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DCP Capital has agreed to invest in Venus Medtech. Financial terms weren’t announced. Venus Medtech, of Hangzhou, China, develops heart valves. Haoyue Capital provided financial advice.

PRESS RELEASE

HANGZHOU, China, May 16, 2018 /PRNewswire/ — Venus Medtech announced that it has entered into a definitive investment agreement with DCP Capital. The investment will be used by Venus Medtech to accelerate the upgrading and internationalization of existing valve products, support the company to rapidly enter into the clinical research stage for its new mitral/tricuspid valve disease treatment technology, and lay a solid foundation for the company to comprehensively enter the international heart valve market.

Together with a growing economy and an aging population, the incidence of senile calcific aortic valve disease is on the rise and will soon become the main cause of valvular disease in China. At present, surgical procedures for aortic valve replacement (SAVR) are widely used but the risk of surgical trauma is high and the postoperative recovery is slow. Most of the older patients are unable to tolerate such surgery. After 16 years of rapid development, transcatheter aortic valve replacement (TAVR) technology has gradually become the mainstream treatment for aortic valve disease in the world. According to current indications, there are at least 500,000 patients in China who have TAVR indications and the majority of them are not admitted to hospital for treatment. In addition to aortic valve disease, mitral and tricuspid valve diseases are also common valvular heart diseases. It is estimated that patients with severe Mitral Regurgitation (MR) and Tricuspid Regurgitation (TR) number over 10 million in China but the rate of surgical treatment is less than 2%. The therapeutic market in this area is particularly promising.

Venus Medtech has been cultivating the research, development and commercialization of medical devices for heart valve disease for many years. The company has more than 300 patents of valve technology worldwide and has formed a complete and strict protection of intellectual property rights. The company’s first generation TAVR product, VenusA-Valve percutaneous interventional aortic valve system, is the first interventional prosthetic valve product approved by China Food and Drug Administration in April 2017, which created a new era of interventional cardiology in China and became an example of high-end innovative medical devices created in China.

Venus Medtech has a deep and comprehensive position in the field of heart valve disease treatment. VenusP-Valve, a transcatheter pulmonary valve product, is the first self-expanding pulmonary valve in the world and it has completed 178 implantations in 27 centers in nearly 20 countries and regions. The company’s China registration research has also been completed and the EU registration research will be completed soon. It is expected that China and Europe will approve its listing in 2019. In addition, Venus Medtech will use this new investment to accelerate the development of mitral and tricuspid valve replacement devices. It is expected that it will enter the clinical trial stage in 2019 and it will accumulate a lasting development momentum for the growth of the heart valve business after 5 years.

Eric Zi, Co-founder and CEO of Venus Medtech said: “We are extremely excited to have DCP as our long-term value-added partner. This cooperation will benefit from the DCP team’s 25 years of successful investment experience in China led by Mr. David Liu. In particular, we hope to leverage DCP’s significant investment / acquisition experience, and its portfolio management capabilities to accelerate Venus Medtech’s expansion.”

“DCP is delighted to have the opportunity to invest into Venus Medtech,” said David Liu, Executive Chairman of DCP. “We are extremely impressed with the company’s outstanding management team, strong technological capabilities and deep industry knowledge. We look forward to fully utilizing our network and expertise to help Venus Medtech to grow into the next phase of development.”

“Venus Medtech is led by a management team with global vision and strong sense of social responsibility and we are honored to partner with such a company to help it grow to a global medical device player,” added Wayne Wang, Managing Director of DCP.

The proceeds will be invested in Venus Medtech’s R&D, production, and sales network expansion to fuel the company’s rapid development.

Haoyue Capital was the exclusive financial advisor in this transaction.

About Venus Medtech:

Venus Medtech is a leading heart valve developer in China. The firm, located in Hangzhou National Hi-tech Development Zone, focuses on the research and development of internationally advanced artificial cardiovascular valve systems with commercial applications and has succeeded in developing such products both in China and around the world.

Venus Medtech is fully dedicated to research and development and has twice been the first to pioneer the production of models for new valve systems: the pre-loading transcatheter valve system and the self-expanding transcatheter pulmonary valve system (VenusP-Valve). Since 2013, Venus Medtech has received investments from Qiming Venture Partners, Sequoia China and Goldman Sachs.

For additional information visit http://en.venusmedtech.com

About DCP:

DCP Capital (“DCP”) is a leading Greater China focused private equity firm. The DCP team previously led KKR and Morgan Stanley’s private equity business in China, with an outstanding long-term track record across multiple cycles. Over the past 25 years, the DCP team has led a number of successful transactions and nurtured numerous industry leaders, such as Ping An Insurance (Group) Company Of China, China Mengniu Dairy Co, Qingdao Haier Co, China International Capital Corp, China Modern Dairy Holdings, United Envirotech, China Cord Blood Corp, Fujian Sunner Development Co, Far East Horizon, Hengan Group, Belle International Holdings, Fujian Nanping Nanfu Battery Co, COFCO Meat Holdings, Yongle Appliance, Asia Dairy, Uxin Group, Tarena International Inc. Combining its global investment perspective and extensive local network, the DCP team has accumulated deep industry knowledge and strong operational capabilities. As a long-term value investor, DCP is committed to building long-term, win-win partnerships with portfolio companies and help support value creation initiatives.

SOURCE Venus Medtech (Hangzhou) Inc.