Wat Medical Files IPO Prospectus: Overseas-Educated Team Pioneers Targeted Neuromodulation with Anti-Nausea and Pain Relief Devices Sold in Over 30 Countries

Neuromodulation Therapy, also known as Neurostimulation Therapy, is defined by the International Neuromodulation Society as the targeted stimulation of specific neural sites (e.g., via electrical or chemical stimulation) to alter neural activity levels and produce therapeutic effects.

Currently, there is a substantial body of research and clinical application data in the field of neuromodulation therapy. Its therapeutic mechanisms and modalities differ significantly from those of pharmacological treatments. Compared with medication, neuromodulation therapy can avoid issues such as drug addiction and adverse drug reactions.

In fact, neurostimulation therapy has a long history; for instance, Chinese physicians used acupuncture to treat patients, while ancient Roman doctors employed electric rays to alleviate headaches and arthritis. Today, advances in scientific research have brought traditional techniques into the realm of evidence-based medicine, and commercial growth has industrialized medical device manufacturing, bringing greater benefits to more patients.

Neuromodulation therapy offers patients new treatment options, and research in this field continues to evolve.Yuefan Medical is a company dedicated to researching targeted neuromodulation technologies, with a mission to provide innovative home-use medical devices. Its technology originates from North America, and it operates a manufacturing base in Ningbo that complies with international medical device standards.

Yuefan Medical is a manufacturer dedicated to providing innovative personal medical devices,The core team comprises multiple overseas experts.

Yuefan MedicalDr. Ji Hualei, CEOGraduated fromTongji Medical University andNetherlands Business School, onceAtGlaxoSmithKline, Bayer, etc.Marketing at Multinational Pharmaceutical Companies。Dr. Meng Zhang, CTO, is an expert in materials engineering and previously served as a senior engineer at Texas Instruments.Xu YurongIt is Dartmouth College, an Ivy League institution in the United States.Ph.D. in Computer Science, formerly served as a Senior Technician at Google in the United States.Ji Wufeng holds a Ph.D. in Ophthalmology from the University of California, Berkeley.，Member of the American Academy of Ophthalmology, Member of the American Neuromodulation Society,Possesses extensive overseas marketing experience and previously founded a medical technology company in Canada.

Ji Hualei stated:“The team is the core competitiveness of Yuefan Medical. Our team covers multiple disciplines, including control engineering, clinical medicine, human-computer interaction, and marketing, with a complementary structure and advantages. We have been working together for over”“Six years, enough for tacit understanding.”

“I chose to specialize in the field of neuromodulation therapy because of a memorable incident that occurred more than two decades ago,” Ji Hualei told reporters. “Over twenty years ago, my wife experienced significant weight gain after giving birth. She underwent acupuncture treatment, which suppressed her appetite and induced a sense of satiety. After a period of time, she successfully lost weight. I was astonished by the remarkable efficacy of acupuncture, and since then, I have been deeply interested in neuromodulation therapy.”and is committed to industrializing traditional neuromodulation technologies. Today, as we dedicate ourselves to this field, I am deeply grateful to my team for supporting my dream.”

Targeted neuromodulation technology is the core competency of Yuefan Medical. Ji Hualei believes that the current market is dominated by broad-spectrum neuromodulation devices. Although these devices offer multiple functionalities, they suffer from three major pain points: complex structure making them difficult to operate, intricate parameters prone to selection errors, and bulky design hindering portability.

For individuals suffering from pain, motion sickness, and other conditions,The wearable nature of the device is not merely a gimmick, but a prerequisite for receiving treatment.For example, when patients with migraines seek care at medical facilities, their pain may have subsided or diminished by the time of treatment, failing to meet the needs of the general population.

Ji Hualei stated:“Yuefan Medical focuses on the research and development of innovative home-use medical devices, creating a single product for each specific symptom. These devices are simple to operate, eliminating concerns about parameter settings and portability. Examples include an anti-nausea device resembling a wristband and a headache relief patch similar to a band-aid.”

According to Ji Hualei, Yuefan Medical is a Ningbo-based“The overseas innovation and entrepreneurship teams key to the “3315” Program were selected as Class A strategic emerging industries in Ninghai County in 2016. Currently, its developed antiemetic devices and headache patch products have already surpassed global...ExcessSold in 30 countries. 

A significant global population suffers from motion sickness (including seasickness, carsickness, and airsickness) and migraine. The adverse effects experienced by these patients are often difficult for the general public to fully appreciate. However, conditions such as motion sickness and migraine can severely diminish patients' quality of life.

Yuefan Medical has currently achieved success in the fields of vomiting control and non-pharmacological treatment for migraines. Ji Hualei stated:“Patients can work and live normally with the assistance of our device, thereby improving their quality of life. Furthermore, our device offers high cost-effectiveness, reducing societal and household expenses while alleviating the burden on healthcare institutions and medical insurance systems.” 

The Ouchuting Antiemetic Device, as the name suggests, is suitable forControl of Nausea and Vomiting. Ji Hualei introduced:“Ou Tuting Antiemetic Device primarily targets the markets for chemotherapy-induced nausea and vomiting (CINV), pregnancy-related vomiting, and motion sickness.”

Regarding the market for chemotherapy-induced nausea and vomiting (CINV), the latest report published by the International Agency for Research on Cancer (IARC) of the World Health Organization states that the number of cancer patients worldwide is growing rapidly. OnlyIn 2018 alone, there were 18.1 million new cases and as many as 9.6 million deaths. Among patients undergoing chemotherapy, 90% experience vomiting. During chemotherapy, patients require repeated oral administration or intravenous injection of antiemetic drugs, which places a significant burden on their kidneys.

Regarding the market for pregnancy-related vomiting, the United Nations Department of Economic and Social Affairs, in a report titled “The report “World Population Prospects 2019: Highlights” points out that the global population is projected to increase by more than one billion over the next 15 years, reaching 8.5 billion by 2030. According to data from the National Bureau of Statistics, the number of live births in mainland China was 15.23 million in 2018. During pregnancy, women are unable to use pharmacological interventions to alleviate vomiting, creating an urgent need for non-pharmacological products with no side effects to fill this market gap.

Regarding the motion sickness market, nearly globalOne in three people suffer from motion sickness. Among them, individuals prone to seasickness and carsickness primarily use antihistamine-based medications, with Dramamine (dimenhydrinate) ranking first in U.S. market share and achieving annual sales of65 million boxes.

Yuefan Medical’s Ou Tu Ting Antiemetic Device is a physical therapy device designed to alleviate chemotherapy-induced and postoperative vomiting. Resembling a wristband, it is convenient to wear. The device operates by delivering precise electrical pulse signals to the median nerve through targeted neuromodulation mechanisms, thereby blocking neural pathways to the brain.- Vagus Nerve-Gastric Vomiting Reflex, reachingTreatment efficacy.Introduction to Ji Hualei:“The Outu Ting antiemetic device features superior usability design and a minimalist operation interface, at2017 iF Industrial Design Award, Hanover, GermanyFGrand Prize.”

(Ou Tu Ting Antiemetic Device, photo provided by the company)

The 2014 Consensus Guidelines for the Management of Postoperative Nausea and Vomiting, released in the United States, stated: “Transcutaneous electrical stimulation of the median nerve via an electronic antiemetic device can be used as a therapeutic approach to prevent and alleviate nausea and vomiting (Grade A1 recommendation).”In the same year,American College of Obstetricians and GynecologistsACOGThe published guidelines on nausea and vomiting in pregnancy state:“It is recommended that P6Acupoint Stimulation as a First-Line Treatment for Nausea and Vomiting in Pregnancy”。

Introduction to Ji Hualei:“Oututing Anti-Vomiting Device has obtained China’s”CFDA, US FDA, EU CE, Canada HC, Australia TGAand Israelmedical device certifications in multiple countries, already in“Sold in over 30 countries. Ou Tuting antiemetic device has become the top-selling brand in its category on Amazon US within less than a year of launch.”

Ou Tu Ting made its debut in China atAt the 2018 Shanghai Inaugural International Cancer Conference, the 3rd International Conference on Cancer Metabolism and Treatment, and the 4th National Annual Conference on Tumor Metabolism, experts emphasized that chemotherapy is a crucial component of cancer treatment. While side effects such as nausea and vomiting associated with chemotherapeutic agents cannot be completely avoided, the Oututing antiemetic device has advanced the progress of antiemetic therapy.

In 2016, the Head and Facial Pain Group of the Pain Branch of the Chinese Medical Association and the Committee on Pain and Sensory Disorders of the Neurologist Branch of the Chinese Medical Doctor Association developed the “Guidelines for the Prevention and Treatment of Migraine in China” (hereinafter referred to as the “Guidelines”). The Guidelines indicate that the prevalence of migraine in China is 9.3%, with a female-to-male ratio of approximately 3:1. According to the World Health Organization’s 2013 Global Burden of Disease Study, migraine ranks as the third most common disease worldwide.

In clinical practice, migraine is a relatively common type of headache, and the quality of life of patients with migraine is significantly adversely affected by headache attacks. A study conducted abroad found that the social burden caused by patients with migraine is no less than that of patients with multiple system atrophy, Parkinson’s disease, or stroke.

Currently, there are very few medications in medicine that can completely cure migraines, and overall research on prevention and treatment is relatively lacking. How to implement prevention and treatment for patients with migraine risk factors has become a research focus of great concern to many medical professionals today.To date,FDASuccessively approved3 Types of Neuromodulation Devices for Migraine Relief: Cefaly, HeadaTerm (Shuleding), and Nerivio Migrad。Among them, Shuleding was developed by Yuefan Medical.

(Shuleding Headache Patch)

According to VCBeat, the Israeli company that treats migraines with neuromodulation therapyTheranica secured $35 million in Series B financing in May 2019 for its Nerivio Migraine upper-arm electrical stimulation patch, while Belgium-based Cefaly was acquired by Canada’s DW Healthcare in June 2019 for its Cefaly external trigeminal nerve stimulator (eTNS). This demonstrates that the field is currently experiencing robust development.

Ji Hualei stated:“Pharmacological treatment of migraines is associated with drug side effects, and long-term use can lead to medication-overuse headache. Shuleding Migraine Patch is the world’s first disposable wearable device designed to alleviate migraines. It is easy to use, adhering to the forehead like a bandage, and has no drug-related side effects. Clinical studies have demonstrated its efficacy rate at”91%, which can reduce drug usage by 75%."

According to the product description, the mechanism of action of Shuleding Headache Patch is as follows: it delivers precise electrical stimulation to the supratrochlear nerve, thereby activating the endorphin system and triggering the release of endogenous morphine-like substances to achieve analgesic effects.

(Canadian former Prime Minister Harper holding Shuleding Headache Patch)

Ji Hualei told reporters:“Shuleding Headache Patch is a consumable product that has obtained medical device certifications in multiple countries. It is expected to be launched and sold in the Chinese market by the end of this year or early next year.”

 Yuefan Medical has adopted a diversified sales strategy. For overseas markets, it utilizes three channels: online sales, cruise ships, and supermarkets; whereas in China, it employs a different sales strategy.

Overseas online channels.Yuefan Medical sells its products in the United States, the United Kingdom, Canada, Australia, and other countries through the Amazon platform.Ranked No. 1 in the field of non-pharmacological management of nausea and vomiting in less than a year.

Cruise ShipChannel。Yuefan Medical andMiamiCruise ShipSupplierIn partnership with VIKAND Solutions, it is currently being promoted and sold through cruise channels on five global routes.Ji Hualei stated:“In the Near Future, wewill develop into30 cruise itineraries.”

(Antiemetic Device Cruise Ship Sales Channel)

SupermarketChannel。Yuefan Medical will partner with the two largest healthcare chains in the United StatesCVS partners with Walgreens to sell products. CVS operates 9,700 stores and 1,100“Minute Clinic”; andWalgreens operates 7,000 stores in the United States.Ji Hualei told reporters:“They serve as the primary gateway to the U.S. pharmacy market and are highly instrumental in driving product sales.”

China Market. Yuefan MedicalOngoingwith Guangzhou Pharmaceutical GroupConsultationStrategic Cooperation Agreement, with in-depth collaboration in equity investment and channel promotion. Yuefan Medical will also partner with high-end obstetrics and gynecology hospitals in China to explore the market for hyperemesis gravidarum. Ji Hualei stated:“Yuefan Medical will join hands with BeijingPLA General Hospital,Peking University Cancer Hospital,Renji Hospital, Shanghai Jiao Tong UniversityCollaborate with hospitals to raise awareness among physicians and patients and cultivate the Chinese market; online, partner with JD Pharmacy.”

Currently, Yuefan Medical possesses in China compliantA comprehensive manufacturing and quality management system compliant with ISO 13485 and GMP standards for medical devices. Ji Hualei stated, “The company holds patents in China, the United States, the European Union, Japan, and other countries.”63Item, the trademark is registered in multiple countries.”

Ji Hualei likened Yuefan Medical to a hen that lays eggs, rather than a company with two products.Regarding future plans, Ji Hualei stated, “Yuefan Medical aims to maximize the portability and usability of its products in compliance with international medical device regulations. The company focuses on the field of targeted neuromodulation,”along two directions: product iteration and new project development,MeetingDerivativesLaunch More Wearable Devices+Therapeutic home medical devices. New products currently being prepared for industrialization include: a blood pressure controller based on the oculocardiac reflex,IoT-BasedComa Awakening Device2.0Non-invasive Vagus Nerve Stimulation Weight Loss DeviceObeGone, Depression TreatmentDevice, electronic coffee eEspresso, etc.”

According to the VCBeat database,In January 2017, Yuefan Medical secured RMB 3 million in angel investment. The company is now preparing to launch a new round of financing. Ji Hualei stated, “Yuefan Medical has entered a phase of rapid development. We aim to introduce partners with channel and market resources to jointly cultivate and expand the market. We plan to raise RMB 15 million, primarily to accelerate the globalization of our brand, expand our team, drive innovative R&D, and address the pressure on accounts receivable and working capital resulting from rapid business growth.”

Currently, Yuefan Medical is seeking a new round of financing.and Channel Partners, interested parties please contact VCBeat Financing Assistant Xiao Yun:DongMai_Investent