Venus MedTech Secures Equity Investment from DCP Capital to Accelerate Heart Valve Technology Development and Global Market Expansion

VCBeat (WeChat ID: vcbeat) has learned that on May 16, 2018, Hangzhou Venus MedTech Co., Ltd. (hereinafter referred to as “Venus MedTech”) announced that it had entered into a new investment agreement with Alps Capital. The investment will be used to accelerate the iteration and internationalization of Venus MedTech’s existing valve products, and to support the company in rapidly advancing its new technologies for the treatment of mitral and tricuspid valve diseases into clinical trials, thereby laying a solid foundation for its comprehensive entry into the global heart valve market. Joywise Capital served as the exclusive financial advisor for this transaction.

Venus Medtech was established in 2009 and is located in the Hangzhou National High-Tech Industrial Development Zone (Binjiang), dedicated to the development and industrialization of minimally invasive treatments for heart valve diseases. Since 2013, Venus Medtech has successively received investments from Qiming Venture Partners, Sequoia China, and Goldman Sachs.

The company is dedicated to research and development, boasting two globally pioneering products: the dry-film pre-loaded transcatheter heart valve and the transcatheter self-expanding pulmonary valve. Venus Medtech has conducted extensive innovative research and trials, including spearheading clinical studies in the field of transcatheter valves, performing implantations and trials of Chinese cardiac valve devices in Europe, and establishing a Cardiac Valve Research Institute in China.Currently, Venus Medtech possesses the first percutaneous interventional artificial heart valve system approved for market launch by the CFDA.

With economic development and population aging, the incidence of senile calcific aortic valve disease is on the rise and is poised to become the leading cause of valvular heart disease in China. Currently, surgical aortic valve replacement (SAVR) is widely adopted; however, due to its significant invasiveness, high risk, and slow postoperative recovery, the vast majority of elderly patients with severe conditions cannot tolerate this procedure.

After 16 years of development, transcatheter aortic valve replacement (TAVR) has gradually become the mainstream treatment for aortic valve disease internationally. According to current indications, there are at least 500,000 patients in China who meet the criteria for TAVR, and the vast majority of these patients have not been hospitalized for treatment.

In addition to aortic valve disease, mitral and tricuspid valve disorders are also common cardiac valvular diseases. It is estimated that there are over 10 million patients in China with severe Mitral Regurgitation (MR) and Tricuspid Regurgitation (TR), yet the rate of surgical treatment remains below 2%, indicating a particularly broad market prospect for therapeutic interventions in this field.

Venus Medtech has been deeply engaged in the research, development, and commercialization of medical devices for valvular heart disease for many years. With over 300 domestic and international patents related to valve technology, the company has established a comprehensive and robust intellectual property protection framework. Its first-generation TAVR product, the VenusA-Valve Transcatheter Aortic Valve System, was approved for market launch by the China Food and Drug Administration in April 2017 as the first transcatheter artificial heart valve product in China. This milestone ushered in a new era of transcatheter valve replacement in China and has become a paradigm of indigenous innovation in high-end medical devices.

Meanwhile, Venus Medtech has established a comprehensive and in-depth presence in the field of heart valve disease treatment. As the world’s first self-expanding transcatheter pulmonary valve, its VenusP-Valve product has been implanted in 178 cases across 27 centers in nearly 20 countries and regions. The registration study in China has been completed, and the European Union registration study is nearing completion, with approval for market launch in both China and Europe anticipated in 2019.

Furthermore, Venus Medtech will leverage this new capital injection to accelerate the development of its mitral and tricuspid valve replacement devices, which are expected to enter clinical trials sequentially in 2019, thereby building sustained momentum for growth in its heart valve business over the next five years.

Mr. Zi Zhenjun, Co-founder and President of Venus Medtech, stated, “We warmly welcome Hony Capital as a partner of Venus Medtech. This collaboration is built upon the 25 years of deep engagement in China’s investment market by the team led by Mr. Liu Haifeng. In particular, we aim to leverage Hony Capital’s extensive experience in cross-border mergers and acquisitions and its post-investment management capabilities to accelerate Venus Medtech’s internationalization.”

Mr. Liu Haifeng, Chairman of D&C Capital, stated, “We are delighted to enter into a strategic partnership with Venus MedTech, a leader in the field of structural heart disease treatment, boasting an excellent management team, outstanding R&D and innovation capabilities, and deep industry expertise. Moving forward, we will work closely with Venus MedTech’s talented team, leveraging our extensive network resources, cross-border M&A experience, and post-investment management capabilities to support Venus MedTech as it enters a new phase of development.”

Mr. Wang Wei, Managing Director of DCP Capital, stated, “The management team of Hangzhou Qiming boasts a global vision and a strong sense of social responsibility. We are honored to partner with them and look forward to supporting Venus Medtech’s growth into a global leader in the medical device industry.”

Mr. Liu Hao, Founder and CEO of Haoyue Capital, stated that Venus Medtech is a truly innovative medical device company in China with global market capabilities. This round of financing will help Venus Medtech fully leverage its two-year market exclusivity period to strategically position itself in both domestic and international markets.

This collaboration will inject stronger capital strength into Venus MedTech’s R&D, production, and sales, enabling the real economy and capital to advance hand in hand and jointly drive the company’s leapfrog development.