Batai Medical Completes Nearly CNY 100 Million Series C1 Financing and Files IPO Prospectus

Dec 14, 2023 18:18 CST Updated 18:18

Barty Medical

Vascular Interventional and Implantable Device R&D Manufacturer

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Source: Barty Medical

Zhejiang Barty Medical Technology Co., Ltd. (referred to as "Barty Medical")Recently completed nearly 100 million yuan in C1 round financing, this round of financing byHuarui InvestmentLeading investment, old shareholdersSanze Venture CapitalContinuous investment. This round of funding will mainly be used to advance the clinical registration and commercialization of the innovative product series of restrictive balloons. Meanwhile, the company has initiated the C2 round of financing, aiming to further expand its scaled manufacturing capabilities to accommodate the rapid growth of future products and revenue, comprehensively enhancing the company's integrated advantages as a high-performance vascular interventional device platform enterprise.

Barty Medical, founded in August 2015 and headquartered in Hangzhou Biomedical Port, China, is a national high-tech enterprise and a "specialized, refined, distinctive, and innovative" small and medium-sized enterprise in Zhejiang Province. The company is dedicated to the research, development, manufacturing, and operation of devices in the vascular interventional field. As the corporate research institute for high-performance vascular interventional devices in Zhejiang Province, Zhejiang Barty Medical Technology Co., Ltd. has accumulated and mastered leading interventional device technologies and processes in China, developed several innovative products with global leadership, and participated in various provincial and ministerial projects. These include Zhejiang Province’s key R&D program, selective key R&D projects, and the first batch of the Ministry of Industry and Information Technology/National Medical Products Administration's biomedical materials innovation task initiative.

The market potential for cardiovascular diseases is enormous.

The growth trend is obvious.

With the acceleration of population aging, the increasing proportion of risk factors such as hypertension/obesity, and the prominence of unhealthy lifestyles under urbanization, the incidence and surgical volume of vascular diseases are rising, leading to a strong demand for vascular interventional medical devices. Compared with developed countries in Europe and America, China's vascular intervention industry is characterized by a late start, large existing demand, and high growth.

According to the "Report on Cardiovascular Health and Diseases in China" released in 2022 and Frost & Sullivan research, there were 71.61 million existing patients with vascular diseases such as coronary, peripheral, and neural in China in 2022. In contrast, the number of vascular interventional surgeries in 2021 was approximately 2 million, with a surgery penetration rate of less than 3%, indicating significant market growth potential.

Based on lean manufacturing,

Strategic Cooperation with International Giants

Since its establishment, Barty Medical has always adhered to lean manufacturing and continuous innovation as dual drivers, focusing on providing minimally invasive interventional solutions for cardiovascular diseases.The founder of the company, Mr. Yan Yuqiang, and the core team members all have senior industry backgrounds and rich experience in the research, development, and manufacturing of vascular interventional consumables. Relying on solid precision catheter/balloon manufacturing technology, the company has gradually built up the clinical reputation and market share of disposable catheter sheath sets, regular/high-pressure balloons, and other vascular interventional consumables. Notably,The company's peripheral vascular catheter sheath set is far ahead in the market share among Chinese manufacturers and is gradually achieving the replacement of imported products with domestically produced ones.

Barty Medical Peripheral Intervention Product Portfolio

Barty Medical Coronary Intervention Product Portfolio

The company's product quality and manufacturing system have also been recognized by international medical device giants.In November 2023, Baxter Healthcare, a global leader in hemodialysis, and Barty Medical officially signed a strategic cooperation agreement for hemodialysis access during the 6th China International Import Expo.Barty Medical's existing products, such as high-pressure balloons and disposable catheter sheath sets, along with several innovative products that will be launched in the future, can effectively be used for maintaining hemodialysis access in patients undergoing blood dialysis. This collaboration will leverage Baxter Medical's extensive experience and resources in the hemodialysis field to promote Barty Medical’s high-quality device products and therapies. Together, they will safeguard the lifeline of hemodialysis for nearly a million patients in China, providing better health and life assurance for these patients.

Barty Medical and Baxter Healthcare Strategic Signing

Continuous innovation as the core,

Develop a product portfolio with international competitiveness

Building on lean manufacturing, Barty Medical adheres to independent innovation and high-intensity R&D investment. It has independently developed world-leading core technologies such as constrained shape-memory metal alloy design and processing technology, and drug-coating technology without excipients, among others.Three products have been granted special review under the Innovative Medical Device Program of China.

The company's first innovative product —— Fengtai® Flowty® Drug-Coated Balloon Catheter with Nanoneedle Coating and No Excipients was launched in May 2021. As the currentThe only national innovative medical device product with a drug coating and no excipients among similar products already on the market.Since its launch, it has continuously increased its market share due to its excellent clinical advantages. In December 2023, the first product under the company's constrained balloon technology platform——Matrix Super™Peripheral Constrained Balloon震撼上市. The product isThe First Peripherally Constrained Balloon Product Manufactured in China,Achieves uniform and controllable vascular dilation during the vessel preparation and pre-dilation stages, effectively reducing vascular elastic recoil and avoiding uncontrolled tears and flow-limiting dissections, offering doctors and patients a vascular dilation device with greater clinical advantages.

Barty Medical's independently developed Matrix Super™, the first domestically produced constrained balloon in China, took into account localized clinical needs from the initial design and development stage, such as Chinese patients' late hospital visits and longer vascular lesions.The product specifications and models are more comprehensive, being the only similar product that can provide lengths of 150mm and 200mm, better meeting the treatment needs of Chinese patients.

Matrix Super™ Peripheral Constrained Balloon Product Features

In the upcoming 2024, two other national innovative medical device products under the company's constrained balloon technology platform will also achieve milestone breakthrough progress.The peripherally constrained drug-coated balloon has completed clinical trials and submitted for registration, and is expected to become the world's second and China's first approved entirely new constrained drug-coated balloon within 2024. Another coronary constrained drug-coated balloon, as the world’s first "intervention without implant" pharmaceutical-device combination product designed for de novo lesions in large coronary vessels,The world's first human clinical trial (FIM trial) has been completed, and the registration clinical trial will be launched in 2024. The R&D journey of these two drug-coated balloon catheters with constraining technology is the best interpretation of Barty Medical’s evolution from "incremental innovation where others have products but we improve them" to "pioneering innovation where others have nothing and we create it."

Peripheral Constrained Drug-Coated Balloon

Coronary Constrained Drug-Coated Balloon

Global Competition Expected,

Making a Splash in the International Market

Barty Medical's vision is to become an international enterprise with sustainable innovation capabilities, intelligent manufacturing capabilities, and professional service capabilities in the healthcare field. To further realize this vision, the company, on one hand, maintains an open mindset and actively recruits core team members with extensive industry experience and international perspectives. For example, in 2022, the company invited Mr. Hu Chao, former head of Greater China sales at Edwards Lifesciences, to serve as the general manager. Mr. Hu Chao has nearly 10 years of clinical experience in cardiothoracic surgery and more than 20 years of experience in technical promotion and marketing management in the cardiovascular intervention industry. His joining has enhanced the company’s operational capabilities and international outlook. On the other hand, the company is actively expanding overseas.The product has been exported to more than 20 countries and regions, achieving a sales scale of tens of millions in overseas markets.The company will further strengthen the development and cooperation in the international market in the future, and is currently actively laying out potential markets such as the United States, Japan, and Southeast Asia.

Mr. Yangu Qiang, Founder/Chairman of Barty MedicalStated: "We would like to express our gratitude to both new and existing shareholders for their recognition and support of Barty Medical's original mission and vision. Since its establishment, the company has been deeply committed to the field of vascular intervention. With a robust manufacturing system and unique innovative technologies, we are gradually evolving into a platform-based enterprise for vascular interventional medical devices. It has been eight years since we embarked on this entrepreneurial journey. In the next eight years, Barty Medical will remain true to our founding mission, further explore our accumulated expertise in passive device materials and technology, and actively expand into the active medical device sector. We aim to provide better products to doctors and patients worldwide, allowing medical technology to illuminate life."

Huari Investment Biomedical TeamCardiovascular disease is one of the biggest risk factors threatening the health of Chinese people. Minimally invasive interventional surgeries are characterized by short operation time, low invasiveness, minimal trauma, and fast postoperative recovery. In recent years, minimally invasive interventional devices have been widely used in the interventional treatment of various vascular diseases, making it a track with clear clinical demand, rapid growth, and huge market potential. Barty Medical adheres to the leading concept of "intervention without implantation" and relies on its platform-based technology accumulated over the years. Starting from clinical needs, it has built a gradient and progressive interventional product matrix, providing complete and innovative solutions in the fields of coronary and peripheral interventions. Over the past three years, the team has focused on refining product performance and accumulating rich sales channels. Its core products have gained widespread clinical recognition, achieving nearly 200% compound sales growth. It is believed that under the efforts of Barty Medical's professional and down-to-earth core team, the company will be able to comprehensively enhance the integrated advantages of a high-performance vascular interventional device platform enterprise, create more innovative products suitable for Chinese people, and quickly promote them to clinical applications for the benefit of patients.

Zeng Wenbing, Founding Partner of Sanze Venture Capital"Sanzo Ventures has continuously invested in Barty Medical since the Series A round. We have great confidence in the company's team, which, based on a profound understanding of clinical needs, has consistently developed multiple outstanding products. This has enabled the company to upgrade its products from single-function to multi-function and extend its offerings from passive to active devices. The company’s rich portfolio of innovative products and excellent product quality have not only gained high recognition from major hospitals in China, better benefiting patients, but also attracted the attention of international giants, paving the way for broader market expansion. Sanzo Ventures will continue to support Barty Medical in its development into a globally leading innovative platform enterprise in the interventional medical field."

About Huarui Investment

Huairui Investment, founded in 2002, is one of the earliest private venture capital investment institutions established in China. Over the past two decades, Huairui Investment has firmly believed that industry is the mother of wealth, adhered to an industry chain investment strategy, and persisted in an "investment + service" model. It faithfully fulfills its venture capital mission of investing early, small, and in technology, continuously seeking uniqueness. The firm focuses on hard technology fields such as electronic information (including integrated circuits), energy technology, material technology, advanced equipment, biomedicine, and more. Rooted in Zhejiang, it has deeply cultivated the Yangtze River Delta region. Huairui Investment manages more than 50 venture capital funds, with cumulative investments exceeding 15 billion yuan. Over 30 of its portfolio companies have gone public through IPOs, and more than 20 have been listed via mergers and acquisitions. It strategically invested in Huqingyutang, aiming to create a leading enterprise in the new traditional Chinese medicine industry. Meanwhile, Huairui Investment pays close attention to the transformation and upgrading of regional economies, using funds to promote local economic investment attraction, and actively implementing a cultivation plan for future industry stars in regional economies. Huairui Investment has consistently ranked among the top institutions for many years, including being honored as one of the Top 50 Best Venture Capital Institutions in China by CVSource (ranked 28th), Zero2IPO (ranked 31st), China Venture (ranked 31st), and as one of the Top 10 Hard Technology Investment Institutions on the STAR Market in 2023.

About Sanze Venture Capital

Sanze Venture Capital was established in 2008 and is a council member of the Venture Capital Professional Committee of the China Investment Association, a council member of the All-China Federation of Industry and Commerce Pharmaceutical Chamber, and a vice president unit of the Guangdong Venture Capital Promotion Association and the Hunan Equity Investment Association. The company focuses on investing in forward-looking industrial fields such as healthcare, clean environment, and technological innovation, covering multiple stages including the start-up, growth, and development phases of enterprises. It has built a complete investment operation management ecosystem and has been rated as one of the TOP50 Best Venture Capital Funds in China, TOP30 Best Investment Institutions in China's Healthcare Sector, and TOP10 Most Influential Private Equity Institutions in Hunan.

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