Shengzhe Medical Completes Series B Funding Round, Accelerating Global Expansion as a Leader in Domestic Energy-Based Surgical Devices

Energy-based surgical devices refer to instruments that utilize electrical energy (electrosurgery) or mechanical energy (ultrasonic surgery) to perform tissue dissection, cutting, sealing, and hemostasis during surgical procedures., mainly including plasma scalpels, ultrasonic scalpels, and high-frequency electrosurgical units.According to research data from Frost & Sullivan, the global market size for surgical energy devices reached USD 9.099 billion in 2022 and is projected to reach USD 13.066 billion by 2028, representing a compound annual growth rate (CAGR) of 6.2%.

Ultrasonic Soft Tissue Cutting and Hemostatic Devices (hereinafter referred to as "ultrasonic scalpels") are a type of energy-based surgical instrument that integrates four functions: tissue dissection, cutting, sealing, and grasping. They have become an indispensable energy-based product for surgeons during operations. According to estimates based on data from major manufacturers in the market, the domestic market size for ultrasonic scalpels (excluding generators) exceeded RMB 4 billion in 2022, and is projected to reach RMB 6 billion by 2025, with a compound annual growth rate (CAGR) of nearly 30% from 2021 to 2025. As powered devices requiring disposable consumables, ultrasonic scalpels present high R&D barriers; while it is relatively easy to develop a basic model, achieving high performance is challenging. Currently, domestic ultrasonic scalpel manufacturers exhibit serious homogenization with imported brands, and their overall quality still lags significantly behind international mainstream brands.Saints Sages Surgical, closely aligned with clinical needs and matching international mainstream brands in overall quality, is poised to become the leader among domestically produced surgical energy devices under the new market landscape, driven by its continuous R&D and innovation capabilities as well as its platform-based product line layout for surgical energy devices.

As a leading representative of innovative enterprises in the field of surgical energy devices, Shanghai Saints Sages Surgical Co., Ltd. (“Saints Sages Surgical”) has recently completed its Series B financing round. Led by Qiming Venture Partners, the raised funds will be allocated to the research and development of innovative energy-based products, global marketing and promotion, and the construction of automated production lines.In March 2021, Qiming Venture Partners led the Series A financing round for Saints Sages Surgical.

Saints Sages Surgical adheres to a strategy centered on software algorithms, grounded in the integration of medicine and engineering, and driven by disruptive innovation. The company is committed to addressing challenges in independent innovation within the field of energy-based medical devices, achieving autonomous control over core algorithms.Currently, within a short span of five years, Saints Sages Surgical has completed the strategic layout of its three-step energy device portfolio, with some innovations being global firsts. The company’s launched product, the SA01 SAS Series Ultrasonic Soft Tissue Cutting and Hemostasis System, represents Saints Sages Surgical’s first Class III medical device registration certificate. Equipped with RTTE I (Real-Time Tissue Effect I), the first-generation real-time tissue adaptive algorithm, this system ensures efficient dissection and reliable sealing during surgery. Since its market launch in 2021, it has been used in over ten thousand procedures across hundreds of top-tier tertiary hospitals in China, spanning multiple departments including thyroid and breast surgery, gastrointestinal surgery, urology, hepatobiliary surgery, and gynecology, particularly for complex and prolonged surgeries. Its intraoperative safety, efficacy, and reliability have been consistently recognized by leading domestic experts, laying a solid foundation for Saints Sages Surgical’s reputation as a Chinese original innovator with international-quality standards. In September 2022, the company’s globally first portable, all-in-one ultrasonic soft tissue cutting and hemostasis system, the SA10 SASD, received another Class III approval from the National Medical Products Administration. This product features RTTE II (Real-Time Tissue Effect II), the second-generation real-time tissue adaptive algorithm. Building upon RTTE I, it incorporates a temperature sensing module, thereby reducing intraoperative instrument temperature and lateral thermal damage, demonstrating statistically significant advantages over mainstream international brands. Upon its release, the SA10 series garnered significant attention and extensive collaborative interest from key opinion leaders (KOLs) and commercial partners both domestically and internationally, establishing a robust foundation for the company’s globalization efforts. Furthermore, Saints Sages Surgical’s next-generation innovative product, the dual-channel advanced energy platform SA100 SASJ/SASP, is scheduled for launch by the end of the year, with current test data surpassing those of mainstream international brands.

(Image source: Saints Sages Surgical)

Saints Sages Surgical’s continuous innovation has received support from national policies. The state has repeatedly emphasized the need to solidly advance reforms in DRG/DIP payment methods, with no less than 70% of pooling regions implementing actual payments by the end of 2023. Meanwhile, to standardize DRG operations and prevent clinicians from hesitating to use innovative drugs and devices that offer superior clinical outcomes but come at higher costs under the DRG global budget cost-control model, the National Healthcare Security Administration (NHSA) formulated and issued the Technical Specifications for Grouping and Payment of China Healthcare Security Diagnosis-Related Groups (CHS-DRG). These specifications clarify that for new technology projects already registered with medical insurance agencies, fee-for-service payment may be temporarily implemented for one year; thereafter, payment standards for the relevant disease groups will be revised based on data analysis. For complex and critical cases, the specifications explicitly allow for increasing the weight values of DRG groups for severe and difficult conditions while decreasing the weight values for mild cases.

Undoubtedly, state support for innovation has instilled great confidence in Saints Sages Surgical to pursue continuous innovation. Having already successfully launched several innovative products that address many of the pain points and challenges associated with the clinical use of energy-based surgical devices, Saints Sages Surgical will continue to innovate along its proven path. The company is committed to delivering international-quality products at domestic prices, offering high cost-performance ratios to meet the requirements of medical insurance reimbursement and centralized procurement, thereby providing high-quality domestic alternatives.

In addition to technological breakthroughs and product innovation, Saints Sages Surgical remains committed to a specialized academic approach. Since 2022, the company has hosted multiple Asia-Pacific international academic exchange conferences in vertical fields such as urology, gastroenterology, thoracic surgery, and bariatric surgery, establishing a professional academic platform for experts in the Asia-Pacific region and fostering robust academic collaboration and exchange. The company believes that cutting-edge academic advancement is the source of innovation in medical devices, and that only through a specialized academic promotion strategy can the clinical benefits of innovative products be fully recognized. Moving forward, Saints Sages Surgical will expand its specialized academic promotion strategy globally, facilitating collaboration among experts worldwide.

For this financing,Dr. Hu Zhe, Founder and Chairman of Saints Sages Surgical“Since the inception of our partnership, Qiming Venture Partners has witnessed the rapid development of Saints Sages Surgical and recognizes the company’s future growth potential and core values. With the support of capital, we aim to accelerate the expansion of Saints Sages Surgical’s technological moat in the field of energy-based surgical devices, expedite the translation and implementation of medical-engineering collaborative achievements, enhance the core competitiveness of products and services, and comprehensively advance a dual-track marketing model driven by both technology and academia. Our goal is to ensure that people in China have immediate access to innovative medical products, and to realize the vision of ‘Chinese Energy’ serving the world at an early date.”

Ms. Shao Fang, Co-founder and Vice President of Marketing at Saints Sages SurgicalIt stated, “Healthcare knows no borders. 2023 will mark the inaugural year of Saints Sages Surgical’s internationalization. Adhering to the national strategy of ‘fostering a domestic circulation as the mainstay while promoting mutual reinforcement between domestic and international dual circulations,’ the company is committed to exporting its product philosophy and corporate ethos globally, with quality as the foundation, service as the vehicle, and academia as the pivot, thereby rapidly establishing the international brand influence of Saints Sages Surgical.”

Zhang Ao, Executive Director at Qiming Venture Partners“Qiming Venture Partners began investing in Saints Sages Surgical at an early stage. Over the past period, we have witnessed the company’s rapid growth, continuous product upgrades, and robust business development, which prompted us to make additional investments. As one of the pioneers in this sector, Saints Sages Surgical has established a comprehensive portfolio of energy-based surgical devices, starting with ultrasonic scalpels. Its products demonstrate competitive performance on a global scale. At present, independent innovation in high-value consumables is imperative, and Chinese medical device companies are seizing significant opportunities for globalization. Leveraging its professional R&D team and extensive experience in clinical translation, we look forward to Saints Sages Surgical continuously breaking through market barriers and benefiting patients worldwide with more cutting-edge technologies and products.”

Shanghai Saints Sages Surgical Co., Ltd. was established in 2017, with its headquarters located in Zhangjiang Science City. The company is primarily engaged in the research and development, manufacturing, and sales of energy-based medical devices.

Saints Sages Surgical has successfully developed a range of energy-based device products for the minimally invasive surgery field. These products are widely applicable across various departments, including minimally invasive surgery, hepatobiliary surgery, gynecology, urology, and thoracic surgery. The company holds complete core intellectual property rights in these related product areas. Saints Sages Surgical remains committed to developing more energy-based devices with independent intellectual property rights, striving to become a leader in the energy-based device sector.

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. 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 the Technology and Consumer (T&C) and Healthcare sectors. To date, Qiming Venture Partners has invested in more than 530 high-growth innovative enterprises, among which over 200 have achieved exits through listings on major exchanges—including the New York Stock Exchange (NYSE), NASDAQ, Hong Kong Stock Exchange (HKEX), Shanghai Stock Exchange (SSE), and Shenzhen Stock Exchange (SZSE)—as well as through mergers and acquisitions. More than 70 of these portfolio companies have become industry-recognized unicorns and super unicorns.