Urological Devices: Mindray (SHE: 300760), Welllead Medical (SHE: 300753), Jinshan Medical
Multinational Impact:
- Boston Scientific, Medtronic, Olympus face margin compression of 40‑60% on China revenues if they match VBP prices
- Historical data shows 30‑40% of MNCs withdraw from VBP categories rather than accept price floors
Strategic Implications
- Manufacturing Upgrades: Winners must invest ¥50‑150 million in automated production lines to guarantee 80% order fulfillment within 6 months
- Innovation Incentive: NHSA’s parallel reference drug pre‑communication pilot (launched Jan 2026) will help innovative consumables differentiate from commoditized VBP categories
- Hospital Adoption: VBP‑selected products achieve >90% procurement share within 12 months via mandatory hospital compliance metrics
Forward‑Looking Statements
This brief contains forward‑looking statements regarding VBP price reductions, market consolidation, and implementation timelines. Actual results may differ due to manufacturer bidding strategies, quality inspections, and hospital adoption rates.-Fineline Info & Tech