Brosmed Medical Secures Hundreds of Millions in Series C Funding Led by Hillhouse, Caisse d'Epargne, and Service Trade Fund; Files for IPO

Recently, Guangdong BrosMed Medical Co., Ltd. (hereinafter referred to as “BrosMed Medical”) announced the completion of its Series C financing round, amounting to several hundred million RMB. The round was led by Hillhouse Ventures, with participation from Cathay Capital and the China International Trade in Services Fund. Joy Capital served as the exclusive financial advisor. As a leading domestic brand in coronary and peripheral balloon catheters in terms of technology and scale, BrosMed Medical completed this financing round in less than four months. Such efficiency and achievement are particularly remarkable given the severe challenges posed by the COVID-19 pandemic.

BrosMed Medical is a research and development-oriented manufacturer of high-value medical consumables. Its product portfolio encompasses nearly 1,000 products and combinations across four major categories: cardiovascular interventional products, peripheral vascular interventional products, neurointerventional products, and accessory products. BrosMed Medical aims to combine internationally leading product technologies and manufacturing processes with an innovative, open business model to consolidate and enhance the competitive advantage of Chinese brands in the global market for high-end medical device consumables.

According to the report “Evaluate MedTech, World Preview 2018, Outlook to 2024” released by the global consulting firm Evaluate, IVD, cardiovascular, imaging, orthopedics, and ophthalmology are among the sectors with the largest global market sizes.

Global top 10 medical device companies by market capitalization, such as Medtronic, Johnson & Johnson, Danaher, and Becton Dickinson (BD), also concentrate their core businesses in areas like cardiovascular care, orthopedics, and in vitro diagnostics (IVD). This demonstrates that sectors with larger market sizes are more likely to give rise to companies with high market valuations.

According to the report “The Golden Age of Medical Devices: The Rise of Domestic Innovation” released by Haitong Securities, minimally invasive interventional therapy is one of the future innovation directions for domestically produced medical devices. In 2007, China performed a total of 143,000 percutaneous coronary interventions (PCIs), while coronary artery bypass grafting (CABG) procedures numbered between 18,000 and 20,000 during the same period. BrosMed Medical disclosed that in 2019, a total of 1.07 million PCIs were performed nationwide, with the usage of balloon catheters exceeding 2 million sets; the growth rate of PCI far outpaced that of CABG. The rapid increase in the volume of minimally invasive interventional procedures has enhanced the market penetration of related medical devices and high-value consumables, cultivated the market, and laid the foundation for the subsequent explosion of the minimally invasive interventional therapy market.

The explosion of the minimally invasive interventional therapy market will give rise to a huge market for high-value consumables, and this field will also see the emergence of large-market-cap enterprises in the future.

As a leading enterprise in China’s vascular interventional balloon catheter market, BrosMed Medical has established the Guangdong Provincial Engineering Technology Center for Vascular Interventional Therapy and Medical Devices, as well as the Dongguan Key Laboratory for Research and Development of Vascular Interventional Medical Devices. With nearly a decade of development and almost two decades of technological accumulation, BrosMed Medical’s globally marketed products now span three major fields and more than ten categories, while its pipeline includes double-digit numbers of projects under development.

BrosMed Medical has built an internationally advanced technology and product development platform centered on vascular interventional medical device technologies, leveraging its globally exclusive proprietary technology. Meanwhile, BrosMed Medical’s innovation team continuously updates and iterates its products through sustained R&D capabilities.

On February 19, 2020, three products from BrosMed Medical, representing internationally advanced technologies and unique innovations in vascular interventional balloon catheters, successively received CE certificate approval from EU certification bodies on the same day, marking their entry into the European Union and related regional markets.

These three products boast high technological sophistication and innovation. Among them, Alveo™, the world’s smallest CTO coronary balloon (0.75mm), and the Tri-Wedge™ triple-wire scoring balloon catheter are both globally unique patented products, representing the latest and most cutting-edge technological advancements in this field. Meanwhile, the Wedge™ NC high-pressure non-compliant scoring balloon catheter also features exclusive patented innovations. This achievement further demonstrates BrosMed Medical’s advanced technology platform and its team’s sustained innovative capabilities.

(Provided by the company)

It is understood that BrosMed Medical’s coronary balloon catheters and peripheral balloon catheters are, to date, the only high-end medical device products among Chinese domestic brands to have achieved large-scale market launch and sales in all three major medically advanced regions and countries: the United States, Japan, and the European Union.

Although BrosMed Medical’s products have been on the market for only five years, they are now exported to more than 40 countries and regions. In some of these markets, the company has achieved double-digit market share, breaking through the technological barriers and market monopolies held by international giants. Within less than three years since its launch in the Chinese market, BrosMed has rapidly emerged as a leader in the domestic coronary balloon catheter sector, with annual growth rates doubling year over year, earning strong favor among clinicians and the market alike.

Hillhouse Venture Capital stated, “The high-end medical device industry requires not only an innovative spirit of continuous exploration and bold breakthroughs, but also the craftsmanship of being down-to-earth and striving for perfection. Over the years, BrosMed Medical has persisted in R&D investment, deeply cultivating the market for vascular interventional balloon catheters, and continuously launching high-end medical device products with internationally advanced technological standards, thereby establishing the brand of ‘Created in China’ in the field of vascular interventional medical devices. Hillhouse Venture Capital hopes to support BrosMed Medical in its continuous ascent to the peak of vascular interventional medical technology, bringing more surprises and benefits to doctors and patients through sustained innovation.”

The China Service Trade Fund is equally confident in the future of BrosMed Medical. Dong Jiaxun, a director of the fund, stated, “The China Service Trade Fund was jointly established by the Ministry of Finance and the Ministry of Commerce of the People’s Republic of China, with the mission of supporting Chinese service enterprises in enhancing their international competitiveness. BrosMed Medical possesses a global perspective and the technological foundation necessary to compete internationally. The China Service Trade Fund will fully leverage its policy-leading advantages as a national fund to help BrosMed Medical expand its scale and advance its technological capabilities. While rapidly achieving domestic substitution in relevant fields, BrosMed Medical will continue to expand into international markets and gradually grow into a globally leading high-tech medical enterprise.”

Cathay Capital stated, “BrosMed Medical is a high-quality medical device company with significant potential. Notably, in February this year, the company’s three products, which exemplify internationally advanced technology and unique innovative capabilities in vascular interventional balloon catheters, simultaneously received CE certification—a remarkable achievement. We are optimistic about BrosMed’s development prospects as an R&D-driven manufacturer of high-end medical devices.”

BrosMed Medical, established in 2012 with its global headquarters located in Songshan Lake, Dongguan, Guangdong, is primarily engaged in the research, development, and manufacturing of Class III medical devices for (cardio)vascular intervention, centering on balloons, catheters, guidewires, and accessories. After eight years of development, BrosMed Medical has grown into a leading Chinese enterprise in the domestic high-value consumables sector for vascular interventions, distinguished by both its technological prowess and scale. The company boasts four major product families—cardiovascular intervention, peripheral vascular intervention, vascular access, and interventional accessories—comprising nearly twenty series and thousands of product combinations. Its products are exported to more than 40 countries and regions worldwide, including the United States, Japan, and the European Union. BrosMed Medical possesses multiple globally unique new products and technologies, such as the world’s smallest CTO coronary dilation balloon catheter (0.75 mm), the triple-wire scoring balloon catheter, and the “zero-particle-shedding” drug-coated balloon catheter.

Hillhouse Venture Capital is a venture capital fund under Hillhouse Capital, dedicated to early-stage innovative companies. It primarily focuses on four key sectors: biopharmaceuticals and medical devices, software services and original technological innovation, consumer internet and technology, and emerging consumer brands and services. Biopharmaceuticals and medical devices have long been a core investment focus for Hillhouse, backed by nearly 15 years of in-depth research. The fund has invested in more than 160 outstanding pharmaceutical and medical device companies, including BeiGene, Innovent Biologics, Junshi Biosciences, I-Mab, Frontage Laboratories, Nanomicro Tech, Medtronic (Shenzhen), PINS Medical, Primus Pharmaceuticals, Peijia Medical, MicroPort CardioFlow, and Venus Medtech. We aim to partner with our portfolio companies as “friends of time,” jointly driving innovation and development in the broader healthcare industry to benefit more patients.

As an internationally leading private equity fund focused on cross-border investment, Cathay Capital has been supporting the growth and internationalization of innovative small and medium-sized enterprises (SMEs) in China, Europe, North America, Africa, and Southeast Asia since its establishment in 2006. It is committed to becoming a financial investor with the most extensive industrial resources and industry insights. Currently, the fund manages assets totaling €3.5 billion and has invested in over 150 companies worldwide. Its primary focus areas include consumer goods, TMT (Technology, Media, and Telecommunications), healthcare, automotive and mobility, energy, fintech, and high-end manufacturing. Cathay Capital has identified and invested in dozens of high-quality enterprises such as Sophia, Zbom Home, Meinian Onehealth Healthcare, and AiHuiShou, as well as star unicorn projects like Momenta, Pinduoduo, Drivy, Glovo, and Chime, accompanying them as they grow into industry leaders.

The Service Trade Innovation Development Guidance Fund (Limited Partnership) is a fund under China Merchants Capital. Established in 2012, China Merchants Capital is a joint venture between China Merchants Group and GLP, specializing in alternative investments and asset management. As of the end of 2019, the total assets under management by China Merchants Capital amounted to approximately RMB 270 billion. China Merchants Capital ranked 13th among the Top 50 Private Equity Firms in China in 2019, as listed by Zero2IPO.