MicroPort Scientific Corporation Announces Strategic Investment in Robocath and Establishment of Joint Venture for Vascular Robotics Commercialization in China

MicroPort Medical(00853) announced that on April 23, 2020, its wholly-owned subsidiary, MicroPort Medical CHINA Corp. Limited (the Subscriber), entered into a formal agreement with, among others, Robocath to lead a strategic investment of up to EUR 40 million in Robocath. The Subscriber committed to invest up to EUR 25.3 million in two tranches, in exchange for a 23.19% equity stake in Robocath post-investment. Other investors in this investment included investment funds and existing investors of Robocath, all of whom are independent of the Company and its connected persons.

Regarding this investment, the Group and Robocath have entered into a binding term sheet to establish a China-based joint venture for the purposes of: obtaining regulatory approval from the National Medical Products Administration (NMPA) and commercializing Robocath’s existing robotic systems; establishing facilities for the production and assembly of robotic systems for sale in Greater China; and researching and developing next-generation robotic systems and related artificial intelligence technologies.

The Group and Robocath will invest EUR 5.1 million and EUR 4.9 million, respectively, to establish a joint venture, with the Group holding a 51% equity interest in the joint venture upon its establishment.

It is reported that Robocath, founded in 2009, specializes in the design, development, and commercialization of robotic solutions for the treatment of vascular diseases. Its first robotic system, R-One™, enhances existing methods through precision technology, thereby assisting interventional cardiologists in stent placement (angioplasty). The R-One™ features an open architecture and is compatible with leading interventional devices and catheterization laboratories on the market.

In prospective, randomized, and controlled preclinical studies, R-One™ achieved a 100% procedural success rate with no major adverse cardiovascular events, demonstrating its safety and efficacy. R-One™ received the CE Mark in February 2019, becoming the first European robotic solution to obtain CE Mark approval in the field of vascular intervention. Currently, R-One™ is marketed in Europe and Africa.

This investment and joint venture make the Group a shareholder of Robocath, thereby facilitating collaboration with Robocath to commercialize its highly innovative vascular robotics platform in the Chinese market, while also providing the Group with an additional platform for developing products and services.