West China Hospital Licenses Novel Neural Modulation Target Localization Patent for RMB 300,000 Plus Royalties

Recently, West China Hospital of Sichuan University issued an announcement, proposing toRMB 300,000+ sales commission (RMB 22,000–30,000 per set)the transaction price, “A Method for Locating Neuromodulation Target Areas” of the invention patent, transferred to under an exclusive licenseFujian Zhiyuan Medical InvestmentCo., Ltd. The transaction has passed the public notice period.

This patent was jointly invented by multiple professors and experts, including Gong Qiyong, Xing Haoyang, and Huang Xiaoqi, from the Department of Radiology and the Clinical Magnetic Resonance Research Center at West China Hospital of Sichuan University.

Neuromodulation is a biomedical engineering technology that utilizes implantable or non-implantable techniques, employing electrical stimulation or pharmacological interventions to alter the activity of the central, peripheral, or autonomic nervous systems, thereby alleviating symptoms in patients and improving their quality of life. Compared with ablation and resection, neuromodulation offers superior targeting, reversibility, and durability.

The neuromodulation market is primarily composed of three major segments: spinal cord stimulation (SCS), deep brain stimulation (DBS), and vagus nerve stimulation (VNS). Spinal cord stimulators (SCS) account for the largest share of the global market, representing nearly 55% of the total market in 2018; deep brain stimulators accounted for 16%, vagus nerve stimulators for 14%, and other categories for approximately 15%.

From the perspective of application scenarios, neuromodulation technology is widely used in the treatment of neurological disorders such as Parkinson’s disease, epilepsy, and depression, with its indications continuously expanding alongside innovative technological research. For instance, sacral nerve stimulation (SNS) has been employed to treat voiding dysfunction; auditory nerve electrical stimulation has led to the development of products such as cochlear implants; and retinal electrical stimulation is used to replace damaged photoreceptor cells in the retina.

The therapeutic efficacy of neuromodulation techniques largely depends on the accurate localization of the target area. Precise targeting ensures that therapeutic stimulation is accurately delivered to the pathological neural nuclei or neural circuits, thereby achieving effective modulation of neural activity.

However, for a long time, there has been a lack of effective devices for localizing brain targets in neuromodulation. In recent years, some studies have adopted optical navigation systems that use tracked optical spheres to register the neuromodulation device with structural brain images, offering a partial solution. Nevertheless, due to limitations such as high cost, cumbersome operation, and inability to accommodate head movement, these systems have not been widely adopted in clinical practice.

As technological research continues to deepen, new technologies and methods such as robot-assisted neuromodulation techniques and dual-channel imaging combining near-infrared II (NIR-II) fluorescence with visible light are emerging, providing new avenues for the advancement of neuromodulation technology.

The invention patent involved in this transaction aims to provide a method for directly observing the control device without calibrating the indicator.

The advantage of this patented invention lies in its ability to directly observe the position of the adjustment device relative to the target area. The depth camera directly measures the position of the head-mounted adjustment device, eliminating the need for calibration during the positioning process. Furthermore, it can detect head movement and provide alerts and alarms accordingly.

The neuromodulation sector cannot bypass the four major giants: Medtronic, Abbott, Boston Scientific, and LivaNova. In the spinal cord stimulation (SCS) niche market, Medtronic, Abbott, and Boston Scientific dominate, each holding approximately one-third of the market share. In the deep brain stimulation (DBS) market, Medtronic leads with over 80% of the market share, while Abbott and Boston Scientific split the remaining portion. The vagus nerve stimulation (VNS) market is dominated by LivaNova, which holds more than 80% of the market.

In 2024, Medtronic and Boston Scientific began to compete head-on in the field of sacral neuromodulation (SNM).

In 2024, Medtronic’s Neuromodulation business marked its 25th year in China, achieving significant product advancements in the fields of Spinal Cord Stimulation (SCS) and Sacral Neuromodulation (SNM). For example,In June, Medtronic launched SureScan, China’s first 3.0T whole-body MRI-compatible sacral neuromodulation lead. This marks the official entry of China’s sacral neuromodulation field into a new era of MRI compatibility.

Also earlier this year, Boston Scientific acquired Axonics, a manufacturer of devices for urinary and bowel dysfunction, for $3.7 billion (RMB 26.2 billion), making a high-profile entry into the sacral neuromodulation market and going head-to-head with Medtronic. In October, Boston Scientific released its third-quarter 2024 financial report, in which net sales for the neuromodulation business reached $268 million, a 17% year-over-year increase.

In the deep brain stimulation (DBS) market, which is dominated by Medtronic, Boston Scientific and Abbott have been vying for market share through continuous strategic deployment and increased investment. In January, Abbott’s Liberta RC implantable pulse generator received FDA approval, becoming the world’s smallest rechargeable DBS device with remote programming capabilities. In July, Boston Scientific’s Vercise DBS software product obtained CE marking, holding promise to revolutionize Parkinson’s disease treatment.

Foreign medical device giants such as Medtronic and Boston Scientific have secured an absolute leading position in the market, owing to their mature technologies and early strategic deployment. As domestic enterprises like PINS Medical and Jingyu Medical continue to innovate and break through, the existing monopoly landscape is gradually being dismantled.

Pins Medical is the first company in China to obtain a registration certificate for Deep Brain Stimulation (DBS) products, breaking the monopoly of foreign giants in the DBS field.

In June, four innovative implantable deep brain stimulation (DBS) products under PINS Medical—namely, the Implantable DBS Lead Kit, Dual-Channel Rechargeable Implantable DBS Pulse Generator Kit, Dual-Channel Implantable DBS Pulse Generator Kit, and Implantable DBS Extension Lead Kit—received registration approval from the National Medical Products Administration (NMPA).

This marks the official market launch of China’s first directional deep brain stimulation (DBS) product, breaking Medtronic’s long-standing monopoly in this field.Compared with conventional deep brain stimulation (DBS), directional DBS systems utilize electrodes with multiple segmented (directional) contacts and specialized stimulation programs to deliver directional stimulation to specific functional subregions of the target nucleus, thereby enabling precise programming and reducing power consumption.

In September, PINS Medical initiated IPO tutoring. Prior to this, Jingyu Medical had also launched its IPO tutoring in December 2023. The domestic substitution of neuromodulation devices is accelerating.

Jingyu Medical independently developed China’s first neuromodulation chip, making China the second country after the United States to possess such technology.In April 2024, Jingyu Medical’s independently developed novel domestically produced 8-contact deep brain stimulator (DBS) was officially launched. This product is the first rechargeable DBS system approved for marketing in China to feature dual-target stimulation of the subthalamic nucleus (STN) and the Aaxon with 8 contacts. In addition to the aforementioned two companies, other domestic manufacturers have been exploring broader indications.

Shenluo Medical, which completed a B+ round of financing amounting to hundreds of millions of yuan in April, has built a neuromodulation solution platform targeting conditions such as pain, overactive bladder, sleep apnea syndrome, hypertension, and heart failure, thereby benefiting more patients. MedPace is developing innovative applications of neuromodulation therapy for inflammatory bowel disease, diabetes, and functional gastrointestinal disorders. Nurotron has established a three-pronged R&D pipeline layout, with auditory reconstruction products at its core, complemented by visual reconstruction products and neuromodulation stimulators.

LinkCare Medical Valley focuses on the research and development of medical devices and consumables in the fields of pain management and neuromodulation, having innovatively developed wireless implantable neuromodulation products. Jialiang Medical’s closed-loop neurostimulator (Epilcure™) fills a technological gap in the domestic treatment of neurological disorders. Furthermore, leveraging its independently developed LITT (Laser Interstitial Thermal Therapy guided by magnetic resonance imaging), it has achieved a therapeutic closed loop combining electrical stimulation and minimally invasive ablation for neurological diseases.

Based on the trends among industry giants and innovative enterprises, neuromodulation is expanding into a broader range of indications.In addition to relatively mature indications such as Parkinson’s disease, epilepsy, and pain, the international community is actively exploring new indications, including rheumatoid arthritis, hypertension, spinal cord injury, and stroke rehabilitation, all of which warrant close attention for their clinical progress.

In terms of technological innovation, a significant trend in the field of neuromodulation is miniaturization.Miniaturization reduces product size and power consumption, thereby enhancing the patient implantation experience.

Since April 2018, Deep Brain Stimulation (DBS) therapy has been officially included in the Shanghai Medical Insurance List. Prior to its inclusion, DBS surgery was costly, with prices ranging from over 100,000 to 200,000 RMB depending on whether domestically produced or imported devices were used. Its inclusion in the insurance scheme has significantly alleviated the financial burden on Parkinson’s disease patients and their families. Since June 2019, the implantation of deep brain stimulators has been covered under Category A reimbursement, with a 100% reimbursement rate.

Since June 2023, Qingdao City has announced that consumables for sacral nerve modulation and spinal cord stimulation surgeries, such as electrodes, electrode leads, and stimulators,

Included in the scope of medical insurance coverage, with employee reimbursement rates reaching up to 80%; meanwhile, Shanxi Province has also included implantable consumables related to vagus nerve stimulation (VNS) therapy in Category B of its medical insurance list, significantly reducing treatment costs for epilepsy patients.

In August 2024, the Yunnan Provincial Health Commission announced that, effective August 1, optic nerve stimulation would be included in the medical insurance reimbursement scheme, thereby providing more treatment opportunities for patients with refractory epilepsy.

With neuromodulation technologies covered by medical insurance and the accelerating trend of population aging, the field of neuromodulation is poised for significant expansion.

Furthermore, in response to the global frontier of major technological competition in brain science and brain-inspired technologies, national policies have intensified their support for breakthrough innovations. The fields of neuromodulation and brain-computer interfaces are poised to witness more disruptive technological advancements. As the ark exploring the vast cosmos of brain science sets sail, we anticipate that China’s neuromodulation market will also launch industry giants comparable to Medtronic, Abbott, Boston Scientific, and Axonics.