Huanqing Medical Secures Tens of Millions in Series A Funding to Advance Heart Failure Therapies with Innovative pVAD Technology

VCBeat has learned that Zhejiang Huanqing Medical Technology Co., Ltd. (hereinafter referred to as “Huanqing Medical”) has announced the completion of its Series A financing round, amounting to tens of millions of RMB. This round of financing was led byZhang Ke Lingyi, Haining Juanhu Dream Technology Fund, Taikun Fund under Tailong Investment, and Tahoe VenturesDirect investment by four institutional investors. The funds raised will be allocated to new product R&D and production line construction, providing robust support for the research, development, and industrialization of Huanqing Medical’s cardiovascular circulatory assist devices.

Zhejiang Huanqing Medical Technology Co., Ltd. was established in 2022, focusing on the field of heart failure treatment. It is dedicated to the research, development, and industrialization of internationally advanced cardiovascular circulatory support products and related auxiliary devices. With the goal of restoring cardiac function, stabilizing cardiovascular hemodynamics, and treating cardiac pump dysfunction through circulatory support, the company aims to fill the domestic gap in such products and meet the substantial market demand.

Heart failure (HF) is the terminal stage of various cardiac diseases and is often referred to as "the final battlefield of heart disease." Currently, there are an estimated 64.3 million HF patients worldwide. The latest epidemiological survey on HF in China shows that the prevalence among residents aged 35 years and older is 1.3%, with an estimated 8.9 million existing HF patients.^[1]. The prevalence among adults aged 35 and above was 1.3%, representing an increase of 5 million cases compared to 2000, a rise of 44.0%.^[2]. Data show that the five-year mortality rate for heart failure is approximately 50%, rising to 90% at ten years, with the five-year survival rate comparable to that of malignant tumors.^[3]. In recent years, despite significant advances in the pharmacological treatment of heart failure, morbidity and mortality associated with the condition remain high. Current therapeutic outcomes are still unsatisfactory, indicating substantial unmet needs and considerable room for improvement in the field of medical devices for heart failure.

Based on the onset time and progression rate, heart failure can be classified into chronic and acute types. The management of chronic heart failure focuses on delaying ventricular remodeling, reducing hospital readmission rates, and lowering mortality, with long-term, standardized pharmacological therapy serving as the cornerstone. In contrast, acute heart failure requires prompt symptom relief, hemodynamic stabilization, and reduction of mortality risk.

Huanqing Medical’s independently developed percutaneous ventricular assist device (pVAD) is an innovative medical device that treats acute heart failure via minimally invasive interventional techniques. It is primarily used for intraoperative support during high-risk percutaneous coronary intervention (PCI) procedures, as well as for the treatment of cardiogenic shock caused by conditions such as acute myocardial infarction and fulminant myocarditis.This device can maintain hemodynamic stability by sustaining mean arterial pressure within a short period, unload the left ventricle by pumping blood from it into the aorta, reduce left ventricular workload, and actively increase cardiac output, thereby significantly improving patient survival rates.

In recent years, the demand for innovative medical devices to improve the quality and efficiency of PCI procedures has become increasingly evident in China. According to data on percutaneous coronary intervention (PCI) for coronary heart disease in mainland China, the total number of PCI procedures performed nationwide in 2022 approached 1.3 million.^[4]. As population aging intensifies, the annual number of percutaneous coronary intervention (PCI) procedures is projected to increase substantially year by year until around 2050. Data indicate that more than 30% of patients undergoing PCI are classified as having complex, high-risk PCI due to factors such as complex coronary artery lesions, impaired left ventricular function, and recent heart failure.^[5]In the face of growing clinical demand, Huanqing Medical is accelerating product development, overcoming core technological challenges, and implementing a multi-dimensional strategy for its interventional ventricular assist device (VAD) product line to secure a commanding position in this advanced field.

Currently, Huanqing Medical's pVAD product under development has completed multiple animal experiments and is about to enter the clinical trial phase.

“We have assembled a dynamic R&D team with robust technical capabilities, and guided by the strategic direction of our parent company, New Pulse Medical, we consistently maintain keen market insight and technological foresight.”Introduction by Yang Xiayan, Chairman and CEO of Huanqing Medical, “Leveraging Neumai Singularity^®Advantages of the Innovation Center: Huanqing Medical has established close industry-academia-research-medical collaborations with numerous renowned universities, research institutions, and hospitals in China. We adhere to the Biodesign process and methodology of discovery, invention, and implementation. Through in-depth research in the cardiovascular field with our partners, we explore effective pathways for medical-engineering collaboration. This tight integration of medicine and engineering not only helps companies focus more on clinical practice and understand the needs of doctors and patients, thereby better guiding product development and iteration, but also accelerates the translation and application of scientific achievements, promoting continuous progress and development in heart failure treatment, and bringing revolutionary changes to the entire healthcare industry.

Yang Xiayanstated: “This financing provides Huanqing Medical with greater resources to invest in the research and development of new technologies, promote the translation of scientific and technological achievements with clinical application value, deliver more precise and safer treatment options for patients, and assist physicians in better managing heart failure patients.”

Zhang Ke, Chairman of Lingyi: Yu XiaoyongZhang Kelin stated: “Zhang Kelin shares a deep-rooted connection with Huanqing Medical. Since the inception of its parent company, MicroPort NeuroTech, we have stood by its side as angel investors from the very beginning. Today, in our capacity as investors, we continue to witness Huanqing’s steady growth and breakthroughs. We are highly optimistic that, under the strategic guidance and technical resource support of the group company, MicroPort NeuroTech, Huanqing Medical will rise to meet challenges, remain at the forefront of the heart failure field, and achieve more leading and groundbreaking results.”

Yuan Tong, Director of the Investment Promotion Office, Haining Juanhu International Science and Technology CityHe stated, “The life and health industry is one of the pillar industries prioritized for development in Haining Juanhu International Science and Technology City. Neopulse Medical’s Zhejiang branch has also established its presence in Juanhu Science and Technology City, working with us to build a key platform that drives innovative development, fosters exchanges and cooperation, and aggregates resources for the biopharmaceutical industry. In the future, Huanqing Medical’s motor product line will also be based here. We hope to support the growth of high-tech innovation enterprises like Huanqing Medical, thereby achieving ‘capital empowerment and mutual prosperity of industry and finance,’ and promoting higher-level circulation and deeper integration between industry and capital.”

Mr. Sun Jun, Executive Director of Taikun Fund“The robust product R&D capabilities of the Huanqing Medical team, coupled with the comprehensive resource integration strengths of its parent company, Neuma Medical, have revealed significant growth potential and reinforced our confidence in this investment. Leveraging Tigermed’s clinical CRO industrial layout and extensive industry resources, Taikun Fund looks forward to joining hands with Huanqing Medical. Driven by the synergy of exceptional teams, promising industries, high-quality products, and astute investors, we aim to jointly promote high-quality development.”

TahoeVC Business Partner Cui Yujunstated: “Tahoe VC focuses on investments in the medical device and high-end manufacturing sectors. We are constantly seeking outstanding healthcare companies with strong potential and innovative advantages. Early-stage startups in the medical device industry face significant challenges and a long journey. However, I believe that through the joint efforts of the teams at New Pulse Medical and Huanqing Medical, Huanqing Medical will go further in original innovation for cardiovascular assist circulation products. In the future, I also hope that Huanqing Medical will expand internationally, leading true Chinese ‘intelligent’ manufacturing beyond borders and benefiting patients worldwide with high-quality products.”

Zhangke Lingyi was established in Zhangjiang, Shanghai, in 2015. The firm primarily invests in early- to mid-stage projects in the biopharmaceutical and innovative medical device sectors. Its portfolio includes Yiming Angio, Neumora Medical, Yinuo Pharmaceutical, Zhuowai Medical, Luoqi Biologics, Jiewei Biologics, Lingnuo Pharmaceuticals, Lingtai Biologics, Xinjite Medical, and Xuanren Technology, among others. Deeply rooted in Zhangjiang, Zhangke Lingyi’s management team boasts extensive industry, project, and information resources. By integrating key growth elements such as capital, talent, development space, corporate partnerships, and policy insights, the firm works alongside entrepreneurs to accelerate the rapid development of their ventures.

Juanhu Dream Fund of Funds (Registration No.: SZF653) was established in late 2022 with a scale of RMB 1 billion, managed by Shenzhen Zijin Gang Capital. The fund of funds has already established and plans to establish nine sub-funds, with the total fund size expected to reach RMB 3.66 billion by 2023. Focusing on leading industrial sectors such as life health and pan-semiconductors, the fund adopts a “sub-fund + direct investment” model to build the “Juanhu Dream” investment brand. It fully leverages the guiding and leveraging role of the fund of funds to vigorously support entrepreneurship, innovation, and the commercialization of scientific and technological achievements in the Juanhu International Science and Technology City area. By providing full-lifecycle financial support for regional industrial investment promotion, technological innovation, and talent aggregation, the fund empowers the industrial ecosystem, continuously enhances the capabilities of the platform and industries, and serves the high-quality economic and social development of Haining City.

Talong Capital was established in 2021 as a professional private equity investment management firm specializing in biopharmaceuticals, medical devices, and the broader health sector, with assets under management totaling RMB 20 billion. Talong Capital boasts a professional and seasoned investment team, focusing its investments on biopharmaceuticals, innovative medical devices, core CXO services and emerging sectors, as well as leading biopharmaceutical industry funds. The firm is committed to building a science-driven, cross-cycle value investment platform for the biopharmaceutical industry.

TahoeVC, established in 2014, positions itself as a “professional institution for early-stage project investment,” focusing on the healthcare and TMT sectors. It manages multiple angel funds and one private equity (PE) fund, with investments concentrated in the angel and Series A rounds. TahoeVC’s investment philosophy is to grow alongside entrepreneurial companies through rolling investments, providing full-process value-added services in the primary market.

References:

1. Heart Failure Professional Committee of the Chinese Medical Doctor Association, Heart Failure Professional Committee of the National Cardiovascular Disease Expert Committee, Editorial Board of the Chinese Journal of Heart Failure and Cardiomyopathy. Chinese expert consensus on the clinical application of heart failure biomarkers [J]. Chinese Journal of Heart Failure and Cardiomyopathy, 2022, 06(3): 175-192. DOI: 10.3760/cma.j.cn101460-20220810-00071.

2. Writing Group of the Report on Cardiovascular Health and Diseases in China. Chinese Circulation Journal. 2022;37(6):553-578.

3. Hot Commentary on ESC-HF 2023 | Renowned Cardiovascular Expert Hu Dayi: Dawn Breaks—New Breakthroughs in Heart Failure Treatment, In-Depth Interpretation of the INL1 TRACER-HF Study Results. International Circulation. 2023-06-06.

4. 2022 Registry Data on Percutaneous Coronary Intervention in Mainland China

5. Current Status and Progress of Interventional Therapy in Patients with Complex High-Risk Coronary Lesions. The Journal of Practical Medicine. 2021,37(24),3107-3112