Horimed Medical Completes New Round of Financing to Advance Intelligent Intravascular Interventional Diagnosis and Therapy Platform

VCBeat has learned that Tianjin Hengyu Medical Technology Co., Ltd. (“Hengyu Medical”) recently completed a new round of exclusive investment by Jinhuitong Fund. Previously, following its Series C financing in January 2022, Hengyu Medical successively secured additional investments from existing shareholder Tasly Capital, as well as a Series C+ round led by Huatai Zijin with Alibaba participating as a co-investor. The company has cumulatively raised over RMB 100 million, with Haoyue Capital continuing to serve as the exclusive financial advisor. The proceeds from this latest round will support R&D, production, and regulatory registration, while accelerating the commercialization of its marketed products.

Tianjin Hengyu Medical, established in 2016, specializes in the independent research and development, manufacturing, and sales of Intravascular Ultrasound (IVUS) systems and catheters; Optical Coherence Tomography (OCT) systems and catheters; integrated IVUS/OCT dual-catheter systems; non-invasive Fractional Flow Reserve (FFR) platforms based on IVUS and OCT; single-source dual-modality OCT-Near-Infrared Spectroscopy (NIRS) technology combining OCT with NIRS; and intravascular laser plaque ablation technology. Leveraging core competencies in optics, ultrasound, and catheter platform technologies, the company continuously drives globally leading innovations grounded in these foundational technologies, committed to providing physicians and patients with comprehensive pan-vascular solutions centered on imaging-based products.

China currently has a massive patient base for arterial vascular diseases. According to Frost & Sullivan analysis, the number of patients with coronary artery disease exceeds 25 million, those with peripheral artery disease exceed 50 million, individuals with intracranial stenosis surpass 20 million, and patients with intracranial aneurysms exceed 50 million. Among these, Percutaneous Coronary Intervention (PCI) started relatively early in China and has developed into a mature field. In 2022, the national volume of PCI procedures approached 1.3 million cases (data excluding cases from military hospitals).

Clinical Recommendation Level of IVUS/OCT Technology

In recent years, intravascular imaging techniques such as IVUS and OCT have gained widespread recognition in the global medical market, with clinical guidelines assigning them a Class IIa recommendation. Compared to the intravascular imaging penetration rates of 90% in Japan and 35% in Europe in 2019, China’s utilization remains significantly lower despite ranking first globally in the volume of percutaneous coronary intervention (PCI) procedures. During the same period, the proportion of PCI procedures utilizing IVUS catheters in China was only approximately 5.4%, while the usage rate for OCT catheters was less than 1%. This disparity is attributed to the fact that awareness of precise diagnosis had not been fully established during the rapid expansion of PCI services in China prior to the centralized procurement of coronary stents and balloons, as well as historical shortcomings in payment mechanisms and limited health insurance coverage.

As awareness of precision medicine continues to rise and the penetration and adoption of percutaneous coronary intervention (PCI) procedures further increase following the volume-based procurement (VBP) of stents and balloons, the market is gradually expanding into lower-tier regions. More primary-care hospitals are beginning to perform these procedures, significantly lowering the learning curve for emerging operators with the assistance of intravascular ultrasound (IVUS) and optical coherence tomography (OCT). In terms of health insurance policies, IVUS reimbursement has been implemented nationwide, while OCT coverage is being progressively rolled out. The rapid implementation of DRG/DIP payment models, along with the potential future expansion of VBP policies, will provide additional growth opportunities for precise diagnostic and therapeutic techniques such as IVUS and OCT. Comprehensive precision in interventional diagnosis and treatment is an inevitable trend for the future.

In recent years, the penetration gap of IVUS/OCT in mainland China compared to Europe, the United States, Japan, South Korea, as well as Taiwan and Hong Kong, has narrowed significantly. Utilization rates have surged rapidly, increasing fivefold over three years, with certain brands experiencing temporary stockouts. According to industry data, despite the impact of the pandemic, approximately 300,000 IVUS catheters were used in China in 2022, achieving a penetration rate of over 20%; OCT catheter usage reached approximately 60,000–70,000 units, with a penetration rate nearing 5%. Looking ahead, as PCI procedural standardization advances and clinical academic awareness further improves, the intravascular imaging market in China is poised for further expansion. Conservatively estimated, by 2025, the IVUS penetration rate will reach 40%, with a terminal market size exceeding RMB 7 billion, while the OCT penetration rate will reach 20%, with a terminal market size exceeding RMB 4 billion.

Certainly, at the current stage, both IVUS and OCT in the domestic market are close to import monopolies. In the field of IVUS, before 2023, almost all players in the IVUS market were imported brands. Hengyu Medical's IVUS product obtained certification at the end of 2022, breaking the import monopoly. In the OCT field, imported brands also nearly monopolize the market, with Hengyu Medical’s OCT product obtaining certification in Q3 2022, accelerating domestic substitution. Additionally, there is huge potential in the blue ocean market; currently, nearly 4,000 hospitals in China have started performing interventional surgeries. Moreover, more than 13,000 hospitals in China (above second-tier level) are potential customers for conducting interventional surgeries, as well as private hospitals (over 20,000), which also have a large number of potential clients such as Yaxin Hospital, etc.

In the competition among domestically produced medical devices, speed is paramount in the short term, while product strength, platform iteration capabilities, and cost control capabilities determine long-term success. From a comprehensive perspective, Hengyu Medical possesses absolute strength in both the short and long term.

In the short term, Hengyu Medical has maintained a steady pace in obtaining regulatory approvals and is rapidly executing its commercialization strategy. 2023 marked the first year of sales, and to date, sales performance has far exceeded expectations. Meanwhile, Hengyu’s proprietary, integrated IVUS/OCT dual-catheter system is expected to receive regulatory approval this year. From a marketing perspective, a single integrated console can support both IVUS and OCT disposables, allowing operators flexible choice. Moreover, only one sales representative is needed to provide procedural support for both IVUS and OCT products, significantly simplifying promotional efforts and unlocking substantial growth potential. For hospitals, the integrated system saves considerable space in the catheterization lab, facilitates ease of use and subsequent maintenance, and substantially reduces budgetary requirements. Furthermore, Hengyu promptly responds to real-world clinical feedback from the sales frontlines, continuously iterating on existing products and offering more flexible product and commercial strategies, which will accelerate the consolidation of Hengyu’s first-mover advantage.

In the long term, in terms of product competitiveness, Hengyu benchmarks against the latest generation of imported brands. Meanwhile, Hengyu is the only enterprise in China that has fully mastered the key technologies for both IVUS and OCT devices and catheters; its core technology was approved as a National Major Scientific Instrument Development Project in 2019. Leveraging its platform technology for intravascular imaging interventions, the company can achieve rapid product iteration and upgrades, with its pipeline strategy planned to expand gradually from cardiovascular applications to peripheral and neuro-interventional fields. In terms of cost control, the company has achieved independent R&D for all core components and possesses large-scale manufacturing capabilities for IVUS and OCT devices and consumables. Its excellent cost control positions the company as a key player in the future competitive landscape.

Mr. Liu Zhiyong, Founder of Hengyu Medicalstated that the field of precision diagnosis and treatment in vascular intervention in China is still in its early stages, with a long and arduous journey ahead. We sincerely appreciate the unwavering support from both new and existing shareholders, and extend our gratitude to our financing partner, Haoyue Capital, for their strong execution capabilities and profound, precise understanding of the industry. With the support of capital, we are confident that the company will leverage its robust and innovative technologies and products to become a leading enterprise in intelligent endovascular diagnosis and treatment.

Dr. Zhao Shiyong, Founder of Hengyu MedicalIt stated that, as a participant in the field of precision diagnosis and treatment for vascular interventions, Hengyu will not only focus on technology and products but also concentrate its efforts on assisting clinical practitioners in conducting systematic training for precision diagnosis and treatment in vascular interventions. The company hopes to grow together with vascular intervention specialists, enabling more physicians to understand, master, and commit to promoting precision diagnosis and treatment in vascular interventions, thereby gradually aligning China with international standards in this field and ultimately benefiting more patients.

Mr. Shi Heng, General Manager of Jinhuitong FundJinhuitong’s investment team has long focused on the application and development of innovative technologies in major disease areas such as cardiovascular and cerebrovascular disorders. Intravascular ultrasound (IVUS) and optical coherence tomography (OCT) can significantly improve patient outcomes in complex percutaneous coronary intervention (PCI) procedures and reduce the incidence of postoperative adverse events, thereby demonstrating substantial clinical value. Driven by the accumulation of relevant clinical evidence, high-level recommendations in clinical guidelines and consensus documents, ongoing market education that has elevated the practices of domestic operators, iterative product technological advancements, and import substitution with domestically produced alternatives, the penetration rate of IVUS and OCT in China is rising rapidly. As an industry leader possessing both technology platforms, Hengyu Medical not only boasts sustainable innovation capabilities across a multi-product pipeline but also has the capacity for in-house research, development, and manufacturing of upstream core components. The company’s team brings extensive industrialization experience and professional expertise, maintaining an enterprising spirit and a relentless pursuit of excellence. Jinhuitong Fund will firmly support the company’s development and contribute to the continuous advancement of intravascular imaging in China.

Mr. Zhang Quanyuan, Managing Director of Huatai Zijin and Head of Healthcare InvestmentIt stated that Hengyu Medical has been continuously refining and deepening its expertise in the field of precise endoluminal diagnosis and treatment, emphasizing independent innovation. The company is committed to building an R&D platform characterized by optical and ultrasound technologies, leveraging artificial intelligence algorithms and precision manufacturing processes as its technical advantages, and featuring medical-engineering collaborative research as its distinctive model. Adhering to its mission of “providing integrated solutions for precise endoluminal diagnosis and treatment for doctors and patients,” the company has achieved steady, high-quality development in recent years. It is striving diligently to become a domestic leader and an internationally advanced industry pioneer, and we remain firmly optimistic about the company’s future.

Mr. Wang Chen, Senior Partner at Tasly CapitalTasly Capital’s investment team has maintained a close focus on the field of intravascular imaging within cardiovascular intervention. As key intravascular imaging technologies, Optical Coherence Tomography (OCT) and Intravascular Ultrasound (IVUS) have evolved over more than three decades to become essential tools in the catheterization laboratory. They are now recommended by clinical guidelines as critical instruments for diagnosis and procedural assessment, thereby benefiting a vast number of cardiovascular patients. As a leading enterprise in this industry, Hengyu Medical possesses both of these major technology platforms and remains committed to the principles of technology-driven innovation and domestic production. We firmly believe that, under the leadership of its founding team, through the concerted efforts of all employees, and with the support of all shareholders and investors, the company will provide reliable, cost-effective products to benefit a broad patient population. Tasly Capital will remain steadfast and spare no effort in continuing to support Hengyu Medical’s development, thereby contributing to the advancement of precision cardiovascular intervention in China.

Mr. Yang Zhenjun, Managing Partner at Hywin Capital“We are honored to have assisted Hengyu Medical in completing this round of financing. The comprehensive and precise advancement of diagnosis and treatment represents a key trend in healthcare development. Intravascular imaging is the most powerful modality for achieving precise diagnosis in the field of vascular intervention, having gained recommendations from clinical guidelines and widespread recognition in high-end medical markets globally. In recent years, domestic intravascular imaging has experienced rapid volume growth, driven by healthcare reforms and the broader adoption of interventional procedures at lower-tier hospitals, indicating substantial future growth potential. All of Hengyu Medical’s products possess fully independent intellectual property rights, with core components independently developed in-house. The company leverages platform-based technologies and demonstrates strong capabilities in the mass production and cost control of both equipment and consumables. Haoyue Capital remains bullish on the company and is committed to growing alongside it. We look forward to the early market launch of more of the company’s high-quality products, ultimately benefiting a broad patient population.”