InnoMed Action Medtech Files IPO Prospectus: Advancing Connected Inhalation Therapy with Pulmogine® Platform

Xinchengmai Action MedTech was founded in 2014 by a professional team with extensive experience and a shared vision for innovation in respiratory therapy. Leveraging cutting-edge technology and robust strategies, Xinchengmai has sequentially secured support from renowned investors including U.S.-based VIVO Capital, as well as investors from Taiwan and Japan, and has entered into licensing and manufacturing agreements with Abbott, one of the world’s top ten pharmaceutical companies. The company’s product, Pulmogine^®MedicalFogThe nebulizer has obtained certifications from the NMPA (China National Medical Products Administration), TÜV SÜD (CE Mark), TFDA, ANVISA (Brazil), and BPOM (Indonesia FDA). In the Chinese market, it will be equipped with Pulmogine+ featuring an external Bluetooth module and its dedicated app, establishing a big data platform for connected nebulization therapy.Furthermore, as a provider of integrated drug-device combination solutions, we offer customized and more effective treatment approaches for high-value drugs, thereby increasing the success rate of drug-device combination product development.

Zheng Jiesheng: The fierce competition in the domestic market indicates that this sector is highly active in innovation, with patient needs being fully recognized. This is a development we greatly welcome, and we look forward to driving innovative R&D in an environment of “catch-up and surpass.” Xin Cheng Magnesium differs from other nebulizer pump manufacturers in several key aspects:

First, from the perspective of individual users, we focus on a “patient-centric” home-use experience. Through years of in-depth research, we have found that, in addition to effective drug delivery, comfort during use and operational convenience also enhance user experience, thereby influencing treatment adherence. Therefore, adhering to a simple and clear design philosophy, Xin Cheng Magnesium has incorporated various design features across its product line to address different patient pain points. For instance, to enable patients to directly operate and clean the device, we have integrated an “IP55 splash-proof design,” which allows the machine to be rinsed directly under low-pressure water jets. Combined with its lightweight, portable, and quiet characteristics, this design enables patients to undergo treatment at home.

Second, spanning from hospital to home-care settings, we position ourselves as a “refined integrated diagnosis-and-treatment” system. In our product, the nebulizer pump serves merely as a carrier; it will be equipped with an external Bluetooth kit and its dedicated app, evolving into a big-data platform for nebulization therapy. This platform connects hospital-based diagnosis and medication prescriptions with home nebulization treatment scenarios, thereby establishing a closed-loop system for next-generation home nebulization therapy and enhancing treatment efficacy.

Third, we are also an integrated solution provider combining pharmaceuticals and medical devices. In collaboration with international pharmaceutical companies, Xincheng Magnesium develops customized and more effective treatment approaches for high-value drugs, including suspension formulations, high-viscosity agents, antibiotics, biologics, and liposomal drugs. By providing support from preclinical trials through clinical stages, we aim to increase the success rate of developing combination drug-device products and enhance the efficiency of pulmonary drug delivery for patients.

Zheng Jiesheng: Our competitive advantages stem from the following key factors: expertise in electronics technology, firmware optimization, modular design, insights into the clinical and pharmaceutical industries, and the agility of a startup.

By collaborating closely with international pharmaceutical companies on drug-device combination products, we provide a customized nebulization platform that overcomes the bottlenecks of traditional respiratory drug delivery systems. This platform allows for customization of nebulization rate, effective delivered dose, particle size distribution, and mean particle size. Furthermore, we leverage the high flexibility and agility of startups to efficiently address challenges and meet the needs of international pharmaceutical companies, thereby optimizing product design for enhanced drug delivery efficacy.

Throughout the lengthy development process of drug-device combination products, Xincheng Magnesium has evolved from being merely a nebulizer manufacturer into an indispensable long-term partner for pharmaceutical companies in new drug development. It provides end-to-end services, including preclinical testing support, provision of device samples during clinical trials, and post-launch support, thereby effectively reducing risks and enhancing the success rate of drug-device combination product development.

Zheng Jiesheng: An overview of the medication market for asthma and chronic obstructive pulmonary disease (COPD) in mainland China reveals that the total market size reached RMB 44 billion in 2017. Inhaled corticosteroids (ICS) and bronchodilators serve as long-term maintenance therapies, with nebulized inhalation therapy being the preferred prescription option. Although a wide variety of nebulizers are currently available on the mainland market, common issues include limited formulation options for nebulized medications and reduced nebulization efficacy due to improper cleaning.

Xincheng Magnesium leverages a specialized nebulization system and a simplified cleaning design, enabling effective use across various drug formulations and multi-dose treatment regimens. Meanwhile, its nebulizer pump is designed to integrate with an intelligent Bluetooth module and a dedicated mobile app, aiming to provide the market with innovative nebulization therapy networks and devices. By co-creating comprehensive treatment solutions, it seeks to enhance patients’ quality of life.

Zheng Jiesheng: Joining I‧Campus marks the first step for Xincheng Magnesium to enter the mainland China market. I‧Campus brings together government entities, globally renowned companies, and medical academic institutions, which will help us stay abreast of industry development trends in real time. Furthermore, leveraging the AstraZeneca platform can create additional business opportunities.

Looking ahead, in addition to collaborating with companies established within the park, we believe there will be opportunities to engage with innovation ecosystems worldwide through AstraZeneca, thereby expanding global opportunities. By exporting the latest and most advanced treatment solutions from the Chinese market to the rest of the world, we aim to truly establish our foothold in China while maintaining a global perspective.

Zheng Jiesheng: We have formulated clear short-, medium-, and long-term business plans. The short-term objectives have already been achieved, with the import license for nebulizers obtained in May this year. Our independently developed high-efficiency medical nebulizer is expected to be officially launched and go on sale in October this year. Following the product launch, we will implement comprehensive marketing and promotion across both online and offline channels, aiming to capture a market share of over 10%.

Furthermore, we look forward to engaging in more extensive exchanges with over three innovative enterprises developing inhaled drugs, to jointly develop combination drug-device products.

Zheng Jiesheng: Xin Cheng Magnesium’s decision to establish its R&D and production center in Wuxi, following its recent invitation to settle there, was driven by the city’s strategic central location, convenient transportation, well-developed infrastructure, and supportive policies for industry-academia-research collaboration and talent development.

During the initial phase of establishment, government services facilitated our rapid settlement by assisting with commercial and industrial procedures—such as business registration, filing, and bank account opening—allowing us to devote more energy to business development.

In the medium to long term, we also aim to leverage the NMPA service window team to facilitate the application processes for marketing authorization and manufacturing licenses. This support will help resource-constrained startups enter new markets and achieve rapid development and growth.

Zheng Jiesheng: The biggest challenge in entering the mainland Chinese market was finding the perfect partner and location. Prior to the opening of I‧Campus, Xincheng Magnesium spent nearly two years visiting various industrial parks across mainland China in search of a suitable platform. I‧Campus integrates resources from local and international companies, government bodies, and medical and academic institutions, creating a one-stop incubation and innovation platform that covers early-stage R&D, innovation incubation, technology transfer, smart showcases, and professional services in the life sciences sector. By building a healthcare innovation ecosystem, it offers exactly what we have been looking for. As a result, Xincheng Magnesium’s management team and board investors quickly reached a consensus and actively engaged in negotiations to join the park.

Since joining I·Campus in September 2019, Xincheng Magnesium has been invited to participate in various major events, including the I·Campus opening ceremony, showcasing innovative products at the AstraZeneca booth during the 2019 China International Import Expo, and attending the Biocentury China Healthcare Summit. As a newly established startup settling into the park, these have proven to be invaluable opportunities and experiences, enhancing our visibility and creating avenues for business expansion.

With the active assistance of the I‧Campus team, Xin Cheng Magnesium has engaged in multiple strategic collaboration discussions with AstraZeneca, focusing on novel nebulization therapy networks and smart devices. These initiatives are expected to deliver more comprehensive nebulization treatment solutions, thereby improving patients’ quality of life in a more cost-effective manner within the short term. For the Xin Cheng Magnesium team, AstraZeneca represents a significantly larger organization. The I‧Campus team has consistently helped us identify the appropriate contact persons and provided accurate guidance during negotiations and communications, enabling efficient and rapid discussions that facilitate project advancement and implementation. In this sense, I‧Campus has supported us as if we were part of their own family. Such assistance is precious and invaluable, and was unimaginable before we joined the park.

Zheng Jiesheng: Pulmogine, a High-Efficiency Medical Nebulizer Independently Developed by Xincheng Magnesium^®Having obtained the import license, our primary objective at this stage is to capture market share. Meanwhile, we look forward to engaging in more exchanges with other pharmaceutical companies both domestically and internationally, jointly exploring respiratory drug development, integrated drug-device co-development, and CSO models.