On September 4th, the Shanghai Stock Exchange terminated one IPO company: Shandong Branden Medical Equipment Co., Ltd. (hereinafter referred to as "Branden"). According to information, this was Branden's voluntary withdrawal of its listing application, and the listing on the Science and Technology Innovation Board was terminated.

Two major products support the banner of revenue
Founded in 2003, Baibai An is a national high-tech enterprise dedicated to applying medical material modification technology to implantable medical devices, focusing on the research and development, production, and sales of biological and medical products. Through independent research and continuous innovation, Branden has formed a technology platform centered on medical material modification, precision machining, and digital diagnosis and treatment of vascular pathways.

According to the prospectus, Branden is the first domestic enterprise to obtain the registration certificate for Class III medical device products of domestically produced Peripherally Inserted Central Catheters (PICCs), breaking the monopoly of imported products in the domestic PICC market. Its PICC products have the advantages of high catheter rupture force and conductivity. In clinical use, when combined with the company's independently developed color ultrasound Doppler diagnostic system, they have the advantages of high success rate of catheter placement, accurate positioning, and low incidence of complications. In addition to vascular access products, Branden also has a rich product line of neurosurgical products and other material modified products.

Branden applied for listing on the Science and Technology Innovation Board in October 2022. After nearly two years of submitting IPO documents to the board, Branden voluntarily withdrew its listing application. According to the original plan, Branden plans to issue a maximum of 20.52 million shares to raise 760 million yuan. After deducting the issuance expenses, all the funds raised will be used for investment projects related to Branden's main business. The specific investment projects are as follows:

According to publicly available data, Branden's operating revenue in 2021 was 210 million yuan, with a net profit of 33.04 million yuan after deducting non recurring expenses. According to the audit inquiry response, its main business revenue in 2023 was 200 million yuan, slightly lower than the revenue in 2021 and 2022.

From the perspective of Baibaoan's business segment, PICC products and extracranial drainage systems are the main sources of Baibaoan's revenue.
 In 2019, the sales of Branden products amounted to 176 million yuan, of which the PICC sector accounted for 39.60% and the revenue from the extracranial drainage system accounted for 24.76%;
 In 2020, the product sales amounted to 176 million yuan, with the PICC sector accounting for 42.63% and the extracranial drainage system accounting for 24.97%;
 In 2021, the product sales amounted to 208 million yuan, with the PICC sector accounting for 43.43% and the extracranial drainage system accounting for 24.45%;
 In the first half of 2022, the product sales amounted to 99.7053 million yuan, with the PICC sector accounting for 46.69% and the extracranial drainage system accounting for 26.17%.

From the above data, it is not difficult to see that the combined proportion of PICC products and extracranial drainage systems exceeds half of the revenue, reaching a peak of 73%, carrying the banner of over 100 million yuan in revenue. But precisely because of this, when the income of both has decreased, it has also had an undeniable impact on the revenue of Branden.

According to the latest response from Baibai An, the revenue growth rates of PICC products and extracranial drainage systems have significantly slowed down throughout 2022. In 2022, PICC products and extracranial drainage systems achieved revenue of 95.7341 million yuan and 55.2881 million yuan, respectively, with year-on-year growth of 5.85% and 8.57%, respectively, a decrease of 15 percentage points and 7.6 percentage points from the same period in 2021. In 2023, PICC products and extracranial drainage systems achieved revenue of 86.0587 million yuan and 52.1286 million yuan, respectively, a year-on-year decrease of 10.11% and 5.71%.

Regarding this, Branden stated that its PICC products and extracranial drainage system have been included in inter provincial alliance procurement such as Henan centralized procurement and Beijing Tianjin Hebei centralized procurement. In 2023, due to the uncertainty of centralized procurement policies, the purchasing willingness of distributors has decreased during the transitional period of centralized procurement, resulting in a decline in revenue for both products. However, Baibai An also stated that the product has been well selected in the centralized procurement and occupies a favorable position. With the implementation of the centralized procurement policy, the sales of PICC products and extracranial drainage systems are expected to significantly increase.

Local innovation achievements emerge
PICC is a central venous catheter that is inserted through peripheral veins and located in the middle and lower third of the central vein, at the junction of the superior vena cava and the right atrium. It is used for medium to long-term intravenous infusion therapy. Used to provide patients with medium to long-term intravenous infusion therapy, especially for infusing drugs that are irritating to blood vessels. The product is delivered to the junction of the superior vena cava and the right atrium through peripheral vein puncture. It can reduce vascular stimulation and alleviate patients' treatment pain.

According to the statistics and predictions of Hengzhou Bozhi, the global peripheral central venous catheter market sales reached 92.526 million US dollars in 2022, and are expected to reach 12.68 million US dollars in 2029, with a compound annual growth rate (CAGR) of 4.62% (2023-2029). Among them, the market size of China in 2022 is 81.43 million US dollars, accounting for about 8.80% of the global market. It is expected to reach 159.44 million US dollars by 2029, and the global market share will reach 12.57%.

With the increasing trend of global population aging, the demand for PICC catheters in long-term venous access management will also increase. Local enterprises have already established outstanding equipment companies in this field, such as BYD Medical, Braun Medical, and Branden Medical. Moreover, the prospects of PICC catheters are also very broad, and their application areas are expanding. In addition to common clinical applications such as chemotherapy, nutritional support, and drug infusion, PICC catheters can also be used for infusing blood products, monitoring central venous pressure, and in vivo therapy. These new application areas further drive the growth of the PICC catheter market.

The extracranial drainage system refers to a closed system that continuously drains cerebrospinal fluid from intracranial hemorrhage, ventricles, and lumbar vertebrae to the outside of the body. Mainly used for external drainage during and after traumatic brain injury, bleeding, or tumor surgery, aiming to help manage intracranial pressure and fluid balance in patients to improve symptoms and prognosis.

According to data from Chenyu Information, the global market sales of extracranial drainage systems reached $470 million in 2022, and are expected to reach $644 million by 2029, with a compound annual growth rate (CAGR) of 4.89% (2023-2029). Among them, the market size of China in 2022 is 66.95 million US dollars, accounting for about 14.25% of the global market. It is expected to reach 117.70 million US dollars in 2029, and the global market share will reach 18.26%.

After years of development, the results of local enterprises have emerged in the field of extracranial drainage systems, and the listed products are no longer limited to foreign companies such as Medtronic and South Korea's Worldwin Medical. Among local enterprises, Shandong Gred Medical Equipment, Wego, Branden, Weichuang Medical and other companies have achieved remarkable results, with multiple innovative products landing.

Source: https://news.yaozh.com/archive/44170.html