On August 28th, the official website of the China Securities Regulatory Commission disclosed that Beijing Pinchi Medical Equipment Co., Ltd. (hereinafter referred to as "Pinchi Medical") has completed the registration of coaching and filing with the Beijing Securities Regulatory Bureau, and plans to conduct an initial public offering and listing. The coaching securities firm is China International Capital Corporation (CICC).

It is reported that Pinchi Medical is a leader in the field of neural regulation in China, specializing in the research and development, production, and sales of a series of neural regulation products such as brain pacemakers, vagus nerve stimulators, spinal cord stimulators, and sacral nerve stimulators.

1st developer in China to offer a full range of neural regulation products
Since its establishment in 2008, Pinchi Medical has continued to deeply cultivate the field of neural regulation. With profound technological accumulation and innovative spirit, it has undertaken multiple national key research and development plans, national science and technology support plans, major science and technology special plans in Beijing, and has achieved numerous research results with complete independent intellectual property rights. At present, the company has launched multiple global/national firsts, including: the first directional deep brain electrical stimulation system in China, the world's first rechargeable perceptible vagus nerve stimulator, the first rechargeable implantable sacral nerve stimulator in China, and the first implantable spinal cord stimulator in China.

In May 2024, Pinchi Medical's implantable deep brain electrical stimulation electrode lead kit (L305/L306), dual channel rechargeable implantable deep brain electrical stimulation pulse generator kit (G107R), dual channel implantable deep brain electrical stimulation pulse generator kit (G107), and implantable deep brain electrical stimulation extension lead kit (E204) were officially approved by the National Medical Products Administration (NMPA), marking the official entry of China's first directional deep brain electrical stimulation product into the market.

This product can stimulate the subthalamic nucleus or medial pallidum when used in combination, and is used for combination therapy of advanced levodopa responsive Parkinson's disease patients whose symptoms cannot be effectively controlled by drugs.

In June 2023, Pinchi Medical's "Rechargeable Implantable Vaginal Nerve Stimulation Pulse Generator Kit (VNS) G113R, G114R" was officially approved by the National Medical Products Administration (NMPA) for the treatment of drug-resistant epilepsy patients aged 3 years and above. This is the world's first rechargeable and perceptible VNS product, equipped with rechargeable and Bluetooth wireless communication functions, bringing convenience to patients and improving the programming experience for doctors and patients. In July 2022, the registration application for the "Rechargeable Implantable Sacral Nerve Stimulation Pulse Generator Kit" developed and produced by Pinchi Medical with the participation of Tsinghua University in the preliminary technical support was officially approved by the National Medical Products Administration. This is China's first rechargeable sacral nerve stimulation product with independent intellectual property rights. Users can achieve wireless external charging, greatly improving the service life of the stimulator.

1st implantable spinal nerve stimulator in China
In January 2022, the registration application for the innovative product "Implantable Spinal Cord Stimulator" produced by Pinchi Medical (including 5 product registration certificates including implantable rechargeable spinal cord nerve stimulator, implantable spinal cord nerve stimulator, 2 implantable spinal cord nerve stimulation electrodes, and implantable spinal cord nerve stimulation extension lead) was approved.

This is the first domestically approved implantable spinal cord stimulator system in China, designed for patients aged 18 and above (excluding pregnant women) to use as an adjuvant therapy for chronic intractable pain in the trunk and limbs. This approval also makes Pinchi Medical the first high-tech enterprise to develop, produce, and sell a full range of neural regulation products including brain pacemakers, vagus nerve stimulators, spinal nerve stimulators, and sacral nerve stimulators.

Tsinghua University's research achievement transformation hub
Filing guidance means that the company's listing plan has taken a crucial step forward, and it also means that Pinchi Medical's long-term layout has finally come to fruition. In the past 20 years, China's DBS market has been monopolized by foreign giants for a long time. Global pacemaker giant Medtronic was also one of the earliest companies to conduct research on brain pacemakers. To this day, Medtronic still holds an important market share in global brain pacemakers, while foreign device giants such as Boston Scientific and St. Jude Medical (which has been acquired by Abbott) have also caught up, forming a "three legged" market pattern.

In 2000, under the proposal of Wang Zhongzhong, an academician of the CAE Member and a leading neurosurgery authority, Li Luming, an aerospace researcher at Tsinghua University, led a team to develop domestic brain pacemakers. In 2008, Pinchi Medical was established as a "hub" for the transformation of scientific research achievements at Tsinghua University, carrying out the transformation of technological achievements such as brain pacemakers.

In 2013, Pinchi Medical's first implantable neural control product, the single channel brain pacemaker, was approved for market launch, becoming the first domestically produced implantable neural control product. Afterwards, products such as rechargeable computer pacemakers, dual channel brain pacemakers, vagus nerve stimulators, sacral nerve stimulators, and spinal cord stimulators were successively launched, forming the current product line of Pinchi Medical.

Starting from this year, the company also began to engage in strategic financing. According to Tianyancha data, Pinchi Medical has received 7 rounds of financing since 2013, with investors including Shuimu Venture Capital, Eli Lilly Asia Fund, Sailin Capital, Hillhouse Capital, Qianhaimu Fund, Hongyuan Huifu, Huiyuan Capital, Oriental Hongtai Capital, etc. At present, the controlling shareholder of the company is Beijing Hanshikangyuan Technology Co., Ltd., which directly holds 23.53% of the shares. Through consistent action arrangements with Nantong Hanshikangyuan Enterprise Management Consulting Center (Limited Partnership), Nantong Hanshikangyuan Enterprise Management Consulting Center (Limited Partnership), and Cao Lei, the company controls a total of 41.78% of the voting rights. According to the coaching filing report, China International Capital Corporation (CICC) plans to complete the coaching plan for Pinchi Medical in November December this year and apply for coaching acceptance from the Beijing Securities Regulatory Bureau. After passing the acceptance, Pinchi Medical is expected to apply for IPO.

Neuromodulation market
Neuroregulation is an emerging technology used to treat or alleviate neurological disorders, with applications mainly including deep brain stimulation (DBS), spinal cord stimulation (SCS), vagus nerve stimulation (VNS), etc. Among them, SCS stimulates spinal nerves through pulsed current, blocks the transmission of pain signals from the spinal cord to the brain, and alleviates stubborn pain.

Over the past few decades, hundreds of thousands of patients have benefited from neuromodulation therapy, and new areas of neuromodulation applications are constantly being discovered. According to relevant data statistics, the global market size of neural regulation has reached 5.8 billion US dollars in 2020, and it is expected to grow to 8.8 billion US dollars by 2025, with a five-year growth rate of 51.7%.

From a domestic perspective, with the growth of the elderly population and the increasing prevalence of chronic diseases, the market for neuroregulatory products is also constantly growing. According to the "Report on the Development of Pain Medicine in China (2020)", the number of chronic pain patients in China has exceeded 300 million and is growing at a rate of 10 to 20 million per year.

From the perspective of market share, currently the seven major international giants of Medtronic, Abbott, Poco, LivaNova, Nevro, Nuvectra, and NeuroPace almost monopolize the entire neural regulation market due to their first mover advantages in technology and customer base.

From a segmented perspective, spinal cord stimulators (SCS) have the highest market share in the neural regulation market, accounting for nearly 55% of the total market in 2018; Deep brain stimulators account for 16%, vagus nerve stimulators account for 14%, and other types account for approximately 15%. Among them, the SCS field is dominated by three companies: Medtronic, Abbott, and Boston Scientific, each holding about one-third of the market share.

Two representative equipment companies in China that rival it are Pinchi Medical and Jingyu Medical, both of which have now entered the IPO process. Jingyu Medical will complete its listing counseling filing in December 2023, and the company has previously obtained multiple related patents and equipment approvals.

Source: http://qixieke.com/Font/index/detailPage.html?id=3167-19