Xinyun Medical Secures Series B+ Funding to Advance AI-Powered Pain Management Solutions

Shanghai Event Registration:2025 Medical Device R&D Innovation Forum

Recently, an innovative device provider for chronic pain ——New Cloud Medical Technology Co., Ltd.(hereinafter referred to as "New Cloud Medical") announced the completion of its B+ round of financing. This round of financing was led byDao Tong InvestmentLeading investment,Taizhou Angel Fund、Qianfeng InvestmentThe funds will be mainly used for clinical trials, registration applications, and international layout of core products.

In China, with over 300 million patients suffering from chronic pain, a less than 1% adoption rate of neuromodulation therapy, and the clinical dilemma where the efficacy of drugs for neuropathic pain is below 50%, New Cloud Medical hopes to build a new pain management pathway through its AI closed-loop spinal cord stimulation system and minimally invasive interventional products, breaking the long-term monopoly of foreign companies in core technology fields.

# Chronic Pain: An Underestimated Essential Market

Chronic pain has been classified as an independent chronic disease by the WHO, with over 20% of adults worldwide being affected. In China, the number of hospitalizations related to pain continues to rise, reaching 26.15 million in 2023, with the pain department alone recording a year-on-year increase of over 35%. The total population of pain patients in China exceeds 300 million, showing a significant trend of becoming younger, with the 20–40 age group accounting for more than 30%.

As an "invisible and intangible" condition, chronic pain has long suffered from a lack of effective attention. Its treatment has heavily relied on medication, but types such as neuropathic pain and chronic lower back pain often show poor response to drugs, with an efficacy rate of less than 50%. Some patients are forced to opt for major surgery, but the high risks, high costs, and slow recovery have also limited its widespread application.

Since 2023, the national level in China has begun to promote the "Comprehensive Pain Management Model" nationwide, pushing for the development of pain departments and incorporating them into the chronic disease management system. According to incomplete statistics, the coverage rate of pain department construction in tertiary hospitals in China has reached 92.7%.

Driven by multiple factors, the clinical and industrial landscape in the field of pain management is undergoing a transformation — there is a rapidly growing demand for new treatment solutions, and higher requirements are being placed on reversible, low-side-effect, and intelligent device products. How to build a differentiated path has become key for companies entering this field.

# A Company and a Transformation in Chronic Disease Management

New Cloud Medical, established in 2016, is a high-tech enterprise focused on comprehensive solutions for chronic pain. With the mission of "using technology to solve pain," the company has built a product pathway covering non-invasive, minimally invasive, and implantable solutions around three main directions: neuromodulation, minimally invasive intervention, and transcutaneous electrical stimulation. It focuses on major pain types such as post-herpetic neuralgia, chronic low back pain, and diabetic neuropathy, striving to provide safer and more personalized treatment options for patients with different classifications and stages of pain.

AI Closed-loop SCS System: Breaking Through the Bottleneck of Neuromodulation Technology

Spinal Cord Stimulation (SCS) is one of the internationally recognized neuromodulation treatment technologies. By implanting electrodes into the epidural space of the spinal cord, it delivers electrical pulses to the target area, blocking pain signals from transmitting to the central nervous system, thereby achieving pain relief. Compared with drug therapy, SCS has the advantages of minimal side effects, strong reversibility, and long-term management friendliness.

However, the global SCS market has long been dominated by foreign giants such as Medtronic, Boston Scientific, and Abbott, which have formed a technical monopoly in closed-loop neuromodulation systems. Most related products in China are still open-loop systems, with issues such as fixed stimulation parameters, unstable efficacy after changes in patient position, reliance on doctors' experience for manual parameter adjustment, and a lack of dynamic response capabilities, making it difficult to meet patients' analgesic needs in daily life scenarios.

In order to break through this bottleneck, New Cloud Medical independently developed the first product of its kind in China.AI Closed-Loop Rechargeable Spinal Cord Stimulation System NewStim^®The system integrates ECAP (Evoked Compound Action Potential) real-time monitoring with AI adaptive algorithms, automatically adjusting electrical stimulation parameters when the patient's position changes or neural signals fluctuate. This ensures that the activation state of nerve fibers remains precisely and safely within range, achieving true closed-loop control.

NewStim^®With a daily data acquisition frequency of over 4 million times, the system forms a self-learning mechanism through three layers of logic: perception-feedback-regulation. It supports remote parameter updates and personalized model training, offering doctors a new tool for postoperative management and providing patients with a new experience of long-term compliance.

Currently, NewStim^®Animal experiments have been completed, and ethical approval and preclinical preparations are underway. This product has received special support from Beijing's "AI + Health" program and is the only active therapeutic device selected, expected to become China's first true closed-loop SCS system.

NewMild^®: The first PILD minimally invasive instrument product in China

Beyond neuromodulation products, New Cloud Medical is also exploring new avenues for pain treatment through minimally invasive interventional methods.

NewMild^®Is independently developed by the companyDisposable Lumbar Spinal Stenosis Minimally Invasive Decompression Kit, applicable for performing PILD (percutaneous image-guided lumbar decompression), enabling ligamentum flavum decompression in patients with lumbar spinal stenosis under X-ray guidance, avoiding issues such as large trauma and slow recovery associated with traditional surgery.

This product is especially suitable for elderly patients and primary healthcare institutions, featuring "one-time use, precise positioning, minimal trauma, and quick recovery," filling the gap in China for instruments used in this surgical procedure.

Currently, NewMild^®Ethical approval has been obtained from a Class III hospital, and the first batch of clinical studies is planned to be carried out in the near future. It is expected that in the future, it will be paired with SCS products to jointly build an "implantation + minimally invasive" combined treatment pathway, providing multi-dimensional solutions for diseases such as chronic low back pain.

Multi-level Product Portfolio Builds Long-term Competitiveness

As of now, New Cloud Medical has built a relatively clear product matrix:

• Transcutaneous Electrical Stimulation"Smart Cloud Patch" has been commercialized and is suitable for mild muscle pain and rehabilitation scenarios;

• Minimally Invasive Interventions：NewMild^®For lumbar spinal stenosis, emphasizing low risk and high adaptability;

• Implantable Neurostimulation Devices：NewStim^®Targeting Refractory Neuropathic Pain, Focusing on Closed-Loop Modulation and Remote Management.

This "non-invasive—minimally invasive—implantable" progressive structure enables the company to flexibly provide treatment pathways based on different diseases, disease stages, and patient needs, also laying the foundation for its adaptation in medical payment and hospital scenarios.

In addition, New Cloud Medical is exploring the further expansion of AI capabilities into pain assessment, remote management, and patient education, building a complete pain management closed loop of "product + service + data."

"Integration of Industry, Academia, Research, and Medical Application" Model Supports Technology Transformation and Implementation

As a technology-oriented enterprise, New Cloud Medical always insists on starting from "scientific research," but ultimately aims for "clinical implementation."

The company has formed a closed-loop mechanism in the "industry-university-research-application" path:

• Production: The manufacturing base has the production capacity for Class II active medical devices;

• Study: Collaborate with Beijing University of Chemical Technology to develop new flexible materials and liquid electrodes;

• Research: Undertaking multiple municipal and national scientific and technological projects;

• Medical: China-Japan Friendship Hospital, Rehabilitation Research Center, etc. as product testing bases;

• Use: Build a "use-feedback-iteration" real-world data chain around pain specialty hospitals and medical consortia.

This cross-domain integration capability enables New Cloud Medical to maintain systematic progress when facing highly complex R&D tasks such as AI algorithms, big data modeling, and active hardware.

# Financing Boost: Registration, Clinical Trials, and Overseas Expansion Proceeding Simultaneously

After the completion of this round of financing, New Cloud Medical will focus its investments on the following directions:

Advance Core Product Registration: Including NewStim^®Ethics and Clinical Trials, NewMild^®Registration application;

Launch International Pathway: Conduct clinical trials in markets such as the United States, and promote access processes such as FDA;

Accelerate Technology Iteration: Enhance the AI algorithm team and material R&D capabilities, and strengthen the data modeling and feedback capabilities of the closed-loop system;

Build a Pain Education Platform: Through dual-end education for both doctors and patients, increase the acceptance of new pain treatment technologies;

Expand Indication Pathway: Expanding from central nervous system modulation to scenarios such as peripheral nerve stimulation, migraine, and cancer pain.

As China's policies encouraging pain management are gradually implemented, and as smart medical devices are increasingly recognized within policy frameworks and payment systems, the next 2–3 years are expected to be a critical window for New Cloud Medical to achieve product scaling and brand establishment.

# Conclusion: Continuous Exploration at the Intersection of AI and Pain

Chronic pain is a silent but enormous public health challenge. Against the backdrop of continuously evolving next-generation medical device technologies, neuromodulation and minimally invasive devices are becoming the key to breaking through this challenge. Starting with AI closed-loop neuromodulation, New Cloud Medical has developed systematic pain management solutions, exploring innovative implementation pathways from the dual perspectives of localization in China and internationalization.