China-based Shanghai Sanyou Medical Co., Ltd (SHA: 688085) announced the completion of a private placement of 13,032,886 shares at RMB16.42 (USD2.27) per share, raising a total of RMB214 million (USD29.5 million). The funds will be used to facilitate Sanyou’s acquisition of a 48.2% stake in compatriot firm SMTP Technology Co., Ltd, a deal that was completed in December of last year.
Company Background and Strategy
Founded in 2005, Sanyou Medical is a medical device startup specializing in spinal and trauma implants, with its Adena posterior spinal internal fixation system being the most profitable product. The company faced significant performance declines in 2024 due to the volume-based procurement (VBP) of high-value medical consumables, particularly in the orthopedic spine products sector, where prices were cut by an average of 84%. Despite these challenges, Sanyou Medical secured spots for 11 products in Group A with an average price reduction of 60%.
New Business Development
In response to market pressures, Sanyou Medical has intensified its new business development efforts, particularly in the areas of ultrasonic bone knives and ultrasonic hemostatic knives. These strategic moves aim to diversify the company’s product portfolio and reduce dependency on its traditional spinal and trauma implant business.-Fineline Info & Tech
Leave a Reply