MedKinetic Completes Tens of Millions RMB Series A+ Financing Led by Phoenix Tree Capital to Advance Neuromodulation Industrialization in China

VCBeat learned at the first time,Recently, MEDKINETIC announced the completion of tens of millionsYuanA+ round of financing, exclusively invested by Tianjin Phoenix Tree Investment Management Co., Ltd. This round of financing will be mainly used for the clinical trials, registration, and production and sales of the neuroregulation product line.Previously, MEDKINETIC has completed two rounds of financing, with investors including well-known investment institutions such as VCBeat and Titan Capital, as well as the industry company PINS Medical.

MEDKINETIC was founded in 2018 by Dr. Jianfeng Chen, who also brought in Dr. Victor Pikov, an international expert in neuromodulation and former director of the neuromodulation platform at GSK and Galvani Bioelectronics, to join the team. Today, MEDKINETIC has built an international R&D team and is an international leader in the field of gastrointestinal neuromodulation, both in mechanism research and application.

MEDKINETIC Enters the Medical Device Market through Neurostimulation Devices, Focused on Developing World-Leading Innovative Neurostimulation Therapies for Gastrointestinal and Metabolic Diseases, Providing Comprehensive Solutions for Gastrointestinal Diseases from Diagnosis to Treatment. Its product portfolio includes implantable neurostimulation therapy devices (IPG), diagnostic equipment for functional gastrointestinal disorders, and wearable neurostimulation therapy devices.

Neuromodulation refers to a therapeutic approach that utilizes implantable or non-implantable technologies, employing methods such as electrical stimulation, to alter the activity of the central nervous system, peripheral nervous system, or autonomic nervous system in order to improve symptoms in affected populations. It is highly targeted, reversible, and long-lasting, and offers greater economic benefits compared to traditional drug treatments. In 2020, the global market size for neuromodulation reached $5.8 billion and is developing rapidly.

Currently, neuroscience has become a key discipline developed by various countries, and positive policies have further accelerated the research and application transformation of novel neuromodulation technologies. Compared to the global market, China’s neuromodulation market is still in its infancy, presenting significant opportunities for future development.

Dr. Jianfeng Chen, founder of MEDKINETIC, stated: Neuromodulation is the future of chronic disease treatment. With the advent of the digital age, patient health management will also enter the era of digital management through remote healthcare enabled by implanted or wearable medical devices. Neuromodulation technology (implantable or wearable) seems to be tailor-made for this era, and its applications are bound to witness explosive growth.

Although neuromodulation originated from implantable technologies, wearable neuromodulation is also a rapidly growing field. Renowned international medical device giants have long been strategically positioned in this area, utilizing non-invasive wearable neuromodulation devices to treat common neurological disorders and autoimmune diseases, including complications from COVID-19.

MEDKINETIC has applied this technology to clinical practice through its original research and is in an internationally leading position. MEDKINETIC not only develops different types of wearable devices to treat various common diseases, such as functional gastrointestinal disorders, visceral pain, and inflammation, but also collaborates with renowned universities and hospitals both domestically and internationally to explore the central and peripheral neural mechanisms involved in neuromodulation applications.

Currently, the main indications covered by MEDKINETIC's neuromodulation products include: Inflammatory Bowel Disease (IBD), diabetes, functional gastrointestinal disorders, etc. Among them, Inflammatory Bowel Disease is an idiopathic intestinal inflammatory disease that affects the ileum, rectum, and colon, mainly including Ulcerative Colitis (UC) and Crohn's Disease (CD). There are millions of patients worldwide, but currently, there is no clinical cure. Patients need to take medication for life, and the cost of medication is extremely high. Compared with other therapies, MEDKINETIC's implantable neuromodulation therapy has the advantages of being safer, more economical, and easier to implement.

Fig: Implantable SNS Stimulator and Electrode

Zhang Zhang, Investment Director of Tianjin Phoenix Tree Investment Management Co., Ltd., stated: "Neuromodulation therapy has excellent market prospects and development potential. Abroad, neuromodulation has become an important clinical treatment for many refractory diseases, and in China, it has made significant progress in recent years. MEDKINETIC, after years of accumulation, has a core expert team covering both China and the U.S. that has conducted fundamental theoretical research in the field of neuromodulation for many years and is at the forefront internationally. MEDKINETIC has now established a very comprehensive product line, from diagnosis to treatment, from transcutaneous stimulation products to implantable products. In the future, multiple products are expected to become globally innovative therapies for gastrointestinal diseases (such as inflammatory bowel disease IBD, functional gastrointestinal disorders, etc.) and metabolic diseases (diabetes). We highly anticipate MEDKINETIC’s innovative products to be successively approved and gain clinical recognition, and we are optimistic about MEDKINETIC's long-term development."