GE Healthcare and Varex falls after China begins anti-dumping probe into medical imaging equipment

Shares of medical equipment makers GE Healthcare GEHC.O fall 12.6% to $62.94, and Varex Imaging VREX.O down 16.3% to $8.64

China launches an anti-dumping probe into imports of certain medical X-ray tubes used in CT scans from the U.S. and India

China also announces export curbs on some medium and heavy rare-earth metals, including gadolinium, which is used in MRI scans

China, which contributed ~12% of GEHC's revenue in 2024, is one of the key markets where majority of products sold are imaging equipment

*Varex, which makes medical CT X-ray tubes and inserts, said in a regulatory filing that it "has not received any formal notice" regarding the anti-dumping investigation

Co says it makes its tubes in the U.S. and ships them to China and does not produce the tubes or inserts in India; adds "would cooperate with any such investigation" if it receives a formal notice

"The risk is that any ruling from the (Chinese) ministry could impact tender processes and sales within a key market," BTIG analysts say

"It is clear that the Chinese government is taking steps to prop up a historically lagging medical device industry, and will likely take more proactive measures in the future to favor local Chinese MedTech vs foreign competition" - J.P.Morgan analysts

An anti-dumping investigation examines whether goods imported into a country are being sold at prices lower than their domestic market prices

Including session moves, GEHC down ~20% YTD, VREX down 41.2% vs ~1% decline in S&P Healthcare Equipment .SPLRCMED in the same period