#China #Innovations #Hangzhou #Structural Heart #Venus Medtech

Overview of Venus Medtech's 2024 Performance

Venus Medtech (Hangzhou) Inc., a leading global player in structural heart therapies, announced its annual financial results for the year ending December 31, 2024. Despite facing a challenging market, the company reported substantial growth in profitability and operational efficiency. The report highlights a significant increase in revenue and a resolute focus on cost optimization.

Financial Highlights

In 2024, Venus Medtech achieved total revenues of 471 million RMB, reflecting a 13.53% increase in overseas earnings amounting to 82.5 million RMB. The adjusted EBITDA loss showed a notable reduction of 45.56%, amounting to 254 million RMB, largely due to stringent cost controls implemented by the company. Commercial profit soared by 112.60% year-on-year, increasing to 97.7 million RMB, with the commercial profit margin nearly doubling from 9.35% in 2023 to 20.74%. The gross margin remained strong at 78.11%, indicating stable pricing within the market.

One of the key aspects of Venus Medtech's success was its approach to cost management. Sales expenses dropped by 18.44% year-on-year to 245 million RMB, and the sales expense ratio improved significantly from 61.15% to 52.05%. R&D spending reduced by 35%, bringing costs down to 341 million RMB, as the company prioritized high-value projects within its portfolio.

Focus on Profitability and Global Expansion

Venus Medtech adopted a "Profitability First" strategy, which markedly boosted its business earnings by over 112%. The gross loss was successfully halved, demonstrating a sustainable financial trajectory. This strategy helped the company to solidify its leadership in the valve therapy sector within China, enhancing operational efficiency and commercial profitability.

The company has made strides in distribution channel development, securing its position as the leading supplier of transcatheter aortic valve replacement (TAVR) in China. Their products are now utilized across more than 650 hospitals nationwide, with significant engagement at over 90 third-party conferences and 100 of its own events, reaching over 2 million online viewers and engaging more than 5,500 medical experts.

On the international front, Venus Medtech reported that foreign sales accounted for 17.52% of total revenue, up from 14.79% in 2023. Growth was notable across Europe, Asia-Pacific, and Latin America, with the company expanding into 13 new countries, resulting in a presence in nearly 70 markets.

Innovations and Product Development

Venus Medtech remains committed to innovation with its "Four Valve Strategy" for structural heart solutions. Significant developments in 2024 included:

• - The Venus-PowerX aortic valve completed its first patient enrollment in a global confirmatory trial, with full enrollment anticipated in China by 2025.
• - The VenusA-Deluxe valve received market approval in China in November 2024.
• - The VenusP-Valve advanced in its IDE PROTEUS study in the U.S., successfully implanting its first patient in June 2024.

The timeline also included progress on the Cardiovalve trial aimed at treating tricuspid regurgitation, with nearly 120 patients enrolled across 30 prestigious cardiovascular centers in Europe and Canada.

Venus Medtech has strengthened its intellectual property portfolio significantly, holding 886 patents and applications, with an impressive grant rate of 473 granted patents.

Long-term Clinical Evidence and Future Goals

Adhering to evidence-based medicine principles, Venus Medtech has systematically conducted long-term follow-up studies for its registered clinical trials, yielding data that showcases the sustained clinical benefits of its products. Highlights from studies include:

• - In the Cardiovalve TARGET CE study, immediate results showed that 93.7% of the first 105 patients achieved mild or less than mild tricuspid regurgitation.
• - VenusP-Valve data confirmed no mortality or reinterventions, showing significant early remodeling and improvement in patient quality of life over five years.

Conclusion

"2024 has been a transformative year for Venus Medtech, marking a pivotal shift in our operations and positioning for sustainable growth," stated CEO Lim Hou-Sen. "By prioritizing profitability, operational excellence, and global expansion, we are set on a path of continued innovation and long-term value creation for both our patients and shareholders."

About Venus Medtech

Founded in 2009 and based in Hangzhou, China, Venus Medtech specializes in innovative medical devices for structural heart diseases. Their product line addresses issues related to aortic, pulmonary, mitral, and tricuspid valves, showcasing a comprehensive portfolio designed to provide effective treatment solutions for life-threatening conditions. With global R&D centers in China, the U.S., and Israel, Venus Medtech has built an extensive network for research, production, marketing, and support, dedicated to improving patients' lives worldwide.