MicroPort Scientific Announces Strategic Investment in NDR Medical and Joint Venture to Commercialize Puncture Navigation Robotic Systems in Greater China

Original Title: MicroPort (00853.HK) Invests S$6 Million in NDR as Strategic Investor and Plans to Establish a Joint Venture to Enable NDR’s Puncture NavigationRobotSystem Commercialization Source: Gelonghui

Gelonghui, May 6 | MicroPort (00853.HK) announced that on May 6, 2020, the company entered into a formal agreement with NDR Medical Technology Pte Ltd (NDR) to lead a strategic investment of SGD 8 million in NDR. The company committed to investing SGD 6 million in exchange for approximately 20.9% of NDR’s enlarged equity stake.

With respect to this investment, the Company’s subsidiary, MicroPort U-Tong Medical Technology (Jiaxing) Co., Ltd., has also entered into an agreement with NDR and Shanghai Youlong Enterprise Management Consulting Center (Limited Partnership) to establish a Chinese joint venture company for the purposes of applying for regulatory approval from the National Medical Products Administration (NMPA) and commercializing NDR’s puncture navigation robotic system; establishing manufacturing production capabilities for the aforementioned system to facilitate distribution within the Greater China region; and conducting research and development activities related to next-generation products.

The registered share capital of the joint venture is RMB 25 million. Youtong, NDR, and Shanghai Youlong will invest RMB 10.25 million, RMB 9.75 million, and RMB 5 million, respectively, in exchange for 41%, 39%, and 20% equity interests in the joint venture.

NDR is a medical device company incorporated in Singapore, engaged in the research and development of needle puncture navigation robotic systems for percutaneous nephrolithotomy and/or percutaneous lung biopsy and ablation procedures. As of the date of this announcement, it is approximately 74.6% owned by its founders, Mr. Ng Ka Wei and Mr. Goh Jin Quan.

The company stated that NDR has developed two robotic surgical assistance systems that integrate robotic hardware with proprietary Automatic Needle Targeting (ANT) software. This robotically controlled guidance device positions the needle to enter the human body and reach the target organ via the safest route, thereby minimizing the risk of perforating vital organs and blood vessels along the path. NDR’s proprietary artificial intelligence-driven algorithms analyze real-time fluoroscopy and computed tomography images fed into the ANT system during procedures to guide needle placement, ensuring a safe and effective trajectory through the body. Its ANT-X robotic system is designated for percutaneous nephrolithotomy, a minimally invasive procedure that removes kidney stones through small punctures in the skin. Its ANT-C robotic system is intended for percutaneous lung biopsy and ablation procedures.

By reducing the complexity of the aforementioned procedures and enhancing their safety, the Group believes that the use of robotic-assisted systems (such as ANT-X and ANT-C) can help treat the majority of untreated kidney stone and pulmonary disease patients in China who may lack access to physicians skilled in these procedures. This investment and joint venture will make the Group a shareholder of NDR, thereby promoting collaboration with NDR to commercialize its innovative, proprietary puncture navigation robotic system products in the Greater China market, while also providing the Group with an additional platform for developing its products and services.