Dental Implant Device Developer Gaofeng Medical Completes Series B Funding Round to Advance Digitalization and New Product Development

VCBeat has learned that Gaofeng Medical Equipment (Wuxi) Co., Ltd. (hereinafter referred to as “Gaofeng Medical”), a provider of R&D and manufacturing for dental implant medical devices and integrated implant treatment planning solutions, has recently completed its Series B financing round.

The proceeds from this round of financing will be primarily used to expand production capacity for Gaofeng Medical’s current products, pre-allocate capacity for products under registration, and support the research and development as well as market deployment of new products.

Gaofeng Medical, formerly known as Gaofeng Tools established in 1992, transitioned into the field of dental implantology in 2018. It is a modern enterprise integrating R&D of medical device products, software development, manufacturing, sales, translation and application of technologies in the dental sector, and training. Currently, Gaofeng Medical has design centers in both Shanghai and Beijing, with a production base covering approximately 10,000 square meters and equipment investments exceeding RMB 100 million.

In December 2019, Gaofeng Medical obtained its first registration certificate for customized abutments, which was also the first such certificate approved in China. To date, Gaofeng Medical has secured registration certificates and qualifications for the production and sale of products including customized abutments, titanium posts, implant tool kits, and burs (comprising one Class III, three Class II, and seventeen Class I devices). Additionally, ten Class III implant-related products are currently in the process of obtaining certification.

What prompted the transition from a long-established tooling enterprise to the field of dental implants? How has this corporate DNA influenced Gaofeng Medical’s journey in dental implantology? What accounts for Gaofeng Medical’s rapid growth? With these questions in mind, VCBeat interviewed Gao Jun, General Manager of Gaofeng Medical, to seek answers.

Gaofeng Medical’s corporate profile is defined by two key attributes: first, the research and development of dental implant medical devices; second, serving as a provider of integrated dental implant solutions.

In terms of device R&D, Gaofeng Medical has obtained dozens of utility model patents and independently filed invention patents to date; it has also co-developed more than 30 invention and utility model patents in collaboration with Academician Zhang Zhiyuan’s team at Shanghai Ninth People’s Hospital. The company has established two product lines: instrumental products such as laboratory burs, clinical burs, implantology tools, and surgical instruments; and implant consumables including customized abutments, crown-and-bridge restorations, and standard abutments. It is among the domestic manufacturers whose customized abutment products have received NMPA approval for market launch.

Notably, in terms of product research and development, Gaofeng Medical places significant emphasis on collaborating with domestic universities and specialized hospitals to jointly promote the translation of scientific achievements in the field of dental implants.

For example, in 2021, Gaofeng Medical Equipment (Wuxi) Co., Ltd. signed an industry-academia-research cooperation agreement for the transfer of scientific and technological achievements with the team led by Academician Zhang Zhiyuan of Shanghai Ninth People’s Hospital, Shanghai Jiao Tong University, under the certification and registration of the Shanghai Municipal Science and Technology Commission and the Shanghai Municipal Administration for Industry and Commerce. The collaborative project focuses on surgical instruments for V-II-V pterygoid and zygomatic implant procedures, involving the commercialization of a total of 36 patents.

Furthermore, Gaofeng Medical has established a project team in collaboration with the Department of Prosthodontics and the Department of Periodontology at Peking University School of Stomatology to investigate the clinical advantages of customized abutments. Relevant findings from this project have been successively published in the Journal of Peking University (Health Sciences). Meanwhile, Gaofeng Medical has also conducted partial in vitro experiments and research on customized abutments in partnership with the National Clinical Research Center for Oral Diseases, the National Engineering Laboratory for Digital Dental Technology and Materials, and the Beijing Key Laboratory of Digital Stomatology.

According to Gao Jun, Gaofeng Medical has a dedicated fund for collaborating with universities on the commercialization of research achievements, with an annual scale of approximately RMB 30 million to RMB 50 million.

“University faculty members possess strong initiative in scientific research, but for various reasons, their findings may struggle to reach the market. This necessitates corporate involvement to transform these theoretical achievements into tangible products and commercialize them, thereby making them accessible to a broader population. This endeavor is driven by more than just commercial interests,” said Gao Jun. “The sense of fulfillment and satisfaction derived from such work is incomparable to monetary gain. Therefore, as long as a project aligns with Gaofeng’s product portfolio, helps guide Gaofeng toward new directions in product R&D, or assists in enhancing Gaofeng’s manufacturing processes, Gaofeng is willing to provide support.”

Evidently, Gaofeng Medical’s relatively comprehensive product portfolio strategy has laid the foundation for its emergence as a provider of integrated implant solutions.

“Gaofeng Medical’s product portfolio is integrated. In terms of implant surgical kits, Gaofeng Medical’s solutions are compatible with both digital guides and conventional surgical implant procedures. Regarding abutments, whether customized or standardized, temporary or permanent, or one-stage or two-stage, Gaofeng Medical’s abutment products can meet diverse clinical needs,” stated Gao Jun. “Gaofeng Medical’s product portfolio encompasses the instruments, tools, and consumables required for the implementation of implant treatment plans.”

 Gaofeng Medical-Related Products

Furthermore, according to Gao Jun, Gaofeng Medical has not only established a medical design center but also owns an IT company, through which it has preliminarily built a digital platform for dental implants. Additionally, the company has formed stable partnerships with third-party enterprises for digital equipment such as intraoral scanners.This means that, by virtue of its relatively comprehensive product pipeline, proprietary software ecosystem, and stable equipment partnerships, “Gaofeng Medical can become a company that truly provides integrated digital implant solutions.”

From Gao Jun’s perspective, several key milestones in the development of Gaofeng Medical have been driven by policy initiatives.

Gaofeng, established in 1992, has undergone 30 years of development.

During its first decade, Gaofeng Medical (then known as Gaofeng Tools) primarily engaged in metalworking for ships and automobiles, as well as the 3C business.

During the second decade, the subprime mortgage crisis and the global financial turmoil prompted domestic industrial enterprises to embark on a path of involution. Many companies began to reduce costs by simplifying manufacturing processes, thereby lowering product prices. This price war triggered a vicious cycle of declining profits and deteriorating reputation, which in turn led to further price reductions. Gaofeng Medical began to seek a path for transformation.

By chance, Gaofeng Medical entered the field of dental implants. After thorough market research, Gaofeng Medical determined its transformation path.

However, the product registration system at that time differed from the current one, requiring manufacturers to obtain a production license before applying for a product registration certificate. This not only resulted in a prolonged timeline but also led to relatively higher costs for enterprises.

According to Gao Jun, against this backdrop, Gaofeng Medical obtained a Certificate of Free Sale, enabling it to manufacture products; however, these products were not permitted for domestic sale or use in China and could only be exported.

Therefore,The second decade of Gaofeng Medical was a decade of global expansion. During this phase, having been tempered by overseas markets, Gaofeng Medical not only accumulated extensive core expertise in manufacturing, technology, and processes, but also built a substantial client base.

“During its second decade, Gaofeng Medical did not actually make much profit, but it was in fact a critical period for the company’s development. In layman’s terms, these were ten years dedicated to strengthening our core capabilities,” Gao Jun remarked with emotion.

Armed with extensive accumulation of core technologies, manufacturing processes, and customer resources, Gaofeng Medical returned to the Chinese market in its third decade.

Turning to the domestic market, Gao Jun stated that, in addition to the immense growth potential of China’s dental implant market, he is even more optimistic about the policy environment for medical devices in China.

First, the COVID-19 pandemic has created a natural barrier between domestic and international markets. The entry of overseas medical devices into the Chinese market involves procedures such as quarantine and isolation, which prolongs the timeline. This has inadvertently presented opportunities for domestic manufacturers.

Second, in recent years, the state has successively introduced corresponding policies to vigorously promote the development of domestically produced medical devices. For instance, both the “Opinions on Supporting Social Forces to Provide Multi-level and Diversified Medical Services” released in 2017 and the “13th Five-Year Plan for Scientific and Technological Innovation in Medical Devices” proposed enhancing China’s independent innovation capability in medical devices and supporting the research, development, and application of medical devices with independent intellectual property rights.

Against this backdrop, domestic medical device enterprises are bound to have significant room for growth.

Turning our focus back to Gaofeng Medical itself,Gao Jun stated that there are four main reasons why Gaofeng Medical has attracted capital interest:

First, as previously mentioned, Gaofeng Medical has a relatively comprehensive product portfolio and has established its own medical centers and software companies, forming stable partnerships with third-party enterprises. Leveraging these advantages, Gaofeng Medical is able to truly become an integrated dental implant solution provider;

Second, Gaofeng Medical operates its own manufacturing facilities, which, combined with the aforementioned advantages, effectively shortens product delivery lead times.“From data acquisition and reception, design, and milling to inspection, cleaning, and packaging, the entire process takes only three hours. With the recent arrival of the first equipment purchased by Gaofeng Medical from a world-leading digital solutions provider, the aforementioned workflow can be completed within 20 minutes.”

Third, Gaofeng Medical’s customized abutments have been successfully registered with the GS1 China Article Numbering Center; each abutment with a distinct interface is assigned a Unique Device Identification (UDI) code, thereby enabling full traceability of the products throughout their lifecycle.

Fourth, Gaofeng Medical’s R&D and marketing teams are also not to be underestimated.According to Gao Jun, Gaofeng Medical’s R&D team includes numerous researchers from leading industry players, while key members of its marketing team have previously served as Asia-Pacific heads for renowned dental companies in Japan and the United States.

“Gaofeng held its 30th-anniversary celebration last year, but for me, this is merely the starting point. The previous generation laid the manufacturing foundation for Gaofeng; we must not only inherit this legacy but also build upon it. Gaofeng is embarking on a path toward rejuvenation, technological advancement, and internationalization. This means that while Gaofeng values cooperation with international companies, it places even greater emphasis on meeting the demands of the Chinese market. Leveraging our advantages in production scale and technology, Gaofeng will provide products with higher cost-performance ratios to the Chinese market,” stated Gao Jun.