Genesis MedTech Strengthens Portfolio in Minimally Invasive Surgical Devices Through Strategic Acquisitions and Partnerships

Recently, the emerging medical technology company “JianShi Medical” announced that it has completed the acquisition of the domestic suture company “Nantong Huaerkang”. Meanwhile, JianShi revealed its partnership with the South Korean company Sejong Medical, under which it will serve as the exclusive distributor for Sejong’s trocar products in China.

Previously, GenScript successfully integrated “Ruiqi Surgical,” a leading domestic company specializing in minimally invasive surgical instruments, whose main products include staplers and energy-based devices (ultrasonic scalpels). With the introduction of sutures and trocars, GenScript now boasts a comprehensive portfolio of surgical products.

Sutures and trocars are classified as surgical instruments.

Among all surgical instruments required for procedures, staplers, sutures, and energy-based devices are the most widely used instruments/consumables. According to data released by Qianxin Consulting in 2019, these three product categories accounted for 33%, 26%, and 17% of the surgical instrument market share, respectively.

In recent years, the trend of minimally invasive surgical procedures replacing open surgery has accelerated significantly, with a continuous increase in the volume of such surgeries. Public data shows that in 2015, the number of minimally invasive surgical procedures performed per million people in China was only 4,248; by 2019, this figure had risen to 8,514. With the widespread adoption of minimally invasive techniques and improved patient affordability, it is projected that by 2024, the number of minimally invasive surgical procedures per million people in China will increase to 18,242.

The development of minimally invasive surgical procedures has bolstered the growth prospects for products such as endoscopic staplers, ultrasonic scalpels, and trocars. However, according to data from Qianxin Consulting, imported brands still command more than 70% of the market share for endoscopic staplers and over 80% for ultrasonic scalpels.

“Promoting innovation in domestic products and providing comprehensive surgical product solutions” is the strategic goal that GenScript established upon entering this field, one of whose key moves was the acquisition of Riqi Surgical.

Ruiqi Surgical, established in 2005, is a national high-tech enterprise based in Tianjin. In 2009, Ruiqi launched the first domestically produced endoscopic linear cutter stapler; in 2011, it introduced the first domestically produced ultrasonic scalpel; in 2014, it released the first domestically produced electric endoscopic stapler; and in 2019, Ruiqi Surgical’s independently designed ENDO III series of endoscopic staplers became the first domestic brand to enter the European market.

Ruiqi’s products, which fill gaps in the domestic brand landscape, have gained market recognition for their technological sophistication and quality: they have outperformed multiple international brands to become a primary supplier in over 500 large hospitals across China, and have successfully entered international markets in Europe, the Americas, and South Korea, establishing Ruiqi as a leading Chinese exporter of surgical instruments.

From 2019 to 2020, Jieshi fully integrated Rich Surgical, developing a new generation of high-performance products and further expanding its product portfolio through strategies such as strategic optimization and R&D empowerment. This May, Rich Surgical’s new-generation intelligent electric endoscopic stapler, “Anzhi,” received official market approval. It incorporates numerous design innovations: “Anzhi” is compatible with disposable blade cartridges, ensuring sharp and efficient cutting for every procedure; it features a 55° large articulation angle, providing greater operational flexibility; in addition to electric firing and retraction, the smart chip in “Anzhi” enables functions such as a 15-second pre-compression reminder, safety lock indicator, and battery level detection.

The image shows the “Anzhi” intelligent electric endoscopic stapler.

The introduction of trocars and sutures into its product portfolio has undoubtedly provided a more solid foundation for Jianshi’s strategy of “providing comprehensive surgical products.”

Although trocars account for only 4% of the surgical instrument market, their market size is poised to accelerate with the rising number of minimally invasive surgeries. Public data indicates that the market size of disposable trocar cannulas in China was approximately RMB 1.7 billion in 2019 and is projected to reach nearly RMB 5.1 billion by 2024, representing a compound annual growth rate (CAGR) of 23.4%.

Established in 1996, Sejong is a publicly listed company in South Korea. Sejong’s comprehensive portfolio of access products includes two main categories: disposable laparoscopic trocars and disposable multi-access single-port systems, which are suitable for various laparoscopic surgical procedures. Building on high-quality standards, Sejong places greater emphasis on meeting clinical usage needs. Its unique design features, such as the specimen retrieval button on trocars and rapid smoke evacuation for multi-access single-port systems, set its products apart from similar offerings in the market.

In the suture sector, industry veterans note that China’s suture market has been developing steadily, yet approximately 80% of the market share is held by imported brands, which are generally priced higher than domestic products. Following its acquisition by Jieshi, Huierkang stated that the company would leverage Jieshi’s R&D innovation and business development capabilities to significantly expand its suture product portfolio.

“Establishing Jieshi was driven by our desire to bring high-quality products to more patients at affordable prices,” said Wang Xin, Chairman and CEO of Jieshi Medical Technology Group. “Minimally invasive surgery still requires more innovative, cost-effective devices. Patient needs remain the central focus for healthcare enterprises. We will fully leverage Jieshi’s open innovation platform to provide more high-quality products to both physicians and patients, thereby supporting the development of minimally invasive surgical medicine in China.”