Tianchen Medical Lists on STAR Market with Over 100% Surge, Aiming for a Share of the Multi-Billion-Yuan Surgical Stapler Market

20209Month28Day,Touchstone International Medical Science Co., Ltd.(Stock Code:688013, Stock Abbreviation:Touchstone Medical) Listed on the STAR Market。Cutoff9Month28Day 9Time 40points,TouchstoneMedical: Total share capital issued in this offering20 million shares, the issue price per share was 18.62yuan, opening price 45.11yuan, up to a maximum of 48yuan, with an increase of over 157%%. As of press time, the current price is 40.68 yuan, with an increase of over 118%.

(Image source: Tiger Brokers)

It is understood that Touchstone International Medical Science Co., Ltd.is a high-tech enterprise dedicated to the R&D, innovation, manufacturing, and sales of premium surgical staplers. Through17 Years of Continuous Independent Innovation, Touchstone MedicalPossesses circular staplers, endoscopic staplers, linear cutting staplers, purse-string staplers, and linear suturing staplers.Five major product categories, with applications spanning surgical fields such as cardiothoracic surgery, gastrointestinal surgery, hepatobiliary and pancreatic surgery, general surgery, and urology.

During the reporting period, Touchstone MedicalThe products are sold to Italy, Spain, Austria, Brazil, South Korea, the United Kingdom, Australia, and other countries.32 overseas countries and regions. In 2019, Touchstone Medical’s stapler products ranked first among Chinese independent-brand exporters in European markets such as Italy, Spain, and Austria. In the domestic market, Touchstone MedicalProducts in ChinaIt has been clinically applied in more than 300 hospitals across 30 provinces, autonomous regions, and municipalities directly under the Central Government.

2019, Touchstone MedicalAchieved operating revenue170 millionYuan, Net Profit42 million yuan, representing year-on-year increases of 45.14% and 81.60%, respectively. From 2017 to 2019, Touchstone MedicalProfitability has significantly improved, with a compound annual growth rate of operating revenue at38.82%, with a net profit compound annual growth rate of 73.80%.

Surgical staplers are clinical devices used to replace traditional manual suturing. Their primary mechanism of action is similar to that of a stapler, achieving tissue transection, closure, and functional reconstruction of organs by firing and implanting metal staples into the tissue. The application areas of surgical staplers continue to expand, improving surgical efficiency and quality, shortening recovery time, reducing patient suffering, and lowering medical costs.

Currently,Touchstone Medical has already obtainedCircular staplers, laparoscopic staplers, linear cutting staplers, purse-string staplers, and linear suturing staplers5 Major Product Categories.

Circular staplers primarily include three product series: circular gastrointestinal staplers, circular anorectal staplers, and circular urological staplers, which are used for the anastomosis of luminal tissues.

In low rectal surgery, the widely used double-stapling technique creates“Dog-ears” may lead to complications such as anastomotic leakage. Targeting low-position anastomosis, KOL products employ barrier-free anastomosis technology and a permanent parallel closure system to effectively eliminate “dog-ears,” achieve end-to-end anastomosis, and restore natural luminal anatomy of human organs postoperatively.Additionally,As a product leading procedural innovation in the field of proctology, TST enables “precise” excision of lesions during selective resection procedures, achieving the effects of minimally invasive and “precise” therapy, thereby gradually replacing PPH products.

Endoscopic stapler products mainly include the endoscopic cutting stapler product series, which are primarily used in various minimally invasive surgical procedures such as cardiothoracic surgery, gastrointestinal surgery, hepatobiliary and pancreatic surgery, and general surgery, for tissue closure, resection, or organ function reconstruction.

Through innovative mechanical design, the product optimizes jaw pressure to effectively grasp tissue and prevent leakage, while avoiding excessive compression and tissue damage. It enhances the stability of the articulated jaw, maintaining jaw angle during deep-tissue manipulation to minimize injury to surrounding tissues. A safety lock mechanism prevents accidental or double firing. Precise gap control ensures consistent staple height throughout the cutting process, guaranteeing safe and reliable tissue transection. Leveraging a universal endoscopic technology platform, the ELC product allows for flexible combination and replacement of the handle and components, thereby improving operational convenience and reducing surgical costs.

Linear cutting staplers primarily include the linear cutting stapler product series, which are mainly used for patients with lung tumors, pulmonary bullae, and esophageal tumors in thoracic surgery, as well as for gastrointestinal resection, reconstruction, and closure of stumps or incisions in gastrointestinal tumor surgeries, bariatric procedures, and metabolic surgeries performed in general surgery and gastrointestinal surgery.

The product incorporates third-generation automatic safety technology to ensure surgical safety and mitigate risks associated with inadvertent operation. Its permanent parallel closure system provides consistent conditions for staple formation, maintaining the stability of the entire staple line. The wide-anvil design enhances anastomotic strength, thereby contributing to improved surgical safety. Additionally, ambidextrous operation modes offer a superior user experience.

Purse-string stapler products mainly include the automatic purse-string suturing device series, which comprises disposable automatic purse-string suturing devices (APS). These devices are intended for clinical surgical use in performing purse-string sutures on various organ tissues.

The product utilizes a specialized staple forming technology for purse-string staplers, which effectively anchors the purse-string suture to securely grasp tissue as a single unit, minimizing slippage. Meanwhile, the automatic suture threading technology employed not only simplifies operation but also enhances product stability. Additionally, the U-shaped elastic limit design effectively prevents excessive tissue compression.

Linear StaplersLinear stapler products primarily include the linear stapler product series, which are mainly used for closing residual ends or incisions during digestive tract reconstruction and organ resection surgeries.

The anvil structure of the product design facilitates stapling in confined spaces; the high-density staple layout not only achieves effective hemostasis but also enhances anastomotic strength; the third-generation automatic safety lock technology effectively ensures procedural safety and mitigates risks associated with inadvertent operation; the anti-jamming needle advancement/retraction feature and single-handle operation design deliver an improved user experience.

According to the prospectus, tubular staplers and laparoscopic staplers constitute the core business of Touchstone Medical, with their combined revenue accounting for over80%. Among them, the endoscopic stapler generated RMB 18.58 million in revenue in 2017 and RMB 68.11 million in 2019, with a growth rate far exceeding that of other products.

According to DXY’s “Overview of the Development of the Stapler Industry,” the global market size for surgical staplers grew from USD 7.364 billion in 2015 to USD 9.018 billion in 2019, representing a compound annual growth rate (CAGR) of approximately 5%.In the future,With continuous advancements in modern technology and stapler manufacturing processes, coupled with the growing demand for surgical treatments—particularly minimally invasive procedures—the market size of surgical staplers is expected to continue expanding.

According to forecasts,From 2019 to 2024, the global surgical stapler market is projected to grow at a compound annual growth rate (CAGR) of 5%, reaching a market size of USD 11.509 billion by 2024.

(2015–2024 Global Market Size of Surgical Staplers; Data Source: DXY’s “Overview of the Development of the Surgical Stapler Industry”)

Among them,, the market size of staplers in China has grown fromGrowing from RMB 4.827 billion in 2015 to RMB 9.479 billion in 2019, the compound annual growth rate was approximately 18%, significantly outpacing the international average.

Based on a market size of RMB 9.479 billion in 2019, Touchstone International Medical Science Co., Ltd. generated domestic revenue of RMB 105 million in 2019, accounting for approximately 1.1%. Additionally, according to the report, the compound annual growth rates (CAGR) of the global and Chinese surgical stapler markets from 2015 to 2019 were approximately 5% and 18%, respectively, while Touchstone International Medical Science Co., Ltd.The compound annual growth rate of operating revenue during the reporting period was38.82%, significantly higher than the industry average, with its market position and competitiveness continuously enhancing.

According to the prospectus, Touchstone International Medical Science Co., Ltd. in 2017, 2018, and 2019"achieved operating revenue respectively"RMB 89.6485 million, RMB 120 million, and RMB 170 million, with year-on-year growth rates of 32.77% and 45.14% in 2018 and 2019, respectively. In 2017, 2018, and 2019, Touchstone MedicalAchieved Net Profits, RespectivelyRMB 13.90 million, RMB 23.13 million, and RMB 42.00 million, representing year-on-year increases of 66.34% and 81.60% in 2018 and 2019, respectively.

(Data source: Prospectus)

Touchstone Medical’s rapid growth is closely tied to its strategy of prioritizing R&D and innovative technologies. It is reported that Touchstone MedicalSuccessively pioneered and developed rotational cutting technology, selectiveCutting technology, barrier-free anastomosis technology, staple forming technology, universal laparoscopic technology platform, and automatic safety technology. Currently,Touchstone Medical is developing anastomosis technologies that feature minimal invasiveness and are integrated with intelligent systems.

As ofIn late 2019, Touchstone MedicalHolding Domestic and International Patents380 items, including 228 invention patents, covering China, Europe, the United States, Japan, and other countries and regions, effectively breaking through the intellectual property barriers that had been monopolized for many years by U.S. medical device giants in this field, making it a leading domestic enterprise in the export of high-end surgical staplers. Among them, Touchstone International Medical Science Co., Ltd.Invention Patent“The Staple Head Assembly of a Circular Tube Type Stapler” was awarded the “China Patent Excellence Award” by the China National Intellectual Property Administration.

According to the prospectus, Touchstone International Medical Science Co., Ltd. integrates product technology R&D with clinical procedure development, as advances in clinical procedures often drive the iterative upgrading or even replacement of associated surgical instruments. For instance, in 2009, Touchstone Medical pioneered a new selective resection technique and concurrently developed the TST series products. This minimally invasive approach effectively addressed issues such as overtreatment and anastomotic stenosis associated with the traditional stapled hemorrhoidopexy for hemorrhoidal disease, gradually achieving substitution for the stapled hemorrhoidopexy procedure and its corresponding PPH products, which had been monopolized by multinational giants.

As of the date of signing this prospectus, the status of Touchstone Medical’s projects under development is as follows:

Looking ahead, Touchstone International Medical Science Co., Ltd. will continue to focus on the research and development of high-end surgical staplers and related products, while strengthening automated and intelligent manufacturing capabilities. Meanwhile, the company will continue to expand its market presence, enhancing its corporate influence and brand recognition.