Xienova Reports 2022 Annual Results: Revenue of RMB 396 Million, Up 30% Year-over-Year

On March 23, Acotec (06669.HK) released its annual results report for the year ended December 31, 2022. For the full year of 2022, Acotec’s total revenue reached RMB 396 million, representing a 30% year-on-year increase from 2021; gross profit amounted to RMB 336 million, up 26% year-on-year from 2021; the gross margin stood at 85%, and net profit was RMB 70.14 million.

The performance data clearly demonstrates the significant achievements of acotec’s diversified product pipeline. Since the full implementation of its dual-track strategy for arterial and venous interventions in 2021, acotec, which initially gained global recognition for its peripheral arterial interventional products, saw its revenue from venous intervention and access products reach RMB 86.03 million in 2022. This segment’s contribution to total revenue increased from 8% in the same period of the previous year to 21.8%. Meanwhile, driven by the rapid commercialization of its venous pipeline products, the revenue share of drug-coated balloons (DCBs) declined from 90.5% in the same period of the previous year to 68.5%.

In 2022, acotec launched five new products and expanded the indications for one drug-coated balloon (DCB) product within a single year, achieving a qualitative leap in the pace of product innovation.

Last year, the peripheral support catheter and high-pressure conical balloon were successively approved for market launch, with the peripheral support catheter also gaining approval in the United States and Brazil during the same period. If these two products represent Acotec’s continued dedication to the peripheral artery sector, then the market approval of the endovenous radiofrequency ablation generator and endovenous radiofrequency ablation catheter marks Acotec’s second product entry into the venous field following the launch of its peripheral thrombectomy system. With this milestone, Acotec has once again taken the lead in the blue-ocean market for domestically produced medical devices for the treatment of peripheral venous diseases.

This year, acotec also extended its reach into broader fields. Last year, its drug-coated balloon (DCB) product for treating stenosis of autogenous arteriovenous fistulas in hemodialysis patients, the NEO-Skater intracranial balloon dilation catheter, and the YAN coronary balloon dilation catheter were successively approved for market launch. From a strategic perspective, this move signifies that acotec has officially achieved full coverage of products across four major departments: vascular surgery, cardiology, nephrology, and neurology. Furthermore, it continues to expand its therapeutic areas, formally advancing from the treatment of peripheral arterial and venous diseases into the realms of coronary and neurovascular interventions. With this, acotec’s layout in the field of systemic vasculature has been initially implemented. In the future, therapeutic products for peripheral vascular, coronary vascular, and intracranial neurovascular diseases will be rolled out one by one. The commercialization of each product pipeline will create new drivers for broadening the company’s growth points.

By the end of 2022, all of acotec’s marketed products had entered a phase of rapid growth in hospital adoption. The supra-popliteal drug-coated balloons were adopted by a total of 1,400 hospitals, while the infra-popliteal drug-coated balloons reached 700 hospitals, achieving comprehensive coverage in provinces with advanced medical capabilities and strong payment capacity, such as Beijing, Zhejiang, and Guangdong. In the future, acotec will continue to expand from these core regions into surrounding lower-tier markets. Driven by urgent demand in lower-tier markets in 2022, acotec’s peripheral thrombectomy aspiration system achieved rapid nationwide hospital adoption within one year, reaching 1,000 hospitals. Additionally, hospital adoption efforts for other products are proceeding as planned.

The remarkably strong hospital admission rate can be attributed not only to the channel advantages accumulated by acotec over years of dedicated efforts and the inherent strengths of its products, but also closely linked to its extensive marketing promotion activities. Last year, acotec participated in a total of 163 academic forums and conferences and independently organized 104 academic and educational events. To strengthen promotion in lower-tier markets and enhance reach and penetration among primary care hospitals, the company cumulatively held more than 800 departmental meetings, sharing its latest concepts in vascular disease treatment as well as the advantages and proper usage of its products, thereby achieving significant overall commercial operational results.

In 2022, while experiencing rapid business expansion, acotec swiftly completed the augmentation of its talent pipeline and the enhancement of its talent management system. As of the end of last year, acotec had a total workforce of over 600 employees, representing an increase of more than 50% compared to 2021.

First, acotec has increased its talent investment in R&D, establishing a new active medical device team in Shenzhen within the year, thereby providing strong personnel support for the future research, development, and production of active medical device products. Meanwhile, acotec has also recruited R&D experts with professional backgrounds in electrical engineering, automation, and programming. Currently, it has formed an organizational structure comprising four teams across three locations—Beijing, Shenzhen, and California, USA—with a total of 118 members.

Secondly, to facilitate the rapid market launch of its new products, acotec has continued to strengthen its sales and marketing team. On one hand, it has consistently consolidated and solidified the team advantages it has accumulated over many years in vascular surgery; on the other hand, acotec has established a new, experienced sales and marketing team in nephrology to support the commercialization of its AVF DCB products.

In 2022, Acotec entered into a strategic partnership with Boston Scientific while maintaining its independent operations. As of the press date, Boston Scientific’s partial tender offer for a 65% equity stake in Acotec has been completed.

In the future, acotec and Boston Scientific may explore commercial collaboration opportunities in China. By leveraging their more comprehensive combined product portfolios, they aim to benefit physicians and patients across China. Boston Scientific may also evaluate opportunities to collaborate with acotec on the registration and commercialization of acotec’s products globally, including in the United States. Additionally, acotec’s manufacturing and R&D facilities could help Boston Scientific expand certain aspects of its production and research and development activities, creating mutual benefits for both companies. Boston Scientific may also partner with acotec to identify product development opportunities in potential new areas, either independently or jointly.

The developmental journey of acotec may offer some inspiration to its industry peers. By returning to its mission, focusing on product research and development, and moving forward with determination, the market will not disappoint any dedicated effort. This is precisely the motto often cited by Li Jing, CEO of acotec: “Excellence in Learning, Sincerity in Heart, Determination in Action, and Standing on Trust.” It was through such steadfast perseverance that acotec gained market recognition after ten years of quiet dedication.

Nevertheless, whether seen or not, acotec will remain like the rising sun, steadfast in its mission to “commit to long-term clinical benefits and improve patients’ quality of life.” It will continuously advance the treatment of vascular diseases, bringing innovative therapies and trustworthy products to both physicians and patients, and consistently enhancing long-term clinical outcomes for patients—this is its unwavering dedication.