Lepu Medical Completes Tens of Millions RMB Series B+ Financing, Life Capital Acts as Exclusive Financial Advisor

VCBeat (WeChat ID: vcbeat) has learned that Leno Medical, a leading domestic provider of ENT diagnosis and treatment solutions, recently announced the completion of its tens-of-millions-of-yuan RMB Series B+ financing round. The investment was made by SPO Capital, with Life Capital serving as the exclusive financial advisor.

Leno Medical Group was established in 2015, with its operational headquarters in Shanghai and two innovative R&D and manufacturing facilities located in Suzhou New District. The company is dedicated to providing high-quality, cost-effective ENT medical device products to hospitals, clinical healthcare professionals, and patients through a combination of independent R&D, licensed introductions, and M&A integration.

The Group currently owns multiple product lines, including ENT diagnostic and treatment equipment, surgical instruments, and interventional consumables, building a diversified product portfolio. With over 20 products launched or under development, its offerings cover 12 product lines across seven major ENT surgical procedures.

Otolaryngology has long been an overlooked market by investors. However, in recent years, influenced by environmental factors such as air pollution, the number of patients suffering from various otolaryngological diseases in China has reached hundreds of millions. The widespread adoption of new clinical technologies and increased patient willingness to pay have driven upgrades in medical services and consumption, creating new growth opportunities for the otolaryngology diagnosis and treatment market. For instance, in the field of endoscopic minimally invasive surgery via the nasal cavity, the compound annual growth rate (CAGR) over the past five years has exceeded 30%, with the market size projected to reach RMB 10 billion in 2021.

Compared with specialties such as orthopedics and cardiology, otolaryngology (ENT) still exhibits unique characteristics: diverse surgical procedures and a rich product portfolio, but fragmented manufacturers and low market concentration, failing to meet the clinical diagnosis and treatment needs of hospitals and healthcare professionals. According to data from Evaluate, the market concentration of the top ten global medical device manufacturers in orthopedics and cardiology reached 80%–90% in 2018, whereas this figure for ENT was less than 10%. Neither in the domestic nor in the international market has a leading enterprise emerged in the ENT sector. Innovative medical device platform companies like Leno Medical Technology(Shanghai)Co., Ltd. will have opportunities for rapid growth.

Globally, the growth of any medical device company relies on three key pathways: independent R&D, licensed introduction, and M&A integration. Leno Medical was the first in China to adopt this development strategy: independently developing high-value interventional consumables, while enhancing its portfolio of diagnostic equipment and surgical instruments through licensing and acquisitions. This approach strengthens market access and competitive barriers for its proprietary products, providing comprehensive solutions for clinical diagnosis and treatment in otolaryngology.

To date, Leno Medical has established partnerships with Meichuang Medical, a leading domestic manufacturer of minimally invasive ENT surgical energy platforms, and Mega Medical, South Korea’s largest provider of ENT diagnostic and treatment equipment. Moving forward, the three parties will continuously integrate their product portfolios and jointly develop diagnostic and therapeutic solutions urgently needed by healthcare providers, aiming to enhance medical quality, reduce healthcare costs, and collectively promote the more robust and rapid development of China’s ENT diagnostics and treatment market.

“Certainly, the licensed introduction and M&A integration of diagnostic and therapeutic solutions for various diseases, ultimately realizing commercial value, place extremely high demands on the execution team. Team members must possess medical backgrounds, industry experience, business negotiation skills, and M&A integration capabilities. ‘Leno Medical has assembled such a team. We boast the most comprehensive global product portfolio in the field of ENT devices and have become the largest player in China’s ENT diagnosis and treatment sector,’ said Cui Teng, Chairman and CEO of Leno Medical.”

As an investor in this round, Lin Rui, Partner at F-Prime Capital Healthcare Fund, stated, “As a professional fund dedicated to long-term investments in innovative Chinese medical devices, pharmaceuticals, and services, F-Prime Capital is optimistic about the growth prospects of China’s ENT market. Leno Medical represents our second strategic investment in the ENT sector, following our earlier investment in Renshu Medical, an innovative healthcare service provider. We endorse Leno Medical’s comprehensive product-line strategy and are committed to working with the company to deliver high-quality products to patients in China.”

Currently, Leno Medical has launched a new round of financing, with Life Capital continuing to serve as the exclusive financial advisor.

Life Capital is China’s leading financial services institution focused on the life sciences and healthcare sectors. Its business portfolio encompasses medical investment banking and healthcare funds. The firm is dedicated to advancing progress in life sciences and healthcare through the power of capital.

Our team members hail from renowned investment banks, academic institutions, and healthcare companies, bringing decades of accumulated expertise in the healthcare and investment financing sectors.

Over the past three years, the team has completed dozens of financing and M&A transactions in the healthcare industry, with a cumulative value reaching billions of RMB. These deals span various healthcare subsectors, including new drug R&D, medical devices, diagnostics, healthcare services, and smart healthcare.