Wallaby Medical Drives Industry Reshuffle as Domestic Neurointerventional Devices Set to Surpass 10% Market Share

Neurointervention has emerged as one of the hottest investment sectors in China in recent years, with nearly ten neurointerventional device R&D companies securing financing in 2020 alone. Among them, Wallaby Medical has become a focal point in the industry after successfully raising hundreds of millions of yuan in two consecutive funding rounds within just six months.

The sustained attention from investors underscores Wallaby Medical’s widely recognized strength within the industry.The Only Chinese-Made Coils with FDA Approval in the United States、6Fr Large-Lumen Catheter with an Inner Diameter of 0.071......Amidst the glow of multiple accolades, Liu Bing, founder of Wallaby Medical, frankly stated that true success isEvaluate whether the product can withstand clinical validation by physicians and gain market acceptance.

Esperance^®DAC Distal Access Catheter to Launch in 2021

As is well known, for years, foreign companies such as Medtronic and Stryker have dominated 90% of the market share for neurointerventional devices in China, leaving the remaining 10% as a fiercely competitive “red ocean” for domestic manufacturers.

Facing such a niche market, Wallaby Medical’s strategic layout has taken a unique approach. Since its inception, the company has adhered to an internationalization strategy, aiming to replace imports with domestically produced alternatives and capture the blue-ocean market where foreign companies currently hold a 90% share. Its core product, coils, has even taken the lead in occupying overseas markets, becomingThe Only Chinese-Made Coil Sold in Europe and the United States, Widely Acclaimed by Physicians。

China is the largest stroke market, with Chinese patients accounting for nearly one-third of the global total in terms of both incidence and mortality rates. In this market, coils, as the standard neurointerventional devices for the clinical treatment of hemorrhagic stroke, saw their clinical usage surge from 25,300 units in 2014 to 52,300 units in 2018, representing a compound annual growth rate (CAGR) of nearly 20%. The volume is projected to exceed 150,000 units by 2025, with the market size reaching RMB 5.537 billion.

In endovascular embolization for stroke, coils are delivered into the aneurysm sac via a catheter inserted into the aneurysm. The mechanical occlusion provided by the coils, combined with secondary thrombotic occlusion, excludes the aneurysm from the blood circulation of the parent artery, thereby preventing aneurysm rerupture. Given the exceptionally high technical demands of this procedure, the quality requirements for the neurointerventional devices themselves are extremely stringent.

Liu Bing, founder of Wallaby Medical, told VCBeat: “When using coils, clinicians require products with a rapid detachment mechanism, flexible maneuverability of the pusher wire and coil, and excellent synchronous delivery performance. During the procedure, it is essential to prevent premature detachment of the coil while ensuring its smooth navigation to the target cavity for precise deployment. Therefore, the coil must strike a balance in stiffness—neither too rigid nor too soft.”

Since its inception, Wallaby Medical has been dedicated to overcoming the R&D barriers associated with coil development. In 2019, Wallaby Medical’s independently developed mechanically detachable coils became the first to receive FDA approval in the United States, making them the only Chinese-manufactured coils granted U.S. patent authorization. Furthermore, Wallaby Medical has becomeThe Only Chinese Enterprise to Capture the Overseas Stroke Coil MarketSuch achievements have left industry peers in awe, with Wallaby Medical’s performance setting a benchmark for the research and development of neurointerventional medical devices in China.

Wallaby Medical’s mechanically detachable coils are crafted from the industry-recognized finest platinum wire. During clinical use, physicians do not require an external detachment device; release is achieved simply by folding the coil in half. In terms of key technical performance metrics—including conformability, basket formation reliability, softness of the finishing loop, detachment time, detachment reliability, and complication rate—these coils have surpassed international standards.

Currently, the Avenir™ coil has been launched and is being sold in 15 countries, including the United States and Germany. It has been adopted by renowned hospitals such as UCLA Health, Kaiser Permanente, NewYork-Presbyterian Columbia University Irving Medical Center, and Klinikum Stuttgart, earning widespread acclaim from leading international experts and physicians. It is hailed as a coil truly designed to meet the needs of clinicians.

Overseas neurointerventional physicians post endorsements on LinkedIn and Twitter after using the Avenir™ coils

Dr. Shahram Derakhshani, a neurointerventional physician at the Essex Neuroscience Centre of Queen’s University Hospital in the UK, commented after using Wallaby Medical’s independently developed coils: “The Avenir™ features a highly efficient mechanical detachment system for neurovascular applications. Its tapered design ensures smooth and effortless delivery, while its 3D basket formation and packing density are excellent. Furthermore, the simple and eco-friendly detachment mechanism enables faster detachment, thereby reducing procedure time.”

Performance of the Avenir™ Coil in Various Stroke Embolization Procedures

As the only domestically produced coil capable of substituting imported products, Wallaby Medical is targeting the 90% blue-ocean market long dominated by foreign companies. “For ten consecutive years, less than 10% of the market share for neurointerventional devices in China has belonged to domestic brands. If Chinese device manufacturers lack international competitiveness, our room for survival will remain confined to this 10% red ocean,” said Liu Bing, founder of Wallaby Medical. “Our goal is to build robust international capabilities, thereby breaking through the 10% ceiling, entering the 90% blue-ocean market, and achieving import substitution.”

The key to import substitution lies in stringent quality control. Liu Bing, the founder, stated candidly that China’s medical device manufacturing has reached a stage characterized by high-quality requirements and rigorous standards. The market success of Wallaby Medical’s products helps drive the sustained development of related industrial chains, including raw materials and process equipment, facilitates the establishment of industry-level standards, and promotes the enhancement of quality standards for high-end medical devices in China.

Multiple Uniqueness of Coil Products(The only domestically produced embolization coils to have received FDA clearance and patent authorization in the United States; marketed in the US and Europe with positive feedback from physicians; regarded by Chinese doctors as capable of replacing imported products)This further underscores the unique value created by Wallaby Medical’s coils. The United States represents a “transparent” market where physicians’ choices are less influenced by price; they prioritize high-quality, user-friendly products for clinical application. We believe that the Avenir coil, having been tested and recognized in overseas markets, will become a shining star in the field of neurointerventional devices in China in the future.

No Aneurysm Recurrence Within 6 Months After Avenir™ Coil Embolization

It is reported that Wallaby Medical’s independently developed coil has entered the green channel of China’s NMPA, which also marksThe only product in this field to have entered the “Green Channel” for special review to date, the company has collaborated with renowned domestic medical institutions, including Tiantan Hospital, Xuanwu Hospital, and Huashan Hospital, to complete clinical trials, and is expected to announce its market launch in 2021.

In 2015, Wallaby Medical embarked on its journey with coils, advancing steadily toward its goals. It has now established a comprehensive stroke solution platform centered on interventional products for hemorrhagic conditions, ischemic conditions, and neurovascular access.

When it comes to past achievements, Michael Alper (Mike), another founder of Wallaby Medical, may be better positioned to speak. Mike is a genuine American who had never visited China before 1997. However, having grown up in New York’s Chinatown and being deeply influenced by Chinese martial arts from an early age, he has long harbored a strong fascination with Chinese culture.

In 2006, Mike joined Medtronic, a globally renowned medical device company, specifically entering its overseas assignment division with the sole aspiration of being expatriated to China one day. This dream came true three years later. Since arriving in China, Mike has not only mastered fluent Chinese but also deeply cultivated the local market, bringing valuable contributions to China’s neurointerventional industry.

First, the R&D barriers for neurointerventional devices are inherently higher than those for other medical devices, and the development process is more challenging.；Second,Compared with imported medical devices,The precision and professionalism of product R&D in China are still slightly lacking., domestically developed medical devices should not aim merely at regulatory approval; only through relentless refinement can they have the opportunity to surpass imported counterparts.

Mike’s emphasis on not treating regulatory approval as the ultimate goal, but rather upholding a value orientation of continuous improvement, reflects a mindset of self-discipline and proactive advancement in the face of China’s medical device regulatory approval system.

Rooted in China, Wallaby Medical aspires to be a medical device company committed to relentless pursuit of excellence, rather than one driven solely by regulatory approvals. This strategic orientation initially sparked disagreement among senior management during the company’s early days. However, Mike candidly acknowledged that, fortunately, the company retained a specialized team dedicated to excellence, which has consistently guided Wallaby Medical toward international standards, ensuring each step forward is solid and well-founded.

“The philosophy established at the company’s inception is critically important. Developing products of international caliber in later stages relies not only on technology but, more importantly, on steadfast adherence to this corporate philosophy. Once the foundational philosophy is flawed, it becomes nearly impossible to rectify course in the future,” said Mike. “We were fortunate to have chosen the right strategic direction from the outset.”

Guided by this philosophy, Wallaby Medical has spent five years cultivating its expertise to become the only company in China that does not prioritize speed or “good enough” solutions as its core strategy, but instead genuinely practices open collaboration. With a foothold in China and a global perspective, Wallaby Medical will launch multiple core products both domestically and internationally in 2021. Over the next five years, the company will pursue steady, agile progress toward its vision of saving more patients’ lives.