Focusing on the ENT and cranio-spinal surgery instrument track, "Nuomei Xinchuang" has obtained over 300 million yuan in financing | 36Kr exclusive.

36Kr has learned that Nuomei Xinchuang Medical Technology (Shanghai) Co., Ltd. (hereinafter referred to as "Nuomei Xinchuang") has recently completed a new round of strategic financing of over 300 million RMB. This round of financing is led by Qiming Venture Partners, with Sunshine Convergence Capital as a co-investor. Xingqiao Capital serves as the exclusive financial advisor. The raised funds will be mainly used for market expansion and product research and development.

Nuomei Xinchuang was formerly known as Leno Medical, established in 2015, focusing on the medical device track of otolaryngology and cranio-spinal surgery. The company's founder and chairman, Cui Teng, once worked at CITIC Capital, responsible for project investment in the medical industry and other fields in the Greater China region.

Previously, when Cui Teng explained why the company chose to bet on the otolaryngology medical device track, he said that this is "completely the result of rational thinking in business logic". In recent years, the incidence of otolaryngological diseases has been increasing year by year. Relevant statistics show that the number of new otolaryngological disease patients in China can reach 20 million per year; in terms of the number of surgeries, the number of otolaryngological surgeries was about 2 million in 2021. In addition, the number of domestic allergic rhinitis patients has reached 240 million. However, from the treatment perspective, there has been a lack of effective and safe instrument treatment solutions in the clinic.

At the same time, in Cui Teng's view, unlike innovative drugs that can achieve a large market scale with a single product, in the medical device track, only when enterprises have a sufficient number of product pipelines can they "support a large enough market" and avoid the problem that after a single product passes its sales peak, the remaining product pipelines cannot support the company's revenue.

This is also why Nuomei Xinchuang has continuously and rapidly created a diversified product portfolio through technology licensing and mergers and acquisitions. It is understood that the company has previously completed four strategic mergers and acquisitions, including:

In 2019, Nuomei Xinchuang merged with Chengdu Meichuang Medical, a medical plasma technology platform. With the latter's R & D and production advantages in the low-temperature plasma energy platform and the national coverage of otolaryngology expert resources, the company further enhanced its comprehensive strength in the field of otolaryngology in R & D, production, and serving doctors and patients;

In December 2021, it completed the holding of Hangzhou Tonglu Sike Medical Device Company, a domestic otolaryngology and cranio-spinal surgical instrument manufacturer;

In March 2022, it wholly acquired the high-end endoscope system of Endodoctor in Germany to improve the company's endoscope R & D and production, as well as the ability to connect with the global industrial chain;

In November 2022, Guizhou Zirui Technology Co., Ltd. officially joined Nuomei Xinchuang.

Cui Teng believes that the core of acquisitions or BD transactions in the medical device field is not only to obtain patents or commercial rights, but to localize the "core process and advanced technology" based on its own capabilities, so as to improve its own R & D capabilities more quickly.

Through these merger and integration actions, Nuomei Xinchuang has now successfully built a Chinese otolaryngology and cranio-spinal surgical instrument platform. Currently, the company's core products include low-temperature plasma surgery systems, power systems, medical endoscope camera systems, temperature-controlled high-frequency surgical therapy devices, eustachian tube balloon dilation catheters, sinus balloons, disposable nasopharyngeal airways, sinus drug-eluting stents, surgical instruments, etc.

Schematic of Nuomei Xinchuang's product matrix (Image source: Nuomei Xinchuang)

With its own R & D strength and rich product matrix, Nuomei Xinchuang has formed a unique advantage in the overall solution of the otolaryngology power system. Taking rhinitis treatment as an example, traditional therapies often have the problem of being difficult to cure fundamentally, while Nuomei Xinchuang's pioneering TCA (Temperature-Controlled Ablation) product effectively relieves rhinitis symptoms by using nerve ablation technology to precisely destroy the posterior nasal nerve and its branches. At the same time, the surgery can be completed with local anesthesia with the help of a sinus endoscope, and it can be performed as a day surgery.

In terms of commercialization, Nuomei Xinchuang's products have been sold to more than 40 countries and regions around the world, covering more than 3,000 hospitals, and the market share of the company's main products exceeds 30%.

Views of the Founder and Investors:

Cui Teng, the founder of Nuomei Xinchuang, said: I thank the new and old shareholders for their strong support for Nuomei Xinchuang. China's surgical medical devices have entered a stage of further integration in vertical and subdivided tracks. In the near future, we will see some domestic device companies stand out and compete directly with multinational companies globally. Nuomei Xinchuang will seize this opportunity to develop into an innovation-driven global platform medical device company.

Hu Xubo, the managing partner of Qiming Venture Partners, said: Nuomei Xinchuang has grown into a leading company in the field of otolaryngology in China in ten years, which is not only due to the team's strategic vision and vision, but also their efficient execution. We expect the company to grow into a globally influential brand manufacturer. In the future, we will promote the research and development and promotion of more innovative products in the fields of otolaryngology and spine to bring benefits to doctors and patients in China and even the world.

Shi Shenghao, the managing partner of Sunshine Convergence Capital, said: Sunshine Convergence Capital continues to pay attention to the development of Chinese medical devices. Nuomei Xinchuang is a leading domestic overall solution provider for otolaryngology, with a layout of multiple core products such as plasma surgery systems, power systems, temperature-controlled high-frequency surgical therapy devices, and surgical instruments. We are optimistic about the company's unique business ideas and highly efficient management team. Sunshine Convergence Capital is very honored to participate in this round of financing of Nuomei Xinchuang to help the vigorous development of Nuomei Xinchuang in the new stage.

Yang Zhenjun, the CEO of Xingqiao Capital, said: As a leading enterprise in the domestic otolaryngology field, Nuomei Xinchuang has quickly achieved a sales scale from 0 to hundreds of millions through self-research and merger and integration. The founder's farsightedness and the team's efficient execution are impressive. It is a great honor to serve as the long-term exclusive financial advisor of Nuomei Xinchuang to assist the company in completing a financing of over 300 million yuan and optimizing the capital layout in the current complex situation. We expect Nuomei Xinchuang to continue to develop more globally leading products and provide Chinese innovative solutions for doctors and patients around the world.