Lifetech Scientific Acquires Huayi Shengjie for RMB 1.87 Billion to Complete Structural Heart Portfolio

　　【Pharmaceutical Network Corporate News】In light of the new landscape of intensifying competition in the medical device industry, cardiovascular and cerebrovascular interventional device manufacturer Lifetech Scientific has initiated key strategic moves to fill critical gaps in the industrial chain. Recently, Lifetech Scientific announced that it will acquire approximately 96.46% of the equity interest in Starway Medical for RMB 1.87 billion, making Starway Medical a non-wholly owned subsidiary of Lifetech Scientific.
 

According to available data, Lifetech Scientific focuses on the research and development of interventional medical devices for cardiovascular, cerebrovascular, and peripheral vascular applications. The company has already established multiple product series centered around three core solution areas: structural heart disease, peripheral vascular disease, and bradycardia. In terms of financial performance, Lifetech Scientific reported a full-year revenue of RMB 1.37 billion in 2025, representing a year-on-year increase of 5.1%. This growth was primarily driven by the peripheral vascular business and covered stents, while the structural heart disease segment experienced an overall decline of 3%, indicating initial pressure on revenue growth.
 

Starway Medical is an enterprise specializing in the research, development, manufacturing, and sales of vascular interventional medical devices. Its product portfolio is centered on interventional therapies for congenital heart disease, featuring four core occluder products. All of these have obtained Class III medical device registration certificates from the National Medical Products Administration (NMPA), with a cumulative clinical implantation count exceeding 220,000 cases.
 

Industry analysts note that Lifetech Scientific's peripheral vascular business has become a key performance driver. However, the vena cava filters within this segment have now also been brought into the scope of large-scale centralized procurement. The acquisition of Starway Medical will enable Lifetech Scientific to fill the gap in its PFO occluder portfolio. Based on recent clinical and market performance, the potential of this sector is being rapidly unlocked. Institutional assessments estimate that, calculated against the number of patients eligible for PFO closure therapy, China's annual potential market size for PFO occluders is at least RMB 800 million, with the existing market stock potentially reaching RMB 5.2 billion. Following the acquisition of Starway Medical, Lifetech Scientific will immediately gain access to mature PFO occluder products, thereby addressing another critical gap in its structural heart disease product line.
 

It is reported that Starway Medical is currently effectively controlled by Hillhouse Capital through its multi-tiered holding platforms, with an aggregate shareholding of nearly 88.5%, representing a key strategic layout for Hillhouse Capital in the cardiovascular device sector. In 2025, the company recorded a profit after tax of approximately RMB 108 million, with an agreed overall valuation of around RMB 1.942 billion. According to the announcement, the transaction value is based on an 18x price-to-earnings (P/E) multiple applied to Starway Medical’s profit after tax of approximately RMB 108 million for the fiscal year ended December 31, 2025 (excluding share-based compensation expenses). This transaction involves no cash payment; instead, Lifetech Scientific will issue convertible bonds to the seller upon completion as the full consideration.
 

Following the completion of this acquisition, Lifetech Scientific will integrate Starway Medical’s proprietary technology, established market channels, and R&D capabilities to achieve synergies and further enhance its comprehensive product portfolio. Looking ahead, as the PFO occluder market continues to expand, coupled with the enhanced risk resilience of its product matrix under the centralized procurement environment, Lifetech Scientific is expected to unlock new growth avenues through this transaction. The Directors are of the opinion that the acquisition of Starway Medical aligns with the Group’s overall development strategy and will deliver long-term benefits to the Company.
 

Disclaimer: Under no circumstances shall the information or opinions expressed in this document constitute investment advice to any person.