Chinese Medical Device Maker Yongsheng Healthcare Invests $3 Million in Israeli Startup InovyTec

InovyTec Medical Solutions, an Israeli medical device company, is a startup developing portable, non-invasive medical devices for emergency care outside of hospital settings. Its products are designed to be operated by untrained personnel to provide emergency care to patients.

On Monday, InovyTec announced that China’s Yongsheng Medical Holdings Co., Ltd. had invested $3 million to acquire a 15% equity stake in the company. InovyTec stated that this transaction would facilitate its entry into the Chinese market. InovyTec is dedicated to developing portable, non-invasive medical devices for out-of-hospital emergency care, enabling even untrained individuals to provide first aid to patients.

LUBO, developed by Inovytec, can non-invasively open a patient's airway.

Udi Cantor, Founder and CEO of InovyTec, stated that by leveraging Yongsheng Medical’s experience and influence in the Chinese market, InovyTec can “tap into the vast potential of China’s medical device sector.” InovyTec’s LUBO product has obtained approval from necessary regulatory authorities, including the U.S. Food and Drug Administration (FDA). The product is based on the practical experience of Dr. Omri Lubovski, an Israeli veteran, and enables non-invasive and safe opening of patients’ airways. As a former soldier in Israel’s 669 Air Rescue Unit, Dr. Lubovski clearly understands the necessity of establishing a patent airway through non-invasive, rapid, and effective means, particularly in more complex scenarios such as battlefields or roadside emergencies.

SALI, developed by Inovytec, is a portable cardiac and respiratory rescue device.

Furthermore, Inovytec has developed another portable product, SALI, which enables emergency responders to establish a patient’s airway on-site and administer oxygen therapy and cardiac defibrillation. It also leverages cloud technology to transmit signals and data to any remote emergency center for urgent support.

Yongsheng Medical, listed on The Stock Exchange of Hong Kong Limited, specializes in the research and development, manufacturing, and sales of medical devices. In an announcement released on January 24, Yongsheng Medical stated that its indirect wholly-owned subsidiary, VMIL, has entered into an agreement with Inovytec. Pursuant to this agreement, Inovytec is required to issue and allot a total of 12,091 Series A Preferred Shares to VMIL, representing 15% of Inovytec’s enlarged issued share capital, for a total consideration of USD 3 million, payable in three installments.

Concurrently, Inovytec and Yongsheng Medical will enter into a manufacturing and supply agreement. Inovytec will promote, develop, and sell a range of medical devices for respiratory and cardiac emergencies, such as cervical collars, defibrillators, and portable ventilators, with Yongsheng Medical serving as the manufacturer of these products. Additionally, Inovytec and Yongsheng Medical will enter into a distribution agreement, under which Inovytec will grant the Group exclusive rights to distribute the aforementioned products in the specified territories during the exclusive period stipulated in the distribution agreement.

Yongsheng Medical founder Cai Wencheng stated in a declaration: “Yongsheng Medical is committed to supporting the research and development of innovative products and seeking related opportunities globally to expand the variety of products we offer. This strategic investment will help us enrich our portfolio of emergency medical devices required for patients experiencing sudden cardiac arrest or needing airway management.”

Previously, the German healthcare company Rhon Klinikum invested $2 million in InovyTec. Additionally, Guangxi Wuzhou Pharmaceutical (Group) Co., Ltd., a controlled subsidiary of China’s Guangxi Wuzhou Zhongheng Group Co., Ltd., also invested $2 million in InovyTec in January 2015 by purchasing 5,556 newly issued shares, representing a 10% stake in the company’s total share capital at that time.

1. The SALI Series

Medical emergency equipment for critical care of the respiratory and cardiac systems. Main functions: (1) non-invasive airway management; (2) automated oxygen therapy; (3) cardiac defibrillator; (4) monitoring

The SALI series includes:

       SALI D

A Portable Automated Aid Device for Out-of-Hospital and Emergency Drug Assistance

SALI DA (Aviation)

The SALI D series products for air medical emergency services are mainly used in commercial aviation.

　　SALI DV

In addition to possessing all the product features of SALI D, it also includes a non-invasive ventilator.

SALI M (Ocean)

Possesses all the advantages of SALI DV, specifically designed for maritime applications

2. The Lubo Airway Cervical Collar Device

The only device that non-invasively opens the trachea while protecting the cervical spine

Including:

Lubo Airway Cervical Collar – Adult Size

Normal Model

Lubo Airway Cervical Collar – Small Size

Lubo's Small-Size Model for Adults—Suitable for Children and Women in Southeast Asia.

Lubo Airway Cervical Collar—Comfort Model

A model designed for patients requiring cervical spine immobilization (e.g., those not receiving airway management postoperatively, particularly in situations where airway management is indicated but not provided), for use in hospital or home settings.

Source: The Times of Israel, InovyTec Official Website, Yongsheng Medical Announcement