Zhongjie Chaorun Completes Tens of Millions RMB Pre-A Financing to Advance Global-First Artificial Meniscus Platform

VCBeat learned at the first time that, recently,SuperMenis (Beijing) Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "SuperMenis")Announced that it has completed byTsing-yuan Venture CapitalSuperMenis has completed a Pre-A round of financing worth tens of millions of yuan. This round of financing will mainly be used for the clinical trials of the company's core product, the artificial meniscus implant, and the commercialization of the innovative meniscus suture device. Currently, the company’s additional round of financing is still open.Changhai CapitalContinuously serve as the exclusive financial advisor for corporate financing.

Meniscus injury is a common condition in sports medicine. In the United States, as early as 2005, more than one million people received treatment for meniscus injuries each year, and this number is expected to grow to 3.5 million per year by 2030. With a population four times that of the U.S., as medical standards and quality of life continue to improve, China’s market for treating meniscus injuries has broad prospects, with an estimated total market size reaching tens of billions.

For patients with mild meniscus injuries, conservative therapy or suturing can be adopted, butFor patients with severe meniscus tears or damage, the only treatment currently available is excision. However, after meniscectomy, not only is motor function significantly affected, but the direct friction between the two joint bones due to the absence of the meniscus can lead to severe osteoarthritis and advance the need for joint replacement by 5-10 years.On the other hand, the overall age of people with severe meniscus injuries tends to be younger, with many patients engaged in contact sports (e.g., soccer, basketball), middle- and long-distance running, skiing, extreme sports, etc. Therefore, patients with meniscus injuries have set high expectations for the recovery of postoperative quality of life and motor function.

Currently, more than 100,000 people in China undergo meniscectomy surgery each year, and over 1 million patients who have had the surgery are unable to receive effective treatment. Reasonably treating meniscus injuries remains a major clinical challenge. Theoretically, the ideal solution would be to create an "artificial meniscus" that is biologically active and mechanically similar to the original meniscus, perfectly replacing the patient's damaged or torn natural meniscus.

Globally, many teams have made various attempts and studies in the artificial meniscus field, including the use of high molecular materials such as collagen and polyurethane to create artificial menisci. However, frequent issues with implant dislocation, fractures, and detachment have prevented all products from reaching an ideal application state. Another technical approach is the allogeneic meniscus, which has seen wider application in the United States. But due to China's unique national conditions, it is becoming increasingly difficult to obtain allogeneic menisci domestically. Coupled with challenges like size matching and immune rejection, the promotion of allogeneic menisci within China remains highly challenging.

SuperMenis was founded in 2020 by a postdoctoral entrepreneurial team from the University of Science and Technology Beijing, with the assistance of seed round investor Gao Yuan Rui Yan and the support of angel round investor Mifang Capital. The company officially formed a complete commercial operation team, transforming core material technology and intellectual property from the University of Science and Technology Beijing. After five more years of refinement, it has now developed a full-cycle meniscus injury solution platform centered on artificial meniscus (replacement) implant devices.

Core product Supermenis(®) artificial meniscus, as a global First in class meniscus implant device, takes a different technical approach from previous American companies and has the following advantages:

1) Using self-developed super-tough and wear-resistant materials, its bionic design makes its water content and microstructure very similar to those of the natural meniscus. Its mechanical properties, self-lubrication, biocompatibility, fatigue resistance, and wear resistance are all superior to existing products and the natural meniscus.

2) The bionic artificial meniscus product, through in-depth analysis and processing of a large amount of patient data and using an artificial intelligence lattice computing system, has established an accurate meniscus model matching system suitable for the vast majority of patients, ensuring that the product can highly match the patient's knee joint.

3) The team collaborated with renowned Chinese meniscus surgery experts to develop a minimally invasive arthroscopic implantation technique, combined with a unique bionic fixation method. This significantly enhances fixation stability and the success rate of the surgery, while effectively shortening the learning curve for doctors, enabling most of them to quickly master and apply this advanced technology.

Currently, a large number of laboratory tests and animal experiments have proven that the SuperMenis artificial meniscus product has excellent performance, precise matching, good surgical outcomes, and a simpler operation process.In terms of long-term implant efficacy, the team conducted long-term stability verification by building an advanced in vitro testing platform to simulate the stress conditions of the meniscus in the knee joint. The product has undergone endurance testing equivalent to over 10 years of in vivo implantation.SuperMenis(®) Artificial Meniscus Product to Enter Clinical Stage

In addition to artificial meniscus replacement products, the company has also launched a new generation of meniscus suture products ("Suture"), innovative meniscus repair products ("Repair"), and cartilage repair products ("Restore"), forming a complete full-cycle solution for meniscus injuries. These products are either the first of their kind in China or have significant technological advantages compared to similar products in China.

Figure: SuperMenis Full-cycle Solution for Meniscus Injury

For example, the mainstream meniscus suturing devices in China are all similar to the FAST-FIX360 structure, which can only achieve single-needle suturing at one time, making them inconvenient to operate, costly, and involving additional fixation nails that pose risks of wear and detachment. These devices also struggle to suture areas such as anterior and posterior root tears of the meniscus. After the centralized procurement of meniscus suturing devices, it became difficult for original manufacturers to gain excessive profits from their existing products. SuperMenis has introduced a new generation of meniscus suturing products that can perform multi-needle suturing with ease of operation, without the need for fixation nails, and are suitable for various types of meniscus tear suturing.Against the backdrop of centralized procurement, this product has significant price and performance advantages.Expected to obtain certification and launch in the second half of this year.

In the current capital environment, the pressure to persist in creating domestically original and globally leading innovative medical device products is greater than ever. However, when discussing this, Dr. Qiao Kun, General Manager of SuperMenis, expressed confidence instead: "For us entrepreneurs with a research background, we are prepared to take on seemingly impossible challenges from the very beginning of our startup journey. Although several teams in the U.S. previously attempted and failed at meniscus technology routes, I had already been involved in extensive principle-based R&D work during my Ph.D., thoroughly summarizing relevant experiences and lessons. Additionally, during the industrialization process, we received significant support and assistance from multiple renowned orthopedic and sports medicine clinical expert teams. Moving forward, the company will systematically advance the clinical trials and commercialization of our artificial meniscus product. Our technology is also globally leading, so we hope our product will not only be sold domestically but also serve patients worldwide. We also welcome investors or enterprises with international perspectives and resources to collaborate with us."

Notably, around the time SuperMenis completed its financing, an important signal emerged in the international orthopedics field: OrthoPreserve, a company focused on innovative orthopedic implant solutions, announced that its Defender meniscus replacement implant had received FDA Breakthrough Device Designation and was selected for the Total Product Life Cycle Advisory Program. This milestone marks that top global R&D teams in the artificial meniscus field have entered the critical stage of clinical transformation, confirming the enormous clinical value and technological iteration potential in this area. After this round of financing, SuperMenis plans to further enhance its global patent layout and will simultaneously advance the clinical and commercial development of artificial meniscus in China and overseas, striving to become a benchmark enterprise for China-originated innovative medical device exports.

Talking about this round of financing,Yu Jiang, Partner of Shenzhen Tsing-yuan Investment Management Co., Ltd.Expressed: We are very pleased to participate in this round of financing for SuperMenis. SuperMenis fills the gap in the market for millions of patients with severe meniscus injuries, allowing patients not only to restore daily activities but also to have the opportunity to "run again," addressing the core needs and clinical pain points of a large number of patients, and showcasing immense commercial potential post-launch. Internationally, SuperMenis' meniscus solution series is set to become a globally leading new benchmark, with clear industrial value and even national strategic significance. Currently, innovative biomedicine projects are gradually moving from domestic replication to becoming "globally unique." We believe that SuperMenis has the potential to achieve a global breakthrough in this field, and Shenzhen Tsing-yuan Investment Management Co., Ltd. is willing to support such hardcore innovation projects, committed to discovering outstanding enterprises and delivering more value to society. We are more than willing to empower and assist these enterprises.

Wang Keshu, Partner of Changhai CapitalExpressed: We are delighted to serve SuperMenis, a company with a global vision and future capital value in the global market. The team has spent years solving two key technical challenges in the artificial meniscus sector—material and fixation methods—through extensive experiments and research. Currently, they have gained a clear leading position in global competition. At the same time, the company is down-to-earth, demonstrating strong commercial awareness and cash flow management capabilities, having completed the registration and commercial preparation of multiple innovative products. We hope that SuperMenis can solve the problem of artificial meniscus injuries for millions of patients worldwide and become a benchmark enterprise with global competitiveness.

Shenzhen Tsing-yuan Investment Management Co., Ltd. ("Tsing-yuan Investment" for short) is a venture capital fund manager independently established by the former investment management team of Shenzhen Tsinghua University Research Institute's subsidiary, Shenzhen Force Technology Venture Capital Co., Ltd., through an overall restructuring. Currently managing funds exceeding 10 billion RMB, it was listed on the NEEQ in December 2015, with the stock code: 835075.

Since 1999, the team has been focusing on high-tech fields and is one of the earliest professional teams in China to pay attention to high-tech fields, as well as the most skilled in industrializing scientific and technological achievements through investment. Renowned for investing in hardcore technology and stable performance, the core team of Tsingyuan Investment boasts deep roots from Tsinghua University. Most team members possess a dual educational background and work experience in science/engineering and business administration, giving them exceptional professional judgment and industry integration capabilities for technology enterprises. The team has invested in over 200 companies across fields such as information technology, intelligent manufacturing, healthcare, and clean technology. Among the invested projects, nearly 50% have exited, with 35 companies successfully listed. The average internal rate of return (IRR) for exited projects exceeds 30%.

Changhai Capital is a financial advisor focused on the healthcare and advanced manufacturing sectors, providing enterprises with in-depth, customized financing strategies and services. The team has extensive industry experience in the fields of life sciences, medical devices, diagnostics, and advanced manufacturing. They have led and participated in the financing of several high-profile companies, assisting enterprises in achieving rapid growth and maximizing their value.