Lena Medical Completes Series C and D Financing to Strengthen Leadership in ENT Diagnosis and Treatment Sector

VCBeat has learned that on August 16, 2021, Leno Medical Technology (Shanghai) Co., Ltd. (“Leno Medical”), a provider of comprehensive ENT diagnosis and treatment solutions, announced on the occasion of its sixth anniversary that it had completed two consecutive rounds of financing, Series C and Series D, in the past year, with a total amount exceeding USD 100 million.

In July 2020, Leno Medical successfully closed its Series C financing round, led by Allsion Capital and SITO Capital, with participation from Oceanwide Capital and Jieshi Investment, among others. In July 2021, the company completed its Series D financing round, led by Yunfeng Capital, with follow-on investments from existing shareholders such as Yuanyi Capital, as well as continued participation from Series C lead investors Allsion Capital and SITO Capital, and participating investor Jieshi Investment. Life Capital served as the exclusive financial advisor for both rounds.

As a pioneer in comprehensive ENT diagnosis and treatment solutions in China, Leno Medical was established in August 2015. By adopting a three-pronged business model encompassing independent R&D, licensed introduction, and investment and M&A, the company addresses unmet clinical needs, continuously expands its product pipeline, and leverages its independent innovation capabilities to provide ENT surgeons with safer, more effective, and more convenient surgical experiences, while offering patients more affordable, safer, and more effective treatment options.

In December 2019, Leno Medical acquired Chengdu Meichuang Medical. Leveraging Chengdu Meichuang Medical’s R&D and manufacturing advantages in low-temperature plasma energy platforms, as well as its nationwide network of ENT specialists, Leno Medical further enhanced its comprehensive capabilities in R&D, manufacturing, and services for doctors and patients in the field of otolaryngology.

Cui Teng, Founder and Chairman of Leno Medical, stated, “Having witnessed and personally experienced the exponential growth of the ENT market over the past five years, Leno Medical is more firmly committed to focusing on this emerging sector. We extend our gratitude to the investors, shareholders, and partners who have accompanied Leno Medical through six years of rapid development, providing robust financial support that enabled us to achieve several major milestones, including the merger with Chengdu Meichuang Medical. Looking ahead, Leno Medical will continue to uphold its mission of providing integrated solutions for ENT physicians and patients, delivering the most advanced and innovative ENT healthcare products to the market, further elevating the standard of ENT diagnosis and treatment in China, and benefiting a broader patient population.”

In China, the incidence of otolaryngology-related diseases has been rising year by year in recent years. According to statistics1, there are over 100 million patients with chronic rhinosinusitis. The volume of otorhinolaryngology and head and neck surgery procedures in 2021 is estimated at approximately 2 million cases, compared to only 500,000 cases five years ago, representing an annual growth rate exceeding 30%. Meanwhile, driven by the continuously accelerating expansion of market demand, the otorhinolaryngology medical market will continue to maintain rapid growth. "Report on the Development of China's Medical Device Industry (2017)"²Data shows that China has become the world’s second-largest medical device market, with the market size expected to exceed RMB 900 billion in 2022, indicating substantial room for growth. According to EY Research Institute³Recent research reports indicate that the current medical development landscape is favorable for companies in the innovation sector, particularly those offering domestically produced alternatives and possessing both medical and consumer attributes. This environment will help Leno Medical, which focuses on comprehensive solutions for otorhinolaryngology diagnosis and treatment, to further its development, bring more innovative products to patients, and meet clinical needs.

Dr. Li Wengang, Managing Director of Yunfeng Capital, stated, “As a leading platform-based enterprise in China focused on otolaryngology diagnosis and treatment, Leno Medical has consistently centered its efforts on the needs of physicians and consumers, continuously optimizing its technology, products, and distribution channels. We recognize the company’s strong team capabilities and R&D strength, and we believe that Leno Medical will lead the development of otolaryngology in China, becoming a core force in medical technology both domestically and globally.”

Ms. Zhu Yibo, Partner at Tonghe Yucheng, stated, “Leno Medical represents Tonghe Yucheng’s strategic investment in the emerging market of ENT medical devices. We are pleased to have supported Leno Medical in completing its strategic acquisition of Chengdu Meichuang, initiated in late 2019. This transaction helps consolidate Leno Medical’s leadership position in the ENT sector and enables it to continuously expand its product pipeline, bringing advanced medical technologies and solutions to patients in China.”

Lin Rui, Senior Partner at F-Prime Capital, stated, “F-Prime Capital has long focused on the development of medical device companies with specialized portfolios, committed to supporting leading domestic and global medical device platform enterprises. Leno Medical’s corporate vision and strategic development align closely with our investment philosophy. We are honored to have supported Leno in implementing its dual-drive strategy of organic and inorganic growth, enabling it to evolve into an ENT medical device platform rooted in China with a global perspective. By bringing higher-quality ENT diagnosis and treatment solutions to the market, we aim to benefit more patients.”

Li Hao, Founder of Life Capital, stated, “Over the past four years, Life Capital has assisted Leno Medical in completing four rounds of financing and multiple mergers and acquisitions. We have witnessed Leno Medical’s growth from a startup into a clear industry leader in China’s otolaryngology sector. Mr. Cui Teng, Founder of Leno Medical, is a representative figure among China’s new generation of medical device entrepreneurs. We are confident that under his leadership, Leno Medical will become a global leader in the field of otolaryngology in the near future.”

It is also understood that there are currently six major R&D and manufacturing enterprises in the global ENT field. In addition to Leno Medical, Medtronic, Smith & Nephew, Olympus, Karl Storz, and Stryker are all foreign-funded companies.

Leno Medical is a pioneer in providing comprehensive ENT diagnosis and treatment solutions in China. Serving 30,000 ENT healthcare professionals, the company is dedicated to promoting more than 12 advanced minimally invasive surgical techniques. Its diagnostic and therapeutic offerings, along with clinical procedures, benefit over 300 million ENT patients.

The company was established in August 2015 at Zhangjiang Med Valley in Pudong New Area, Shanghai. In November 2015, it set up an R&D and manufacturing base for high-value consumables within the Medical Device Industrial Park in Suzhou High-Tech Zone. In December 2019, Leno Medical completed a merger and restructuring with Chengdu Meichuang Medical, a leading domestic medical plasma technology platform. To date, Leno Medical has secured a significant position in China’s ENT diagnosis and treatment market, contributing to the development of thousands of medical institutions specializing in otolaryngology and head and neck surgery both domestically and internationally.

References:

1. Rhinology Group, Editorial Board of Chinese Journal of Otorhinolaryngology Head and Neck Surgery; Rhinology Group, Otorhinolaryngology Head and Neck Surgery Branch, Chinese Medical Association. Guidelines for the Diagnosis and Treatment of Chronic Rhinosinusitis in China (2018)[J]. Chinese Journal of Otorhinolaryngology Head and Neck Surgery, 2019, 54(2):81-100.

2. China Association for Drug Supervision and Administration, Report on the Development of China's Medical Device Industry (2017), 2017, Social Sciences Academic Press

3. EY Institute, “Review of the Hong Kong IPO Landscape for the Life Sciences and Healthcare Industry,” August 3, 2021