Beijing Lidakang Technology Co., a Chinese maker of artificial body joints, has secured a RMB110 million (US$16.37 million) series A round of financing from state-backed venture capitalist Shenzhen Capital Group Co. and Lotus Lake Ventures, said Lidakang in a statement released on its WeChat official account on Thursday.
"The orthopedics department is one of the largest sub-branches oriented by the medical apparatus and instruments industry. The artificial joints production, in particular, holds the highest technical threshold," said Lotus Lake Ventures’ partner Liu Huiqin in the statement. "China’s import substitution strategy has boosted the development of domestic artificial joints providers."
The import substitution strategy refers to a trade and economic policy introduced by China in late 1970s, which advocates replacing foreign imports with domestic production.
With the aging population and import substitution policy, the artificial joints production segment will become "a key investment area closely tracked by Shenzhen Capital Group," said Yi Hongxiang, partner at Shenzhen Capital Group.
Lidakang was founded in April 1998 to operate as a company that engages in the research and development, production, marketing and selling, as well as post-sales services of artificial joints. According to the company’s website, its main products include cement-less stems with vacuum hydroxyapatite coating, hip cups & liners, intertrochanteric fracture stems, double acting heads and other 3D printing products.
The company obtained the national certificate of good manufacturing practice (CGMP) in October 2018, with a capability to produce 50,000 artificial joints and corresponding apparatus every year. Lidakang said in the statement that it provides "accurately matched" artificial joints like a 3D printed pelvis, through personalized customization based on the patient’s computed tomography data.
According to the statement, Chinese healthcare-focused financial services company Robust Cloud Capital served as the exclusive financial adviser of the new round.