Longhui Medical Completes Nearly RMB 100 Million Series B Financing Led by Shanlan Capital and Sinopharm Capital

Recently, VCBeat (WeChat ID: vcbeat) learned that on November 24, 2021, Shanghai Longwell Medical Technologies Co., Ltd. (hereinafter referred to as “Longwell Medical”) officially announced the completion of its Series B financing round, amounting to nearly RMB 100 million. This round was co-led by Shanlan Capital and Sinopharm Capital, with participation from the Shanghai Free Trade Zone Fund. Shujian Capital served as the exclusive financial advisor. The proceeds will be primarily used for new product development, team expansion, and clinical promotion.

Longwell Medical is an independent innovation enterprise rooted in Zhangjiang Science City. Established in 2017, the company received angel investment from Zhangjiang Venture Capital and subsequently secured Series A funding from Zhangjiang Sci-Tech Investment. This support led to the development of the Longwell Surgical Robot, which possesses independent intellectual property rights and fills a long-standing international gap in technology for similar products.

The company’s core team comprises a multidisciplinary group of professionals from three generations—senior, mid-career, and young experts—who have long been active in the research, development, manufacturing, and application of medical devices. Ranging from clinical application technologies to integrated medical-engineering solutions, the team has previously served multiple multinational medical companies, accumulating extensive professional experience.

Guided by the product philosophy of “human-machine integration, application first,” Longwell Medical has established the gold standard for Longwell technology. Benchmarking against similar products from international brands, Longwell Medical’s TRex robot has achieved superiority in design and functionality, setting new industry benchmarks. Committed to practical application and clinical relevance, Longwell Medical ensures that its TRex robot not only enables precision and standardization in joint replacement surgeries but also provides surgeons with reliable, robust support during complex and challenging orthopedic procedures.

The TRex robot features a wireless dual-arm design that eliminates the need for a separate console, 6-degree-of-freedom real-time tracking technology, and an intraoperative technique that obviates the need for end-effector trackers. These patented designs and applied technologies enable surgeons to independently operate the robotic arms with a comprehensive error of less than 0.7 mm, allowing them to perform precise surgeries through independent control and seamless interaction with the robot. Furthermore, Longwell Medical’s product technologies have been fully affirmed by users.

In total hip arthroplasty, the surgical procedure comprises eight steps: femoral neck osteotomy, acetabular reaming, acetabular component implantation, femoral canal entry, distal femoral broaching, proximal femoral broaching, femoral component implantation, and reduction testing. The Longwell robotic system can participate in the entire surgical process.

In contrast, the robotic arms of some other similar surgical robots, both domestically and internationally, can only assist in three stages: acetabular reaming, acetabular prosthesis implantation, and reduction testing. They are unable to perform a complete, end-to-end intelligent total hip arthroplasty, which represents the most significant limitation of current intelligent surgical robots. The Longwell TRex robot enables comprehensive assisted surgery on both the acetabular and femoral sides, filling this gap in the field with obvious clinical value.

Nie Hongxin, Managing Partner at Shanlan Capital“The penetration rate of orthopedic joint replacement surgeries in China is significantly lower than that in developed markets, indicating substantial room for growth. However, traditional joint replacement procedures rely heavily on surgeons’ experience and entail a steep learning curve. Surgical robots not only standardize the operative process but also deliver higher surgical success rates and better functional recovery for patients. Leveraging a rigorous R&D philosophy and robust clinical research, Longwell Medical has developed a high-performance joint replacement surgical robot that truly enables robotic participation throughout the entire joint surgery workflow, demonstrating significant differentiated advantages. Shanlan Capital is honored to participate in this financing round, and we will fully leverage our industrial resources to help the company maximize value for clinical practice and patients.”

Sinopharm Capital“The field of orthopedic surgery is continuously evolving toward minimally invasive, precise, and intelligent approaches. However, current joint replacement procedures still face significant challenges, such as high revision rates and a steep learning curve. Longwell Medical’s joint replacement robot benefits from substantial technological expertise. The team has meticulously refined the product throughout the R&D process, and its superior performance and reliable safety profile have been validated in clinical trials. Surgical robotics is a key area of focus for us. We are honored to participate in this round of financing and hope to leverage Sinopharm Capital’s resource advantages to support the company’s growth and contribute to the development of the industry.”

Head of Shanghai Free Trade Zone Fund“Orthopedic surgery is evolving toward intelligence, precision, and standardization. We have been closely monitoring advancements in the field of orthopedic surgical robots. The Longwell team has accumulated extensive expertise in robotic-assisted joint replacement surgery, and its independently developed total hip arthroplasty robot exemplifies effective integration of medical practice and engineering. Shanghai Free Trade Zone Fund is pleased to accompany the company in its growth journey. We remain committed to supporting and serving the enterprise by leveraging the comprehensive resource advantages of our industrial ecosystem, thereby accelerating technological innovation, R&D, and market expansion.”

The company’s clinical trial enrollment is nearing completion, with a commitment to enabling more orthopedic surgeons to adopt this surgical robot next year, thereby delivering more precise and optimal surgical outcomes for a greater number of patients.

Shanlan Capital, established in 2014, is a specialized healthcare investment fund focused on early-stage and growth-stage investments in the medical health industry. It targets high-growth healthcare subsectors, including biopharmaceuticals and medical devices (such as in vitro diagnostics, gene technologies, minimally invasive interventional procedures, implantable devices, minimally invasive surgical instruments, and medical robotics). To date, Shanlan Capital has invested in nearly 40 leading healthcare companies. The firm’s core team comprises founders of publicly listed companies with over two decades of industry experience, as well as top-tier professionals in biotechnology and medical equipment. With a profound understanding of the fundamental dynamics of healthcare subsectors and long-term industry development trends, the team provides precise and efficient support to accelerate the growth of its portfolio companies.

Sinopharm Capital Management Co., Ltd. was established in 2012 as an equity investment firm focused on the healthcare and medical sector, jointly initiated by Sinopharm Group and its management team. The firm currently manages funds exceeding RMB 6 billion. Its management team is structured according to market-oriented mechanisms, making it one of the earliest investment institutions in China dedicated to healthcare and wellness investments.

Shanghai Free Trade Zone FundThe Shanghai Free Trade Zone (FTZ) Fund is the first FTZ-themed investment fund in China, established with the approval of the Administrative Committee of the China (Shanghai) Pilot Free Trade Zone. It was launched in response to the national strategy of building pilot free trade zones, comprehensively deepening reforms, and expanding opening-up. Initiated in 2015 by a financial holding group under the Ministry of Finance, together with core entities responsible for developing Shanghai’s international financial, shipping, and trade centers, the fund integrates industry and finance through central-local government cooperation. It serves as a market-oriented comprehensive investment platform that efficiently aggregates industrial and financial resources in the Shanghai FTZ and the Yangtze River Delta region.