Brosmed Medical Advances Toward IPO with Hundreds of Millions in Series C Funding Led by Hillhouse Capital

Oct 16, 2023 19:19 CST Updated 19:19

BrosMed Medical

High-end Medical Device Designer, Manufacturer, and Distributor

Recently, BrosMed Medical Co., Ltd. (hereinafter referred to as "BrosMed Medical") completed the registration for tutoring and filing at the Guangdong Securities Regulatory Bureau.Plans to make its initial public offering of stocks and list on the Shanghai Stock Exchange's STAR Market, with China International Capital Corporation (CICC) as the辅导券商.According to the coaching filing report, the controlling shareholder of BrosMed Medical is Pingxiang Bosi Mai Equity Investment Management Partnership (Limited Partnership), with a shareholding ratio of 30.97%.

Source of the image: Official website of the CSRC

The IPO coaching plan disclosed in the coaching filing materials is as follows:

Series C Financing Raises Hundreds of Millions, Led by Hillhouse Ventures

According to the official website, BrosMed Medical was established in March 2012 in Songshan Lake, Dongguan. It is a multinational medical device manufacturer specializing in the design, production, sales, and service of vascular interventional medical devices. The company has set up subsidiaries, production bases, research and development centers, and offices in Dongguan, Shenzhen, Shanghai, Zhuzhou, as well as in overseas regions such as the Netherlands, Singapore, and India.

In July 2020, BrosMed Medical completed its Series C financing round of several hundred million RMB in less than four months, with investors including Cathay Innovation, China Merchants Capital, Northern Light Venture Capital, and Hillhouse Ventures., especially under the severe challenge of the COVID-19 pandemic at that time, such efficiency and achievements are even more precious. The funds from this round of financing will be mainly used for further advancement of the company's product research and development, market promotion, and expanded reproduction.

As the lead investor this time, Hillhouse Ventures is a venture capital fund under Hillhouse Capital that focuses on early-stage innovative companies. At that time, Hillhouse Capital had already made significant investments in the medical device sector, specifically favoring areas such as vascular intervention, orthopedics, and ophthalmology. According to incomplete data, in the vascular intervention field, Hillhouse Capital has successively invested in Peijia Medical (9966.HK), Venus Medtech (2500.HK), MicroPort Scientific (0853.HK), and BrosMed Medical.Peijia, Qiming, and MicroPort have all successfully listed on the Hong Kong stock market, and Hillhouse, as the investor behind them, has gained substantial returns.

BrosMed Medical, as a leading enterprise in China's vascular interventional balloon catheter market industry, has established the Guangdong Vascular Interventional Therapy and Medical Device Engineering Technology Center and the Dongguan Key Laboratory for Research and Development of Vascular Interventional Medical Devices. After nearly a decade of development and nearly two decades of technical accumulation, BrosMed Medical's globally marketed products cover multiple fields and several categories, with more than ten projects currently under development.

BrosMed Medical has built an internationally advanced technology and product development platform dominated by vascular interventional medical device technology, thanks to its globally exclusive technology. At the same time, BrosMed Medical's innovation team, with continuous R&D capabilities, keeps updating and iterating products, raising the banner of 'Created in China' in the field of vascular interventional medical devices, and creating high-end medical device products with internationally advanced technical levels.

On February 19, 2020, BrosMed Medical's three products, which represent the international advanced technology and unique innovation in vascular interventional balloon catheters, received CE certificate approvals from the EU certification body on the same day, entering the EU and related regional markets.It is reported that BrosMed Medical's coronary balloon catheter and peripheral balloon catheter were the only high-end medical device products from a Chinese brand that achieved scaled market sales simultaneously in the three major medically advanced countries and regions—the United States, Japan, and the European Union.

Currently, BrosMed Medical has become a centralized procurement partner in 29 provinces, municipalities, and autonomous regions across China, enjoying the policy benefits of significantly increased sales volume brought by centralized procurement. The company's rapid development has attracted attention and investment from several top-tier investment institutions in China, providing more development opportunities and resource support through these capital injections.

Break the Monopoly, Build a Prestigious Multinational Medical Group

BrosMed Medical was determined to make high-quality balloons in China and break the monopoly of foreign giants from the outset.The company always adheres to the strategic goal of "innovating high-quality medical devices and technologies to build a prestigious multinational medical technology group" and has proposed an overall strategic plan:To become a leader in the vascular interventional device industry. In terms of product strategy, the company has established a core technology layout and continues to innovate in areas such as cardiovascular intervention, peripheral vascular intervention, vascular access, neurointervention, and interventional accessories to build an excellent brand image; by focusing on interventional therapy, providing comprehensive solutions based on the needs of different conditions, and meeting the diverse needs of doctors and patients to expand brand influence.

Currently, the company has more than 40 product series and over 360 product registration certificates globally. Its products cover multiple fields such as cardiovascular intervention, peripheral vascular intervention, vascular access, neurointervention, and interventional accessories, and are marketed to thousands of hospitals in over 80 countries and regions worldwide.

By continuously increasing R&D investment, BrosMed Medical has applied for 142 patents with patent approval authorities in China, the United States, Europe, and WIPO, of which 73 patents have been granted. The company’s products have addressed key bottlenecks in domestically produced balloon technology and scale, creating several internationally pioneering products with advanced global standards, benefiting numerous patients both domestically and abroad.

For example, the world's smallest CTO coronary high-pressure balloon (product trademark name Alveo HP™), achieving a higher recanalization rate for completely occluded vessels; dedicated balloons with proximal and distal optimization technology for stent expansion in bifurcation lesions (product trademark name Brosmed POT™), featuring an extremely short balloon shoulder design for precise stent positioning and expansion; and the world’s first triple-wire scoring balloon dilation catheter (product trademark name Tri Wedge™), breaking the monopoly of imported scoring balloons, and more.

BrosMed Medical's Tri-Wedge™ Peripheral Vascular Scoring Balloon Dilation Catheter, designed based on the principle of stress concentration (Focused Force), exerts a pressure on the vascular wall that is ≥32 times greater than that of a conventional high-pressure balloon. The three triangular metal scoring wires are evenly distributed every 120° (patented fixation technology). As the balloon is pressurized incrementally, the focused scoring wires embed into the vascular wall tissue, creating regular longitudinal tears in the intimal tissue and reducing the risk of disordered tearing and dissection under high pressure. It is suitable for dilating lesions within the iliac artery, femoral artery, iliofemoral artery, popliteal artery, infrapopliteal artery, and renal artery, and can also be used to treat obstructive lesions in autologous or artificial arteriovenous dialysis fistulas. Upon its release, the product received widespread acclaim and has been highly favored by customers both domestically and internationally.

Just a few months ago, BrosMed Medical's POT™ PTCA High-Pressure Non-Compliant Balloon Dilation Catheter received approval from the U.S. Food and Drug Administration (FDA) for market release. The BrosMed POT™ short-shoulder balloon is the world’s first dedicated balloon designed specifically for proximal optimization technique (POT) and distal optimization technique (DOT) in stent expansion for bifurcation lesions. Prior to this, the POT™ balloon had already been on the Chinese and European markets for over a year, accumulating extensive clinical experience. This FDA approval will help position the POT™ balloon as a key solution for proximal and distal optimization techniques (PDOT) in the U.S. market.

BrosMed Medical Implements "Industry-Academia-Research-Medicine-Engineering" Collaboration, Gathering Top Talents in Relevant Fields to Jointly Tackle Key Technologies and Technical Challenges. By Extending the Utilization Platform of Technical Resources Externally, the Company Builds Innovative Potential, Significantly Promoting Brand Communication and Further Enhancing Brand Reputation. BrosMed Medical has Established the "Medical-Engineering Innovation Consortium Industry-Academia-Research Joint Base" with Donghua Hospital Affiliated to Sun Yat-sen University. The Company Maintains Long-Term Stable Cooperative Relationships with South China University of Technology, South China Institute of Collaborative Innovation, Guangdong University of Technology, Southeast University, Dongguan Donghua Hospital, First Affiliated Hospital of Sun Yat-sen University, Xijing Hospital, and Other Renowned Universities and Hospitals, Forming a Win-Win Situation Where Specialization and Industry Promote and Develop Together.

The cardiovascular market is vast, with significant room for domestic substitution.

According to the report "Evaluate MedTech, World Preview 2018, Outlook to 2024" released by the global consulting firm Evaluate, IVD, cardiovascular, imaging, orthopedics, and ophthalmology are among the largest fields in the global market.Medtronic, Johnson & Johnson, Danaher, Becton Dickinson (BD), and other global top 10 medical device companies by market value also focus their main businesses on areas such as cardiovascular, orthopedics, and IVD. Fields with larger market sizes are more likely to give rise to companies with high market values.

The treatment of cardiovascular diseases is the second largest sector in the global medical device market. With the continuous rise in downstream market demand for vascular interventional medical devices, coupled with a series of supportive measures introduced by the state and local governments to accelerate the domestic production of high-end medical equipment, Chinese-produced vascular interventional medical devices are facing significant market opportunities.

Among China-produced vascular intervention products, coronary stents and aortic interventions have achieved domestic substitution. Data shows that the three major domestic brands—Lepu Medical, MicroPort Medical, and JW Medical—collectively occupy over 60% of the domestic coronary stent market share.

However, in terms of coronary access devices, imported products still dominate, primarily led by foreign brands such as Terumo, Medtronic, and Abbott. In particular, the market share of domestically registered products, such as guidewires, guiding catheters, and microcatheters, is less than one-third of that of foreign brands, indicating a huge potential for domestic substitution.

However, some domestic companies have made breakthroughs. For example, Shenzhen-based HT Medical, a medical enterprise with four major segments: electrophysiology, coronary access, peripheral intervention, and OEM (contract manufacturing). Its access consumables, mainly used for percutaneous coronary intervention procedures, account for half of the company's revenue — generating 569 million yuan in 2022, a year-on-year increase of 49.08%.

China's aortic endovascular stent market is still in its early stages of development. The main participants in this field include Medtronic, Gore, Shanghai MicroPort Endovascular MedTech, and Lifetech Scientific. In the thoracic aortic endovascular stent market, domestically produced products have begun to replace imported ones. Data shows that in 2021, domestically produced products accounted for 60.2% of thoracic aortic endovascular surgeries in China. Representative and competitive local companies in this field include Shanghai MicroPort Endovascular MedTech, Shenzhen Lifetech Scientific, and Beijing HuaPulse Medical Technology.

However, there is a relative lack of domestically produced products in peripheral vascular intervention, with product lines still in the process of being completed. In this field within China, whether it's arterial or venous, the majority market share is still occupied by foreign companies such as Medtronic, Gore, and Cook Medical. These companies can systematically provide related consumables and are the mainstream in the Chinese market, with a market share as high as 95%.

However, driven by the continuous growth in market demand, peripheral vascular interventional device companies in and outside of China, such as Zonare Medical, Shanghai MicroPort Endovascular MedTech, HT Medical, C.R. Bard, and Lifetech Scientific, are continuously innovating products, breaking through key technologies, and introducing advanced technologies, thereby enhancing their core competitiveness.

Neurointerventional devices in China are still in the early stages of development. The majority of the domestic market share has long been occupied by international medical giants such as Medtronic, Stryker, MicroVention, and Johnson & Johnson Medical (approximately 87%). Core interventional devices are almost entirely monopolized by foreign companies, leading to persistently high surgical costs.

In recent years, a large number of local companies have entered the still blue ocean market of neurointervention. Chinese brands have been accumulating technology and gradually succeeded in developing products such as coils, microcatheters, thrombectomy stents, and flow diverter stents. The trend of domestic substitution in neurointervention devices has initially taken shape.

It is reported that MicroPort NeuroTech, Peijia Medical, GuiChuang Tongqiao, Xinwei Medical, CenoMed, Sino Medical, and Kangdelai Medical have successfully gone public; Wallaby Medical, Weixin Medical, and Aikang Medical have attracted substantial investments. Data shows that more than 120 neurointerventional products were approved in China throughout 2022.

丨Source: Medical Device Innovation Network

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