Tangji Medical Secures RMB 55.5 Million in New Funding to Advance Endoscopic Metabolic Disease Therapy

VCBeat has learned at the earliest opportunity that,On May 11, Hangzhou Tongee Medical Technology Co., Ltd. (“Tongee Medical”), a company dedicated to the research and development of therapeutic approaches for metabolic diseases, announced the completion of a new round of financing amounting to RMB 55 million. This round was led by BV Baidu Ventures, with participation from Longma Peak Venture Capital, Dingxin Capital, and other institutions.。

Zuo Yuxing, founder of Tongee Medical, stated that the proceeds from this financing round will be primarily allocated to clinical research and production line construction for Tongee Medical’s ongoing “Gastric Bypass Stent System.”

Previously, Tongee Medical leveraged its years of deep engagement in the medical field to accumulate substantial reserves in research and development and technology.Achieved Breakthroughs and Innovations in the Treatment of Metabolic Diseases Such as Diabetes, Obesity, and Non-Alcoholic Fatty Liver Disease, its developed gastric bypass stent system was reviewed by the Center for Medical Device Technical Evaluation of the National Medical Products Administration in August 2020 and entered the special review procedure for innovative medical devices.

It is reported that Tongee Medical’s gastric bypass stent system has secured more than 20 patents domestically and internationally, with four invention patents currently under examination in the United States, the European Union, Japan, Russia, and other countries. Meanwhile, Tongee Medical is continuously advancing its clinical registration trials to lay the foundation for subsequent product registration and approval.

Since its founding in 2016, Tongee Medical has achieved remarkable success. Why do numerous investment firms remain bullish on Tongee Medical? What constitutes its core competitiveness? To address these questions, VCBeat interviewed Zuo Yuxing, founder of Tongee Medical.

According to a global survey on adult body weight published in the renowned British medical journal The Lancet, China has 43.2 million obese men and 46.4 million obese women, ranking first worldwide. At the press conference for the Report on the Nutrition and Chronic Disease Status of Chinese Residents (2020), held by the State Council Information Office, Zhao Wenhua, chief nutrition expert at the Chinese Center for Disease Control and Prevention, also stated that over 50% of Chinese adults are overweight or obese, nearly 20% of children and adolescents aged 6–17 years are affected, and the rate reaches 10% among children under 6 years of age.

China’s vast population base translates into a massive demand for metabolic disease treatment. However, the industry currently faces a challenge: obesity management relies predominantly on dietary control and bariatric surgery, leaving the needs of a large patient population unmet.

Furthermore, the incidence of metabolic diseases such as diabetes and fatty liver disease in China continues to rise. However, current treatment regimens primarily rely on lifestyle interventions and injectable hypoglycemic agents, which only modulate physiological status indirectly. Clearly, there is an urgent need for further breakthroughs in the therapeutic approaches for metabolic diseases.

Since its inception, Tongee Medical has been dedicated to exploring new avenues for the treatment of metabolic diseases. Addressing the critical challenges in this field, the company has focused on device-based therapies and developed the Gastric Bypass Stent System, which incorporates the principles of gastric bypass surgery.

It is understood that the gastric bypass stent system consists of a nitinol skeleton and an outer covering sleeve. A sleeve is placed in the duodenum and upper jejunum via minimally invasive endoscopic intervention to isolate chyme. After placement, food from the stomach passes through the lumen of the sleeve, while bile and pancreatic juices are kept outside the sleeve, creating a “bypass” effect that blocks the digestion and absorption of food.

Tongee Medical Gastric Bypass Stent System

Currently, clinical studies on the Tongee Gastric Bypass Stent System implantation for the treatment of obesity have been pioneered at multiple Grade A tertiary hospitals in Beijing, Nanjing, Tianjin, Xi’an, Shenyang, Harbin, Hohhot, and other cities. According to the study results,Three months after implantation of the Tongee Gastric Bypass Stent System, subjects achieved an excess weight loss percentage (EWL%) of 25%–76%, a 1.5-point reduction in glycated hemoglobin (HbA1c) levels, and controlled hepatic fibrosis.。

The successful development of the product is evidently inseparable from the support of a high-quality team. Data shows that Tongee Medical was founded by multiple high-level talents and senior experts with many years of experience in the medical device industry. More than 87.5% of its R&D personnel hold a bachelor’s degree or higher. The advisory team includes the former Chairman of the Chinese Society of Gastrointestinal Endoscopy, the Chairman of the Chinese Diabetes Society, and the Director of the Research Center for Biomaterials Engineering at Sichuan University, among others.

Tongee Medical has accumulated extensive experimental data through more than 500 animal studies and over 30 clinical trials, laying a solid and reliable technical foundation for the future research and development of gastrointestinal devices.

In the future,Tongee Medical will continue to expand clinical studies on other indications for the gastric bypass stent system, while also sustaining innovative R&D of other weight-loss technologies and developing multiple new products in the field of gastrointestinal metabolic medicine.. It is understood that Tongee Medical currently has eight related R&D projects underway simultaneously.

In its future development, Tongee Medical will consistently align its product R&D plans with clinical needs, continuously expand its talent team to meet R&D demands, and establish R&D branches in Beijing, Shanghai, Shenzhen, Nanjing, and other cities to accelerate the progress of various projects, with the aim of benefiting more patients.

BV Baidu Venture Capital, the lead investor in this round, stated“We are optimistic that Tongee Medical’s flagship product can replace traditional gastric bypass surgery and outperform other currently marketed implantable weight-loss devices. It is expected to simultaneously achieve non-invasive weight loss, lower blood glucose levels in patients with diabetes, and alleviate symptoms in patients with non-alcoholic fatty liver disease (NAFLD). While delivering these therapeutic benefits, the product avoids the short-term side effects and long-term complications associated with surgical interventions and other displaced alternatives. In the future, it has the potential to uniquely enhance treatment outcomes for patients with diabetes and obesity in the medical sector, while also delivering significant value to consumers seeking aesthetic medicine and health management solutions.”

Baidu Ventures is an independent venture capital firm initiated by Baidu Group, with a total size of $400 million across its second USD and RMB funds. Baidu Ventures primarily focuses on early-stage pioneer companies in artificial intelligence, dedicating itself to leading developments in key areas such as commercial consumption, healthcare and public welfare, and technological expansion. The team consists entirely of professional investors with many years of deep experience in the investment field.

Backed by the robust support and resource sharing of Baidu Group, Baidu Ventures is strategically positioning itself in the field of artificial intelligence (AI), striving to seamlessly integrate AI into everyday life. Its current investment portfolio spans industrial design, intelligent pharmaceuticals, logistics and warehousing, smart cities, IoT-enabled living, semiconductors, and smart manufacturing.

Langma Peak Ventures was established in September 2007, with assets under management exceeding RMB 8 billion. In 2019, it was recognized as one of the “Top 10 Investment Institutions in Advanced Manufacturing” by Lieyunwang and Touzijia.com. In 2020, it was listed among the “Top 50 Best Venture Capital Firms in China for 2019” by China Venture, among other accolades. Langma Peak Ventures has cumulatively invested in more than 160 companies, focusing on high-tech sectors such as biopharmaceuticals and medical devices, next-generation information technology, high-end equipment, and new materials.

Dingxin Capital was established in 2014 and is headquartered in Shenzhen. Its founding team members come from top-tier domestic investment institutions and investment banks, such as CDH Investments and China International Capital Corporation (CICC), bringing extensive industry expertise. To date, Dingxin’s cumulative assets under management have exceeded RMB 10 billion. Its investors include institutional investors such as insurance companies, listed companies and their shareholders, large enterprise groups, and market-oriented funds of funds.