WuXi Healthcare Venture’s Portfolio Company Forerunner Acquires Medsphere and Completes Series B Round Financing

Forerunner Medical (Shanghai) Co., Ltd. has announced the completion of the acquisition of Shanghai Medsphere Co., Ltd. In addition, the Medtronic-Sequoia China Healthcare Technology Venture Investment Fund (“Medtronic-Sequoia China) has made an investment in Forerunner’s B round financing. Existing Series A investors WuXi Healthcare Ventures (“WXHV”) and Sequoia also participated in the Series B round.

 

The successful acquisition of Medshphere will help Forerunner to further reinforce its leading position in the low-temperature plasma radio-frequency field.

 

The common investment philosophy shared by Medtronic-Sequoia China, Sequoia, and WXHV is to identify and invest in leading, disruptive healthcare companies both inside and outside of China. The successful closing of the Series B not only signals the recognition of Forerunner’s previous track record, but also the shareholders confidence in the company’s significant growth potential. The capital injection is vital for Forerunner and Medsphere to better realize their strategic goals.

 

Medsphere is a Shanghai-based vertically-integrated medical device company that specializes in minimally invasive radiofrequency ablation (RFA) techniques for the treatment of a range of tumors, including liver, lung, thyroid, breast, and others. The company has a seasoned management team with years of experience in research, development, manufacturing, and sales of RFA generator with compatible electrodes. The RFA electrodes and generators developed and manufactured by Medsphere have been cleared by CFDA, achieved the ISO 13485 certification, and hold more than 10 Chinese patents.

 

“With the expansion to a range of tumors (liver, lung, breast, thyroid, and others) from Medsphere, Forerunner will broaden its coverage in the low-temperature plasma radio-frequency market in addition to our existing application in sports medicine, while reinforcing our leading position in China,” said Mr. Jay Qin, Chairman of Forerunner. “We welcome our new investor Medtronic-Sequoia China and look forward to future strategic collaboration in the global arena. We also want to express our gratitude to our existing investors Sequoia and WXHV for their recognition of our previous endeavors and their support for our future strategic initiatives.”

 

Forerunner Medical was founded in 2009 as a developer and manufacturer of innovative medical devices for minimally invasive treatment. It mainly develops low-temperature plasma radio-frequency generators and electrodes for sports medicine, disk demo-pression, and ENT treatment.

 

"As a strong backer of healthcare start-ups, we are confident about Forerunner Medical's founding team, their professional skills, and their prospects," said Cheng Lifei, deputy president of Medtronic-Sequoia China Healthcare Technology Venture Investment Fund. "We will leverage Medtronic's product line, technology reserves, and international market (access) to help the company grow in China and internationally."

 

"We are optimistic about the company's long-term growth, and will utilize our investment and acquisition expertise to help future acquisitions and development going forward," said Chen Penghui, a partner at Sequoia Capital China.

 

“With multiple patented technologies and led by Jay, Forerunner has been the industry leader for Sports Medicine with RAF technology,” said Dr. Fay Xing, partner of WXHV. “The acquisition further expands Forerunner’s coverage in oncology field and helps Forerunner become the largest RAF platform company with the most comprehensive indication coverage. WXHV will continue to leverage its superior understanding of disruptive technologies and extensive global network to help Forerunner to grow.”

 

Forerunner will continue to focus on carrying out innovative and professional research for new product development that will benefit more doctors and patients.