Yichao Medical Secures Tens of Millions in Series A Funding and NMPA Approval for Its First Product, Expanding Comprehensive Minimally Invasive Surgical Portfolio

VCBeat has learned that Shanghai Yichao Medical Devices Co., Ltd. (hereinafter referred to as “Yichao Medical”) has recently obtained the medical device product registration certificate for its ultrasonic soft tissue cutting and hemostatic system. This marks the first NMPA certification for a product from Yichao Medical since it completed tens of millions of yuan in Series A financing in the second half of 2020. The product is currently the first of its kind in China and the second globally among ultrasonic energy surgical systems featuring anti-adhesion functionality.

Shanghai Yichao Medical Devices, established in 2016, is an innovative platform-based technology company dedicated to the independent research and development, manufacturing, and sales of products for minimally invasive surgery, minimally invasive interventional procedures, and natural orifice transluminal endoscopic surgery (NOTES). According to Shen Changzheng, co-founder of the company, Shanghai Yichao Medical Devices has strategically developed a pipeline of products focused on the minimally invasive field, defining innovative products based on clinical scenarios and driving innovations in surgical techniques. It is expected that by the end of 2021, two to three of its products will enter the National Medical Products Administration’s (NMPA) Special Examination and Approval Channel for Innovative Medical Devices.

Based on the surgical access routes of surgical procedures, Shanghai Yichao Medical Devices has developed three major minimally invasive surgery product portfolios along the three major human body pathways: transabdominal, percutaneous, and natural orifice. These portfolios are: “Multimodal Hybrid Energy Surgical Base System + Specialty Surgical Solutions,” “Dual-Probe 3D Ultrasound Diagnosis-and-Treatment Integrated Surgical Robot + Dedicated High-Value Consumables,” and “Ultrasound Endoscope + Dedicated High-Value Consumables.”

A highly competitive product portfolio has attracted significant interest from investors! It is reported that Shanghai Yichao Medical Devices secured RMB 40 million in angel financing in 2019, jointly invested by Huali Group and Legend Star. This round of financing was led by CITIC Medical Fund, with participation from Ecovacs Robotics and Xingyun Capital. The investment will be used to support the clinical translation and market promotion of the company’s energy-based surgical products, and to accelerate the research and development of multimodal hybrid energy surgical systems, a dual-probe 3D ultrasound real-time surgical platform, and integrated diagnostic-therapeutic minimally invasive surgical robots.

The ultrasonic soft tissue cutting and hemostatic device, which has obtained the NMPA registration certificate, is the first product of Shanghai Yichao Medical Devices’ energy-based surgical system. The company is currently initiating preparations for its market launch. Clinical trial data have demonstrated the product’s leading performance, and it has received unanimous endorsement from renowned domestic robotics companies. In 2019, Shanghai Yichao Medical Devices partnered with “Miaoshou Robot” to facilitate the world’s first 5G-enabled remote surgery, and subsequently collaborated successfully with “Kangduo Robot” on additional remote surgical procedures. The device has been praised for its excellent clinical performance, highlighting the high quality of high-end medical devices manufactured in China.

Other energy-based surgical products under development include a dual-engine ultrasonic-electric hybrid integrated surgical system, which fully leverages the respective advantages of ultrasonic and electrical energy to redefine basic surgical instruments. Meanwhile, Shanghai Yichao Medical Devices has also begun to expand into the field of integrated diagnostic and therapeutic minimally invasive interventional robots. The company plans to develop the world’s first integrated diagnostic and therapeutic minimally invasive surgical robot by building upon its independently developed 3D real-time ultrasound surgical platform and robotic motion control system, and integrating specialized high-value consumables for minimally invasive interventions.

In recent years, the output value of surgical instruments in the minimally invasive treatment industry has shown an overall growth trend. However, imported devices still dominate the market, and their hegemonic position is difficult to shake in the short term due to their first-mover reputation and brand advantages. Domestic enterprises can only grow bigger and stronger by deeply cultivating the industry, strengthening internal capabilities, and meticulously polishing their products, relying on leading core technologies, high product quality, and excellent service reputation. In the future, it is an inevitable trend that domestically produced minimally invasive medical surgical instruments will replace imported ones.

Shanghai Yichao Medical Devices has a profound understanding of this path. Since its establishment, the company has defined its development direction, increased R&D investment, tackled key technical challenges, and actively gathered extensive clinical feedback, with the aim of delivering high-quality products that offer superior quality, enhanced performance, and greater stability. Shen Changzheng further added, “All core components of Shanghai Yichao Medical Devices’ minimally invasive surgical products are independently developed and designed, possessing full intellectual property rights. The original intention behind our R&D and strategic layout is always guided by customers’ clinical needs, committed to effectively addressing clinical pain points and creating value for our customers.”

CITIC Medical Fund is CITIC’s equity investment management platform dedicated to the pharmaceutical and healthcare sector, committed to building a comprehensive, value-added industry fund with deep capabilities in sector consolidation. The fund’s team comprises industry specialists with extensive operational experience at multinational pharmaceutical companies and financial experts with profound expertise in the finance sector.

Ecovacs Robotics is a leading enterprise in the service robotics industry. Ecovacs Industrial Investment focuses on industrial applications of robotics and artificial intelligence. Leveraging Ecovacs’ over 20 years of industry practice and accumulation in the robotics field, it empowers portfolio companies with its industrial heritage and competitive advantages, providing all possible assistance to facilitate their rapid growth. Ecovacs Industrial Investment has successively invested in projects such as Benewake, Emotibot, TiMi Robot, SynSense, and Gentu Technology. Additionally, through the Ecovacs Accelerator, it has served more than 150 outstanding entrepreneurs in the AI and robotics sectors, helping them and their businesses achieve rapid growth through its acceleration system.

Xingyun Capital is a holding investment institution characterized by modern management philosophies, exceptional industrial capabilities, and systematic thinking. Committed to building and safeguarding a better future, it strives to drive comprehensive industrial upgrading and foster emerging industries, thereby enhancing the support provided by modern management and technological innovation to the industrial sector. Based on a profound understanding of industries and enterprises, Xingyun Capital empowers portfolio companies through investment and management support, aiming to stimulate corporate vitality, establish sustainable core competencies, and promote overall industrial upgrading. The firm focuses on the healthcare and hard technology sectors, with investment stages ranging from angel rounds to Pre-IPO.