Jinjiang Electron, a Chinese developer of cardiac electrophysiology devices, has collected over 700 million yuan ($102.6 million) of new financing from investors, including private equity (PE) major Hillhouse Capital Group, the startup announced on Monday.
The Chengdu-based company, whose cardiology specialty equipment is used in the diagnosis and treatment of cardiac arrhythmias, raised the new funding from three transactions, including its Series A, A+ and B rounds.
The recently completed Series A+ and B rounds attracted investments from domestic investors such as Xinda Kunpeng, Guanghua Wutong and Yuanheng Lizhen. Hong Kong-listed single-use medical device maker Shandong Weigao Group Medical Polymer and healthcare-focused investment firm HM Capital also participated in the deals, said the startup.
In December 2021, Hillhouse injected “hundreds of millions of Chinese yuan” into Jinjiang as its Series A round investor to fund the firm’s new product R&D and registration of clinical trials. Chinese investment bank Haoyue Capital served as the exclusive financial adviser to all three deals.
The venture deals came about three decades after the establishment of its long-standing domestic business. Jinjiang, founded in 1991, conducts the R&D and production of cardiac electrophysiology devices out of its headquarters in the High-Tech Industry Development Zone in southwestern China’s Chengdu City, Sichuan Province.
Its range of products includes systems dedicated to 3D cardiac mapping and electrophysiology recording, cardiac RF ablation generators, electrophysiology catheters and neural RF generators, among others. The firm has delivered products to over 1,000 institutional clients through its nationwide distribution network, its official website shows.
The company targets to serve patients with cardiac arrhythmias, which is becoming a significant public health concern among China’s ageing population. Citing the latest data from The Lancet, the famed general medical journal, Jinjiang said the number of Chinese patients suffering from atrial fibrillation has come near 20 million.
A total of almost 200,000 electrophysiological operations were conducted in China in 2020, contributing to a market size of close to 10 billion yuan ($1.5 billion). That followed a compound annual growth rate (CAGR) of approximately 30% in China’s domestic electrophysiology market in the previous decade, according to The Lancet data cited by Jinjiang.
With the fresh capital, Jinjiang plans to further invest in new product development and advance the registration of clinical trials for several cardiac electrophysiology devices. The firm also looks to improve its company structure and corporate governance.