Qihao Medical Secures Tens of Millions of RMB in Series B Funding to Continue Leading the ENT Medical Device Sector

VCBeat (WeChat ID: vcbeat) recently learned that Hefei Qihao Medical Technology Co., Ltd. (hereinafter referred to as “BREATH MEDICAL”) announced the completion of its tens-of-millions-yuan Series B financing round, led by existing shareholder AnhuiHuaying Capital, and the newly emerged investment institution AnhuiChuanggu CapitalandBaidu VenturesJoint investment completed.

Previously, BREATH MEDICAL completed tens of millions of yuan in Pre-A and Series A financing rounds in 2019 and the second half of 2020, respectively. The company has largely maintained an annual fundraising cadence, continuing to garner investment recognition from capital markets. This success is attributed to its continuous innovation in new products and technological applications within the otolaryngology sector, particularly its in-depth research and development of polymeric medical materials, which underscores BREATH MEDICAL’s robust capabilities in independent R&D and technological innovation.

Despite the impact of the pandemic, China’s field of otorhinolaryngology and head and neck surgery has continued to develop rapidly, with surgical volumes increasing year by year. The sector has emerged as a standout within the niche medical device market, reaching a market size of nearly RMB 10 billion.

Since its establishment in 2017, BREATH MEDICAL has been dedicated to the research and development, manufacturing, and sales of products in the otolaryngology sector. The company’s three core product lines have taken shape: the low-temperature plasma surgical system, which has completed clinical trials; the fully bioresorbable sinus drug-eluting stent system, which has enrolled over 100 patients in clinical trials; and the bioresorbable expansile hemostatic sponge, which has entered the patient enrollment phase of clinical trials.

It is worth mentioning that BREATH MEDICAL launchedThe first intranasal drug delivery device (medical nasal nebulizer) in China has also applied for a registration certificate from the Anhui Provincial Medical Products Administration.。

Looking ahead, BREATH MEDICAL will continue to leverage the “Zhongke Qihao Joint Laboratory for Biomedical Materials Technology,” co-established with the Lanzhou Institute of Chemical Physics, Chinese Academy of Sciences. By collaborating with leading otolaryngology experts and professors from renowned hospitals across China—including Shanghai Children’s Hospital, PLA General Hospital, Shanghai Sixth People’s Hospital, The First Affiliated Hospital of University of Science and Technology of China, The First Affiliated Hospital of Anhui Medical University, Jiangsu Province Hospital (Nanjing), Peking Union Medical College Hospital, and Peking University People’s Hospital—the company will drive innovation and strengthen its presence in the otolaryngology sector. BREATH MEDICAL remains committed to researching and developing multiple novel Class III medical devices exclusively available in China, thereby serving healthcare professionals, benefiting patients, and maintaining its leadership in the domestic otolaryngology market.

Regarding the investment in BREATH MEDICAL, the investors in this roundHuaying CapitalHuaying Investment responded: Huaying Investment has long been bullish on the development prospects of China’s medical technology sector. Medical devices and high-value consumables have always been key focus areas for Huaying Investment, which selects investment targets based on technological leadership and broad clinical utility. As an original shareholder of BREATH MEDICAL, Huaying Investment led this round of financing, witnessing Dr. Pang lead his team through product R&D, clinical trials, and market launch. BREATH MEDICAL has now grown into a platform enterprise with globally leading, proprietary technologies in the field of otorhinolaryngology (ENT) in China. Huaying Investment is pleased to support BREATH MEDICAL in becoming an industry leader in China’s ENT sector.

BREATH MEDICAL offers a comprehensive portfolio of ENT products, including plasma systems, fully bioresorbable sinus drug-eluting stents, and bioresorbable expansile hemostatic sponges, among others, which have already benefited patients. More high-quality products are scheduled for successive market launches. Dr. Pang’s team has overcome significant technical barriers, positioning itself to provide ENT specialists with optimal treatment solutions. Huaying Investment has strategically invested in multiple high-quality projects across the ENT, dental medical device, and oral care sectors. With broad market prospects for domestic medical devices and healthcare services, we firmly believe that technological innovation in healthcare will benefit a wider consumer base.

Investors in This RoundChuanggu CapitalAcknowledged:By Industry, there is strong unmet clinical demand in otolaryngology, and the competitive landscape of this sector remains fragmented. With the continued advancement of consumption upgrading, the market size of otolaryngology medical devices is expected to maintain rapid growth.

From the team perspective, Dr. Pang, founder of BREATH MEDICAL, has many years of experience as a clinician and in medical device sales. With a deep understanding of clinical needs and market dynamics, he holds a leading advantage in product pipeline strategy and market promotion. Meanwhile, BREATH MEDICAL prioritizes R&D innovation, boasting a highly capable research team that has already developed multiple Class III medical devices with competitive advantages, while more innovative products are continuously under development.

From a business perspective, BREATH MEDICAL is positioned as a specialized company focused on the R&D, manufacturing, and sales of ENT medical devices. It is poised to fill unmet market gaps in China’s ENT sector with its flagship innovative and leading products, such as the fully bioresorbable sinus drug-eluting stent system and bioresorbable expandable hemostatic sponge, and to rapidly capture market share by leveraging its diverse product portfolio.

Following this investment in BREATH MEDICAL, Chuanggu Capital will fully leverage its resource advantages accumulated over years of deep engagement in the healthcare sector to continuously empower the company’s development.

Investors in This RoundBaidu VenturesIt was also noted that otorhinolaryngological diseases have a high prevalence and affect a large population base, yet they are predominantly non-life-threatening inflammatory conditions, such as sinusitis, otitis media, and tonsillitis. For a long time, clinical treatment has primarily focused on anti-inflammatory therapy, relying mainly on conservative management with corticosteroids. Surgical outcomes have been suboptimal due to a lack of high-quality, high-value consumables; most materials used intraoperatively are low-value, single-use items. Furthermore, minimally invasive surgeries in otorhinolaryngology require operation under an endoscope or surgical microscope. Such equipment was previously monopolized by imported manufacturers, making it expensive and entailing a steep learning curve for physicians, thereby hindering the widespread adoption of these procedures.

In recent years, the continuous launch of new, high-quality medical devices has significantly improved patient acceptance of surgical procedures and enhanced therapeutic outcomes. Furthermore, the domestic substitution of endoscopic equipment has facilitated the broader adoption of minimally invasive otorhinolaryngology (ENT) surgeries at lower-tier healthcare levels. As international medical device giants begin to make substantial acquisitions of high-quality ENT enterprises and products, the ENT medical device market is poised for rapid growth in the coming years.

BREATH MEDICAL focuses on the R&D of ENT medical devices, building a comprehensive product portfolio of “equipment” plus “consumables” to enhance its influence and penetration in hospital ENT departments. The company’s R&D progress for multiple products is leading in China, with regulatory approvals expected within the next two years. Meanwhile, the company is also pursuing the development of proprietary products to maintain its competitive differentiation. We are firmly optimistic about the company’s potential to scale up, specialize, and sustain continuous innovation.