HONG KONG, March 26, 2025 /PRNewswire/ -- Peijia Medical (9996.HK), a leading Chinese domestic player in the high-growth transcatheter valve therapeutics and neurovascular interventions markets, announced financial results for the year ended December 31, 2024 ("the Year") on March 25, 2025.
Financial Highlights
During the Year, Peijia recorded operating revenue of RMB615.5 million, representing a 39.5% year-on-year increase. The revenue growth was driven by:
- Continued commercialization and expanded market share gains of transcatheter aortic valve replacement (TAVR) products across China;
- The successful first-year nationwide launch of DCwire Micro Guidewire validated by positive user feedback and widespread market adoption;
- Further market penetration of Syphonet Stent Retriever and Fastunnel Delivery Balloon Dilatation Catheter, supported by differentiated product design and innovative procedure techniques; and
- Sustained adoption of the Company's coil product under the volume-based procurement (VBP) initiatives, bolstered by reliable product quality and brand recognition.
Gross profit for the Year was RMB433.6 million, up 33.3% year-on-year. Benefiting from a diversified product portfolio and ongoing cost optimization, gross margin remained robust at 70.5%, despite VBP headwinds in the Neurointerventional Business ("Neuro Business"). Expense ratios improved significantly across the Company due to economies of scale and operational efficiency gains: selling and distribution, administrative, and research and development expense ratios decreased by 20.3, 7.6, and 33.4 percentage points year-on-year, respectively.
Net loss for the Year narrowed by 41.8% to RMB228.5 million. Notably, the Neuro Business achieved its first full-year profitability, contributing a segment profit of RMB52.1 million, marking a major milestone for the Company.
"2024 was a year of strategic momentum as we advanced our Dual-Engine Strategy," said Dr. Yi Zhang, Chairman and CEO of Peijia Medical. "Our Neuro Business achieved transformative profitability, while the Valve Business continues to pioneer industry progress. Fueled by clinical trust and our commitment to 'Dedication with Passion, Devotion for Life,' Peijia will accelerate breakthrough innovations, refine operational excellence, and deliver sustainable value-championing a new frontier in structural heart and neurovascular care with passion and purpose."
Financial and Business Results by Segment:
Transcatheter Valve Therapeutic Business and Future Technology Business [1] ("Valve Business"): Strengthened Market Position and Dedicated Pipeline Development
- Revenue for the Valve Business grew 40.1% year-on-year to RMB259.9 million, with gross profit rising 30.3% to RMB207.1 million.
- Selling and distribution expenses decreased 2.2% year-on-year, with the expense ratio dropping 38.7 percentage points due to improved sales force efficiency.
- R&D and administrative expense ratios declined by 70.4 and 14.8 percentage points, respectively, following the progressive advancement of clinical projects into stages with lower R&D costs and operational optimization.
- Segment loss narrowed 30.6% to RMB301.3 million (2023: RMB433.9 million).
Growth was driven by TAVR market share gains and increased implant volumes. Peijia expanded into 150+ new hospitals, reaching ~650 medical institutions. Implant volumes rose 37% to 3,400+ units, with the Company capturing ~25% of China's transfemoral TAVR market. In Q4 2024, Peijia matched peers in monthly implantation volume, sustaining momentum into Q1 2025.
Pipeline Advancements:
- Completed enrollment in pivotal trials for TaurusNXT (durability-enhanced TAVR), TaurusTrio (aortic regurgitation treatment; the licensed-in JenaValve Trilogy THV System, announced in July 2024 to be acquired by Edwards Lifesciences), and GeminiOne (internally developed transcatheter edge-to-edge repair system for mitral regurgitation).
- Launched TaurusMax TAVR (NMPA-approved August 2024), an upgraded iteration of TaurusElite with enhanced steerability and visualization, and introduced an AV21 small-size TAVR specification for TaurusOne and TaurusElite to accommodate patients with smaller anatomy.
- Progressed global expansion: MonarQ TTVR received FDA IDE approval for an Early Feasibility Study.
Neurointerventional Business ("Neuro Business"): Robust Growth and Full-Year Profitability
- Revenue grew 39.1% year-on-year to RMB355.5 million, balanced across hemorrhagic (30.3%), ischemic (32.3%), and vascular access (37.3%) products.
- DCwire Micro Guidewire generated RMB37.5 million in debut-year revenue, disrupting foreign dominance in China's market and advancing toward FDA 510(k) clearance.
- Secured VBP wins: coil products achieving>90% provincial coverage after winning bids in both the provincial alliance VBP of coils led by Jilin Province (Group A) and 3+N Alliance VBP of coils in the Beijing - Tianjin - Hebei region; SacSpeed Balloon Dilatation Catheter and Fastunnel Delivery Balloon Dilatation Catheter securing Group A bids in the provincial alliance VBP of vascular interventional consumables led by Hebei Province.
- Gross margin was 63.7% (down 1.4pp due to VBPs), while expense ratios for selling, administration, and R&D fell 7.1, 2.4, and 6.7 percentage points, respectively.
- Achieved first full-year segment profit of RMB52.1 million, providing capital reserves for diversified competition.
[1] Strategic Business Realignment: In 2024, Peijia spun off three high-potential R&D projects (Lithotripsy Valvuloplasty, MonarQ TTVR, ReachTactile Robotic-Assisted TAVR) into the Future Technology Business, focusing on global unmet needs. These subsidiaries operate autonomously, with multiple projects securing external financing. |
About the Company
Peijia Medical (9996.HK) was established in 2012 and is headquartered in Suzhou, China. Peijia Medical focuses on the high-growth interventional procedural medical device market in China and aims to become a world-renowned medical device platform that provides comprehensive treatment solutions for structural heart and neurovascular diseases. The Company now has three TAVR systems and sixteen neurointerventional devices commercialized in China and various innovative product candidates at different stage of development. For more information about Peijia visit peijiamedical.com/about.
SOURCE Peijia Medical
