Yintai Medical's $216M Bet on Valgen Sparks Outrage: Former Top Pharma Analyst Accuses Founders of $570M Cash-Out as Investors Face Total Loss

May 29, 2026 08:00 CST Updated 08:00

INT Medical

Medical Device R&D, Production, and Sales Company

Valgen Medtech

Minimally Invasive Interventional Device Developer

Nuomao

Cardiovascular Innovative Medical Device R&D Manufacturer

Major Scandal in the Healthcare Industry Escalates!

While Nuomao’s equity dispute is making headlines with investors publicly accusing the company of “swallowing their principal,” INT Medical (1501.HK) is bucking the trend, officially announcing plans to invest 1.5 billion RMB to acquire another “Nuomao-affiliated” asset—Valgen Medtech.

What’s even more sensational is that the moment the acquisition was officially announced, former "New Fortune Top Healthcare Analyst" Zhang Mingfang immediately went on the offensive, firing off a series of emails blasting the proposal as unfair. She directly accused the founders of "shirking VAM obligations and cashing out to exit," while investors may not only fail to receive the agreed-upon interest but could even suffer a total loss of their principal!

A high-stakes capital maneuver involving listed companies, prominent venture capital firms, and industry titans has completely torn away the veil shrouding the healthcare M&A sector.

Controversy Persists! 1.5 Billion Investment Added, INT Medical Stands Firm Amid Backlash

On April 28, an announcement by INT Medical shocked the industry: it plans to acquire up to a 90% stake in Valgen Holding Corporation for up to RMB 1.5 billion, with the target's core asset being Hangzhou Valgen Medtech—a cardiovascular interventional device company specializing in atrioventricular valve diseases.

On the surface, this is a straightforward strategic M&A: Valgen Medtech boasts robust capabilities, with four independently developed products already qualifying for the National Medical Products Administration (NMPA) "Green Channel" for innovative medical devices, positioning it as a highly promising company; meanwhile, as a vascular interventional device manufacturer, INT Medical reported RMB 1.065 billion in revenue and RMB 233 million in profit in 2025, holds RMB 630 million in cash, and is expanding its investment in the structural heart disease sector, making this seemingly a win-win strategic move.

But everyone knows that INT Medical's decision to double down at this juncture is tantamount to "pulling chestnuts out of the fire."

Not long ago, INT Medical was drawn into the vortex of an equity dispute involving Nuomao: Nuomao’s investors publicly called out, alleging that the actual controllers, Zhenjun Zi and Yiwei Zhao, colluded with INT Medical to transfer corporate control at a low valuation, thereby cashing out and exiting themselves while leaving investors to bear massive losses.

What is even more striking is that the actual controller of Valgen Medtech is none other than Zhao Yiwei, the actual controller of Nuomao—this means that what INT Medical is acquiring remains an asset of the "Nuomao group," and moreover, it is a company under the control of the central figure in the dispute.

Caught between unresolved allegations of "misappropriation of principal" and a stepped-up acquisition of related-party assets, INT Medical's moves have instantly triggered widespread market skepticism: Is this truly a bullish bet on Valgen Medtech's potential, or is there an ulterior motive?

Former Top Pharma Executive Furiously Exposes: 5 Major Allegations, Directly Alleging Unfairness in the Plan

The acquisition announcement by INT Medical completely ignited the fury of investors, with former "New Fortune's Top Healthcare Analyst" Zhang Mingfang spearheading the backlash.

As an investor in Valgen Medtech, Zhang Mingfang directly sent a mass email to all shareholders of Valgen Medtech, fiercely criticizing INT Medical's acquisition proposal with five key arguments, every word striking at the heart of the matter:

Valuation Adjustment Mechanism (VAM) Failure: The Founder Was Obligated to Honor the Buyback Guarantee but Instead Seeks to Cash Out: Pursuant to Valgen Medtech's "Shareholders' Agreement", if the company fails to complete a qualified IPO by April 26, 2026, the Series B investors are entitled to recover the full principal plus 8% annual simple interest (cumulatively 40% over five years). The fund managed by Zhang Mingfang has already issued a "Share Repurchase Notice", yet the founder intends to evade the repurchase obligation through INT Medical's acquisition proposal.
Founder Takes 400 Million RMB in Cash, Investors Left with Nothing: Valgen Medtech's cash balance stood at only 497 million RMB at the end of Q1, entirely insufficient to repurchase the investors' principal and interest. Per the agreement, the 51% equity stake held by the founder should bear the make-whole obligation; theoretically, the founder should not receive a single penny. However, INT Medical's proposal allows the founder to walk away with 400 million RMB in cash, at the expense of the investors forfeiting five years of agreed-upon interest.
Forcibly Depriving Investors of Core Rights: INT Medical’s proposal compels shareholders to waive their redemption rights following a failed IPO VAM agreement, while exempting the founder from joint and several liability for compensation—effectively meaning that investors may not only receive no interest but could even lose their principal, while the founder walks away completely unscathed.
There is absolutely no need for an urgent acquisition: the repurchase right has a 180-day exercise period, and Valgen Medtech is demonstrating strong growth momentum. While other potential acquirers are willing to conduct due diligence and submit bids, the founder is nonetheless rushing to advance INT Medical’s proposal, with the core objective being to cash out and exit as quickly as possible.

In response to this, Liang Dongke, Chairman of INT Medical, stated that the company's cash on its balance sheet exceeds RMB 800 million and it possesses strong industry consolidation capabilities, noting that this acquisition proposal provides a complete exit path for all shareholders; meanwhile, Zhao Yiwei, the actual controller of Valgen Medtech, directly refuted Zhang Mingfang's remarks and insisted on proceeding with the transaction with INT Medical.

To date, the reporter has repeatedly contacted Liang Dongke and Zhao Yiwei to verify the relevant details, but has received no response, leaving the standoff between accusations and rebuttals at an impasse.

Deep Dive into the Denuo Group: Capital Landscape Conceals Hidden Strategies, INT Medical's Early Positioning

In fact, this is not the first time INT Medical has been entangled with the "Nuomao" group.

According to public information, Deno Medical Group, jointly founded by Zi Zhenjun and Zhao Yiwei, has already established an extensive medical portfolio, incubating multiple enterprises such as Broncus Medical (2216.HK), Nuomao, Valgen Medtech, and Weiqiang Medical, with its business spanning multiple fields including cardiovascular and pulmonary diseases.

Meanwhile, INT Medical has long quietly positioned itself within the "Nuomao group":

In May 2025, acquired a 51.7% equity stake in WQ Medical for RMB 324 million, consolidating it into the financial statements;

In October 2025, a plan was made to subscribe for a 14.38% equity stake in Broncus Medical for HK$283 million; unfortunately, as the conditions precedent were not satisfied, the transaction remains incomplete to date;

In March 2026, participation in Shanghai Chenyao Xinchen's RMB 500 million proposal to acquire a controlling stake in Nuomao sparked a dispute;

In April 2026, plans to acquire Valgen Medtech for RMB 1.5 billion are proposed, further expanding the "Deno" group assets.

More notably, INT Medical holds an 18.55% stake in Shanghai Chenyao Xincheng, which is precisely the primary acquirer of Nuomao—this means that INT Medical has been deeply involved in Nuomao’s equity transaction from the very beginning, contrary to its claim of being “unrelated to the Nuomao acquisition.”

Meanwhile, the valuation of Nuomao has plummeted from a peak of RMB 2.9 billion to RMB 500 million, representing a decline of over 80%. This means that numerous investors will face substantial losses or unrealized losses on their principal, which is precisely the core reason behind the investors' anger.

Zhang Mingfang revealed that the two private equity funds she founded invested in Nuomao in 2022. To date, they have not only failed to receive any returns, but have also been requesting the original copy of the "Termination Agreement of Special Shareholder Rights" for 15 months to no avail—the validity of this agreement directly determines whether the investors can successfully recover their principal.

Suspense at Its Peak: Will the 1.5 Billion Acquisition Materialize? Who Is Lying?

Today, this capital saga has drawn in multiple stakeholders: INT Medical firmly maintains that the acquisition was compliant and unrelated to the dispute; the de facto controllers of the Nuomao group deny any "collusion or conspiracy"; the former "pharma queen" spearheads the vehement public backlash, while investors collectively assert their rights; meanwhile, prominent venture capital firms such as Qiming Venture Partners and Sequoia China, which have backed the company for years, may now face the awkward predicament of "having no profits to realize."

More critically, INT Medical’s own cash flow has also raised widespread market concerns: as of the end of 2025, the company’s cash and bank balances stood at approximately RMB 630 million, while the maximum cost of this acquisition could reach RMB 1.5 billion, leaving a funding shortfall of nearly RMB 900 million. Where exactly will this substantial amount of capital come from?

It should be noted that although the structural heart disease treatment market holds promising prospects, with a projected compound annual growth rate (CAGR) of 45% from 2023 to 2030 and a market size expected to reach RMB 42 billion by 2030, the VAM agreement failure of Valgen Medtech and the ongoing disputes involving Nuomao have all made INT Medical's M&A path fraught with obstacles.

Currently, INT Medical stated that the acquisition of Valgen Medtech has been reviewed and approved by the board of directors and is proceeding in an orderly manner, although uncertainties regarding the transaction cannot be ruled out. Nuomao stated that for related matters, please refer to the previously issued statement, with no further information to disclose at present.

A merger and acquisition dispute involving billions in capital and the interests of multiple parties continues to escalate.

INT Medical’s 1.5 billion RMB investment in the "Nuomao group," is this a visionary strategic deployment or a reckless gamble? Can the allegations from the former leading figure in the pharmaceutical industry be substantiated? Is the founder truly orchestrating a disguised cash-out to exit? Can investors ultimately recover their principal?

We will continue to closely monitor subsequent developments and provide updates as soon as new information becomes available!

Let's discuss in the comments: What undisclosed details do you think lie behind INT Medical's acquisition?