Venus Medtech announces 2020 annual results: Leading continuous market growth
On March 31, 2021, Venus Medtech (Hangzhou) Inc. (02500.HK, hereinafter refers to as "Venus Medtech"), a leading provider of integrated solutions for transcatheter structural heart valvular therapies in the world, announced its annual results in 2020. According to the financial report, in 2020, Venus Medtech achieved a sales revenue of RMB276 million, a year-on-year increase of 18.3%, with a stable gross profit margin of 82.3% and a significantly narrowed net loss of RMB182 million.
Despite the decline in procedures at terminal hospitals due to the impact of the COVID-19 pandemic in in the first half of 2020, the sales volume of VenusA-Valve, transcatheter aortic valve replacement (TAVR) product and core product of Venus Medtech, showed a significant rebound in the second half of 2020 when the pandemic was better contained. Financial data of the second half of the year indicated a 70.5% increase on the first six months and a year-on-year growth of 38.3%. About 2,200 TAVR procedures were completed in 2020, representing a year-on-year increase of more than 50%. The number of TAVR procedures has shown a strong rising trend in 2021. In March, 99 TAVR procedures were performed within a single week, reaching an all-time high since product launch.
VenusA-Valve developed by Venus Medtech is the first NMPA-approved TAVR product and the first TAVR product commercialized in China. The product has benefitted more than 5,000 patients since its launch. With its professional academic promotion team, the company significantly increased the number of terminal hospitals in 2020, from 164 at the end of 2019 to 249, a net increase of 85. The market share of VenusA-Valve remained over 80% throughout 2020.
The stable lead in market share results from continuous professional academic promotion efforts. By the end of 2020, Venus Medtech has established a professional marketing team comprising more than 130 personnel to focus on doctor and patient education, promoting TVAR use in China. In 2020, the company delivered 114 training sessions at newly developed terminal hospitals, assisted 94 cardiac teams to perform their first TAVR procedure, and provided technical guidance for more than 2,000 procedures. The training and education sessions involved more than 4,000 doctors and more than 100,000 patients.
Over the past year, a number of innovative products of Venus Medtech have been approved for marketing at home and abroad, significantly enriching the company's product portfolio. In March 2020, the TriGUARD3 cerebral embolic protection device obtained CE certification for launch in the EU. It is Venus Medtech’s first innovative device approved in Europe. In November 2020, the second-generation TAVR product VenusA-Plus was approved for marketing by the National Medical Products Administration (NMPA) as the first retrievable TAVR product in China. In March 2021, VenusP-Valve, a transcatheter pulmonic valve system, obtained special use authorization in the UK to enter the market in advance.
Committed to providing a total solution in the field of structural heart disease, in addition to harnessing independent R&D, the company has been exploring strategic partnerships worldwide to introduce technology platforms for collaborative innovation. In May 2020, Venus Medtech cooperated with Atlanta-based Opus Medical Therapies to introduce its iconic valve anchoring technology for developing innovative devices targeted at mitral regurgitation and tricuspid regurgitation. In June 2020, Venus Medtech partnered with Pi-Cardia in Israel to introduce its innovative product Leaflex for aortic valve repair. Leaflex is significantly complementary to the company's existing aortic valve pipeline and is expected to cover a broader range of patients. In September 2020, Venus Medtech established a joint venture with Jilin Changchun Haoyue Halal Meat Co., Ltd. to explore the R&D and production of new materials for bioprosthetic valves. In January 2021, the company reached cooperation with Endoluminal in Australia to introduce its active anti-paravalvular leak technology and upgrade existing valve product pipelines.
While improving business efficiency, accelerating the launch of new products and building an innovation ecosystem, the company attaches great importance to building a first-class quality system that sets standards for the industry. The quality tracking and monitoring system created by Venus Medtech is open to the National Medical Products Administration (NMPA) for real-time supervision, effectively ensuring product safety and traceability in clinical application. Therefore, the company won “Outstanding Organization in Adverse Drug Reaction Monitoring and Evaluation” in 2020 as the only medical device company in Zhejiang Province to receive the honor. At the same time, the "Key Laboratory for Quality Research and Quality Control of Biomaterials for Tissue Regeneration" jointly established by Venus Medtech, Sichuan University and Center for Medical Device Evaluation of NMPA gained approval, reflecting the high recognition of the company's product quality control system by regulatory authorities and academia.