Nomax Medical Completes Over RMB 300 Million Strategic Financing to Lead China's ENT and Cranial-Spinal Surgical Device Market

VCBeat has learned that, recently, the leader and integrator of medical devices for otorhinolaryngology and cranial-spinal surgery in ChinaLeno Medical Technology (Shanghai) Co., Ltd. (hereinafter referred to as “Leno Medical”)Announces the successful completion of a new round of strategic financing, with total funding exceeding RMB 300 million.

This round of financing was led byQiming Venture PartnersLead Investor,RHCCo-investment.Poseidon Hill CapitalServed as the exclusive financial advisor. This financing will provide crucial capital support for Leno Medical’s market expansion and product R&D, further empowering the company to maintain its leadership in the ENT and cranio-spinal surgical device sector.

In recent years, the incidence of ear, nose, and throat (ENT) diseases in China has been rising year by year. According to relevant statistics, approximately 20 million new ENT patients are diagnosed annually in China. In terms of surgical volume, ENT surgeries totaled around 2 million cases in 2021, compared to just 500,000 cases five years earlier, representing an annual growth rate exceeding 30%. Furthermore, China has a substantial number of allergic rhinitis patients, reaching 240 million, with a prevalence rate approaching that of developed countries. Previously, due to the lack of effective and safe device-based treatment options, this represented a vast, overlooked blue-ocean market.

Meanwhile, the overseas otolaryngology sector has entered an era of mergers and acquisitions (M&A) and consolidation. Leading foreign enterprises have been actively pursuing M&A activities to enhance their comprehensive solutions for otolaryngology businesses. For instance, in 2017, Stryker acquired Entellus Medical, a company specializing in minimally invasive treatments for chronic sinusitis, for $662 million in cash. Between 2015 and 2024, Medtronic completed several M&A transactions in the otolaryngology field, including the acquisition of Intersect ENT for over $1 billion. These significant investments by global giants clearly demonstrate their strong optimism and long-term confidence in the otolaryngology market.

After more than three decades of development, China’s medical device industry has transitioned from an extensive growth phase characterized by “abundant resources and expansive markets” to a new era marked by the concentration of leading enterprises. In the Medical Device 4.0 era, integration and innovation have become the central themes of the industry. Leveraging nearly 20 years of experience in finance and industry, along with a global perspective, the core executive team of Leno Medical Technology (Shanghai) Co., Ltd. remains committed to long-term strategic planning, guiding the company toward steady and sustainable growth.

Leno Medical Technology (Shanghai) Co., Ltd., formerly known as “Lenuo Medical,” was established in 2015. In 2017, the company built a research, development, and production base for high-value consumables in the Suzhou New District Medical Device Industrial Park. Since then, the company has rapidly expanded its product pipeline through four strategic acquisitions: merging with Chengdu Meichuang Medical, a leading domestic medical plasma technology platform, in 2019; acquiring a controlling stake in Hangzhou Tonglu Sko Medical Instrument Co., Ltd., a leading domestic manufacturer of ENT and craniospinal surgical instruments, in December 2021; fully acquiring Germany’s Endodoctor high-end endoscopy system in March 2022; and welcoming Guizhou Zirui Technology Co., Ltd. into Leno Medical in November 2022. Through these mergers and acquisitions, Leno Medical has successfully established a leading Chinese platform for ENT and craniospinal surgical instruments.

Today, Leno Medical’s products are sold in more than 40 countries and regions worldwide, reaching over 3,000 hospitals, the majority of which are specialized ENT hospitals and Grade IIIA hospitals. The company’s main products hold a market share exceeding 30%, establishing it as the leading enterprise in China’s ENT and cranio-spinal surgery sectors.

Leno Medical Technology leverages its exceptional R&D capabilities to deliver a globally innovative, comprehensive solution for ENT power systems, with product performance surpassing that of imported brands. Its industry-leading technical features include low-temperature water cooling, a modular detachable design, maximum speeds of up to 160,000 RPM, and an eccentric shaft design. Furthermore, its integrated design reduces costs, truly benefiting patients.

China has a large population of rhinitis patients, and the condition presents a challenge that is difficult to cure with traditional therapies. Leno Medical Technology pioneered China’s first Temperature-Controlled Ablation (TCA) product, keeping pace with international technological advancements. This product employs neural ablation technology to precisely disrupt the posterior nasal nerve and its branches, effectively alleviating rhinitis symptoms. The procedure is performed under local anesthesia using a sinus endoscope, enabling it to be conducted as an outpatient surgery. Since its market launch, the TCA product has gained high recognition from patients due to its significant efficacy, bringing substantial benefits to those suffering from rhinitis.

Cui Teng, Founder of Leno Medical“Thank you to both new and existing shareholders for their strong support of Leno Medical. The Chinese surgical medical device industry has entered a phase of further integration within vertical niche segments. In the near future, we expect to see certain domestic device companies emerge as leaders, competing directly with multinational corporations on a global scale. Leno Medical will seize this opportunity to evolve into an innovation-driven, global platform-based medical device company.”

Hu Xubo, Managing Partner of Qiming Venture Partnersstated: “Leno Medical’s rise to become the market leader in China’s ENT sector over the past decade is attributable not only to the team’s strategic vision and foresight, but more importantly to their efficient execution. We look forward to seeing the company grow into a brand manufacturer with global influence. In the future, it will drive the R&D and promotion of more innovative products in the fields of ENT and spine care, bringing benefits to patients and healthcare providers in China and around the world.”

Shi Shenghao, Managing Partner at RHCRHC stated: “RHC continues to closely monitor the development of China’s medical device industry. Leno Medical is a leading domestic provider of comprehensive ENT solutions, with a portfolio of core products including plasma surgical systems, powered surgical systems, temperature-controlled high-frequency surgical units, and surgical instruments. We are optimistic about the company’s unique business strategy and its highly execution-driven management team. RHC is honored to participate in this round of financing for Leno Medical, supporting its robust growth in the next phase.”

Yang Zhenjun, CEO of Poseidon Hill Capital“Leno Medical Technology, a leading enterprise in China’s ENT sector, has rapidly scaled its sales from zero to hundreds of millions of RMB through independent R&D and M&A integration. The founder’s visionary leadership and the team’s efficient execution are truly impressive. As Leno Medical Technology’s long-term exclusive financial advisor, we are honored to have assisted the company in securing over RMB 300 million in financing and optimizing its capital structure amidst the current complex landscape. We look forward to Leno Medical Technology’s continued development of globally leading products, providing Chinese innovative solutions for patients and healthcare providers worldwide.”

Leno Medical Technology (Shanghai) Co., Ltd. is a leading domestic medical device company integrating R&D, production, and sales, dedicated to providing comprehensive diagnostic and therapeutic solutions for otolaryngology and cranio-spinal surgery. Established in 2015 and headquartered in Shanghai, Leno Medical serves as a pioneer and integrator of medical devices for otolaryngology and cranio-spinal surgery in China, holding a prominent position in the domestic diagnosis and treatment market. Its core products include coblation surgical systems, powered surgical systems, medical endoscopic camera systems, temperature-controlled high-frequency surgical units, Eustachian tube balloon dilation catheters, sinus balloons, disposable nasopharyngeal airways, drug-eluting sinus stents, and surgical instruments. The company contributes to the development of specialized disciplines in over 3,000 hospitals across more than 40 countries worldwide.

Qiming Venture Partners was established in 2006. Currently, Qiming Venture Partners manages 11 US dollar funds and 7 RMB funds, with total assets under management reaching $9.5 billion. Since its inception, the firm has focused on investing in outstanding early-stage and growth-stage companies in sectors such as technology and consumer goods, as well as healthcare and life sciences. To date, Qiming Venture Partners has invested in more than 580 high-growth innovative enterprises, among which over 210 have either listed on exchanges including the New York Stock Exchange, NASDAQ, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Shenzhen Stock Exchange, or exited through mergers and acquisitions. Additionally, more than 80 of its portfolio companies have become industry-recognized unicorns or super unicorns.

RHC was established in January 2015 as one of the first private equity fund management companies in China’s insurance industry to be initiated and funded by insurance capital. After ten years of development, RHC has achieved a fund management scale of RMB 30 billion, with business segments covering funds of funds (FOF) and direct investments, focusing on healthcare, emerging technologies, new consumption, and real estate.

Poseidon Hill Capital is a China-focused healthcare investment bank composed of seasoned industry professionals, specializing in providing premier financing services and solutions for complex M&A and restructuring transactions for healthcare enterprises. Leveraging our team’s deep industry expertise and keen insights, we are committed to bridging the gap between enterprises and capital to facilitate business growth.