Arterial Network first learned that recently, Zhejiang Dekang Medical Device Co., Ltd. (hereinafter referred to as "Dekang Medical" or "the company"), a leading enterprise of all-round orthopedic surgical solutions, completed the B round of investment and a series of financial support, and obtained a total financing amount of 500 million yuan, which is the largest financing in the field of orthopedic implants in China in the past 3 years. This round of financing is led by Hangzhou Bay Smart Medical Industry Fund, Gongqingcheng Yongqian, Blue Mountain Investment, Shouzheng Zefu, Xiaochi Capital, etc. followed by investment, and the old shareholders Haibang Capital and Hongda JunHe continued to increase. This fully demonstrates the confidence of investors in the rapid development and rapid commercialization ability of Dekang Medical under the R&D-driven advantages in the gradually clear orthopedic procurement environment. EKay Capital acted as the exclusive financial advisor to Dekang Medical in this transaction.
Founded in 2012, Dekang Medical is currently the only orthopedic digital platform target in China with the ability to conduct new materials and new surgical original research capabilities. After 8 years of research and development, by the end of 2021, the company has obtained NMPA certification for all product lines of spine and trauma, and continues to launch a number of innovative product pipelines in the field of spine and trauma. In addition, the company's main product line of sports medicine and joints has completed research and development and is expected to be certified in 2022-2023; while the intelligent digital orthopedic system is in the process of being launched. The company's revenue compound annual growth rate in the past three years has reached 130%, and it is about to become one of the few platform companies in China that has covered the entire orthopedic product line.
At present, the company takes spine products as the core, among which noah cobalt chromium molybdenum spinal internal fixation system, SAGI self-stabilizing fusion system and TAURUS occipital neck and chest minimally invasive fusion system are the first domestic first certificate, with new materials, adapted to the cutting-edge design of new techniques, filling the domestic gap. The NOAH cobalt-chromium molybdenum spinal internal fixation system can improve the comprehensive mechanical properties by more than 3 times in the case of a 30% reduction in the volume of the implant, bringing treatment gospel to severe scoliosis and adolescent patients. Dekang Medical adheres to the principle of creating clinical value, based on the international positive research and development capabilities, continuously develops new product lines around new materials and new surgical methods, and is committed to becoming a provider of all-round surgical solutions in the field of orthopedics.
The company's Kunpeng biomechanics laboratory has obtained ISO/IEC 17025 management system certification, which supports the company's product design, material verification, etc., with nearly 300 independent tests involving three types of orthopedic implant performance standards and independent testing in the fields of metals and biomaterials, and 7.8 billion times / year cycle testing capabilities, which is an important symbol of laboratory management level and technical ability to meet international standards. The company has deep reserves in new materials and digitalization, and has a professional R&D team for material research and digital medical treatment. Among them, the company's self-developed Tianqiong Orthopedic Database will be launched as an open platform, which can realize digital three-dimensional transformation, database establishment, auxiliary diagnosis, and continuously promote the development of new products.
Since the listing of the company's products, it has entered hundreds of national/local flag top three hospitals and hundreds of local hospitals, and its sales channels cover the whole country. The company's many products have filled the domestic gap and won the praise of authoritative experts in the industry. In the Orthopedic Trauma Collection of the Twelve Provinces Alliance in July 2021, the company participated in the bidding of the whole product line, accelerating the sales volume of its trauma national market, and the revenue far exceeded expectations.
After this round of financing, Dekang Medical will accelerate the construction of new production bases, solve the problem of insufficient existing production capacity, and continue to expand sales, as well as invest in the research and development of new orthopedic materials and next-generation digital orthopedics, so as to maintain its innovation first-mover advantage by continuously introducing new products.
Dr. Xu Xiaobo, founder of Dekang Medical, said, "Orthopedic diseases are common clinical diseases, especially in the case of deepening aging, people's health requirements for bone function have been further improved, which is transforming into a huge demand for products. On the other hand, China's medical device industry is in a period of transition and rapid development, innovation-driven, industrial upgrading, import substitution, medical insurance cost control, is the historical mission of the development of China's medical device industry. After nearly a decade of innovation and entrepreneurship, Dekang Medical is committed to providing clinicians and patients with high-quality and affordable products and comprehensive surgical solutions driven by R&D-driven technological innovation. After this financing, Dekang Medical will comprehensively improve its supply capacity by accelerating the construction of Jiaxing intelligent R&D and production base, seize the historical development opportunities of China's medical device industry, and is also an important layout for Dekang Medical to achieve a high-performance orthopedic industry platform for production, education and research in the Greater Bay Area of the Yangtze River Delta. ”
For this round of financing, Hangzhou Bay Smart Medical Industry Fund said: "Orthopedics is an important segment of the medical device industry, the domestic market has long been dominated by foreign capital, domestic enterprises are concentrated in the low-end market, and the industry competition pattern is relatively scattered. Since its inception, Dekang Medical has adhered to the development model of starting from clinical needs and driving technological innovation with R&D, and is one of the few innovative enterprises in China with positive R&D capabilities. The founder of the company, Dr. Xu Xiaobo, has a convincing foresight for the future development trend of the orthopedic industry, the company's research and development capabilities, commercialization capabilities, etc. have been well verified, we look forward to the company's future product innovation, become a benchmark enterprise for high-end orthopedic implants, and promote the import substitution of domestic high-end orthopedic implants. ”
Xie Li, President of Haibang Investment, said: "As an early investment institution of Dekang Medical, it has accompanied the growth of Dekang all the way, and this round of continuous additional investment, one is to highly recognize the results of previous cooperation, and the other is to recognize Dekang's ability as a scarce technological innovation in the field of orthopedics and its R&D-driven characteristics, and successfully break the market pattern of multinational brand monopoly. As a high-growth, high-tech company, the company has a good mechanism and atmosphere, the team dedication to development, good at seizing market opportunities, with the release of the second phase of production capacity, the next few years will be the rapid development of Dekang Medical and performance outbreak of the years. ”
Li Jin, Managing Director of EKay Capital, said: "EKay Capital continues to pay attention to various segments of medical devices. We firmly believe that the orthopedic industry has great potential for development, and Dekang Medical, which has the ability to continuously innovate and can solve clinical pain points, will surely burst into vigorous vitality. ”
About Dekang Medical
Founded in 2012, Dekang Medical is a company focused on the development and manufacture of high-performance orthopedic implants and surgical technology systems. The company adheres to the concept of "doctor benevolence, excellence", and its main products include high-quality medical devices such as spine, trauma, medical transportation and joint implants, data collection and processing and analysis systems. The company practices the integration of production, education and research, cooperates with first-class scientists, clinical experts and engineers at home and abroad, and cooperates with international first-class universities, domestic top orthopedic hospitals, research institutes and other institutions to apply new materials and new processes to the research and development and manufacturing of orthopedic implants, and produce orthopedic implant products with better performance and more suitable for Chinese.
About Hangzhou Bay Smart Medical Industry Fund
Hangzhou Bay Smart Medical Industry Fund is jointly initiated and established by listed companies, local governments and social capital in the industry, and mainly invests in projects in the growth and maturity stage of the medical device field. The fund will give full play to the role of industry, capital, project and talent ties, as a platform to gather advantageous project resources, talent resources, industrial chain cooperation resources, and promote the improvement of the innovation ability and industrial transformation of the medical device industry
About Blue Mountain Investments
Founded in 2007, Blue Mountain Investment is one of the earliest equity investment companies in Zhejiang. The company adheres to the concept of long-term value investment, carries out industrial chain investment layout around key areas, selects excellent investment, and strives to be a craftsman-style equity investment enterprise. It mainly focuses on the investment stage of VC (PreA-B round) and PE (Pre-IPO), focusing on investment opportunities in the fields of big health and hard technology. As early as the early days of the company's establishment, it seized the opportunity and took the lead in investing in a number of high-quality enterprises such as Yinjiang Shares, Bank of Hangzhou, Caitong Securities, Yongyi Shares, Lante Optics, etc., which have performed well in the capital market. Over the past ten years, the projects invested by the company and its funds have achieved more than 20% of the listing.
About Xiaochi Capital
Hangzhou Xiaochi Private Equity Management Co., Ltd. ("Xiaochi Capital") is a venture capital institution focusing on early-stage investment in life sciences, focusing on the world's cutting-edge, unmet clinical needs and high-barrier innovation of biomedicine and medical technology, and investing in incubation of life science enterprises with continuous competition.
The firm's venture partners have founded and capitalized a number of biomedical companies. The chief investment officer of Xiaochi Capital has ten years of biomedical investment experience, and the management team of Xiaochi Capital comes from first-line VC funds, multinational pharmaceutical companies and CRO companies, and the investment team has rich academic background, investment experience, industrial resources and commercialization experience. The company has rich industrial resources in biomedicine and big health.
About Haibang Capital
Founded in 2011, Haibang Investment initiated the establishment of the first venture capital fund in China with the theme of "Returnee Entrepreneurship". The company adheres to the core of "science and technology and talents", mainly focuses on the three major areas of life and health, digital economy, new materials and high-end manufacturing, focuses on the early and medium-term projects founded by overseas high-level talents, and achieves positive results in promoting the gathering of high-end talents, helping talents to start businesses and innovate, and promoting talent enterprises to enter the capital market. Haibang Investment has accumulated 15 talent funds and a number of special funds in Hangzhou, Ningbo, Shaoxing, Huzhou and other places, with a real management capital of more than 5 billion yuan. Its fund has invested in more than 110 enterprises with an investment amount of more than 4 billion yuan. Among the invested enterprises, 19 companies have achieved IPOs or mergers and acquisitions, and more than 20 companies have been rated as "unicorn" enterprises. In the field of life and health, Haibang Investment's early investment has cultivated listed companies such as Nuohui Health, Guichuang Tongqiao, Aotai Biologics, and Weitai Medical.
About HTC JunHe
Hongda JunHe Capital is an investment institution with a deep industrial background, established by Hongda Holding Group, a top 500 private enterprise in China, with rich industrial resources, focusing on the layout of new kinetic energy industries related to China's economic transformation and upgrading, such as medical and health, high-end manufacturing, new energy, new materials, automobiles, etc., and mainly investing in growth VC and PE projects. The company's team has invested more than 3 billion yuan in total, and has successfully invested in CATL (300750), SUPCON Technology (688777), Zhuhai Guanyu (688772), Shengshi Technology, Baiwei Deep Technology, Chuanghuai Medical, Yongdao Zhiyuan, etc.
About Ekkay Capital
EKay Capital is a leader in China's new economy investment banking, focusing on the global TMT, consumption and health industries. Outside of its investment banking business, eKay Capital is managing a RMB fund and a US dollar fund. The company has branches in Beijing, Shanghai, Los Angeles and San Francisco and has a U.S. securities market license.
The healthcare industry is an area that EKay Capital focuses on and has deep advantages, and has become a new economy investment bank with the largest health industry transaction record in China for five consecutive years. At the same time, Yikai has the largest, most professional and most complete health industry investment banking team in China.
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