ShanShandong Branden Medical Devices Co., Ltd. (hereinafter referred to as “Branden” or the “Company”) recently updated its IPO application review status on the Shanghai Stock Exchange. The Company’s listing on the STAR Market has attracted widespread market attention. High-end medical materials have long been subject to supply chain constraints imposed by foreign enterprises, making the advancement of Chinese companies’ medical capabilities and cutting-edge technologies critically important to national security.

Branden is a national high-tech enterprise dedicated to applying medical material modification technologies to implantable and interventional medical devices. Through independent research and development and continuous innovation, the company has established core technology platforms centered on medical material modification, precision machining, and digital diagnosis and treatment of vascular access.

Core products have broken the monopoly of imported products in the domestic PICC market.

Branden’s PICC products feature high resistance to catheter fracture and electrical conductivity. When used in clinical practice in conjunction with the company’s independently developed color Doppler ultrasound diagnostic system, they offer advantages such as high insertion success rate, accurate positioning, and low incidence of complications. The project “Establishment of Key Digital Diagnosis and Treatment Technology System for Vascular Access and Its Clinical Application,” centered on the core technologies of these products, was awarded the Second Prize of the National Science and Technology Progress Award in 2020. Zhang Haijun, one of the company’s actual controllers, was the primary contributor, and the company was one of the main participating entities. In addition to its vascular access product line, the company offers a diverse portfolio including neurosurgical products and other material modification products.

[The Company is the first domestic enterprise to obtain the Class III medical device registration certificate for a domestically produced PICC, breaking the monopoly of imported products in the domestic PICC market.] PICC products are also the primary pillar of the Company’s four core business segments.

Domestic and International Medical Device Markets: A Multi-Trillion Yuan Blue Ocean with Accelerating Growth Year After Year

Global Market Overview: Driven by the expanding global population base and economic growth in developing countries, the global medical device market has continued to grow, surpassing USD 440 billion in 2020. It is projected that the market size will exceed USD 800 billion by 2030, representing a compound annual growth rate (CAGR) of 6.3% from 2020 to 2030.

Overview of the Chinese Market:

The market size of China’s medical device industry has grown from RMB 312.55 billion in 2015 to RMB 778.93 billion in 2020, representing a compound annual growth rate (CAGR) of approximately 20.0%. Looking ahead, driven by increased household affordability for healthcare services, state support for the medical sector, and industrial upgrading fueled by technological advancements, China’s medical device industry is poised to sustain robust growth. The market size is projected to exceed RMB 2.2 trillion by 2030, with an estimated CAGR of 11.2% from 2020 to 2030.

Amid the rapid growth of China’s medical device industry, medical device companies are characterized by a large number of players, small overall scale, and low industry concentration. Compared with developed countries, Chinese medical device companies still face key opportunities for industry development and possess significant growth potential. Furthermore, the extent of import substitution varies across different segments of China’s medical device industry. Certain technology-intensive, high-end medical device sectors remain predominantly dominated by imported products. There is an urgent need for the domestic medical device industry to master more core technologies in high-end medical devices, continuously drive product innovation, promote industrialization, achieve import substitution, and thereby sustain the continuous growth of the scale of domestically produced medical devices.

The Company has established a comprehensive production quality management system, implementing full lifecycle quality management for its products to ensure product quality. As of the date of signing this prospectus, the Company’s main products have been certified under the domestic quality standard YY/T 0287 and the international quality management system standard ISO 13485; five of its products have obtained CE certification, and the Company has been recognized as a demonstration enterprise in Shandong Province for the implementation of Good Manufacturing Practices (GMP) for medical devices.

Amidst massive market demand, Branden holds a significant market position. Core Business ①: Branden is the first domestic enterprise to obtain registration certification for Chinese-made PICC (Peripherally Inserted Central Catheter) products. It has developed Chinese-made PICC products compatible with catheter positioning systems, breaking the monopoly of imported products in the domestic PICC market. The launch of the company’s products has driven down market prices for PICCs, benefiting patients. Currently, imported PICC products still account for the majority of the domestic market share. The company’s product technology features independent intellectual property rights and has reached an internationally leading level in aspects such as catheter conductivity and fracture resistance.

② External Cranial Drainage Catheters: The market for external cranial drainage catheters is currently dominated by imported products. Medtronic holds a major share of this consumables market, leveraging its comprehensive portfolio in neuronavigation and imaging equipment, neurosurgical instruments, and consumables. In China, only Branden and a few other companies have established extensive product lines covering continuous lumbar drainage, external ventricular drainage, subdural drainage, and minimally invasive intracranial drainage, thereby securing a certain market share amidst the import-dominated landscape.

▲ Source: Listed Companies Network

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