China's First Capsule Robot Secures RMB 10 Million Investment from Huayi Capital, Files for IPO

Recently, China's first capsule robot received a RMB 10 million investment from Huayi Capital (formerly Guanghe Capital). It is understood that the funds raised will be used to achieve product regulatory approval and mass production.

The capsule robot that received investment from Huayi Capital (formerly Guanghe Capital) in this round belongs to the third generation of capsule endoscopes.

Capsule endoscopy was originally invented by Israeli scientists in the late 1990s. It operates on the principle of using a built-in micro-camera to capture images of the digestive tract, relying entirely on the natural peristalsis of the gastrointestinal tract to collect images from different regions. Currently, it can basically meet the application needs for the small intestine. However, due to the large volume of the human stomach, capsules that move via peristalsis are clearly unable to capture complete images of the stomach. Therefore, this generation of products belongs to the first generation of capsule endoscopes and is primarily used for the small intestine.

Since small bowel endoscopy is not a widely adopted medical screening tool for the general population, the first-generation product, despite being on the market for over a decade, has not gained widespread public recognition.

The controllable capsule endoscopy technology, which emerged several years ago, incorporates external manipulation capabilities. This allows physicians to manually maneuver the capsule within the stomach using a magnetic robotic arm from outside the body, thereby capturing comprehensive images of the gastric mucosa. As a result, it can replace a portion of traditional intubation-based gastroscopy procedures and significantly improve patient experience. Due to the widespread prevalence of gastroscopic examinations, this technology has gradually gained recognition and anticipation among the public. This represents the second generation of capsule endoscopy technology, known as controllable capsule endoscopy.

However, even controllable capsules should not be referred to as capsule robots. A so-called robot should possess the characteristics of artificial intelligence, meaning it must have a certain degree of autonomous recognition and control programs and functions. Only capsule endoscopes capable of autonomous navigation within a certain range according to the individual patient’s gastric anatomy exhibit the characteristics of artificial intelligence and can be truly termed “capsule robots,” representing the direction for the development of next-generation capsule endoscopy.

These three generations of products can be vividly described using metaphors. The first-generation product is like a bamboo raft, uncontrollable and drifting along with gastrointestinal peristalsis, primarily used for intestinal applications. The second-generation controllable capsule is akin to a bicycle, relying entirely on manual external control; while it can be used in the stomach, it involves prolonged procedure times and complex operation, with the major drawback being the inability to standardize images. The third-generation product can be understood as a self-driving car, featuring autonomous cruising capabilities. This not only significantly reduces surgical time but also enables image standardization, paving the way for future big data applications and telemedicine.

The Relationship Between Healthcare Efficiency and Small vs. Large Markets

In China, there are approximately 130 million patients with gastrointestinal diseases. Official statistics from 2014 recorded over 40 million gastrointestinal examinations, of which fewer than 20% yielded positive results, meaning that more than 80% of those examined had no organic lesions. Patients endure the fear of examination, physical trauma, risk of cross-infection, and potential complications. Consequently, capsule endoscopy has been held in high esteem, with a substantial market outlook. However, why have the second-generation controllable capsule gastroscopy products, which have been on the domestic market for many years, failed to demonstrate strong sales performance?

“I believe the fundamental reason is clinical efficiency. The average duration of a conventional gastroscopy procedure is 8 minutes, whereas, based on my observations, controllable capsule gastroscopy takes approximately 20 minutes. This actually imposes an additional burden on large hospitals that are already operating at full capacity for examinations,” said Liu Yun, Founding Partner of Huayi Capital (formerly Guanghe Capital). “The third-generation capsule robot completes gastric examinations in 3–5 minutes, significantly enhancing medical efficiency while improving patient experience.”

In healthcare, beyond traditional user experience, medical efficiency is a critical factor. While controllable capsules address the experiential needs of certain high-end patients and offer solutions to specific pain points, they fail to account for resource allocation and efficiency challenges in large hospitals. Consequently, such products may find a market, but likely only a niche one. To capture a broader market, medical products must demonstrably improve medical efficiency. Capsule robots possess this attribute and hold promise for unlocking a multi-billion-dollar market for non-invasive endoscopic examination of the digestive tract.

Future Expectations for Capsule Robots

With capsule robots featuring automatic mode recognition, standardized imaging makes remote diagnosis feasible. By establishing a gastrointestinal examination platform parallel to the digestive disease treatment platform, and leveraging cloud-based imaging diagnostic consultation services, we can link large hospitals with strong gastroenterology departments to small and medium-sized hospitals for routine image interpretation, case sharing, and consultation on complex cases, as well as facilitate patient transfers between hospitals, thereby forming a tiered and interconnected diagnosis and treatment network. Furthermore, the operation of this platform will generate vast amounts of precise specialty data, creating medical big data that supports automated screening for digestive tract diseases.

Furthermore, product development for new applications and functions of capsule robots will include gastrointestinal pH measurement, pressure measurement, drug delivery and release, biopsy, and targeted therapy.