Ligatech Secures Tens of Millions in New Funding to Expand Comprehensive Orthopedic Solutions Across All Major Joints

Shanghai Ligatech Bioscience Co., Ltd. (hereinafter referred to as “Ligatech”) has recently completed a new round of financing amounting to tens of millions of yuan, with Beijing Zhenghe Huitong Fund Management Co., Ltd. (hereinafter referred to as “Zhenghe Huitong”) as the investor. Lai Weiguo, Co-founder and General Manager of Ligatech, stated that the funds from this round will continue to be used for the research and development of the company’s core products.

It is reported that Ligatech is a high-tech company specializing in the research, development, production, and sales of sports medicine medical devices and biomedical materials, primarily providing comprehensive solutions for the sports medicine industry.

With the rise of the national fitness boom and an aging population, the total number of sports injuries and muscle wear-and-tear or tears caused by muscle aging is rapidly increasing. This huge market demand has also driven strong growth in the related medical consumables market.

According to the "2019-2025 China Medical Device Market Competition Pattern and Investment Risk Forecast Report" released by Zhiyan Consulting, in 2015, the market size of orthopedic consumables in China was approximately RMB 17.5 billion, and it is expected to reach about RMB 30 billion by 2020, with a compound annual growth rate (CAGR) of around 11% over the five-year period.

From a therapeutic perspective, the market for orthopedic implantable medical consumables can be categorized into sports medicine, trauma, spine, joint, and neurosurgery segments. Among these, sports medicine is a comprehensive applied science that integrates medicine with athletic activities. With the growing public awareness of fitness, an increasing number of people are experiencing sports-related injuries and conditions, such as ligament tears, meniscal tears, and joint wear.

Following sports injuries, individuals seek various treatment options to restore athletic function, which has spurred the rapid development of sports medicine in China. Ligatech boasts a comprehensive portfolio of sports medicine products, meeting the device needs for the entire process of joint repair, reconstruction, and regeneration, as well as the requirements for surgeries on various joints.

As Co-founder and General Manager of Ligatech, Lai Weiguo possesses an extensive foundation as a sports medicine expert. After graduating from Zhejiang University with a degree in Biomedical Engineering and Instrumentation, he joined Stryker and Smith & Nephew to work in the field of sports medicine. His 16 years of experience in multinational corporations have equipped him with profound and professional insights into the sports medicine industry both in China and globally.

Compared with foreign countries, sports medicine in China started later. In 1991, the domestic arthroscopy association was established. In 2007, the Chinese Medical Association founded the Sports Medicine Branch. In 2010, China's sports medicine industry began to take off, and in the following years, the market experienced explosive growth.

Despite rapid development, the Chinese sports medicine market remains dominated by foreign companies such as Smith & Nephew, Depuy, Arthrex, and Stryker, which collectively hold approximately 86% of the market share due to their first-mover advantage. Nevertheless, domestically produced products still have opportunities to capture market share. Lai Weiguo stated, “Imported products are priced high, whereas domestic alternatives can significantly reduce costs, thereby increasing market penetration and helping to unlock the market’s potential.”

In light of the vast development prospects of China's sports medicine market, and adhering to the vision of providing high-cost-performance products for China, Lai Weiguo and Yuan Zheng co-founded Ligatech in 2014.

Lai Weiguo stated, “The company had its English name before its Chinese name.” The company’s English name, Ligatech, is derived from the word “ligament.” “The company’s vision is to provide comprehensive solutions in sports medicine, with ligaments at the core.”

Today, Ligatech has established a comprehensive product portfolio in the field of sports medicine, specializing in the research, development, production, and sales of medical devices, as well as the research and development and production of biomedical materials and products, while providing related technical consulting and services.

In June 2017, Ligatech completed its Series A financing round, led by Legend Capital and participated in by Shanlan Capital and Bencao Capital. The company has recently secured additional investment from Zhenghe Huitong, underscoring its strong appeal to investors.

Zhang Zhiling, Partner at Zhenghe Huitong Medical Investment, pointed out, “Ligatech’s focus on the sports medicine field, its robust and solid technological innovations, and its leading layout in both the depth and breadth of its product portfolio are rare in China. Coupled with the founding team’s profound industry background and experience, forward-looking strategic thinking, and efficient and capable management style, Zhenghe Huitong is firmly optimistic that this original project can produce products competitive with international brands.”

The high-value medical consumables industry is a high-tech sector characterized by multidisciplinary integration, knowledge intensity, and capital intensity. Sports medicine products integrate multiple disciplines and technologies, including medicine, materials science, biomechanics, testing and analysis, surface technology, and mechanical manufacturing, imposing stringent requirements on product technology and R&D capabilities. Meanwhile, production and processing techniques directly determine product performance and clinical efficacy, thereby significantly impacting surgical success rates. Consequently, sports medicine places exceptionally high demands on production environments, manufacturing processes, and equipment.

Ligatech’s core founding members, Lai Weiguo and Yuan Zheng, have cultivated extensive expertise through years of deep engagement in the field of sports medicine. Ligatech’s production equipment is custom-built to align with its proprietary manufacturing processes, undergoing continuous optimization and improvement over prolonged production periods to meet the rigorous demands of the market.

Sports medicine-related surgeries are categorized into three areas: repair, reconstruction, and regeneration. Targeting the repair, reconstruction, and regeneration processes of articular soft tissues, Ligatech has integrated the technological platforms of multiple enterprises, including MicroPort Shanghai and Bojin Shanghai.

Currently, Ligatech's products can be categorized into several major groups, including artificial ligaments, arthroscopic shavers, looped titanium plates for ligament fixation, and sutures.

Artificial ligaments are implants that fully or partially transmit forces between soft tissue and soft tissue, soft tissue and hard tissue, or hard tissue and hard tissue. Since autografts tend to cause tissue defects at the harvest site, while allografts carry potential risks such as immune rejection and disease transmission, artificial ligaments have become a research hotspot in the field of sports medicine.

Ligatech has established a production line for artificial ligaments and ligament fixation systems. The company’s compression-type artificial ligaments match the quality and performance of France’s Lars ligament, while its novel suspension-type ligaments better meet clinical needs. Currently, Ligatech holds 27 utility model patents and 6 invention patents related to artificial ligaments, with one proprietary artificial ligament weaving technology under development.

Arthroscopic Shaver Blades are disposable rotating cutting devices designed for the resection of soft tissue and bone within various large and small joint cavities. Ligatech’s arthroscopic shaver blades are entirely independently developed, with five invention patents granted and utility model patents currently under application.

Looped titanium plates are the gold standard for suspensory fixation at the femoral end of the cruciate ligament, a market previously monopolized by foreign companies. Ligatech’s looped titanium plate product has obtained one utility model patent and will soon be launched, positioning it as a key tool for domestic substitution of imported products.

Given that implantable consumables in the field of high-value medical consumables must conform to human tissue structures and remain in the body for extended periods, the state imposes strict monitoring across all stages, including research and development, production, and distribution. Ligatech’s products are classified as Class II or Class III medical devices and must comply with stringent regulations governing manufacturing licenses and product registration for medical device manufacturers.

Currently, Ligatech’s core products, including implantable orthopedic consumables such as artificial ligaments and suture-button titanium plates, are undergoing registration approval and are poised for market launch. Arthroscopic shavers have already been marketed both domestically and internationally.

Ligatech has an affiliated relationship with Shanghai Kindly Medical Technologies Co., Ltd. (hereinafter referred to as “Kindly Medical”), a listed medical device company. As a leading enterprise in the field of minimally invasive spine surgery in China, Kindly Medical holds a dominant industry position in terms of products, distribution channels, expert resources, hospital coverage, R&D reserves, and international cooperation, with its products sold in over 2,000 hospitals. Leveraging these strong resource advantages, Ligatech’s strengths in technological innovation and the depth and breadth of its strategic layout are expected to be fully realized, forming a complete industrial closed loop with Kindly Medical and enhancing core market competitiveness.

In 2018, the sports medicine market in China was valued at approximately RMB 3 billion. Lai Weiguo believes that the field of sports medicine will move toward greater refinement and specialization in the future.

The human body has six major joints (shoulder, elbow, wrist, hip, knee, and ankle), countless minor joints, each with distinct locations, functions, and varied shapes. “Different joint surgeries require different specialized instruments; even large hospitals do not have all the equipment needed for various joint surgeries,” said Lai Weiguo.

Over the next five to eight years, Ligatech will continue to deepen its engagement in the sports medicine field, developing new products based on patients’ surgical needs. Lai Weiguo stated, “Sports medicine in China holds immense potential and is a discipline worth dedicating my life to.”