36Kr Exclusive: CDH Investments Bets on Sports Medicine, 'Deltam Medical' Secures Nearly RMB 150 Million in Series E Funding

36KrIt has been reported that Beijing Delta Medical Technology Co., Ltd. (“Delta Medical”), a sports medicine brand, has completed a Series E financing round of nearly RMB 150 million, less than six months after its previous financing round exceeding RMB 100 million. This round was led by CDH Investments, with existing shareholders Qiming Venture Partners and Boxing Capital participating as co-investors. The funds will be used to expand Delta Medical’s product portfolio and enhance market promotion, as well as to establish new production facilities and recruit talent.

Delta Medical, established in 2015, is a sports medicine technology company integrating research and development, manufacturing, sales, and services.It is reported that the company focuses on two core areas of sports medicine: new materials and minimally invasive techniques. Its product line covers commonly used clinical consumables, various surgical instruments, arthroscopic equipment, and more, meeting the needs for both arthroscopic and open surgeries for common and frequently occurring sports medicine conditions such as shoulder and knee disorders.

In addition, its core products include independently developed polymersPolyethyleneSutures, suture anchors of various models and materials, button plates, meniscus repair systems, and more than ten other sports medicine products are applicable for the repair and fixation of common clinical conditions such as tissue tears, tendon avulsion injuries, dislocation stabilization, and open-door cervical decompression and fixation.

To date, the company has established modern production bases and R&D centers in Beijing, Sichuan, and Liaoning.The company’s sales network covers more than 500 medical institutions across all provinces, municipalities, and regions in China. In addition, the company established Delta Medical Academy in 2020 to provide a platform for learning and exchange among physicians, and has conducted multiple hands-on training workshops nationwide.

Li Jianbo, Co-founder and Chairman of Delta Medical, stated that although the domestic focus on sports medicine started later than abroad, it has developed rapidly, with sports medicine gradually emerging as one of the most promising sub-sectors in the medical device industry.

According to the "Research Report on Industry Development Trends and Competitive Strategies of China's Fitness Sports APP Industry from 2020 to 2026" released by Zhiyan Consulting, the market size of sports medicine in China exceeded RMB 2 billion in 2018, is expected to reach RMB 3.9 billion in 2021, and the compound annual growth rate (CAGR) of the market size from 2015 to 2021 is projected to be 23.4%.

CDH Investments Team's Viewpoint

Founding Partner Wang Lin stated,With the growing sports-participating population and accelerating aging in China, the demand for treatment of trauma- and degeneration-related conditions in sports medicine is rising rapidly. The market is in a phase of rapid development, with strong potential and significant social value. We highly recognize the Delta Medical team.

Gao Jieliang, Executive Director of the Innovation and Growth Fund (VGC), stated that after in-depth research into the sports medicine sector, the team found Delta Medical to be mature in technology, manufacturing, regulatory registration, academic promotion, and channel development. The company is currently at an inflection point, transitioning from an R&D-focused stage to a period of rapid sales growth. Furthermore, Delta Medical places high importance on research and development, boasts a robust pipeline of products in development, and possesses strong core competitiveness for the mid-to-long term.