New Entrant in the Global Radiation Oncology Arena: BeiYang Medical Partners with ZAP Surgical to Advance Precision Radiotherapy in China

In the field of oncology radiotherapy, leading enterprises are accelerating their strategic deployment.

Recently, Baheal Medical Group announced a strategic partnership with ZAP Surgical, a global leader in radiosurgical robotics. In addition to equity investment, the two parties will jointly promote ZAP Surgical’s core product, ZAP-X.^®Localization of the Mars Rover Radiosurgical Robot in China.

In fact, this is not an isolated case.

Major players both domestically and internationally have undoubtedly recognized the development potential in the field of tumor radiotherapy and are flocking to this sector.In 2020, Siemens acquired Varian, the leader in oncology radiotherapy, for $16.4 billion; Varian had installed more than 8,000 radiotherapy systems worldwide and held over 50% of the global radiotherapy market share. In 2022, GE Healthcare entered into a global commercialization partnership with Accuray, a established player in the radiotherapy industry.

Domestic companies are also keeping pace. Many oncology radiotherapy equipment manufacturers have secured substantial financing or obtained regulatory approval for innovative radiotherapy devices. Affiliated companies strategically positioned around the radiotherapy equipment sector have also attracted investor favor due to the promising growth prospects in this field—notably, Neusoft Zhirui, which is dedicated to advancing the digitalization of oncology radiotherapy information, and Yangqi Yixin, which focuses on enabling precision radiotherapy through optical navigation technology, both having completed multiple rounds of financing.

Current Progress of Some Domestic Enterprises in the Field of Tumor Radiotherapy Equipment, Data Source: VCBeat

Both capital and enterprises are betting on the burgeoning field of tumor radiotherapy.

The optimism of numerous enterprises regarding the development prospects of the tumor radiotherapy sector is closely related to the current state of the industry.

On the one hand, the large population of cancer patients has generated substantial demand for radiotherapy. According to the 2022 data on the burden of malignant tumors in China published in the Journal of the National Cancer Center (JNCC), there were 4.8247 million new cancer cases in China in 2022. In the clinical management of cancer patients, treatment modalities commonly include surgery, radiotherapy, chemotherapy, targeted therapy, and immunotherapy. However, as indicated by a research report from Kaiyuan Securities, “radiotherapy currently accounts for only 11.5% of treatments, yet as one of the most critical therapeutic approaches for malignant tumors, approximately 70% of cancer patients require radiotherapy at various stages of their treatment.” Furthermore, radiotherapy has a broad scope of application, covering nearly 95% of cancer treatments. In terms of cost, radiotherapy is less expensive than surgery and chemotherapy.

On the other hand,There is currently a shortage of radiotherapy equipment resources in China, which also signifies substantial growth potential in the future.According to estimates from LeadLeo Research Institute, the market size of radiotherapy equipment in China is projected to reach RMB 6.33 billion by 2030, with a compound annual growth rate (CAGR) of 8.12% from 2020 to 2030.

However, this highly promising market also faces certain pain points and challenges that need to be addressed—

First, the widespread adoption of radiotherapy equipment is hindered by the substantial floor space required for supporting radiation shielding facilities and the associated exorbitant costs.

Second, how to achieve precision therapy as much as possible, how to better realize selective irradiation of target areas with clear boundaries during the irradiation process, and avoid surrounding normal tissues to the greatest extent.

These pain points and challenges have also become the key areas that radiotherapy equipment manufacturers, both domestic and international, are striving to break through.

Today, with the strategic partnership between ZAP Surgical, a global leader in robotic radiosurgery, and Baheal Medical Group, the aforementioned issues may be readily resolved.

This inevitably brings us to ZAP Surgical and its flagship product. Founded in 2014, ZAP Surgical was established by Dr. John R. Adler, a Professor of Neurosurgery at Stanford University. Dr. Adler is already well-known in the industry as the inventor of the CyberKnife and the founder of Accuray.

The product signed in this agreement is ZAP-X, the core product of ZAP Surgical.^®The Mars Rover Radiosurgical Robot is a radiosurgery treatment system specifically designed for solid malignant tumors and lesions in the intracranial and cervical regions. The device was registered and launched in the United States in September 2017; it was officially approved for market launch in China on June 20, 2023. The collaboration between Baheal Medical Group and ZAP covers equity investment as well as ZAP-X.^®Mass production and commercial operation of the Huoxingzhou radiosurgical robot, among other initiatives.

Addressing the current pain points in the industry, ZAP Surgical has presented its own solution—

On one hand, ZAP-X further enhances the potential for widespread adoption by reducing ancillary costs and minimizing space requirements.^®The Mars Ray radiosurgery robot adopts a self-shielding design. “Unlike conventional radiotherapy equipment, it does not require the construction of thick concrete radiation shielding facilities, helping hospitals save millions in infrastructure costs,” stated Dr. John R. Adler. This design also enables the device to provide immediate radiotherapy services through simple expansions in various settings, including outpatient offices, primary healthcare institutions, and even high-speed railway stations or conference rooms.

On the other hand, it enables precise targeted therapy. “The dual-axis design allows radiation to be delivered to the tumor from more than 260 different angles; the greater the number of angles, the sharper the ‘scalpel’.” Furthermore, the equipment features real-time image guidance and real-time dose monitoring, enabling instantaneous verification of the radiation dose and target position for each treatment beam with sub-millimeter precision. Once the system detects any deviation in radiation dose, it immediately triggers an emergency shutdown, thereby maximizing the non-invasiveness, safety, and efficacy of the treatment.

ZAP Surgical’s decision to partner with Baheal Medical stems from the alignment of their strategic objectives and the complementary strengths of both parties—

For ZAP Surgical, as its founder noted, “as a U.S. company, it is quite challenging to enter the Chinese market on its own.”By establishing a strategic partnership with Baheal Medical Group, ZAP-X can be rapidly^®Mars-Rover Radiosurgical Robots Gain Widespread Adoption, further expanding its presence in the Chinese market to benefit a broader patient population; indeed, leveraging China’s advanced manufacturing capabilities, it may even supply the global market in the future.

For Baheal Medical Group, the two parties’ collaborative philosophy and original aspirations align perfectly—

First and foremost, “all of Baheal Medical Group’s efforts are dedicated to optimizing healthcare scenarios.”“Making incurable diseases treatable, and making treatable diseases curable faster, better, and more safely.” This original aspiration of Baheal Medical, as stated by Fu Gang, Chairman of the Board of Baheal Medical Group, aligns perfectly with ZAP Surgical’s mission to better support cancer treatment through superior radiotherapy equipment.

Secondly, Baheal Medical Group is committed to empowering innovation.Currently, Baheal Medical Group has established a comprehensive innovation ecosystem. In terms of innovation incubation, it excels at “precise investment, effective nurturing, and scalable growth.” Leveraging years of industry experience and clinical insights, the group is able to identify and invest in “genuine innovations” that optimize clinical healthcare scenarios. Furthermore, its “Six-Discipline Consultation” innovation incubation system ensures the allocation of appropriate resources for innovative enterprises across various stages, including R&D, clinical trials, regulatory submissions, scaled manufacturing, and commercialization.

More importantly, Baheal Medical Group places significant emphasis on innovation synergy among its portfolio companies. In the field of medical linear accelerators, Baheal Medical Group has previously invested in and incubated Huake Pioneer, the developer of China’s first X-band 4π intelligent robotic radiotherapy system. “Huake Pioneer’s equipment can treat tumors throughout the body, and it plans to develop radiotherapy devices for non-invasive treatment of atrial fibrillation targeting the heart. Meanwhile, ZAP Surgical’s device represents disruptive innovation in head and neck treatments. The products of these two companies are fully complementary,” stated Fu Gang.

Furthermore, Baheal Medical Group itself possesses the capabilities for large-scale production and brand operation.On one hand, Baheal Medical Group has established a professional R&D and production center for linear accelerators, which will support ZAP-X^®Established a production base in China capable of supplying the global market; meanwhile, Baheal Medical, the group’s listed company, serves as a professional industrialization platform with extensive successful experience in pharmaceuticals. In the medical device sector, Baheal Medical Group has also built Baiyang Guosheng, a commercial operation platform for medical equipment. This platform not only facilitates product market access but will also introduce systems for operational training and after-sales services in the future, thereby providing support for ZAP-X.^®Commercial Applications in China: Comprehensive Support for ZAP-X^®Market Expansion in China and Globally.

The development of the high-end medical equipment industry is not an overnight success.

Fu Gang, Chairman of Baheal Medical Group, once pointed out, “High-end medical equipment is a key focus area for Baheal Medical Group’s investments. From the broader perspective of the health industry, China’s pharmaceutical R&D is rapidly catching up and making progress, but R&D in medical devices still lags behind, with many critical technologies facing ‘chokepoint’ constraints.”

In fact, to further promote the development of China’s high-end medical device industry, Baheal Medical Group has also invested in and incubated numerous medical device companies with significant technological barriers. These include Huake Xianfeng, the developer of X-band medical linear accelerators mentioned above; Tongxin Medical, an innovative enterprise developing fully magnetically levitated artificial hearts; and Maidisi Medical, which created China’s first puncture guidance system integrating ultrasound and electromagnetic navigation technologies.

Currently, Tongxin Medical’s products are rapidly advancing toward commercialization. They have not only demonstrated strong performance in the Chinese market, but their U.S. clinical trials have also secured coverage under American health insurance programs. Meanwhile, Medis Medical’s ultrasound-guided electromagnetic navigation device officially entered the market this year. By enabling real-time navigation via B-mode ultrasound, the device achieves a near 99% success rate for single-needle puncture, significantly enhancing patient experience and improving surgical efficiency. The progress made by portfolio companies of Baheal Medical Group is undoubtedly encouraging.

This strategic collaboration with ZAP Surgical will undoubtedly better synergize with Baheal Medical Group’s innovation ecosystem,Further enhance Baheal Medical Group's international competitiveness in the field of precision radiotherapy.Meanwhile, as Baheal Medical Group expands its matrix layout in the high-end medical device sector, it is poised to deliver stronger performance in this field in the future, andThis will further support the development of China’s high-end medical device industry from an ecosystem perspective, contributing to industrial innovation.