INT Medical Acquires Majority Stake in WeQiang Medical in Over RMB 2 Billion Peripheral Vascular Intervention Deal

Recently, INT Medical (01501) announced that it had signed a letter of intent for acquisition with Hangzhou Weiqiang Medical Technology Co., Ltd. and other target group companies. Under the agreement, INT Medical has conditionally agreed to acquire at least a 51% controlling stake in the target companies through capital injections and the purchase of equity interests from certain shareholders of the target companies.

It is understood that INT Medical plans to inject no less than RMB 200 million in capital into Weiqiang Medical and other target companies. In addition, INT Medical or its designated third party shall pay an advance payment of RMB 30 million after the agreement becomes effective, which will be applied toward part of the consideration under the formal acquisition agreement.

VQ Medical specializes in the research and development, manufacturing, sales, and technical support of interventional medical devices. Its main products include thoracic aortic stent graft systems, intraoperative stent systems, interventional balloons, and peripheral vascular stents. To date, VQ Medical has already obtained approvals for products including Fusmart^®Steerable Catheter, VaSabre^®Fifteen products, including peripheral balloon dilation catheters and the VSnare™ vascular foreign body retrieval device, have been approved for market launch.

Weiqiang Medical Product Matrix, from the official corporate website

In 2024, the Grency@ Iliac Vein Stent System received market approval. Designed specifically to address iliac vein stenosis or occlusive lesions, this product conforms perfectly to the anatomical structure of the iliac veins. Its proximal end features a unique beveled design that ensures contralateral blood flow remains unaffected, while the flared design enhances proximal wall apposition. The overall tapered gradient structure accommodates the natural change in vessel diameter, ensuring excellent conformability. Furthermore, the hybrid design with closed cells at both ends and open cells in the middle provides outstanding flexibility while maintaining radial strength.

Previously, VQ Medical’s other star product, the “Perione Peripheral Thrombectomy Catheter,” had also received NMPA approval for market launch. Designed specifically for thrombus removal in peripheral vessels, this catheter has a broad range of indications, including the arteries and veins of the upper and lower extremities, visceral arteries and veins, the superior and inferior vena cava, and the pulmonary arteries. The catheter tip is available in both pre-curved (30-degree) and non-pre-curved configurations to meet diverse procedural needs. When used in conjunction with a negative-pressure syringe or a mechanical vacuum pump, the Perione Catheter enables efficient aspiration of thrombi from peripheral vessels, providing physicians with a more precise and effective surgical solution.

In the field of aortic stent-graft systems, MicroPort Endovascular also places significant emphasis on strategic layout. The WeFlow-Tbranch™ single-branch modular thoracic aortic stent-graft system, with its modular and in-line branch design, successfully addresses the issue of insufficient landing zones encountered by conventional stents when treating dissections involving the left subclavian artery (LSA). Its pre-loaded guidewire and proximal constrained-release design further enhance procedural safety and convenience, ensuring accurate anchoring.

The Fabulous® Thoracic Aortic Stent Graft System is the first domestic product based on the PETTICOAT technology concept, specifically designed for endovascular intervention in Type B aortic dissection. Comprising a proximal flexible covered stent graft and a distal bare-metal stent, the system achieves dual benefits of preventing retrograde dissection and remodeling the distal true lumen in Type B aortic dissection.

In May 2022, KDL issued an announcement titled “Announcement on Excluding Shanghai KDL Medical Instrument Co., Ltd. from the Consolidated Financial Statements and Constituting a Major Asset Restructuring.” According to the announcement, KDL Group will no longer hold a controlling interest in KDL Medical Instrument following the restructuring. KDL Medical Instrument plans to change its name to “Shanghai INT Medical Instruments Co., Ltd.” (INT Medical) and will primarily engage in the research and development, manufacturing, and sales of interventional medical devices. Meanwhile, KDL will mainly focus on the research and development, manufacturing, and sales of medical puncture devices.

Following the adjustment of this controlling interest, INT Medical demonstrated strong growth momentum. According to its annual reports over the years, INT Medical achieved an operating revenue of RMB 586 million in 2022, a year-on-year increase of 26.08%. In 2023, the company recorded an operating revenue of RMB 750 million, representing a year-on-year increase of approximately 28.50%.

INT Medical Income Statement, sourced from the company's 2024 semi-annual financial report

In 2024, INT Medical also delivered robust financial performance. The company’s 2024 semi-annual report showed that its revenue reached approximately RMB 392 million, representing a year-on-year increase of about 15.47% from RMB 339 million in the same period last year. This growth was primarily driven by increased sales volumes in both interventional medical devices and standard medical components. Among these, interventional medical devices generated approximately RMB 345 million in revenue, a year-on-year increase of 19.16%, with cardiovascular interventional products serving as the main revenue contributor, amounting to RMB 268 million.

The complexity of cardiovascular interventional procedures lies in the wide variety and heterogeneity of consumables used. INT Medical started its business with traditional low-value consumables, such as inflation devices, angiographic catheters, Y-connectors, angiographic guidewires, and introducer sheaths, with its key advantage being a comprehensive product portfolio. As of the end of 2023, INT Medical had obtained 35 Class III medical device registration certificates, 36 EU CE certifications, and 18 FDA approvals.

In November 2014, INT Medical and its subsidiary successively obtained marketing approval for two products. On November 16, INT Medical’s hydrophilic-coated guidewire was approved. This product is used in interventional procedures to guide balloon catheters or stent systems to the lesion site. On November 17, a microcatheter from Puhui Medical, a subsidiary of INT Medical, received approval. This product is indicated for use in neurovascular and peripheral vascular applications, facilitating the injection or infusion of contrast media and fluids, embolic materials, and appropriate devices (such as stents and coils).

However, as interventional consumables have been included in the scope of centralized volume-based procurement (VBP), INT Medical is also facing significant challenges. Taking the 2023 inter-provincial procurement alliance formed by Henan Province and multiple other provinces as an example, volume-based procurement was conducted for general interventional and neurosurgical medical consumables, resulting in significant price reductions. Among the 209 companies that participated in the centralized VBP, 182 were selected as winners. The overall average price reduction for general interventional products, including angiographic guidewires, reached as high as 65.40%.

Faced with the pressure brought by centralized procurement, INT Medical has accelerated its strategic transformation. The acquisition of shares in Weiqiang Medical aims to adjust its business structure: through this acquisition, INT Medical will gradually shift from focusing primarily on interventional accessory products to developing a portfolio that includes higher-value medical product lines, further enhancing its market position and competitiveness in the medical device sector.