Home SonoSurg: Building a Comprehensive Minimally Invasive Surgical Portfolio Over Seven Years Through Technological Innovation to Capture Global Markets

SonoSurg: Building a Comprehensive Minimally Invasive Surgical Portfolio Over Seven Years Through Technological Innovation to Capture Global Markets

Jul 08, 2022 08:00 CST Updated 08:00
Surgnova

Provider of Comprehensive Solutions for Minimally Invasive Surgery

In November 2021, Surgnova announced on its official website that its ultrasonic scalpel, part of its integrated high-frequency ultrasonic surgical system, had been selected in the centralized procurement program. With the recent implementation of these procurement contracts, its products have rapidly gained access to more than 200 hospitals, including over 100 tertiary Grade A general hospitals, laying a solid foundation for expanding its presence in the domestic market.

 

The centralized procurement of ultrasonic scalpel tips, led by Guangdong Province and involving a 16-province alliance, covers more than 50% of the domestic market and population in terms of procurement scale and outcomes. According to the Guangdong Provincial Healthcare Security Administration, the average price reduction for ultrasonic scalpel tips reached 70.11%. For the Chinese market, where the penetration rate of ultrasonic scalpels is only 1.1%, this centralized procurement will undoubtedly accelerate market expansion. Furthermore, this initiative presents significant opportunities for domestic companies in advancing the process of import substitution.

 

However, although the wind has come, whether enterprises can seize the opportunity to soar and secure a place in the market depends on the competitiveness of their products and their pursuit of technology and quality.

 

From the perspective of Zhang Jindi, founder of Surgnova,Only high-quality products can drive market growth.This is indeed the case. In the field of ultrasonic scalpels, most domestic brands in China still lag behind leading international brands, resulting in limited bargaining power during centralized procurement. Only when domestically produced and imported products are on par in terms of quality can they compete equally and penetrate the mainstream market.

 

In 2018, Surgnova launched its independently developed surgical energy product—the SoniCure® Ultrasonic Soft Tissue Cutting and Hemostasis System (hereinafter referred to as the “ultrasonic scalpel”)—and pioneered entry into overseas markets after obtaining CE certification. Two years later, the product received a Class III medical device registration certificate from China’s National Medical Products Administration (NMPA). Meanwhile, its intended use in the CE market was expanded to include vessel sealing up to 7 mm in diameter, propelling domestically produced ultrasonic scalpels into the “7 mm era.”

 

As a surgical instrument brand committed to becoming the first choice for doctors and patients worldwide, Surgnova’s product portfolio certainly extends beyond ultrasonic scalpels,It focuses on two key areas: minimally invasive surgery and interventional oncology. The company has launched three independently developed product platforms—surgical vision, surgical energy, and tumor ablation—with its first nine products, all possessing full independent intellectual property rights, already marketed both domestically and internationally. Its services now extend to more than 60 countries and regions worldwide.

 

Amid the rapid development and transformation of China’s healthcare industry in recent years, how has Surgnova, as an active explorer, kept pace with industry trends? How has it positioned itself amidst the wave of innovation in medical devices? What are its strategic plans for the future? VCBeat conducted an exclusive interview with Mr. Zhang Jindi, founder of Surgnova, to explore these topics.

 

Seven Years of Entrepreneurship: Achieving Dual Breakthroughs in Quality and Market


The Birth of Surgnova: No Marvelous or Twisting Tale, Just a Group of Like-Minded Individuals Striving to Benefit the Nation and Its PeopleAfter obtaining his master’s degree in Biomedical Engineering from Tsinghua University, Zhang Jindi worked at global medical device giants such as GE Healthcare and Medtronic, accumulating 15 years of R&D experience. During this period, he witnessed the commercial success of multinational corporations while also keenly perceiving the gaps within China’s domestic industry. Rather than an insurmountable chasm, these gaps signified ample opportunities for breakthroughs by Chinese enterprises.

 

The window of opportunity for the rapid development of domestic substitution and independent innovation in medical devices is quietly approaching, while the core founding team, with years of deep industry experience, possesses robust technical capabilities. With all conditions ripe, a patient angel investor who believes in the long-term growth of the sector helped launch Surgnova.

 

In addition to its profound technological expertise, the core founding team’s years of experience in R&D, manufacturing, regulatory affairs, and quality management at multinational medical device giants have provided the company with a broad strategic perspective and stringent product quality standards from the outset.

 

A review of Surgnova’s product matrix clearly reveals the synergies among its product lines.

 

Surgnova positions itself as a provider of comprehensive solutions for minimally invasive surgery. Following the developmental trajectory from “open surgery” to “laparoscopic minimally invasive surgery,” then to “minimally invasive interventional procedures,” and finally to “natural orifice endoscopic surgery,” the company has expanded its product portfolio from core offerings to other surgery-related products. Ranging from electrosurgical pencils to surgical robots, Surgnova is progressively enhancing its product line across the broader field of general surgery.

 

The company has established three major platforms: surgical vision, surgical energy, and tumor ablation. It provides comprehensive minimally invasive surgical solutions globally. Its product portfolio primarily includes 2D electronic laparoscopes, 3D electronic thoraco-laparoscopes, insufflators, ultrasonic soft tissue cutting and hemostatic devices, integrated ultrasonic and high-frequency electrosurgical systems, motorized endoscopic linear staplers, irreversible electroporation (IRE) therapy systems, microwave ablation systems, and radiofrequency ablation systems, covering the full spectrum of equipment and instruments required for minimally invasive surgery and interventional oncology procedures.

 

Behind this strategic layout, on one hand, Surgnova aims to streamline clinical workflows through synergies among its products in response to clinical needs; on the other hand, from a business model perspective, the integration of equipment and consumables, along with flexible product portfolios, has significantly enhanced its risk resilience.

 

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Product Portfolio Source: Surgnova

 

In terms of market strategy, Surgnova adheres to a dual-track approach, developing both domestic and international markets simultaneously.

 

In accordance with the sequence in which its products gained market access, Surgnova has systematically advanced product commercialization, establishing dedicated professional sales teams for both domestic and international markets and building robust marketing capabilities. Currently, its full product portfolio has obtained EU CE certification, while certifications in the United States, Brazil, and other countries or regions are ongoing. Most of its products have already secured domestic registration certificates and manufacturing licenses.

 

As a startup, it is often challenging to cover every aspect of product promotion and market penetration. Therefore, Surgnova initially chose to focus on breaking through key markets, first establishing its reputation and brand, and then gradually expanding its market share from specific points to broader areas.

 

In overseas markets, Surgnova, leveraging its independent intellectual property rights and mid-to-high-end product positioning, directly competes with the top ten global medical device companies. It initially entered the European and American healthcare markets—considered “highlands” of the medical device industry—and subsequently drove breakthroughs in emerging markets such as Latin America, Asia, and Africa. After three years of operations, the brand has established a strong industry reputation and secured advantageous channel resources in overseas markets.


In the domestic market, ultrasonic scalpels have leveraged the momentum of centralized procurement to achieve significant market breakthroughs, providing an excellent entry point for the expansion of other product lines. Recently, its 3D thoracoscopic and laparoscopic products have received strong clinical feedback.

 

The commercialization of medical device products is not an overnight success, especially for products in the field of general surgery, which grow alongside the increasing volume of surgical procedures. As Zhang Jindi metaphorically stated in the interview: “Compared to the explosive growth of pharmaceuticals, the medical device sector resembles a slow-cooking process; yet it is a relatively stable market characterized by compound growth and immense development potential.。”

 

Surgnova places great emphasis on its commercialization capabilities, as achieving self-sustaining revenue marks a new stage in the company’s development and injects additional momentum for future growth.

 

Commercial success hinges on product competitiveness, and Surgnova has consistently regarded the provision of high-quality products as the driving force behind its sustainable development.

 

Viewed in the context of product promotion, this strategy is even clearer. Zhang Jindi introduced that in 2019, Surgnova promoted its microwave ablation products in Germany through surgical roadshows, traveling north from Munich and visiting seven hospitals in succession, achieving remarkable results. Six of these hospitals subsequently joined Surgnova’s core customer base, marking a significant step forward in product recognition and brand awareness.

 

Without independent intellectual property rights and guarantees of product quality, an emerging brand cannot gain entry into the high-end market, let alone compete with top-tier international brands.By demonstrating surgical outcomes in the most straightforward manner, Surgnova has earned recognition and trust from top European hospitals and physicians for its precise surgical results, exerting a significant impact on the broader European market.


Dr. Thierry de Baere, a renowned expert in the field of interventional radiology in Europe and winner of the Gold Award at the 2019 European Congress of Cardiovascular and Interventional Radiology, and Dr. Thomas Helmberger, founder and chairman of the German Society of Interventional Radiology, along with other top global experts, have also become loyal users and partners of Surgnova.

 

Specifically, product performance and quality are two key factors that ensure product competitiveness. Surgnova has established a 360° full-lifecycle quality management system that spans marketing, R&D, procurement, manufacturing, and services, ensuring product quality through comprehensive, end-to-end processes. In the product validation phase alone, products must undergo four stages of testing: R&D validation, quality validation, production engineering validation, and production validation. Only after thorough verification are they released for mass production.

 

Furthermore, Surgnova boasts robust production advantages, with its manufacturing base located in Cixi, Zhejiang. Cixi is known as China’s hometown of small home appliances with global influence, and serves as a major production hub for bearings, textile machinery, magnetic materials, bicycle components, and more. The city is home to numerous “Specialized, Refined, Differential, and Innovative” (SRDI) enterprises and “Little Giant” firms. Leveraging Cixi’s resources and the strong manufacturing and supply chain capabilities of the Yangtze River Delta region, Surgnova has significant room to further capitalize on its supply chain advantages and enhance its manufacturing prowess.

 

Over its seven-year history, Surgnova has adhered to a long-termist philosophy, making steady progress in product portfolio development, market promotion, and team building. By focusing on the needs of general surgery, the company has established three major product platforms. It has successfully commercialized multiple self-developed products in both domestic and international markets, while continuously refining its team and operational management systems.

 

Externally, Surgnova has also received widespread recognition. On one hand, it has successfully secured multiple rounds of capital affirmation, ranging from angel investment to Series C financing. Meanwhile, late last year, it smoothly passed the national certification as a High-Tech Enterprise, gaining state-level recognition for its R&D and innovation capabilities.

 

Grasping Innovation from 1 to 100: The Imaginative Phase 3.0


An Overview of Surgnova’s Product Portfolio: Beyond Synergy, Focus on High-Maturity, Large-Scale Mainstream Segments. The total global market size addressed by its core product lines exceeds USD 55 billion, is projected to reach USD 80 billion in 2023, and continues to grow.

 

On the one hand, these sectors boast substantial market sizes and abundant opportunities; on the other hand, even though products are relatively mature, they have not yet reached their ceiling, leaving significant white spaces for technological breakthroughs.

 

Zhang Jindi also stated that Surgnova has never wavered in its positioning regarding technological innovation.Focusing on “1 to 100” Innovation in the Early Stages of Development. Such innovations achieve further breakthroughs by building upon internationally cutting-edge technologies, thereby breaking the monopoly of industry giants in the mainstream market and securing greater room for corporate growth.

 

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Source: Surgnova


In surgical visualization products, Surgnova’s 3D electronic thoraco-laparoscope features a globally pioneering front-mounted light source.Achieving breakthroughs in key fields such as optical imaging and image processing, it has become one of the few companies in China with complete independent intellectual property rights and autonomous production capabilities.


The product’s front-mounted light source design eliminates the need for traditional optical fibers and light source boxes, reducing equipment costs and simplifying installation and operation.More importantly, the streamlined optical path design reduces light loss while achieving constant temperature control through proprietary technology and processes, thereby solving the industry-wide challenge of fogging during thoracoscopic and laparoscopic surgeries and significantly improving surgical efficiency.

 

In May this year, Surgnova launched its two-in-one energy platform product in China—the ultrasonic and high-frequency surgical integrated system., integrating ultrasonic scalpel and electrosurgical modes on a single platform, supporting the connection and use of various surgical instruments to address issues such as complex equipment operation, high procurement and maintenance costs, and significant occupancy of valuable operating room space caused by the proliferation of surgical devices. It is reported that the company is currently advancing the research and development of a more highly integrated triple-energy platform.

 

Notably, the development of the irreversible electroporation (IRE) ablation system (commonly known as the “NanoKnife”) within the tumor ablation platform was inspired by exchanges with French clinicians during the promotion of its microwave ablation products. Throughout the R&D process, continuous interaction with leading European clinicians ensured that the final product met actual clinical needs in terms of functionality, performance, and ergonomics.This also makes it the first new-generation irreversible electroporation system to achieve genuine clinical application in the European market, following the U.S. “NanoKnife.”

 

Overall, Surgnova, still in its early development stage, aims to focus on core products within major market segments, achieve independent control over intellectual property and technologies, and leverage “1-to-100” innovation to demonstrate the strength of domestic brands in high-end industries.

 

At its inception, Surgnova formulated a “three-step” strategic plan. Operating on five-year cycles, the 1.0 phase focused on product development and regulatory registration, successfully launching nine mature products. Currently in the 2.0 phase, Zhang Jindi’s team is dedicated to fully commercializing product value and strategically laying out future product lines.

 

Phase 3.0 is closely aligned with Surgnova’s future development strategy, with its foundations laid as early as Phase 1.0.

 

This phase centers on surgeries and operating rooms, aiming to build a clinical-need-driven industrial incubation platform that continuously expands its product portfolio. It is reported that the company is currently focusing on three key areas: comprehensive solutions for surgical procedures, surgical robots, and digitally integrated smart operating rooms.

 

“Healthy China · Autonomous and Controllable” is the brand strategy proposed by Surgnova this year. Against the backdrop of the “Healthy China” era and during a period of intensified industry changes, Surgnova remains committed to the development path and direction forged through arduous exploration. By strategically planning for the long-term growth of the industry, its future development is filled with promise and anticipation.