Shende Medical Secures Over RMB 100 Million in Series B and B+ Financing to Accelerate Global Expansion of Its Proprietary 'Magnetic Wave Knife' Non-Invasive Therapeutic Platform

Recently, Shanghai Shende Medical Technology Co., Ltd. completed its Series B and Series B+ financing rounds within five months, securing a cumulative total of over RMB 100 million. The two rounds were jointly invested by funds including Creation Investment, Dianshi Chuangjian, Infore Dingtai, Zhilang Venture Capital, Solidwood Investment, and Rending Investment. This achievement fully demonstrates institutional investors’ strong affirmation of Shende Medical’s pioneering innovation capabilities in the non-invasive treatment of tumors and neurological disorders using “Magnetic Wave Knife” technology, as well as their confidence in the company’s growth. The proceeds from this round will primarily be used for clinical trials and marketing promotion of non-invasive treatment product series for uterine fibroids/adenomyosis, breast tumors, and bone tumor pain relief, as well as for the development and strategic deployment of non-invasive treatment product series for Parkinson’s disease/essential tremor/glioma, prostate cancer, and thyroid tumors.

Previously, Shende Medical had completed angel and Series A financing rounds totaling tens of millions of yuan.

High-Intensity Focused Ultrasound (HIFU) is a novel, non-invasive physical therapy technique that achieves rapid tissue ablation through the thermal effects generated by focusing ultrasound waves within tissues, thereby fulfilling therapeutic objectives. As a well-established technology with a century-long history, focused ultrasound has been widely applied globally to more than 40 indications, including gynecological tumors, urological tumors, abdominal tumors, cervical tumors, and neurological disorders of the brain. By the end of 2020, nearly 400,000 procedures had been performed worldwide in this therapeutic field.

Shende Medical’s “Magnetic Wave Knife” adopts “superconducting MRI guidance” combined with “phased-array focused ultrasound” technology, breaking through the traditional single-element scanning mode guided by ultrasound in conventional focused ultrasound systems, thereby achieving a generational upgrade of the existing technology.

Step 1: Using superconducting magnetic resonance imaging as “3D glasses,” the physician performs multi-dimensional dynamic imaging of the tumor, formulates a treatment plan based on precise localization and calibration as well as accurate diagnosis, and precisely delineates the tumor target volume.

Step 2: The physician operates the phased-array focused ultrasound, an “invisible scalpel,” via the Magnetic Wave Knife’s standalone software system equipped with intelligent AI algorithms. This system leverages phased multi-mode focused ultrasound technology to achieve treatment over a large focal domain, enabling precise and rapid movement of the focal point during the procedure to create multi-focal, multi-mode focusing.

Step 3: By analyzing the visualized temperature closed-loop feedback maps and curves derived from thermometry data provided by superconducting magnetic resonance imaging (MRI), ultrasound energy at the focal point is precisely controlled and delivered to the tumor target area. This enables precise tumor ablation, inducing high-temperature coagulative necrosis (i.e., thermal ablation). Following thermal ablation, the necrotic tissue is gradually metabolized and absorbed by the body, thereby achieving the therapeutic objective.

During the procedure, rib injury can be avoided and abdominal tumor treatment achieved by deactivating selected transducer elements to bypass the ribs; defocusing issues caused by ultrasound penetration through the skull can be resolved using phase compensation and calibration techniques, enabling the treatment of neurological disorders; and real-time image fusion technology allows for comprehensive assessment of therapeutic efficacy throughout the procedure.

By integrating the comprehensive advantages of being non-invasive, eco-friendly, precise, equipped with intelligent AI-powered visual diagnosis and treatment, enabling non-destructive temperature measurement, ensuring safety and high efficiency, providing real-time therapeutic efficacy assessment, and featuring low manufacturing costs and affordable treatment fees, this technology is poised to become the most widely accessible novel non-invasive therapeutic modality for patients with various benign and malignant solid tumors, cardiovascular and cerebrovascular diseases, and neurological disorders.

Shende Medical, established in May 2013, is an innovation and entrepreneurship team comprising nearly 20 PhDs and master’s graduates from Shanghai Jiao Tong University, with Academician Chen Yazhu of Shanghai Jiao Tong University serving as Chief Advisor and Professor Shen Guofeng as the founder. The company has undertaken technological breakthroughs and commercialization efforts based on Academician Chen Yazhu’s team’s major scientific achievement developed over 24 years—the MRI-guided phased-array high-intensity focused ultrasound (HIFU) precise non-invasive treatment system. It focuses on the research, development, and manufacturing of high-end domestic precise non-invasive treatment equipment with fully independent intellectual property rights, designed for the non-invasive treatment of major diseases such as tumors and neurological disorders. Covering the entire industry chain, including high-end medical device manufacturing, commercial operations, and after-sales services, Shende Medical aims to drive national medical device brands through technological innovation, expand into the international market, and strive to become a globally competitive medical device enterprise, positioning itself as a new engine for China’s high-end domestic precise non-invasive treatment devices.

Academician Chen Yazhu, Chief Advisor to Shende Medical, is a shareholder and director of the company, Honorary Dean of the School of Biomedical Engineering at Shanghai Jiao Tong University, a pioneer in China’s interdisciplinary field of medicine and engineering, and a leading figure in the research and development of non-invasive medical technologies and large-scale medical devices. In the 1980s, she invented the ultrasonic lithotripter for kidney stones, which won the First Prize of the National Science and Technology Progress Award and successfully achieved import substitution for domestic lithotripters. Academician Chen was awarded the Shanghai Science and Technology Merit Award in 2019 and appointed as the Chief Scientist of the first regional Technology Transfer Office (TTO) in Xuhui District, China.

Shende Medical has been honored with the First Prize of Shanghai Science and Technology Progress Award, the Innovation Award at the China International Industry Fair (CIIF), and the Excellent Product Award at the China Hi-Tech Fair (CHTF). It has undertaken multiple national and provincial-level projects, including the Key Research and Development Program for Digital Diagnosis and Treatment Equipment under the Ministry of Science and Technology’s 13th Five-Year Plan, the Major Instrument Project of the National Natural Science Foundation of China, and the Shanghai Science and Technology Support Program. Furthermore, the company has received honorary titles and financial support from various initiatives, such as the Shanghai Xuhui District Government’s “Investment and Talent Introduction Program,” two Science and Technology Support Programs from the Shanghai Municipal Commission of Science and Technology, Jiangsu Province’s “Double Innovation Talent” and “Double Innovation Team” programs, Nantong City’s “Jianghai Elite Talent” program, Chongchuan District’s “Zilang Plan,” Ningbo’s “3315 Talent Plan,” and the “2025 Ningbo Intelligent Manufacturing” Major Project.

Supported by three major R&D platforms—the SJTU-Shende Medical Joint R&D Center for Precision Ultrasound Medicine, the Shanghai Academician Chen Yazhu Workstation, and the Shanghai Intellectual Property Pilot Unit—Shende Medical has established a comprehensive intellectual property (IP) protection system and early-warning mechanism. The company has filed 37 IP applications and currently holds 15 granted invention patents, along with multiple PCT patents and Madrid System trademarks. With an assessed patent value of RMB 108 million, Shende Medical secured a RMB 20 million patent pledge credit line from Bank of Hangzhou, thereby building a high-barrier IP reserve.

Shende Medical adheres to the core values of “patient-first, user-oriented,” fully integrating the treatment needs of patients with tumors and brain nervous system diseases as well as those of clinicians. It provides new scenarios and methods for medical consumption and treatment for patients and hospital endpoints. Through diversified business application scenarios and customer acquisition channels such as “Magnetic Wave Knife” non-invasive diagnosis and treatment centers and “Magnetic Wave Knife” non-invasive brand chain hospitals, it delivers upgraded experiences for patients, including pain relief, non-invasiveness, non-damage, and rapid recovery. Meanwhile, it creates multiple opportunities for relevant departments and physicians in terms of functional expansion, performance improvement, skill enhancement, academic advancement, and career promotion.

Shende Medical’s development aligns with the trend of import substitution, targeting the vast market for benign and malignant tumors, cardiovascular and cerebrovascular diseases, and neurological disorders. Currently, the company is focusing on breakthroughs in six core product technologies. In the future, it will leverage capital markets to drive the R&D and industrialization of a more diversified product portfolio. The enduring strength and explosive potential of its technological innovation platform have created robust growth momentum and significant potential.

Currently, Shende Medical’s “Pain Relief Treatment System for Advanced Metastatic Bone Tumors” has obtained EU CE certification. Three major products targeting four indications—uterine fibroids/adenomyosis, pain relief for advanced metastatic bone tumors, and breast adenomas—have entered the clinical trial phase and are expected to receive domestic NMPA approval in 2022. Three major products targeting five indications—Parkinson’s disease/essential tremor/glioma, prostate tumors, and thyroid tumors—are scheduled to initiate human clinical trials in 2022. It is reported that Shende Medical has also conducted comprehensive technological development and industrial layout in other therapeutic areas, including transcranial disorders such as blood-brain barrier (BBB) opening and epilepsy; abdominal malignancies such as liver cancer, pancreatic cancer, prostate cancer, and renal tumors; and cardiovascular and cerebrovascular diseases such as refractory hypertension, thrombolysis, and atherosclerosis.

Academician Chen Yazhu, Chief Advisor to Shende MedicalHe stated, “As time passes, I have entered my eighties. Though my appearance has aged, my passion remains undiminished. Nowadays, I devote more thought to how best to support the younger generation in advancing the domestication and industrialization of large-scale, high-end medical devices. It brings me great satisfaction to witness their vigorous promotion of the ‘Healthy China’ initiative, and I hope to stand alongside them, continuing to offer encouragement and support. I will also persist in my unfinished work in research and translational applications. Life is immensely precious precisely because it is brief. I earnestly hope that today’s young people will cherish the favorable conditions for learning and work, uphold their ideals, pursue them relentlessly, integrate their personal growth into the grand endeavor of the great rejuvenation of the Chinese nation, let their lives shine brightly, and live up to the expectations of both the country and this great era.”

Professor Shen Guofeng, Founder of Shende MedicalIt stated: “Shende Medical has undergone an arduous eight-year entrepreneurial journey. Over these eight years, the Shende team has experienced countless transformations, continuously growing and strengthening. With dreams in their hearts, the people of Shende have never halted their forward march. They uphold the scientific spirit of Academician Chen Yazhu, demonstrating perseverance and courage in tackling key challenges. Mindful of Shanghai Jiao Tong University’s motto—‘Gratitude to our roots, patriotism, and honor to our alma mater’—they remain true to their original aspirations, united in purpose and virtue. Over the past eight years, we have transitioned from stability to transformative innovation, filled with ambition and driven by a pioneering spirit; we have progressed from organizational restructuring to strategic positioning, high-spirited and advancing hand in hand; we have moved from updating concepts to establishing processes, riding the winds and waves while pursuing our dreams. In 2020, facing numerous challenges and uncertainties amid the COVID-19 pandemic, the Shende team demonstrated courage, determination, and resilience, rising to meet difficulties head-on. We continuously broke through barriers in operational thinking and management approaches, achieving comprehensive success across all areas of work. We are now intensively preparing for listings on the Hong Kong Stock Exchange and the STAR Market (Science and Technology Innovation Board). Committed to crafting the ‘Magnetic Wave Knife’ with utmost dedication, we hope that government, capital, and social forces will join hands to accelerate the industrialization of this vital national medical technology.”

Cui Lei, Executive Deputy General Manager of Shende MedicalIt stated: “Shende Medical’s domestically produced ‘Magnetic Wave Knife’ high-precision and advanced technology project adheres to technological self-reliance and self-improvement as the strategic support for corporate development. Oriented toward the frontiers of global science and technology, the main battlefield of economic development, major national needs, and the life and health of the people, the company deeply implements strategies for revitalizing the enterprise through science and technology, strengthening the enterprise with talent, and driving innovation. It aims to improve its innovation system and build a technologically strong enterprise. In the current era, minimally invasive techniques are prevalent, yet no company has emerged as a representative of non-invasive solutions. Leveraging its superior technical heritage and cultural DNA, Shende Medical—a promising domestic player in the field of large-scale, high-end national medical devices with ‘panda genes’—is not only synonymous with being a ‘pioneer in sci-tech innovation,’ a ‘medical device unicorn,’ and a ‘medical device lucky charm,’ but also strives to become a leader in the future ‘non-invasive era.’ The company is gradually building an industrial and commercial ecosystem, widely popularizing the ‘Magnetic Wave Knife’ non-invasive treatment technology and benefiting a vast number of patients through academic education and training for B-end users and public welfare science popularization for C-end patients. Shende Medical sincerely invites governments at all levels, capital elites, academic leaders, and social elites to join hands in realizing this grand vision and jointly开创ing the future non-invasive era.”

Mr. Tang Haofu, Chairman of Shanghai Creation Investment“Shanghai Creation Investment, as a professional team specializing in domestic investment for technological projects in the fields of magnetic resonance and ultrasound, has witnessed the rapid development of China’s medical device equipment over the past two decades and its gradual catch-up with global standards. We have strong confidence in Shende Medical’s transition from single-point innovation to comprehensive innovation. Under the leadership of Academician Chen Yazhu and Professor Shen Guofeng, we look forward to collaborating with the Shende team to advance the great cause of domestically produced ‘Magnetic Wave Knife’ technology and become a leading force in the global health sector.”

Dr. Zhang Minglong, Deputy General Manager of Chongqing Dianshi Chuangjian FundChongqing Dianshi Chuangjian focuses on investing in advanced domestic medical technologies, promoting the localization, widespread adoption, and technological upgrading of high-end medical products. High-Intensity Focused Ultrasound (HIFU) offers patients accessible non-invasive treatment with advantages such as being non-invasive, incision-free, bloodless, and suitable for both single-session and repeat treatments. Magnetic Resonance Imaging-guided Phased Array High-Intensity Focused Ultrasound (MRI-PHIFU), also known as the Magnetic Wave Knife, provides more precise target localization, real-time monitoring, visualized treatment, real-time efficacy assessment, enhanced safety, simpler operation, and broader indications. It has been incorporated into the "Chinese Expert Consensus on the Diagnosis and Treatment of Uterine Fibroids." The Magnetic Wave Knife has been widely applied in clinical practice for numerous indications, including uterine fibroids/adenomyosis, breast fibroadenomas, pain relief for metastatic bone tumors, Parkinson’s disease/essential tremor/glioma, prostate tumors, and thyroid tumors. It has gained high clinical recognition, with a potential market size in China exceeding RMB 20 billion.

Liu Xiaoxia, Partner at Solidwood Investmentstated: “We have been strategically positioned in the healthcare industry for many years. We firmly believe that the MRI-guided high-intensity focused ultrasound (HIFU) precise non-invasive treatment system, developed by Shende Medical’s team of academicians and PhDs, leverages precise MRI guidance to meet visibility requirements. It enables accurate targeting of the treatment zone, real-time monitoring of therapeutic temperature, and real-time assessment of efficacy. Its products and technologies possess significant advantages and a broad range of indications. Currently, its three major products are applicable to uterine fibroids, adenomyosis, breast tumors, and pain relief for bone tumors, and have gained high recognition from numerous renowned hospitals in China. We are very optimistic about projects that combine ‘innovative technology, exceptional teams, and extensive market potential.’ We believe that the Shende team will continue to make remarkable progress in the localization of high-end medical devices in the future.”

Shanghai Creation Investment Group was officially established in 2009. As an investment firm integrating equity investment with the incubation of advanced medical industries, it is committed to investing in high-end global medical technologies and upholding the core philosophy of leading the upgrading of China’s healthcare industry. Creation has formed partnerships with renowned domestic and international medical institutions, including Cleveland Clinic (USA), Stanford Health Care (USA), Maccabi Healthcare Services (Israel), Chongqing Medical University, and Chengdu University of Traditional Chinese Medicine, to jointly build official platforms for the transformation of scientific and technological achievements. The assets under management by Creation Fund exceed RMB 3 billion, and it has invested in nearly 40 companies domestically and internationally. As of June 2021, eight portfolio companies had successfully gone public, and seven were queued for listing committee reviews. Selected successful investment cases by Creation Investment include Wolwo Bio-Pharmaceutical (listed), Jianan Pharmaceutical Machinery (listed), Randu Pharmaceuticals (listed), Mingfeng Medical (the first manufacturer of 256-slice CT scanners in China), Akeso Biopharma (an innovative drug company, listed), Tiansong Medical (a leading endoscopy company), Kehui Medical (an orthopedic consumables company), and Lanyi Technology (an IVD company).

Chongqing Dianshi Chuangjian Fund Management Company was established in 2016. Guided by the core philosophy of leading the upgrade of China’s healthcare industry, it is an institution focused on investing in high-end medical technology and related industries in China. Its Phase I fund was jointly capitalized by Chongqing Huayi Xintian Investment, Chongqing Industrial Guidance Fund, Chongqing Science and Technology Venture Capital, Chongqing Linkong Investment, and other institutions. The company’s portfolio covers areas such as in vitro diagnostics, high-end imaging, cardiovascular care, orthopedics, genetic testing, artificial intelligence, high-value consumables, and healthcare services. Half of its invested companies have entered the pre-IPO tutoring stage, and all have secured subsequent rounds of financing. In August 2020, Dianshi Chuangjian was honored with the “Best Early-Stage Healthcare Investment Institution in China (2019–2020)” award by Financing China. In April 2021, it was ranked among the Top 5 Emerging Healthcare Investment Institutions of the Year in the VCBeat 2020–2021 Future Healthcare 100 “Pengcheng Awards.”

The core limited partner of Qingdao Yingfeng Dingtai Investment Partnership (Limited Partnership) is Qingdao Jufeng Technology Venture Capital Co., Ltd. Since its establishment in 2008, Qingdao Jufeng Technology Venture Capital Co., Ltd. has successfully invested in numerous well-known enterprises and financial institutions, including TGOOD, Haitai Optics, Guanzhong Ecology, Qilu Bank, Hisense Network, Jingfan New Materials, Bank of Communications Village Banks, Luobo Zhihui, Future Healthcare, and Blue Sky Aviation. It has built a full-chain fund investment system comprising angel funds, venture capital funds, private equity funds, industrial investment funds, government guidance funds, and funds of funds. The company holds equity interests in and manages 20 funds, with a total scale of approximately RMB 22.3 billion, including the Science and Innovation Fund of Funds, CITIC Medical Fund, CRRC Huajin Fund, Haichuanghui Fund, Haier Huizhi Xiangshun Fund, New Hope Xinnong Fund, Henghuitai Fund, and Tsinghua Holdings Jinyi Fund. To date, six portfolio companies—TGOOD, Guolin Environmental Protection, Haitai Optics, Guanzhong Ecology, Degute, and Sino-Agri United—have gone public. Two projects, Qilu Bank and Lianke Technology, passed the IPO review last year; two projects have filed for listings on the Hong Kong Stock Exchange; and six projects have entered IPO tutoring. With a robust pipeline of reserve projects, the company possesses strong growth momentum. Focusing on comprehensive incubation services, industrial venture financing, and online space operations, and leveraging the operational launch of over one million square meters of entrepreneurial carriers such as Jufeng Entrepreneurship Building, Academician Intelligence Valley, and Jufeng Enclave Industrial Park, the company is actively building service platforms for startup incubation, park operations, project investment promotion, and industrial investment. It strives to become a first-class provider of incubation spaces, park operations, and technology venture capital services.

Zhilang Venture Capital is an early-stage venture capital fund focused on high-tech companies. It has invested in dozens of technologically leading innovative enterprises in fields such as artificial intelligence, cloud computing, smart hardware, biotechnology, and high-end medical devices. Adhering to the philosophy of value creation and long-term investment, Zhilang Venture Capital has deeply cultivated the hard technology sector and achieved top-tier performance. Its investment in Shende Medical in this round underscores confidence in Shende Medical’s leading capabilities in the future era of non-invasive therapies, reflecting high expectations for the company’s future commercial layout and market scale.

Jianmu Fund: Jianmu (Shanghai) Investment Management Co., Ltd. (AMAC Registration No.: P1007173) is a professional fund management company specializing in equity investments and fund-of-funds management within forward-looking and strategic emerging sectors. Adhering to a core operational model of “Industrial Funds + Technology Transfer and Incubation Platforms + Industrial Parks,” Jianmu Investment leverages the advantages of its fund-of-funds structure, with investments spanning over 100 outstanding enterprises across industries such as healthcare, intelligent manufacturing, new energy vehicles, and consumer/service sectors.