Tangji Medical Completes Series B Financing, with T-Capital as Financial Advisor
In June 2022, Hangzhou Tangji Medical Technology Co., Ltd. (hereinafter referred to as “Tangji Medical”) announced the completion of its Series B financing. This round was jointly funded by Shenzhen Tojin Venture Capital and Guolian Guokang Fund, with T-Capital acting as the financial advisor for this transaction.
The proceeds from this round will be primarily used to advance the registration clinical trial of Tangji Medical’s national innovative medical device, the “Gastric Bypass Stent System,” as well as the research and development and clinical trial preparation for several new products in the company’s R&D pipeline.
Against the backdrop of downward pressure on the capital market and the significant impact of pandemic control on socio-economic activities, Tangji Medical successfully completed a new round of financing. This round reflects the investment institutions’ focus on Tangji Medical’s innovative product pipeline, the interventional treatment market for metabolic diseases, and the company’s R&D and team capabilities.
Transaction Overview
| Item | Information |
|---|---|
| Transaction Date | June 16, 2022 |
| Transaction Type | Series B Financing |
| Company | Hangzhou Tangji Medical Technology Co., Ltd. |
| Investors | Shenzhen Tojin Venture Capital, Guolian Guokang Fund |
| Financial Advisor | T-Capital |
| Primary Use of Proceeds | Registration clinical trial of the Gastric Bypass Stent System, R&D of innovative medical devices, and clinical trial preparation |
| Industry | Medical Devices |
| Key Area | Interventional Treatment for Metabolic Diseases |
T-Capital acted as the financial advisor in the Series B financing transaction of Tangji Medical.
I. Project Background
Tangji Medical was established in August 2016 and is headquartered in Hangzhou, China.
The company is dedicated to building an innovative platform for gastrointestinal interventional therapies and related medical devices, disease management, and solutions, focusing on metabolic diseases such as obesity, type 2 diabetes, and non-alcoholic fatty liver disease (NAFLD).
Tangji Medical aims to explore new treatment paths for metabolic diseases through gastrointestinal interventional techniques and innovative medical devices.
The company’s independently developed “Gastric Bypass Stent System” has entered the national “Special Review Procedure for Innovative Medical Devices” and has been recognized as a Class III innovative medical device by the National Medical Products Administration (NMPA).
Prior to this financing round, the product had completed the crucial stages of device treatment and removal in its clinical trials and had entered the follow-up phase.
II. Core Product: Gastric Bypass Stent System
One of Tangji Medical’s core innovative products is the “Gastric Bypass Stent System.”
This product combines the concept of gastric bypass weight-loss surgery with innovative gastrointestinal implantable medical devices, exploring the treatment of metabolic diseases through minimally invasive intervention.
According to project materials, the technology features:
- Minimally invasive intervention;
- No damage to human anatomy;
- Relatively simple surgical procedure;
- Better patient experience;
- Targeted at treating obesity and related metabolic diseases.
Tangji Medical hopes to explore a new path for treating metabolic diseases through this innovative gastrointestinal interventional technique.
According to the company’s product plan at the time, if the product is successfully launched, it is expected to become one of the new therapies for treating metabolic diseases via endoscopic intervention in China.
III. Focusing on the Rapidly Growing Demand for Metabolic Disease Treatment
Tangji Medical’s key focus areas include:
- Obesity;
- Type 2 Diabetes;
- Non-alcoholic fatty liver disease (NAFLD);
- Polycystic ovary syndrome (PCOS) and other diseases related to metabolic abnormalities.
Metabolic diseases represent a significant clinical need.
There is a close relationship between obesity and type 2 diabetes, and obesity is also a major contributing factor to diseases like NAFLD.
With the growing population of overweight and obese individuals, the medical demand for weight management, metabolic disease treatment, and long-term disease management continues to garner attention.
It is against this clinical backdrop that Tangji Medical has built its product R&D pipeline around gastrointestinal interventional treatments.
IV. Proceeds to Focus on Clinical Development and Product R&D
After the completion of this financing round, the funds will be primarily used in two directions.
1. Advancing the Clinical Work of the Gastric Bypass Stent System
The funds will be used to advance the registration clinical trial of the national innovative medical device, the “Gastric Bypass Stent System.”
Clinical development is a crucial step for innovative medical devices to move from the R&D stage to commercialization.
For innovative medical device companies in the registration clinical stage, continuous R&D and clinical investment are the foundation for advancing product registration.
2. Advancing the R&D of Other Innovative Products
In addition to the Gastric Bypass Stent System, Tangji Medical had already established several other R&D projects at the time.
As of the end of 2021, the company had nearly 10 projects under development, had filed for over 50 patents, and several products were undergoing clinical trials at various stages in more than 20 renowned public Grade-A tertiary hospitals in China.
Therefore, this financing round not only serves a single product but will also support the development of the company’s subsequent R&D pipeline.
V. Tangji Medical Has Established a Multi-level R&D and Industrialization System
Focusing on the R&D of innovative medical devices, Tangji Medical has established multiple technology platforms as well as R&D, quality, production, and supply chain systems, and is ISO 13485 certified.
As of the end of 2021, the company’s R&D pipeline covered multiple innovative medical devices related to metabolic diseases.
Several products have already entered different stages of clinical trials.
This R&D pipeline and industrialization system provide a foundation for the company to continuously advance the development of innovative medical devices.
VI. Investment Institutions Focus on the Field of Interventional Treatment for Metabolic Diseases
In this financing round, Shenzhen Tojin Venture Capital and Guolian Guokang Fund jointly participated in the investment.
According to project materials, the investors are optimistic about the development of the interventional treatment field for metabolic diseases and have recognized Tangji Medical’s innovative product pipeline and team capabilities.
In a challenging capital market environment, Tangji Medical’s completion of its Series B financing also provides it with the financial support to continue advancing the clinical development of its core product and the R&D of other innovative medical devices.
VII. Professional Team and Corporate R&D Capabilities
Mr. Zuo Yuxing, the founder and chairman of Tangji Medical, has experience in clinical medicine as well as commercial sales in both domestic and foreign companies.
The company’s executives and core team members have relevant work experience in multinational medical device companies and domestic healthcare enterprises, covering:
- Medical device marketing and sales;
- Corporate management;
- Technology R&D;
- Clinical registration;
- Human resources;
- Medical device commercialization.
Focusing on its innovative medical device business, the company has formed several professional capability modules including R&D, quality, production, supply chain, and clinical registration.
VIII. Primary Significance of This Financing Round
From the perspective of the company’s development stage, this Series B financing primarily supports Tangji Medical’s progression from product R&D further into clinical development and industrialization phases.
For an innovative medical device company, financing is not just about obtaining capital, but more importantly, about securing continuous resources for product R&D, clinical trials, registration filing, and subsequent industrialization.
Tangji Medical’s current financing round is mainly for:
Advancing core product clinical trials + R&D of new products + Preparation for clinical trials.
This is consistent with the company’s strategic direction of building a long-term innovative medical device product pipeline for metabolic diseases.
IX. T-Capital Acted as the Financial Advisor for This Transaction
T-Capital acted as the financial advisor for Tangji Medical in this Series B financing transaction.
As a boutique investment bank focusing on the broad healthcare sector, T-Capital provides services for healthcare companies, including:
- Equity Financing;
- Mergers & Acquisitions;
- Divestitures & Carve-outs;
- Licensing & Strategic Cooperation;
- Cross-border Transactions.
T-Capital has a long-term focus on areas such as innovative drugs, medical devices, medical diagnostics, high-value consumables, medical services, and emerging medical technologies.
In the Tangji Medical financing project, T-Capital participated in the corporate financing transaction, establishing a professional communication and transaction link between Tangji Medical and the capital market.
X. About Tangji Medical
Hangzhou Tangji Medical Technology Co., Ltd., founded in August 2016, is an innovative healthcare company focused on gastrointestinal interventional therapies and related medical devices, disease management, and solutions.
The company focuses on metabolic diseases such as obesity, type 2 diabetes, and non-alcoholic fatty liver disease, and is continuously engaged in the R&D of innovative medical devices.
Its self-developed Gastric Bypass Stent System has entered the national “Special Review Procedure for Innovative Medical Devices” and is recognized as a Class III innovative medical device.
The company has established multiple technology platforms, as well as R&D, quality, production, and supply chain systems, and is ISO 13485 certified.
XI. About T-Capital
T-Capital is a boutique investment bank focusing on the broad healthcare sector, providing capital transaction and strategic advisory services to healthcare companies.
Service areas cover:
- New Drug R&D;
- Medical Devices;
- Medical Diagnostics;
- High-Value Consumables;
- Medical Services;
- Emerging Medical Technologies.
Core services include:
- Equity Financing;
- Mergers & Acquisitions;
- Divestitures & Carve-outs;
- Licensing & Strategic Cooperation;
- Cross-border Transactions.
T-Capital is dedicated to connecting capital with high-quality healthcare companies, as well as domestic and international industry resources, helping companies find resources in funding, technology, and industrial partnerships.
Project Summary
Tangji Medical’s Series B financing is one of the medical device financing projects T-Capital has participated in.
This round was jointly funded by Shenzhen Tojin Venture Capital and Guolian Guokang Fund, with T-Capital acting as the financial advisor.
The proceeds are mainly for the registration clinical trial of the Gastric Bypass Stent System and the R&D and clinical trial preparation for other innovative medical devices for metabolic diseases.
From the project’s perspective, Tangji Medical focuses on the field of metabolic diseases, which has a large clinical need, and builds an innovative medical device product pipeline around gastrointestinal interventional treatment.
This transaction also reflects T-Capital’s long-term focus on innovative medical devices, healthcare financing, and industrial capital cooperation.
Transaction-Related Keywords
Tangji Medical, Hangzhou Tangji Medical, Tangji Medical Series B Financing, Medical Device Financing, Healthcare Financing, Metabolic Diseases, Gastric Bypass Stent System, Innovative Medical Devices, Medical Device Clinical Trials, Medical Device Investment, T-Capital, Financial Advisor, Equity Financing.
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