Financial Associated Press (Shanghai, Editor Zhou Xinyang) News, Shanghai Bodong Medical Technology Co., Ltd. on Friday (February 11) evening to the Hong Kong Stock Exchange, Morgan Stanley and CICC as its lead underwriters.
According to the prospectus, the company is a pioneer and leader in the global cardiovascular precision diagnosis industry, providing comprehensive precision diagnosis and treatment solutions that empower digital decision-making in pan-vessel interventional surgery.
Since its inception, Bodong Medical has completed several rounds of financing. Hillhouse became its investor for the first time in the B round, and in August 2021, Bodong Medical announced the completion of more than $100 million in Series C financing, jointly led by old shareholder Hillhouse Venture Capital and strategic investor Philips, and followed by many institutions.
According to the prospectus, Liu Bing, executive director, chairman of the board and CEO of Bodong Medical, holds 25.60% of the shares, hillhouse holds 14.54% of the shares, the largest institutional investor, and Philips (China) holds 5.00% of the shares.
Provider of pan-vascular interventional assessment and physiology products
According to Frost & Sullivan, the company is the world's first and to date only approved solution provider to commercialize imaging and physiology products covering all major transvascular interventional assessments.
The scope of application of the company's products includes coronary artery disease (CAD), cerebrovascular disease (CVD), structural heart disease (SHD) and peripheral arterial disease (PAD).
According to the prospectus, Bodong Medical has developed a proprietary quantitative blood flow fraction (QFR) technology, which has become the basis for the company's imaging-based physiology products and services.
Image-based physiological assessment products combine various imaging tests such as coronary angiography (CAG) and computed tomography angiography (CTA) tests with physiological assessments. QFR technology is the world's first image-based coronary physiology technology validated by randomized controlled trials (RCTs), and the results of the trial were published in The Lancet in November 2021.
The company's core product, also the QFR series, is the first medical device approved in China to offer image-based blood flow reserve fraction (FFR) assessment. The QFR series provides FFR and other clinically relevant parameters for coronary artery disease based on coronary angiography analysis to help doctors better determine whether to perform percutaneous coronary interventional (PCI) surgery and, when PCI is required, how to perform the operation to achieve the best clinical outcome.
The Company intends to extend the indications of the QFR series to acute myocardial infarction, carotid and intracranial artery ischemia assessment. The company is upgrading its QFR family to combine physiological evaluation with intravascular imaging techniques such as intravascular ultrasound (IVUS) and optical coherence tomography (OCT).
In addition, the company has developed 11 products independently, and some products are under development, forming a comprehensive and synergistic product portfolio, five of which have been approved for commercialization in China or the European Union or both at the same time.
For the purpose of the listing fundraising, the prospectus discloses that it will continue to develop QFR technology; further enhance clinical solution-oriented R&D capabilities; continue to implement flexible commercialization models to further enhance market share through strategic cooperation; and expand global presence.
The company is not yet profitable
The company has a single source of revenue, and according to the prospectus, the revenue mainly comes from the QFR series of products. Failure to achieve the expected revenue from the product could materially and adversely affect the Company's business and performance.
At the same time, the company has limited experience in product marketing and sales, and the regulatory approval process for products is long, expensive and unpredictable. Revenues can be significantly impacted if there is a delay in obtaining regulatory approvals.
According to the prospectus, in the past nine months of 2020 and 2021, the operating income of Bodong Medical was 32.513 million yuan and 50.065 million yuan, the corresponding research and development expenses were 16.68 million yuan and 24.81 million yuan, and the net loss was 930,000 yuan and 204.09 million yuan, respectively.
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