Chinese High-End Ophthalmic Device Company Medennium Completes RMB 200 Million Series B Financing

On September 14, 2024, MDCO announced the successful completion of its Series B financing round, raising nearly RMB 200 million. The round was jointly invested by the Zhejiang Province “4+1” Biopharmaceutical and High-End Medical Device Fund, Sunland Capital, and existing shareholder Decheng Capital, with China Renaissance serving as the exclusive financial advisor. The funds will be primarily used to advance regulatory submissions and market promotion for its existing product pipeline.

MDCO specializes in providing full-lifecycle solutions for the ophthalmic medical field. Leveraging its robust R&D capabilities and exceptional management team, along with decades of accumulated experience in business and research & development across China and the United States, MDCO has launched a portfolio of core products, including the MPL myopic refractive lens, intraocular lenses (IOLs) for cataract treatment, and defocus spectacles for myopia correction. The company is committed to becoming a global leader in the research, development, and manufacturing of high-end ophthalmic devices.

Leveraging innovation platforms in proprietary materials, intelligent manufacturing, and optical design, MDCO has established an innovation closed loop for ophthalmic medical devices, forming a robust product pipeline through multidisciplinary collaboration. The company currently possesses two proprietary implantable materials that have undergone long-term clinical validation, designed for myopic refractive lenses and cataract intraocular lenses respectively, delivering superior optical performance. Building on these proprietary materials and mature manufacturing processes, MDCO has advanced to a next-generation intelligent manufacturing platform, covering the entire industrial chain from material synthesis and mold fabrication to molding techniques and mechanical processing and polishing, thereby resolving critical technological bottlenecks. Furthermore, MDCO boasts rapid product design iteration capabilities, establishing a R&D closed loop by integrating mathematical modeling expertise in finite element analysis, fluid dynamics, and optometry with timely clinical feedback.

China’s volume of refractive surgeries ranks among the highest globally, yet its penetration rate remains relatively low, indicating substantial growth potential. In the field of myopia correction surgery, phakic intraocular lenses (pIOLs) for myopia still possess significant market space. MDCO’s MPL product demonstrates considerable commercial value in the global market due to its broad patient coverage, high safety profile, and reversibility. As a leader in the technological pathway of phakic IOL surgery, the company’s proprietary soft refractive lens material has undergone 20 years of clinical validation, showcasing excellent biocompatibility and stability through its lighter and softer characteristics. In March this year, the MPL officially entered the Southeast Asian market, marking the continued advancement of the company’s globalization strategy. Currently, the MPL has obtained regulatory approvals in regions including CE-marked countries and South Korea, while domestic clinical trials have efficiently completed patient enrollment.

In the field of cataracts, the company has proactively positioned itself in the mid-to-high-end intraocular lens (IOL) market, filling a gap in the domestically produced market. The company’s proprietary smart light-adjusting material boasts 20 years of hydrolytic and optical stability and has secured patents in the United States, the European Union, and China. Leveraging the unique properties of this material, the company will upgrade its manufacturing processes to significantly reduce costs. Furthermore, MDCO has strategically laid the groundwork for next-generation IOLs, covering functional monofocal lenses and complex optical lenses. Its materials and optical designs are benchmarked against those of leading international manufacturers, with a dedicated focus on innovation and surpassing industry standards.

Furthermore, driven by both policy and demand, the company has launched myopia control defocus lenses targeting the cost-effective consumer healthcare sector. By optimizing design through mathematical modeling in optometry, these lenses maximize the efficacy of myopia control and vision correction, holding strong potential for rapid market adoption.

The company has assembled a team of top-tier international technical and sales talent, demonstrating high execution efficiency. Following the completion of this financing round, the team will continue to expand its innovation platform, leveraging proprietary technologies and processes to address significant unmet clinical needs, with the aim of becoming an industry leader in the field of ophthalmic devices. In April this year, the American Society of Cataract and Refractive Surgery (ASCRS 2024) convened in Boston; in September, the 42nd Congress of the European Society of Cataract and Refractive Surgeons was held as scheduled in Barcelona, Spain. Ophthalmologists gathered at these prestigious academic events, where Medennium showcased its full range of ophthalmic products. At both conferences, numerous attending experts expressed consistent recognition and acclaim for the safety and efficacy of MPL. Looking ahead, the company will continue to introduce its flagship products to the market. Against the backdrop of technology empowering eye health and innovation driving new horizons in vision, Medennium is committed to making perfect vision accessible to all.

Liu Liang, Chairman of MDCOstated: “We extend our sincere gratitude to both new and existing shareholders for their steadfast support of the company, and we also thank China Renaissance for its professional and efficient work in this round of financing. MDCO has been deeply engaged in developing innovative products in the ophthalmic medical field, establishing a robust core pipeline, and is committed to becoming a leading Chinese manufacturer of high-end ophthalmic medical devices. With an internationally top-tier R&D team and a global commercial vision, we believe that, supported by this round of financing, the company will continue to achieve breakthroughs in original technological innovation and overcome critical ‘chokepoint’ challenges.”

Jin Yufeng, Chairman of Heda Fund and Appointed Representative of the Executive Partner for Zhejiang Province’s “4+1” Biopharmaceutical and High-End Medical Device Industry FundIt stated: “The fund focuses on investments in Zhejiang Province’s big health and modern consumer industries, aiming to provide counter-cyclical support for the cultivation of pharmaceutical innovation during the current investment winter in the biopharmaceutical sector. During our due diligence on ophthalmic medical device companies, we recognized that the MDCO team possesses extensive R&D and commercial expertise. They have built a diverse portfolio of industry-leading products, including myopic refractive lenses and mid-to-high-end intraocular lenses for cataracts, offering safe and effective solutions throughout the entire eye care lifecycle. The company has already demonstrated significant commercial potential in both the Chinese and global markets. This participation in MDCO’s financing round represents a strategic investment by Heda Fund in the high-quality ophthalmology sector, which combines high growth potential with substantial R&D barriers. This move will help improve the industrial ecosystem of Qiantang China Medical Port and contribute to the development of the biopharmaceutical industry in Zhejiang Province and across China.”

Gu Shenghan, Executive Director of Sunland CapitalIt stated: “China’s vast myopic population base, coupled with a low penetration rate of refractive surgery, combined with the advantages of reversible and broadly applicable refractive lens implants, creates substantial market potential for myopic refractive lenses. MDCO possesses international-level innovation capabilities in original material research, optical design, and intelligent manufacturing. The myopic refractive lens MPL, developed based on these strengths, outperforms leading imported brands in multiple performance metrics and has gained widespread recognition in clinical applications both domestically and internationally. Furthermore, the company has deployed a portfolio of high-end intraocular lenses (IOLs) in the cataract segment, benchmarking against and even surpassing the flagship products of current top-tier international manufacturers. We are optimistic about MDCO’s capabilities and resources in original product innovation and global commercialization, and we look forward to Shanghai Sunland Investment Management Co., Ltd. helping the company’s excellent product solutions benefit more patients.”

Ms. Jiang Jiajia, Managing Director of the Healthcare and Life Sciences Division at China RenaissanceHe stated, “The ophthalmology sector has always been a key area of focus for us and represents one of the fields with the most significant unmet clinical needs. As a global leader in the R&D and intelligent manufacturing of high-end ophthalmic devices, MDCO has mastered core upstream processes, built a highly differentiated product pipeline, and provides safe and effective solutions across the entire ophthalmic care continuum, thereby addressing current clinical pain points effectively. As a long-standing partner accompanying MDCO’s growth, we are delighted to have assisted the company in completing this round of financing amid the current challenging market environment. We also extend our sincere gratitude to both new and existing investors for their strong support of this financing round. China Renaissance will continue to support the company in achieving further success.”