Qihao Medical Secures Tens of Millions of Yuan in Series C Funding, Leading Innovation in ENT Medical Devices

VCBeat has exclusively learned that Hefei Qihao Medical Technology Co., Ltd. (hereinafter referred to as “Qihao Medical”) has announced the completion of its tens-of-millions-yuan Series C financing round, led by existing shareholdersHuaying Capital, Hefei City Angel Fund, Baidu Venturesand emerging investment firmsUSTC Advanced Research Institute Fund, Anhui Xinhua Investment Grouppending the completion of joint investment.

Previously, Breath Medical completed tens of millions of yuan in Pre-A, A, and B round financing in 2019, 2020, and 2021, respectively. The company has continued to gain investment recognition from capital markets, benefiting from its continuous innovation in new products and technological applications within the otolaryngology sector, particularly through in-depth research and development of polymer medical materials. This demonstrates Breath Medical’s strong capabilities in independent R&D and technological innovation.

Despite the impact of the pandemic, China’s field of otorhinolaryngology–head and neck surgery has continued to develop at a rapid pace, with surgical volumes increasing year by year. The sector has emerged as a standout within the niche medical device market, reaching a market size of over RMB 26 billion in 2022.

Since its establishment in 2017, Breath Medical has been dedicated to the research and development, manufacturing, and sales of products in the otolaryngology sector. To date, it has successfully developed five core competitive otolaryngology products:

1) Fourth-generation ENT packing hemostatic material - biodegradable expansile hemostatic sponge;

2) Postoperative Mucosal Support and Anti-inflammatory Implant Material for Patients with Sinusitis—Fully Biodegradable Sinus Drug-Eluting Stent;

3) Biomedical Polymer Materials - Fully Degradable Nasal Septum Cartilage Fixation System;

4) Biosynthetic Material Meishengci as a Substitute for Autologous Fascia or Fat in Glottic Augmentation^®

5) Numerous innovative products in the field of otolaryngology, such as low-temperature plasma surgical systems.

Among them, the company’s core national innovative product—the biodegradable expansile hemostatic sponge—obtained its registration certificate in the first half of this year and has officially entered mass production and clinical use, with clinical feedback demonstrating performance fully comparable to that of imported products. Additionally, the company has secured 16 Class II medical device registration certificates, and sales of products such as low-temperature plasma electrodes, nasal drug delivery devices (medical nasal nebulizers), nasal anti-allergy gels, liquid dressings, sinus balloons, and Eustachian tube balloons continue to grow steadily.

Mr. Lu Liancheng, Deputy General Manager and Co-founder of Breath MedicalIntroduction: Breath Medical pioneered the launch of China's first Meiheding.^®Fully Resorbable Nasal Septal Cartilage Fixation System and Meisheng Porcelain^®Two flagship Class III calcium hydroxyapatite filler repair gels are about to enter human clinical trials. Meihe Ding^®Utilizing micro-engineering processing technology with fully biodegradable materials, this technique enables rapid, multi-point fixation of nasal mucosa and cartilage in confined spaces. It offers precise and simple operation, simplifies postoperative care, significantly reduces surgical difficulty, shortens operative time, and alleviates patient discomfort. Meihe Clip^®"Meisheng Porcelain" received unanimous recognition from industry experts at the clinical project launch meeting and is poised to become another star product for Breath Medical upon its market release.^®Utilizing calcium hydroxylapatite microspheres (25–40 μm) as the primary material, supplemented with carboxymethyl cellulose and glycerin, this product is designed for filling tissue defects or atrophy. It serves as an alternative to existing autologous fat grafting procedures and is the first domestically developed synthetic long-acting filler. Laboratory validations indicate an effective duration of approximately 4–5 years, achieving genuine long-term volumetric restoration. The product exhibits excellent biocompatibility and plasticity, has a low risk of allergic reactions, and offers high safety. With its straightforward surgical technique and short patient recovery period, it provides otolaryngologists with an optimal clinical solution.

Mei He Nail^®Fully Degradable Septal Cartilage Fixation System

Meisheng Porcelain^®Calcium Hydroxyapatite Filling and Repair Gel

Driven by rapid growth in market demand, this round of financing will primarily be used by Breath Medical to expand production capacity. The company is constructing a new production base covering nearly 20,000 square meters in the Hefei High-Tech Industrial Development Zone, which is expected to officially commence operations by the end of the year, thereby accelerating production and sales growth. Breath Medical will establish a dual-engine strategy with its main base in Hefei and its production facility in Jiangsu Province operating in tandem, further accelerating R&D and manufacturing while maintaining its leading position in the industry.

For the investment in Breath Medical, existing shareholders have made significant additional commitments in this round.Liang Qining, Managing Director of Huaying CapitalHuaying Investment acknowledged: Huaying Investment has long focused on investing in domestic innovative medical technologies. Breath Medical is an outstanding startup and the most significant investment layout for Huaying Investment in the field of otolaryngology. Over the past three years of cooperation, Breath Medical has demonstrated through concrete actions that its development has far exceeded our expectations. Breath Medical emphasizes systematic R&D, continuously innovating in medical materials and medical device products to deliver more excellent solutions. The company’s currently marketed products include biodegradable expandable hemostatic cotton, biodegradable sinus stents, plasma-based product series, balloon catheter product series, and over a dozen other Class II medical devices. Committed to continuous innovation, Breath Medical has also taken the lead in launching domestically produced innovative Class III medical devices, namely Meihe Staples and Meisheng Ceramics, in China. The company aims to build the most comprehensive solution portfolio for otolaryngology departments and become an internationally leading medical device company in the field of otorhinolaryngology. Huaying Investment believes that China’s medical industry is still in its early stages of development. In the future, more outstanding domestic medical device companies will achieve further breakthroughs in products and technology. Consequently, medical devices will remain a key investment sector for Huaying Investment.

This round of investors: Hefei Innovation InvestmentStatement: The life and health industry has always been one of the key sectors prioritized by Hefei City. In the mid-to-high-end medical device segment where Breath Medical operates, there is a strong trend toward domestic substitution. Notably, its biodegradable expandable hemostatic sponge is an ENT-specific hemostatic material independently developed by the company. The product has obtained an Innovative Medical Device Registration Certificate, breaking the technological monopoly held by imported brands in synthetic polyurethane hemostatic materials. As patients demand higher levels of safety and comfort from medical devices, the demand for high-value consumables continues to grow year by year. With years of accumulation and expertise, Breath Medical offers a comprehensive product portfolio covering all subspecialties within otolaryngology and possesses rich channel resources. Hefei Innovation Investment aims to leverage the investment support from the Hefei City Angel Fund and the CAS Institute of Advanced Technology Fund, combined with Hefei’s advantages in technological innovation and industrial ecosystem, to help Breath Medical achieve greater breakthroughs.

Existing Shareholder: Baidu VenturesIt was stated that since the last round of financing, the Company has completed the market registration of its core product, biodegradable expandable hemostatic cotton, and commenced commercial sales, demonstrating strong team execution capabilities. Furthermore, given the product’s performance advantages and the Company’s robust marketing capabilities, we are optimistic that Breath Medical will enter a phase of rapid business growth. This growth will, in turn, fuel source innovation and product line expansion. We believe that Breath Medical is poised for even greater development opportunities.