Xuanyu Medical Secures RMB 100 Million Series A Financing; First Patient Enrolled in PFA Ablation Trial for Atrial Fibrillation

VCBeat learned at the first time,Recently, ShineyoMedical (hereinafter referred to as"ShineyoMedical") announced the completion of its A-round financing worth hundreds of millions.Round FinancingThis round of investment was jointly led by Apricot Capital and Industrial Capital Management Co., Ltd., with continued support from existing shareholders Dalton Venture, BMC, and Shanghai Haimaide Venture Capital Management Co., Ltd. DSC Advisory served as the exclusive financial advisor.. The funds raised will be used forFurther expand the R&D pipeline,Clinical Trial, Personnel supplementation, etc.。

ShineyoMedical, founded in 2020, is a high-tech medical device company specializing in the fields of electrophysiology and peripheral interventions. After years of research and technological breakthroughs, the company has developed innovative medical device solutions for diseases such as atrial fibrillation and varicose veins, aiming to become a leading provider of atrial fibrillation electrophysiology and peripheral vascular intervention solutions in China. The "multi-channel pulsed electric field ablation system," independently developed and produced by the company, completed its first clinical trial in March 2022, demonstrating significant efficacy.

ShineyoMedical Multi-Channel Pulsed Electric Field Ablation Device

Atrial fibrillation (AF) is the most common arrhythmia in clinical practice, which can seriously affect the quality of life of patients and increase the occurrence of cardiovascular diseases such as stroke and heart failure. Due to the limited effectiveness of drug therapy, radiofrequency ablation has become the preferred treatment for AF patients. Radiofrequency ablation destroys myocardial tissue by generating heat through regulated electric current, while cryoablation damages myocardial tissue through freezing. Both ablation methods destroy myocardial tissue non-selectively, potentially affecting surrounding normal tissue during the procedure and causing damage to adjacent structures such as the esophagus, coronary arteries, and phrenic nerve. PFA represents a new revolution in AF treatment technology. More than 10 million AF patients in China are mostly treated with medication. Catheter ablation has not been widely adopted domestically due to its high cost, surgical complexity, high recurrence rate, significant risk of complications, and the scarcity of experienced doctors. Compared to radiofrequency ablation and cryoablation, pulsed field ablation (PFA) offers advantages such as shorter operation time, less damage, and lower recurrence rate, which will significantly drive the electrophysiology market in China.

Based on the founding team's deep understanding of the cardiovascular disease clinical and market landscape, ShineyoMedical has established three major technology platforms encompassing active devices, catheter interventions, and biomaterials. Through revolutionary products, the company is entering the dual blue ocean markets of cardiac electrophysiology and peripheral interventions. Starting from clinical needs, the venous closure system developed by ShineyoMedical for varicose veins has completed preclinical preparations and is about to initiate a multicenter registration clinical trial. The R&D team has innovatively designed the delivery catheter for the venous closure adhesive to allow doctors to easily observe the catheter's position, aiding in precise positioning. Meanwhile, the materials R&D team has improved the composition of the venous closure adhesive to enhance its sealing effect and improve the clinical operational experience.

ShineyoMedical Venous Closure System

Varicose veins are the most common venous disease with a high recurrence rate. The number of people suffering from lower limb varicose veins in China is as high as 100 million, and the incidence rate in women (25-33%) is higher than in men (10-40%). "High ligation of the great saphenous vein + stripping" is the traditional surgical treatment for varicose veins. Since the entire venous vessel is removed, this therapy provides the most thorough treatment effect, but it carries significant surgical risks, may cause damage to surrounding tissues when stripping veins, and patients may develop deep vein thrombosis post-surgery. In addition, minimally invasive treatments (radiofrequency + laser + foam sclerosant) are the main treatment methods after stage C2. In recent years, with the excellent performance of Medtronic's VenaSeal product after its market launch, commercial promotion has been rapid, and more than 100,000 patients worldwide have received VenaSeal chemical ablation treatment. However, it has not yet been officially introduced into the Chinese market. Radiofrequency treatment is inferior to vascular closure glue in the core indicator of 5-year closure rate and has side effects such as thermal effects. As a potential outpatient procedure in the future, varicose vein closure glue is expected to significantly improve the current industry situation where the surgical penetration rate is less than 1% and concentrated on late-stage patients, providing patients with a new option that offers better efficacy and cost-effectiveness.

ShineyoMedical is a technology innovation-driven R&D high-tech company. Based on the existing catheter technology platform and active pulse technology platform, the company has extended its layout to other active/passive, implantable/interventional devices in the fields of electrophysiology and peripheral vascular diseases, constructing an integrated technology platform for diagnosis and treatment in electrophysiology and pan-vascular areas. The core entrepreneurial team all come from leading domestic and international medical device companies with over ten years of industry experience, possessing successful experiences and industry resources in product development, quality management, animal experiments, clinical registration, market sales, entrepreneurship, and finance. Team members have collectively applied for more than 200 patents domestically and internationally.

Regarding the successful completion of this round of financing, Chen Shuguo, founder and CEO of ShineyoMedical, stated: "We thank both new and existing shareholders for their recognition and support of ShineyoMedical. Over the past year, ShineyoMedical has achieved breakthroughs in bringing products from underlying technology R&D to clinical trials, while also completing substantial technological reserves. In the future, with the support of several experts in the industry, we will enhance the accessibility of top-tier medical devices, continue to advance R&D efforts, and build a rich product portfolio around active, catheter, and material technology platforms in the pan-vascular field, covering minimally invasive implantation and intervention scenarios across multiple departments."

Qiang Jing, Managing Partner of Apricot Capital, stated: "Apricot Capital is honored to accompany entrepreneurs who shine with their own light, promoting the progress and development of social health. The founding team of ShineyoMedical has a diversified background, enabling them to understand the ongoing transformation in China's cardiovascular field from a deeper perspective. Moreover, ShineyoMedical's versatile technology platform can continuously innovate in product design concepts, enriching the product portfolio and facilitating commercialization. This is also key to laying a solid foundation for the company's future development."

Xiang Jun, Vice President of Industrial Capital Management Co., Ltd., stated: "We highly recognize the vision of ShineyoMedical's team in independently developing PFA and deeply appreciate the craftsmanship and professional capabilities demonstrated throughout this process. Over the past year, ShineyoMedical has achieved remarkable growth beyond expectations, with outstanding performance in R&D pipeline, clinical trials, production readiness, corporate business development, and financing capabilities. We are delighted to participate in the company’s accelerated development and look forward to ShineyoMedical continuing to lead the industry with its technological innovation capabilities, benefiting a wide range of patients!"

Sun Qi, founding managing partner of Dalton Venture, stated: "This is Dalton Venture's second collaboration with ShineyoMedical. The clinical experience of PFA globally has already demonstrated the immense appeal of this market, while also placing Chinese and American companies on the same starting line. We highly recognize ShineyoMedical’s product layout in this field and are confident in the company’s pioneering efforts in the peripheral intervention space. We believe this top-tier team will continue to deliver surprises, and Dalton Venture will provide ongoing support to the company in various aspects moving forward."

Zhang Jie, partner of Shanghai Haimaide Venture Capital Management Co., Ltd., stated: "Through our exchanges with fellow travelers in medical innovation and entrepreneurship, we have become increasingly convinced of the need to solidly provide good services and share the fate of entrepreneurs. ShineyoMedical is outstanding both in terms of its team background and project idea. We are highly confident in the company’s strategic layout and commercialization prospects. In the future, Haimaide Venture will continue to support the company in leading the industry."

BMC Partner Jiang Yongxiang stated: "Since participating in the angel round financing of ShineyoMedical, this is already BMC's third collaboration with ShineyoMedical. ShineyoMedical has an excellent, efficient, and experienced team, and we are also very optimistic about the company’s layout in cardiac electrophysiology and vascular intervention products. We look forward to ShineyoMedical’s products being launched into the market as soon as possible to benefit patients."

Apricot Capital was founded in 2015. The name "Apricot" symbolizes "skilled doctors in the apricot grove, benefiting the world." Leveraging the power of capital, Apricot Capital partners with visionary entrepreneurs to address significant unmet clinical needs. The investment team at Apricot Capital comprises over 20 professionals with extensive experience in healthcare investment, academia, and industry. Their investment focus includes innovative biopharmaceuticals, medical devices (including life science instruments), and innovative service supply chains. Currently, their portfolio includes more than 50 companies, managing nearly 5 billion yuan in assets. Since its establishment, Apricot Capital has concentrated on investing in outstanding early- and growth-stage enterprises in the life sciences sector, with projects spanning biopharmaceuticals, medical devices, and medical services. Invested companies include over 50 rapidly growing star enterprises such as Junshi Biosciences (01877.HK), Akeso Biopharma (09926.HK), China Antibody (03681.HK), RemeGen (09995.HK), HeartFlow Medical (02160.HK), Xinyao Pharmaceuticals, Hexafluoropropane Ningyuan, Enotap, TopAlliance Biosciences, Yilian Biotech, Qihe Bio, Bowang Pharma, Tianze CloudTech, Shenqi Medical, Shengsheng Logistics, Medicine Cube, among others.

Industrial Capital Management Co., Ltd. (referred to as "Industrial Capital") is a wholly-owned private equity investment subsidiary established by Industrial Securities Co., Ltd. (SH601377). It has cumulatively managed and serviced nearly 10 billion yuan in total capital scale, specializing in private equity fund management businesses, including PE funds, M&A funds, and financial advisory services.

Dalton Venture focuses on early-stage investments in the healthcare industry, with investment areas including medical devices, medical services, biopharmaceuticals, and healthcare information technology. The core team comes from the healthcare industry and has extensive experience in corporate operations management, investment, and mergers and acquisitions. They possess both the entrepreneurial experience of incubating early-stage companies and the experience of managing publicly listed companies with a market value of tens of billions. In the field of innovative medical technologies, Dalton Venture has made profound strategic investments. The investment team is highly stable and has built a robust investment ecosystem chain. Relying on deep industry experience and extensive resources, they provide strong post-investment support to create high-value returns for their partners.

BMC was founded in 2010 as a professional venture capital institution that adheres to the long-term value investment philosophy and focuses on investing in "technology + growth" enterprises. Since its establishment, BMC has been committed to key technologies and scientific innovation in the fields of electronic information semiconductors, healthcare, and energy conservation and environmental protection. Upholding the spirit of "long-termism" and the concept of value discovery and value creation, we are dedicated to growing together with China's most promising technology companies and entrepreneurs, and jointly building a science and technology innovation enterprise.

HiMed Ventures was founded in 2015 by 35 successful founders, investors, professors, and other professionals from the medical industry in Shanghai's Zhangjiang area. Relying on the initiators' successful entrepreneurial experiences and abundant industry resources, HiMed focuses on medical cooperation, transformation, incubation, and early-stage investment. HiMed Fund, managed by a GP company established by several initiators, is an angel investment platform where some of the initiators participate as LPs. Currently managing two funds, it has invested in more than twenty early-stage medical startup projects.