Zhongtai: National procurement of medical consumables clearly opposes internal revving up and encourages innovation. Leading domestic companies are expected to continue to benefit.

Zhongtai has released a research report stating that the optimization of the current medical consumables national procurement rules has released a positive signal of "anti-insulation, stable expectations". In the short term, there is limited disruption to the industry price system, while in the medium to long term, it is beneficial for leading companies with superior product capabilities, comprehensive product lines, and outstanding national supply capabilities to consolidate their competitive positions. It is recommended to focus on domestically produced alternatives with clear logic, strong performance certainty, such as ZYLOXTB (02190), Well Lead Medical (603309.SH), Lepu Medical Technology (300003.SZ), Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. (688016.SH), and ACOTEC-B (06669). Key points from Zhongtai are as follows: Event: On January 13, 2026, the results of the sixth batch of national centralized volume-based procurement of high-value medical consumables were announced in Tianjin. This batch of centralized procurement includes 12 types of medical consumables in drug-coated balloons and urological interventions, with a total of 496 products from 227 companies bidding, of which 440 products from 202 companies were selected. Mainstream companies with high demand from medical institutions actively participated in the selection, with rich and diverse product supplies. The implementation of the selection results is expected around May 2026. Policy direction is clearly pointing towards "anti-insulation", and price competition is becoming more rational. Similar to the eleventh batch of drug procurement, this time introduces a "benchmark price" mechanism to control price differentials. When the lowest price is too low, the benchmark price difference is set at 65% of the average in the group. Eight out of 20 competitive groups triggered this rule, covering some of the most competitive subcategories, effectively curbing individual companies from drastically lowering the overall selection price range with extremely low prices. The final selected prices for leading domestic companies are relatively high overall. Multi-level selection rules significantly increase the selection rate, supporting functional innovative products. This round of centralized procurement, with rule one, rule two, and rule three designed, reduces the risk of elimination for companies, with selection rates reaching 89% for both companies and products. For example, all 42 products from 32 companies of drug-coated balloons are under consideration for selection; in urological interventions, 398 products from 170 out of 195 companies are likely to be selected. The rules also provide reasonable pricing for differentiated products with certain functional innovations, with products like drug-eluting balloons and pressure measurement soft mirror catheters being successfully selected. The rules balance technical differences and clinical usage needs under cost control objectives. Domestic substitution continues to advance, particularly in the field of urological interventions. In terms of coronary and peripheral drug balloons, the demand from foreign companies is relatively limited, and with a lower percentage being selected in rule one, the actual purchase volume is further reduced, accelerating domestic substitution. In the urological intervention market with high domestication rates and strong product homogeneity, the market share continues to shift towards domestic companies based on the bidding results. ZYLOXTB, Weili, and other domestic companies are dominant in the A group in peripheral and urological multi-track races, reflecting their comprehensive competitive advantages in product layout, cost control, registration reserves, and national supply capabilities. The allocation mechanism strengthens the certainty of volume for leading companies, and the industry concentration is expected to continue to increase in the medium to long term. Under different rules, 70%-100% of the demand volume is allocated (with 10% of the remaining volume corresponding to the basic volume), 60% basic volume + 20% remaining volume coordination, and 40% basic volume + 40% remaining volume coordination. Companies selected by rule one in the A group have significant advantages in volume-price stability and predictable income, which helps leading companies smooth the impact of national procurement, stabilize cash flow, and promote the continuous increase in industry concentration in the medium to long term. Risk warning: Risks of slower-than-expected implementation progress, rising product costs, underperforming new product sales promotions, and slower-than-expected new product R&D progress.