Key points of investment
The company achieved revenue of 416 million yuan in 2021, a year-on-year increase of 50.65% over 2020. This is mainly due to the rapid release of TAVR products. A net loss of 371 million yuan was achieved, an increase of 188 million yuan over the loss for the same period in 2020. This is mainly due to the rapid expansion of the core product TAVR, and the impairment of goodwill in the subject of mergers and acquisitions during the reporting period.
In terms of the TAVR pipeline, Venusa-Plus has been growing well since it was approved by the NMPA in November 2020, and was approved by Thailand in December 2020 and approved by Kyrgyzstan in June 2021, gradually opening up the international market. Venus-powerX, a self-inflating valve, completed its first FIM case at West China Hospital of Sichuan University at the end of December 2021. As a TAVR product that uses advanced anti-calcification treatment technology and supports 100% recycling through wire control technology, Venus-powerX is highly competitive and is expected to become a mainstream product in the market in the future. The ball dilated valve Venus-Vitae completed the first 2 cases of FIM in Argentina at the end of December 2021. Its products are equipped with dry valve technology and an annular upper valve design. The aortic repair product Leaflex completed the first FIM case in China in October 2021.
In terms of other valve pipelines, the pulmonary valve VenusP-valve was approved for special use in the UK in March 2021 and officially entered the UK market. In December 2021, the company wholly acquired Cardiovalve, a transcatheter mitral valve and tricuspid valve innovative therapy company, and obtained its mitral and tricuspid valve replacement products, and its indications for tricuspid valve reflux also received the title of breakthrough device by the US FDA.
In terms of other non-valvular pipelines, TriGuard3 completed enrollment in the first domestic registered clinical trial in April 2021. In June 2021, the company and Israeli high-tech company Healium established Renaly Ltd, a 51% subsidiary, to introduce Healium's next-generation RDN innovative devices.
In October 2021, the company wholly acquired Nuocheng Healthcare to improve the treatment of HCM patients. Its product, Liwen RF, has now entered multi-center clinical trials in China.
Our view: The company is a leading company in the field of structural heart disease. Its TAVR products continue to maintain the highest market share, and actively lay out innovative treatment plans in various structural heart disease fields, laying a solid foundation for future sustainable development.
Risk warning: Pipeline R&D progress falls short of expectations, market commercialization falls short of expectations, policy collection risks.