Tangji Medical Secures Nearly RMB 100 Million Series B Funding to Advance Minimally Invasive Interventional Therapies for Metabolic Diseases

VCBeat (WeChat: vcbeat) has learned thatRecently, Hangzhou Tangji Medical Technology Co., Ltd. ((hereinafter referred to as “Tangji Medical”) announced the completion ofShenzhen Tuojin Venture Capital FundandSeries B Financing Co-Invested by Wuxi Guolian Xinchuang, Tianchao Capital and Garage Coffee served as financial advisors in this transaction. The proceeds from this round of financing will be used to complete the registrational clinical trials for Tangji Medical’s National Innovative Medical Device, the “Gastric Bypass Stent System,” as well as to support the research and development and clinical trial preparations for multiple new products in its R&D pipeline.

Amid significant downward pressure in the challenging capital market and the substantial impact of pandemic control measures on the socio-economic landscape, Tangji Medical has successfully completed a new round of financing. This achievement fully demonstrates that its innovative product pipeline, high-potential market segments, and exceptional team continue to garner investor favor. The investors in this round collectively expressed strong optimism about the rapid development of the interventional therapy field for metabolic diseases and firmly believe that Tangji Medical will achieve remarkable success in product innovation.

Founded in Hangzhou, China, in August 2016, Tangji Medical has always adhered to its vision of pioneering new approaches to the treatment of metabolic diseases and its mission of alleviating suffering, restoring health, and enhancing well-being for patients with metabolic disorders worldwide. The company has successfully developed a range of innovative medical devices for the treatment of metabolic conditions such as obesity, type 2 diabetes, and non-alcoholic fatty liver disease (NAFLD). Its independently developed “Gastric Bypass Stent System” has been included in the National Innovative Medical Device Special Review Program and recognized by the National Medical Products Administration (NMPA) as a Class III innovative medical device. The device has successfully completed the critical phases of therapeutic intervention and explantation in clinical trials and has entered the late-stage follow-up period.

Metabolic Diseasesis the primary cause of suboptimal health status worldwide, itsThere is a significant unmet clinical need in prevention and treatment.. Globally, there are up to 2.2 billion overweight individuals and 700 million obese individuals, with 3.4 million deaths annually attributed to conditions related to obesity or being overweight. Obesity has become a major public health issue in China. The incidence rate and growth rate of overweight and obesity in China rank first worldwide, making it the country with the largest number of overweight and obese individuals. It is projected that by 2030, the prevalence of overweight and obesity among Chinese adults will reach 61%.^[1]。

Meanwhile, as type 2 diabetes affects the largest population of chronic disease patients globally, obesity is also a key pathogenic factor. In 2001, Finer et al. proposed the concept of “Diabesity” to emphasize the critical role of obesity in the onset and progression of type 2 diabetes and to update the prevention and control model for diabetes. Additionally, non-alcoholic fatty liver disease (NAFLD) is positively correlated with obesity and has gradually replaced hepatitis as the leading cause of liver cancer. Polycystic ovary syndrome (PCOS) is a major cause of female infertility, and obesity is a high-risk factor for inducing PCOS.

Surgical treatment for obesity and metabolic diseases has a history of more than half a century and is now widely recognized.Surgery is an effective means of rapidly, effectively, and durably reducing weight and treating obesity-related metabolic diseases.In July 2016, the global guidelines issued by the World Diabetes Organization and the “Multidisciplinary Consensus on Diagnosis and Treatment of Obesity (2021 Edition)” released by the Chinese Society of Endocrinology and the Chinese Diabetes Society bothBariatric surgery is included as a preferred option for the treatment of obesity-related diabetes and obesity.

Tangji Medical is a national high-tech enterprise dedicated to building an innovative platform for gastrointestinal interventional therapies, related medical devices, and disease management solutions. BreakthroughIntegrating the Concept of Gastric Bypass Weight Loss Surgery with Innovative Implantable Medical Devices for the Digestive Tract, inFirst Successful Case in ChinaDeveloped“Gastric Bypass Stent System”: Minimally invasive, non-destructive to human anatomy, simple surgical procedure, and superior patient experience. Upon its market launch, this technology is expected to become China’s first novel therapy for treating metabolic diseases via endoscopic intervention, filling a gap in this medical field.

The company has established multiple technology platforms, as well as R&D, quality, production, and supply chain systems, and has obtained ISO 13485 certification. As of the end of 2021, Tangji MedicalNearly 10 R&D projects underway, with over 50 patents filed, multiple products are undergoing clinical trials at various stages in more than 20 well-known public Grade A tertiary hospitals across China.

Tangji Medical has built an excellent corporate culture and team, with both new and long-standing employees embracing the “Innovation, Integration, Efficiency, Striving” core values, continuously enhancing the team’s professionalism, innovation, and collaboration. The company’s founder, Mr. Zuo Yuxing, possesses extensive experience in both clinical medicine and commercial sales within domestic and foreign-funded enterprises. Senior executives and key team members have previously held positions such as Vice President of Greater China, Head of Marketing and Sales at renowned multinational medical device companies, or senior human resources executives, Chief Technology Officers, and Heads of Clinical Registration at leading domestic enterprises.

Mr. Zu Yuxing, Founder and Chairman of Tangji MedicalIndicates:We are deeply honored that Tangji Medical has secured support from leading domestic life sciences investors, who have highly recognized our innovative product pipeline and strong momentum for growth. The proceeds from this financing round will accelerate the international and domestic clinical trials of our national innovative medical device, the “Gastric Bypass Stent System,” for weight loss indications, as well as sustain product development for other indications such as type 2 diabetes and non-alcoholic fatty liver disease (NAFLD). Furthermore, Tangji Medical’s R&D pipeline includes nearly ten additional innovative medical devices targeting metabolic disorders currently under development. Looking ahead, Tangji Medical will remain committed to its original mission, strengthen its R&D capabilities, and focus on cutting-edge technologies, striving to become a research-driven unicorn enterprise. We are poised to embrace the opportunities and challenges of the new era of comprehensive health, contributing significantly to the diversity and advancement of China’s independent medical innovations.

Ms. Hao Jingjing, Managing Director and Head of Healthcare Investment at Tuojin CapitalIndicates:In recent years, obesity and its associated metabolic diseases have increasingly become a major threat to the health of the Chinese population. With a large patient base, this issue has garnered growing attention from the medical community; however, there has been a lack of particularly effective and safe clinical interventions. Tangji Medical’s innovative product combines the efficacy of surgical procedures while avoiding the risks associated with invasive surgery, thereby lowering the barrier to adoption for both physicians and patients and holding significant potential for rapid widespread adoption. Furthermore, the company has established a comprehensive strategic layout in this field, offering substantial growth potential. Overall, it aligns well with Tuojin Capital’s consistent investment philosophy of “addressing unmet clinical needs and possessing core value.”

Dr. Xue Zhifeng, Partner and Head of Healthcare Investment at Wuxi Guolian XinchuangIndicates:Cardiovascular, cerebrovascular, and metabolic diseases constitute a key investment focus for our company. China has the world’s largest population of patients with chronic diseases, and overweight and obesity are among the primary risk factors driving many of these conditions. As the country with the highest number of individuals affected by overweight and obesity, Tangji Medical is pioneering innovative therapeutic pathways for metabolic disorders through its robust pipeline of products in development, offering substantial growth potential in both the domestic and global markets.

Tuojin Capital, founded in 2012, adheres to the philosophy of “Focus, Talent, and Collaboration,” creating value for its Limited Partners (LPs) and providing value-added services to its portfolio companies. Currently managing billions of RMB in investment funds, the firm focuses on equity investment opportunities in strategic emerging industries, having invested in numerous projects across four key sectors: next-generation information technology, new energy, new materials, and biopharmaceuticals.

Wuxi Guolian Xinchuang Private Investment Fund Co., Ltd. was established in 2021 as one of the key platforms for implementing market-oriented reforms within the investment sector of Wuxi Guolian Group. The company was formed through a mixed-ownership reform involving the core business team of the former Wuxi Guolian Industrial Investment. It focuses on industry sectors such as healthcare, integrated circuits, and advanced manufacturing, with assets under management exceeding RMB 2 billion.

Tangji Medical is a national high-tech enterprise dedicated to building an innovative platform for gastrointestinal interventional therapies, related medical devices, and disease management solutions. The company consistently upholds its vision of pioneering new pathways for treating metabolic diseases and its mission to help patients worldwide alleviate suffering, regain health, and restore their well-being. It has successfully developed multiple novel medical technologies targeting metabolic disorders such as obesity, type 2 diabetes, and non-alcoholic fatty liver disease.

Currently, the company has established multiple technology platforms and possesses a comprehensive system for R&D, quality control, production, and supply chain management, having obtained ISO 13485 certification. As of the end of 2021, Tangji Medical had nearly 10 projects under development, filed more than 50 patent applications, and was conducting clinical trials at various stages for multiple products in over 20 renowned hospitals.

Tangji Medical is ushering in a new era of interventional therapy for metabolic diseases, driven by innovation and centered on patients and healthcare providers!

References:

[1] The New England Journal of Medicine.2017（8）