G-Challenge Medical Completes Over $50M Series C Financing to Advance Dual Platforms in Peripheral and Neurovascular Interventions

VCBeat (WeChat ID: vcbeat) has learned that Zhejiang Zylox-Tonbridge Medical Devices Co., Ltd. (“Zylox-Tonbridge”) announced the completion of its Series C financing round, raising over USD 50 million. The round was led by Orbimed, with existing investors A Plus Capital (from Series A), SDIC Innovation (from Series B), and Zheshang Venture Capital all participating as follow-on investors.

Zylox-Tonbridge operates two major product platforms: the Zylox Medical comprehensive peripheral vascular interventional solutions platform and the Tonbridge Medical comprehensive intracranial neurovascular interventional solutions platform. Its latest independently developed domestic products, the “Jiaolong” thrombectomy stent and the “Yinshe” intracranial support catheter, were successively approved for market launch by the National Medical Products Administration (NMPA) this September. The “Jiaolong” thrombectomy stent had previously passed the special review for innovative medical devices in 2017 and obtained EU CE certification this March. Meanwhile, more than ten other products, including the innovative “Drug-eluting PTA Balloon Dilatation Catheter” and intracranial coils, have demonstrated excellent therapeutic efficacy in clinical trials or animal studies and have submitted registration applications to the NMPA, with expected market launches in the near future.

Vascular diseases are among the leading causes threatening human life and safety. Stroke, caused by intracranial hemorrhage or ischemia, has long been the leading cause of death in China, with over 2.5 million new cases annually. According to data from the China Medical Device Blue Book, Frost & Sullivan, and the 5th Academic Annual Meeting of the Neurointerventional Branch of the Chinese Stroke Association (CINS 2020), the market size for neurointerventional devices in China reached RMB 6.3 billion in 2019, with 40,000 thrombectomy procedures performed, reflecting a compound annual growth rate (CAGR) of 30% from 2015 to 2019. Although there are over one million new stroke patients each year in China, the actual number of thrombectomy procedures performed in 2017 was less than 15,000, resulting in a penetration rate of only 0.56%, indicating substantial potential for future market development.

Previously, thrombectomy stent products in China relied heavily on imports. With the approval of Zylox-Tonbridge’s thrombectomy devices, new treatment options will become available for patients with ischemic stroke. Furthermore, regarding other neurointerventional products, Zylox-Tonbridge has implemented a phased strategic layout across both its ischemic and hemorrhagic product portfolios in neurovascular intervention.

On the other hand, the incidence of peripheral vascular disease remains high, while treatment rates are relatively low. There are currently up to 40 million patients with lower extremity arteriosclerosis obliterans in China, and the incidence of other arterial and venous diseases continues to rise due to changes in lifestyle and work habits. According to Frost & Sullivan data, the market size of peripheral vascular interventional medical devices in China grew from RMB 1.7 billion in 2013 to RMB 3.01 billion in 2017, representing a compound annual growth rate (CAGR) of 15.4%. The market is expected to expand to RMB 7.12 billion by 2022, with a CAGR of 18.8% from 2018 to 2022, indicating rapid development. Currently, devices used in peripheral vascular interventions are predominantly imported, with few domestically produced alternatives. Zylox-Tonbridge is a leading force in the domestic production of high-end peripheral vascular interventional devices.

Zylox-Tonbridge’s main products for peripheral vascular intervention include PTA balloon dilation catheters, peripheral balloon dilation catheters, and high-pressure PTA balloon dilation catheters. Zylox-Tonbridge is the earliest domestic innovative enterprise to focus on researching the mechanisms of drug-device combinations and clinical application technologies. Its core intellectual property products—the paclitaxel-coated peripheral drug-coated balloon and the paclitaxel-eluting peripheral self-expanding stent system—have successively received NMPA certification as “Domestic Innovative Medical Devices” and been approved through the “Green Channel.”

Dr. Zhao Zhong, the company’s founder, stated, “As a comprehensive product platform in the domestic vascular implant and interventional field that aligns with international advanced technologies, Zylox-Tonbridge has leveraged its robust R&D capabilities and increasingly complete operational team to focus on the products themselves. By employing solid technical craftsmanship, we have developed high-quality domestically produced medical devices with independent intellectual property rights and provided complete solutions. Our rich product pipeline reserves and outstanding clinical trial results have earned widespread recognition from numerous patients, clinicians, and industry peers. OrbiMed is a top-tier global professional healthcare investor. We look forward to jointly building the Zylox-Tonbridge brand through this collaboration, and we once again thank all shareholders and partners who have consistently supported the company’s development for their continued support.”

Dr. Wang Dasong, Managing Director of OrbiMed, stated, “The neurointerventional and peripheral interventional device sectors are currently experiencing rapid growth in China, with surging demand for high-quality innovative domestic products. Zylox-Tonbridge boasts strong R&D capabilities, a robust portfolio of innovative products, and comprehensive clinical solutions. With multiple blockbuster products successively launched, the company has assumed a leading position in China’s neurovascular and peripheral vascular intervention fields. We highly recognize Dr. Zhao Zhong and his team for their innovation and execution capabilities. Through this collaboration, we aim to help the company sustain its rapid growth and solidify its leading market position.”

Zylox-Tonbridge was co-founded by Dr. Zhao Zhong, along with a team of overseas-returning technical elites and seasoned domestic marketing experts. Leveraging the team’s multi-dimensional strategic integration, rigorous technological accumulation, extensive professional experience, and its distinctive approach to combining medical expertise with engineering, the company focuses on developing high-end vascular interventional medical devices with independent intellectual property rights that fill gaps in both domestic and international markets. As of 2020, three of the company’s products had been included in the National Green Channel for Innovative Medical Devices, and nearly ten products had entered or completed clinical trials. It is expected that within the next five years, the company will launch nearly 20 vascular implantable and interventional medical device products with independent intellectual property rights. This will provide physicians with a broader range of device options and offer patients superior, cost-effective products, thereby establishing a “Crafted in China” brand of medical devices in the vascular implant and intervention sector, a market long dominated by imported products.