Antech Medical, a Leading Chinese Innovative Electrophysiology Platform Company, Completes Nearly RMB 100 Million Series C Financing Led by Zhangke Herun Fund with Hoyo Capital as Exclusive Financial Advisor

VCBeat learned that recently, Artechmed, a leading innovative electrophysiology platform enterprise in China, has completed nearly RMB 100 million in C-round financing. This round of financing was led by Zhangke Herun Fund, with participation from Huangpu Pharmaceutical Fund and Shanlan Capital, while the existing shareholder Dingxin Capital continued to increase its investment. Haoyue Capital served as the exclusive financial advisor. The funds from this round will be used for the research and development, clinical registration, and commercial promotion of Artechmed's innovative electrophysiology products.

China has a large number of patients with arrhythmia, among which the number of patients with atrial fibrillation exceeds 10 million. Atrial fibrillation can increase the risk of stroke by five times, and strokes caused by atrial fibrillation are characterized by high disability rates, high mortality rates, and high recurrence rates. Therefore, early diagnosis and treatment of atrial fibrillation have become a clinical consensus. Numerous clinical trial studies have shown that catheter ablation surgery for atrial fibrillation is more effective than drug therapy. In the 2021 Chinese Expert Consensus on Atrial Fibrillation, catheter ablation for atrial fibrillation has been promoted as a first-line therapy for patients with symptomatic paroxysmal atrial fibrillation.

However, traditional radiofrequency ablation technology requires integration with a three-dimensional mapping system, using a catheter to create lines point by point to achieve pulmonary vein isolation. This places extremely high demands on the operator, greatly limiting the popularization of catheter ablation for atrial fibrillation. This contradiction found a rapid solution only after the emergence of cryoballoon ablation technology. Cryoballoon ablation, due to its advantages such as simple operation, short learning curve, and fewer potential complications, has gained increasing favor among doctors. To date, cryoballoon ablation has been cumulatively applied in over 1 million cases worldwide and was approved by the FDA in June 2021 as the first-line therapy for atrial fibrillation before the use of any antiarrhythmic drugs. With its advantages, cryoballoon ablation has been in a phase of rapid adoption in the Chinese market in recent years, with the potential to achieve technological penetration and widespread use.

PFA (Pulsed Field Ablation) technology, as a recent hotspot, features tissue selectivity, non-thermal ablation, and high ablation efficiency. Compared with traditional radiofrequency ablation technology, it potentially enhances safety and is more convenient to operate. According to the early clinical results published so far, PFA technology can achieve an 85% one-year success rate. PFA technology has preliminarily demonstrated its therapeutic potential in the field of catheter ablation for atrial fibrillation, but larger-scale studies, longer-term follow-ups, and more real-world clinical experience are still needed to verify its long-term effectiveness.

Currently, the main players in the international electrophysiology market are Johnson & Johnson, Abbott, Medtronic, and Boston Scientific. These international giants also occupy over 90% of the domestic market share in China. As a leading innovative electrophysiology platform enterprise in China, Artechmed is one of the few companies that has simultaneously developed dual platforms in cryoballoon ablation and PFA technology, with progress ranking among the top domestically. Compared to products already on the market, Artechmed's cryoballoon ablation product for atrial fibrillation incorporates numerous optimizations in balloon, sheath, and electrode design, as well as features such as cooling capacity adjustment. The product is currently in the clinical follow-up stage, showing satisfactory clinical outcomes and placing it among the first tier of progress in China. Compared to international competitors, Artechmed’s PFA product optimizes the spatial distribution of the electric field through unique innovative designs, achieving better uniformity and reliable ablation effects, simpler usability, and anticipated superior clinical efficacy. Clinical trials are set to begin soon.

In terms of the core team, the founding and management team of Artechmed are pioneers and veterans in the fields of cardiovascular and cerebrovascular intervention, cardiac electrophysiology, and cryoablation in China. They have an average of over 15 years of experience in research and development, production, commercialization, and enterprise management within these fields. They also possess abundant clinical, marketing, and expert resources, particularly in the medical device industry, especially in the electrophysiology sector.

In terms of commercialization, the former head of sales for St. Jude Medical's (now Abbott) electrophysiology market has joined the team. Leveraging years of accumulated industry resources, they have quickly begun building a domestic sales team in China and established close cooperative relationships with several top electrophysiology centers, making comprehensive preparations to rapidly capture the market after the product launch.

In terms of accelerating the implementation of overseas operations, the company has established an international business department. This department is led by a globally influential figure in the electrophysiology industry to spearhead international business expansion and carry out international product registration efforts, laying the groundwork for the commercialization with an international perspective.

Mr. Xue Wei, Co-founder and General Manager of ArtechmedArtechmed stated that cryoballoon ablation will significantly improve the clinical pain points of traditional radiofrequency ablation, such as a long learning curve, the necessity of complex three-dimensional mapping assistance, and surgical outcomes highly dependent on the operator's experience. The company’s atrial fibrillation cryoballoon ablation system has achieved excellent clinical results thanks to its innovative design and stable technology. Meanwhile, the company’s atrial fibrillation pulsed field ablation (PFA) system is also about to enter clinical trials. In the field of atrial fibrillation treatment, Artechmed's dual approach with cryoballoon and PFA will undoubtedly reduce the difficulty of atrial fibrillation surgeries, provide doctors with more diverse treatment options, increase the availability of curative methods for atrial fibrillation patients, and promote the scaling and accessibility of atrial fibrillation ablation procedures in China.

Project Leader of Zhangke Herun FundElectrophysiology, as a blue ocean market in the medical device field, is still dominated by imported products. The complex operation of early radiofrequency ablation limited the popularity of catheter ablation for atrial fibrillation in China. Cryoballoon ablation, the only FDA-approved first-line therapy superior to drug treatment, effectively addresses clinical pain points and has been widely applied in both domestic and international markets. Pulsed Field Ablation (PFA), as a next-generation technology, has preliminarily demonstrated its efficacy and safety in selective ablation through overseas clinical validation. Artechmed, a leading innovative electrophysiology platform company in China, has strategically advanced in two pipelines with significant progress. Combined with the founding team’s profound expertise and strategic vision in the electrophysiology field, we remain optimistic about the company's potential as an innovative platform enterprise to achieve import substitution in the future.

Mr. Gu Shenghan, Executive Director of Mountain Blue CapitalIt is noted that China has a large base of patients with atrial fibrillation and an urgent need for treatment. The learning curve for cryoballoon ablation is short, with robust international clinical evidence-based medical support; PFA ablation demonstrates strong tissue selectivity and high safety. Artechmed boasts dual product lines in cryoballoon ablation and PFA ablation, filling a market gap domestically as a leading Chinese-produced brand. While matching the performance of the latest imported products, its offerings also feature improvements and optimizations across multiple functions. The company’s core R&D and sales teams have years of industry experience, with deep expertise across various cardiac electrophysiology technology platforms and strong execution capabilities in commercialization. It is our honor at Lanthanum to participate in this round of financing, and we look forward to the company's products providing multidimensional innovative solutions to the clinical field after their market launch.

Ms. Yao Liang, Project Leader of Huangpu Medical FundIt is noted that China has a large population of patients with atrial fibrillation, and the penetration rate of electrophysiological surgeries for atrial fibrillation is far lower than in Europe and the United States, indicating significant room for future development. Cryoballoon ablation is considered safer, associated with fewer complications, and has a lower learning curve for surgeons. With over one million procedures already performed in Europe and the U.S., the technology has been well validated, addressing the current clinical challenges posed by the long learning curve of radiofrequency ablation and its difficulty in being widely adopted by grassroots hospitals. Artechmed, as a leading domestic innovator in cryoballoon ablation, is also advancing emerging pulsed field ablation technologies. We are highly optimistic about the rapid clinical application of the company’s self-developed products, which will benefit more grassroots patients with atrial fibrillation.

Mr. Guo Hanhua, Managing Director of Dingshin CapitalElectrophysiology is one of the few large tracks in the medical device industry, and the treatment of atrial fibrillation is highly challenging. The domestic market in China is largely monopolized by foreign enterprises. Artechmed has deep technical accumulation. DCP Capital exclusively invested in Artechmed during the prototype stage at the Pre-A round and has since made multiple follow-up investments, remaining the company's largest external institutional investor to date. Since DCP Capital’s investment, Artechmed has made good progress in its research and development. The company's first core product, cryoballoon ablation, has moved from the pre-clinical prototype stage to the current clinical follow-up stage, with doctors reporting positive feedback on the surgical operation experience. Another core product, pulsed field ablation, is also about to enter clinical trials.

Mr. Yang Zhenjun, Managing Partner of Haoyue CapitalArtechmed, as a leading innovative electrophysiology platform enterprise in China, has a core team with years of experience in well-known electrophysiology companies both domestically and internationally, accumulating profound experience in all aspects. The company has simultaneously developed two technology platforms: cryoballoon ablation and PFA (Pulsed Field Ablation). Cryoballoon ablation technology currently shows strong reliability, while PFA technology holds significant future potential, showcasing robust risk resistance. Electrophysiology, as a high-barrier cardiovascular intervention field, requires deep technological accumulation to break the industry monopoly held by foreign enterprises, particularly in terms of both equipment and catheter consumables. Electrophysiology procedures, which heavily rely on the operator's skills, demand extremely sensitive handling of catheters—this directly affects the success rate and efficiency of surgeries and places high-performance requirements on both equipment and consumables. We remain optimistic about the company’s development and believe that leading Chinese innovative enterprises, with dual support from technological advancements and policy, can accelerate the process of import substitution.

Zhangke Herun Fund is managed by Zhangjiang Science Investment, a wholly-owned subsidiary of Zhangjiang Group, with Pudong Science and Innovation Fund as the cornerstone investor. The fund focuses on innovative drugs, medical devices, medical services, and other life health-related industries with growth potential and high-quality enterprises.

Mountain Blue Capital, founded in 2015, is a professional healthcare fund focused on early-stage and growth-stage investments in the medical and health industry. The firm concentrates on high-growth medical sub-sectors such as biopharmaceuticals, medical devices (in vitro diagnostics and genetic technology, minimally invasive interventions, implantable devices, minimally invasive surgical instruments, and medical robotics), and has invested in nearly 40 star medical enterprises. The core team of Mountain Blue Capital consists of top professionals from the medical field, including founders of listed companies with over two decades of industry experience, as well as experts in biotechnology and medical equipment. With a profound understanding and extensive experience in the essence and long-term development patterns of medical sub-sectors, they provide precise and efficient support to accelerate the rapid growth of their portfolio companies.

Huangpu Medical Fund is a professional private equity investment management institution. Its main sponsors are Guangzhou Development Zone Holding Group, Huangpu Medical Fund, BeiGene, and Guoju Venture Capital. It focuses on investments in the life sciences and healthcare industry, with extensive investment layouts in biopharmaceuticals, IVD, and innovative medical devices. The fund leverages BeiGene's biopharmaceutical R&D strengths, based in the Guangdong-Hong Kong-Macao Greater Bay Area, tapping into academic resources from across China and even globally. It is committed to incubating and empowering life science and innovative healthcare projects, closely collaborating with outstanding entrepreneurs to co-create top-tier products that help humanity overcome diseases and promote health.

Dingxin Capital was founded in 2014. The founding team members come from top-tier domestic investment institutions and investment banks such as CDH Investments and CICC. The investment team members have backgrounds in well-known medical and technology companies both in China and abroad, including Roche Pharmaceuticals, Edan Instruments, and ZTE Corporation. Team members, on average, possess over a decade of profound experience in finance or industry. Through teamwork and organizational synergy, Dingxin has achieved a deep integration of financial and industrial expertise, laying a solid foundation for its professional investments in healthcare and technology. Moreover, as entrepreneurs and strivers themselves, Dingxin understands the challenges faced by entrepreneurs and business leaders, and is bold in making decisions at critical early stages of a company’s development. It has been an early key or sole investor in multiple enterprises, as well as the largest external institutional investor in several others. To date, Dingxin Capital has completed investments in three early-stage VC funds and has led or participated in the funding of more than 30 medical and technology companies. For the majority of these enterprises, Dingxin Capital invested during early stages such as Pre-A and A rounds when their main products were still in the research and development phase, and most have since achieved significant R&D progress and secured ongoing financing.

HaoYue Capital, founded in January 2014, is a leading investment bank in China that focuses on the healthcare industry. Headquartered in Shanghai, the company has regional offices in Beijing and Shenzhen. HaoYue Capital is committed to supporting the growth of outstanding healthcare companies in China by connecting them with the capital markets, creating added value for its clients through research-driven insights and capital expertise. The firm's partnership team consists of seasoned investment bankers with deep experience in China’s healthcare sector, supported by a professional team of over 70 members. HaoYue Capital closely tracks market dynamics and investment trends within the healthcare industry, covering various sub-sectors including biopharmaceuticals, innovative medical devices, IVD and life sciences, health services, and smart healthcare. In 2021, HaoYue Capital completed more than 50 private equity financings, mergers and acquisitions, and complex spin-off transactions involving listed companies, with a total transaction value reaching tens of billions of RMB, leading across all sub-sectors of the healthcare industry.