Dingkai Medical Secures Hundreds of Millions in RMB in New Financing Round to Advance Innovative Interventional Balloon Platforms

VCBeat (WeChat ID: vcbeat) learned that DK Medical Technology Co., Ltd. (hereinafter referred to as "DK Medtech"), a company in China focused on the R&D of interventional balloons, has completed a new round of financing worth hundreds of millions of yuan. This round of financing was invested by Gao Tejia Investment and Hongrun Venture Capital and other investment institutions. Weng Yulin, founder and CEO of DK Medtech, stated that after the normalization of high-value consumables procurement, the requirements for various capabilities of domestic companies have rapidly increased. The successful financing reflects investors' firm confidence in DK Medtech's comprehensive capabilities in R&D, production, and sales. This round of funding will be used to expand production capacity and the sales team, increase market promotion of innovative products, and develop subsequent medical-engineering integrated products.

DK Medtech is a leading innovator in China specializing in high-value interventional balloon catheters, focusing on the broad application and low domestic market share of balloon products. The company has developed more than ten types of balloons, including standard balloons, high-pressure balloons, scoring balloons, and drug-coated balloons. Its product portfolio addresses nearly all vascular intervention needs, covering cardiovascular, peripheral, and neurovascular interventions. After over five years of development, DK Medtech has obtained five Class III medical device registrations in China. Multiple innovative products are in the process of registration in both China and overseas markets, with several exclusive products in the pipeline preparing to enter clinical trials. By 2023, the company is expected to become the most comprehensive provider of balloon products.

Balloon Dilatation Catheters (referred to as "balloons") are crucial products in vascular interventional surgeries, and any expansion of stenotic lesions in such procedures requires the use of various types of balloons. According to a report by CIC Consulting, the usage of balloons in PCI surgeries in China has increased from 874,100 units in 2015 to 1.6 million units in 2020, and is expected to rise to 6.4 million units by 2030. In 2020, the number of peripheral PTA surgeries in China exceeded 230,000, and is projected to grow to 710,000 by 2030.

But with the advent of the centralized procurement era, ordinary balloon varieties with severe product homogenization face the risk of price reductions and compressed market space. In the 2021 volume-based procurement of coronary balloons implemented across seven provinces, the balloon price dropped from 3,413 yuan to 265 yuan. Facing the trend of domestic substitution and the pressure of centralized procurement, how will domestic startups navigate an era of "coexisting opportunities and challenges"?

DK Medtech Founder and CEO Weng Yulin stated: "The volume-based procurement policy will drive market consolidation, pushing domestic companies to pursue differentiated innovation. Chinese-produced high-value medical consumables should no longer follow the old path of imitation and low pricing. Only through differentiated innovation in performance and surpassing imported products in quality can they establish themselves in this new era. This is also the development path chosen by DK Medtech, focusing on improving balloon quality and achieving global competitiveness in innovation. Startups should first excel in doing one thing exceptionally well. For example, in the field of hemodialysis access, DK Medtech’s unique high-pressure scoring drug-coated balloon completed the world's first clinical trial for a drug-coated balloon without pre-dilation, with excellent clinical results."

Weng Yulin believes that in the future of balloon technology, whether in coronary intervention, neurointervention, or peripheral intervention, special balloons will rapidly increase in usage frequency due to their various advantages such as uniform intimal tearing and reduced elastic recoil. This trend represents not only an upgrade in balloon types but also a great opportunity for emerging companies to rise. Therefore, DK Medtech has simultaneously developed multiple special balloons for coronary, hemodialysis, and peripheral applications. The core designs have already been patented, and the technological advancement is on par with top imported products. The company is also leading in terms of regulatory approval progress.

It is reported that while DK Medtech continues to develop new products, it has also made continuous progress in sales. In the field of hemodialysis access, DK Medtech's balloon catheter has already entered the top tier and is expected to become the market leader in 2023; in the coronary balloon field, DK Medtech has reached a strategic cooperation agreement with Medtronic. The two parties will carry out multiple sales collaborations in the Chinese and overseas markets. Through the mature channels of multinational corporations, the unique products of start-up companies can be quickly expanded in the market to benefit a large number of patients. Such cooperation also represents recognition of the quality of products made in China.

Before this round of financing, DK Medtech completed a nearly RMB 100 million Series B+ round in August 2021, with investors including JBC Capital, China Growth Capital, and Qiming Venture Partners. DK Medtech has continuously gained the favor of capital and developed steadily. Weng Yulin believes that the most important reason is: DK Medtech's original intention was to create distinctive premium products. Regardless of how policies and markets change, adhering to developing products that truly address clinical pain points ensures long-term vitality, which is also the social value DK Medtech hopes to create.

When talking about the future development of DK Medtech, Weng Yulin stated that the company will continue to focus on three tasks:

1.  Pursuing perfection and continuously improving product quality to become a recognized premium domestic product.

2. Actively promote product sales, as products not recognized by the market have no social value.

3. Practicing the CCI (Cardiovascular Doctors Innovation Club) concept, transforming innovative ideas from Chinese doctors into innovative products made in China, "from clinical practice and back to clinical practice."

Mentioning this investment, Mr. Yu Jianlin, Executive Partner of Gao Tejia Investment, said: "The products of DK Medtech have been unanimously recognized by top clinical experts in China. As a rising star in the industry, DK Medtech has demonstrated its technical R&D strength by adopting a differentiated competition strategy to develop, within a short period, products with intellectual property rights that truly meet clinical needs and are comparable to international first-class standards. This is also a shining example of high-end medical device consumables produced in China. We highly recognize the team and execution capabilities of DK Medtech. It is an honor to join hands with DK Medtech for common development."

GaoTJ Investment was founded in Shenzhen in 2001, focusing on investment in the healthcare industry. Its investment covers all stages, including PE, VC, PIPE, angel, and M&A. With a leading professional medical investment team in China, it has built an investment ecosystem platform for the healthcare industry and is committed to becoming a healthcare investment institution with global influence. Currently, its asset management scale exceeds 23 billion yuan, managing 25 healthcare industry funds. It has invested in more than 150 enterprises (including over 80 healthcare enterprises) and facilitated the successful listing of 31 companies. The investment scope is based in China while targeting the global market. Operational centers have been established in Shenzhen, Shanghai, Beijing, Nanjing, Hong Kong, and other locations, bridging global capital and healthcare companies with China's momentum and assisting entrepreneurs in building great enterprises.

As a member enterprise of Hongrun Health Group, Hongrun Venture Capital positions itself as an industry-empowering risk capital management institution. Relying on the group's extensive industry experience and broad social resources in the healthcare sector, it focuses on exploring early-stage equity investment opportunities in innovative startups. Through professional investment management models, comprehensive industrial chain support services, and full lifecycle empowerment, it helps medical device innovation companies build a resource ecosystem for collaborative growth. By adding value between patent conversion and obtaining medical device product certification, it assists investors in achieving stable returns.