Shanghai, China, 25 August 2022 — Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. (“Endovastec™”) today announced the interim results of the Company and its subsidiaries for the six months ended 30 June 2022 (the “Reporting Period”).
During the reporting period, Endovastec™ recorded revenue of RMB 459 million, representing an increase of 26.64% compared to the corresponding period of last year. Net profit attributable to shareholders of the listed company was RMB 215 million, increased by 16.42% on year-on-year basis. Net profit excluding non-recurring gains and losses was RMB 205 million with a 13.86% increase. In the face of recurring outbreaks of COVID-19 in some cities in China, Endovastec™ overcame multiple difficulties in the first half of 2022 and continued to maintain good momentum with regard to its operations.
Strong momentum of key products and steady growth of new offerings
Endovastec™’s innovative products approved for marketing in recent years continued to experience rapid growth during the reporting period, further enhancing the Company's competitiveness in the field of aortic and peripheral vascular interventional devices. As of 30 June 2022, the Castor™ Branched Aortic Stent-Graft and Delivery System (“Castor™”) was available in over 750 hospitals, recording revenue of RMB 183 million in the reporting period with a year-on-year 37.83% increase, and has completed over 12,000 implantations. The Minos™ Abdominal Aortic Stent-Graft and Delivery System (“Minos™”) has entered over 500 hospitals, achieving a sales revenue of RMB 75 million in the first half of 2022, representing an increase of 78.95% year-on-year. The Reewarm™ PTX Drug-Coated Balloon PTA Catheter (“Reewarm™ PTX”) covered about 500 hospitals, delivering a sales revenue of RMB 31 million in the first half of 2022, increased by 41.9% from last year.
During the reporting period, the newly-registrated innovative independently-developed Talos™ Thoracic Aortic Stent Graft System (“Talos™”) was approved for marketing in China, with the first clinical implantation completed shortly afterward in July 2022. The Fontus™ Branched Stent Graft System in Surgical Operation (“Fontus™”) was first implanted in April 2022, after which a number of clinical applications have been completed in several hospitals across China. As of 31 July 2022, Talos™ and Fontus™ have been registered in the governmental procurement platform of ten provinces and municipalities.
Increased investment in R&D with a focus on independent innovation
With a commitment to innovation-driven development, the Company further increased its investment in R&D during the reporting period. The number of R&D personnel accounts for 27.81% of all staff members. Those R&D staff with a master's degree or above account for 59.07% of all R&D staff members. Total R&D investment amounted to RMB 59.9331 million with an annual increase of 20.92%, accounting for 13.06% of the Company's operating revenue in the same period.
In the first half of 2022, the Company has filed 99 patent applications and has been granted 37 patents. As of 30 June 2022, the Company had been granted 208 domestic and international patents, of which 136 were granted domestically (including 54 invention patents, 74 utility model patents, and 8 design patents) and 72 internationally, all of which are invention patents.
Endovastec™ has adhered to developing innovative products with independent intellectual property rights, and promoting various research and development projects during the reporting period. Significant progress has been made with regard to products under development. Hercules™ Balloon Inflation Catheter (Φ32), Reewarm™ PTX (0.035’’ series), and Veryan BM3D™ Peripheral Stent System are expected to obtain marketing approval in China in 2022–2023. Clinical enrollment has been completed for an Iliac Venous Stent System, and the Fishhawk™ Mechanical Thrombectomy Catheter started its pre-market clinical trial in the first half of the year.
In addition, Endovastec™ has more pipeline R&D projects in development. The multi-branch aortic stent has obtained the type inspection report and animal experiment report, and is about to enter the ethical approval of PI institution. The Cratos™ Branched Aortic Stent Graft System has received multicenter ethical approval. The Aegis™ II Abdominal Aortic Stent Graft System has received ethical approval from the PI institution. In terms of peripheral vascular intervention, a type inspection report and an animal testing report have been received for a vena cava filter. The TIPS Stent-graft System has obtained its type inspection report and received ethical approval from the PI institution. The projects mentioned are expected to enter clinical trial stage in the second half of 2022. Meanwhile, the Company is also steadily advancing the development of other new technologies and pipeline R&D projects.
Strengthened marketing channels and accelerated globalization
The Company has focused on the development of marketing channels in lower-tier cities and selected populous counties in China. Such downward-reaching efforts have increased the depth and breadth of the Company’s market coverage. During the reporting period, Endovastec™ has worked with over 100 distributors, making it highly competitive with regard to the size of the distributor network as well as regional and hospital coverage. Focusing on the promotion of its three innovative flagship products, Castor™, Minos™, and Reewarm™ PTX, the Company organized various academic and marketing activities such as online and offline campaigns, academic knowledge exchange, and clinical applications. By inviting senior experts to share cutting-edge academic research progress and practical clinical experience, these activities enabled real-time discussion and communication among medical practitioners from across the country. During the reporting period, the Company's innovative products continued to reach new markets and are now available in over 1,400 hospitals nationwide.
The Company further strengthened its efforts to introduce its innovative products to the international market and accelerated the process of going global. During the reporting period, Hyperflex™ Balloon Inflation Catheter received registration approval from Japan Pharmaceuticals and Medical Devices Agency. Reewarm™ PTX received registration approval from the Brazilian Health Regulatory Agency (ANVISA). Hercules™ Thoracic Stent Graft with Low-Profile Delivery System was successfully used in its first clinical implantation in India. The Company's products have been applied in 21 countries and regions in Europe, Latin America, and Southeast Asia, including Greece, Poland, Spain, Germany, Italy, Brazil, and the United Kingdom etc.. In July 2022, Castor™ obtained marketing approval in Europe on a customized basis.
Moreover, Endovastec™ started operation of the new production base in Shanghai China during the reporting period to guarantee the capacity demand in the next 2-3 years after its fully put into use. In June 2022, Endovastec™ succeeded in bidding with plan to build its global headquarters in Shanghai International Medical Science Park, wich will further enhance the Company’s production capacity, upgrade production equipment, and expand the scale of production and operation..
Mr Qing Zhu, President of Endovastec™, stated: “In the first half of 2022, intermittent outbreaks of COVID-19 in China had a short-term impact on our business. However, with the joint efforts of our employees, Endovastec™ actively carried out various prevention and control efforts against the pandemic while we steadily advance our operation in an orderly manner, ensuring sustained and rapid growth. In the future, we will further accelerate the pace of development and continue to strive to achieve the ambitious vision of building a world-leading group of emerging medical technologies in the field of aortic and peripheral vascular intervention.”
Founded in Shanghai in 2012, Shanghai MicroPort Endovascular MedTech (Group) Co., Ltd. ("Endovastec™", stock code: 688016.SH), a subsidiary of MicroPort Scientific Corporation ("MicroPort®", stock code: 00853.HK), is a global medical device company focusing on R&D, manufacturing, and sales of aortic and peripheral vascular interventional devices. Its product portfolio includes thoracic and abdominal aortic stent grafts, intraoperative stents, drug-coated PTA balloon catheters, and PTA balloon catheters. At Endovastec™, we are breaking barriers and accelerating access to provide trustworthy and universal access to state-of-the-art solutions for prolonging and reshaping life, and to build a people-centric enterprise as a global leader of evolving and emerging medical technologies through continuous innovation.
More information is available at www.endovastec.com.