Europe Healthcare Medical Technology Reflecting on sector performance and key debates ahead of the 23rd European Medtech an...

Equity Research 8 September 2026 | 5:00AM BST

EUROPE HEALTHCARE: MEDICAL TECHNOLOGY

Reflecting on sector performance and key debates ahead of the 23rd European Medtech and Healthcare Services Conference

On the 9/10th September, we will host management teams and IROs across a range Richard Felton, CFA | of European Medtech and Healthcare Services companies, with discussions Goldman Sachs International complemented by input from industry consultants and policy experts. We believe the Lauren Mitchell conference will provide access at an interesting juncture for many companies in the | sector, noting that Medtech has materially underperformed broader European Goldman Sachs International equities YTD and relative valuations have compressed to multi-decade lows. Whilst we can partly understand the reasons for the de-rating, we believe fundamentals remain supportive and depressed valuations warrant a revisit.

European Medtech has faced a challenging period; relative valuation has reached multi-decade lows. Following a period of sustained outperformance between 2010-2020, when European Medtech outperformed 9 out of 10 years in a row, the period post Covid has been far more challenging for European Medtech - the sector has underperformed every year between 2021-2025 with the scale of underperformance becoming more acute in 2026 YTD. Absolute and relative valuations have contracted sharply over that period, with the sector now trading at multi-decade lows relative to MSCI Europe. As we discuss in more detail below, we acknowledge and understand some of the drivers of multiple de-rating, but importantly believe the current valuation backdrop has created interesting opportunities.

Key debates we look to explore at our conference. European Medtech is a somewhat heterogeneous collection of companies with a variety of differentiated and often idiosyncratic drivers, but we look to our conference for updates on a couple of key themes / drivers which have broader relevance across the group: (1) China, where we look for latest commentary on underlying market trends, upcoming rounds of VBP (IOLs, Dental) and potential impacts from Centralised Procurement across equipment more broadly. (2) Input cost inflation and the extent to which upward pressure on energy, commodities, and electronic components will impact margins and any early commentary on the scale of headwinds companies are expecting in FY27. (3) Innovation and product cycles; with various new launches recently announced or in early commercialisation, we look to more commentary on what this could mean for growth rates across various names in the space. (4) Any updated commentary on Section 232 Investigation on medical devices. We also reflect on key debates at the company specific level within this report.

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Goldman Sachs Europe Healthcare: Medical Technology

Medtech underperformance has widened YTD; Why and Where do we go from here?

European Medtech has faced a challenging period; relative valuation has reached multi-decade lows. Following a period of sustained outperformance between 2010-2020, when European Medtech outperformed 9 out of 10 years in a row, the period post Covid has been far more challenging for European Medtech - the sector has underperformed every year between 2021-2025 with the scale of underperformance becoming more acute in 2026 YTD.

Absolute and relative valuations have contracted sharply over that period, with the sector now trading at multi-decade lows relative to MSCI Europe. As we discuss in more detail below, we acknowledge and understand some of the drivers of mutiple de-rating, but believe the current valuation backdrop has created interesting…