Ranked first among MWA medical device providers in thyroid nodule and breast lump treatment with approximately 35% market share in China
Extensive distribution network with over 430 hospitals penetrated and national coverage across 21 provinces, municipalities, and autonomous regions in China
Proposed transaction represents a pre-money equity value of $300 million for Baird Medical and an implied pro forma enterprise value of approximately $370 million for the combined company
Existing Betters shareholders will roll 100% of their current equity holdings into equity of the combined company
SAN FRANCISCO and GUANGZHOU, China, June 26, 2023 /PRNewswire/ -- Baird Medical Investment Holdings Limited ("Baird Medical" or the "Company"),[2] a medical technology company, and ExcelFin Acquisition Corp. ("ExcelFin") (NASDAQ: XFIN), a publicly traded special purpose acquisition company, have entered into a definitive business combination agreement that would result in Baird Medical becoming a publicly traded company. Upon the closing of the proposed transaction between Betters and ExcelFin, the combined company will operate as Baird Medical Investment Holdings Limited and be listed on the Nasdaq under the new ticker symbol BDMD.
Baird Medical is a leading microwave ablation (MWA) medical device developer and provider in China. MWA has gained increasing recognition in China as a treatment for several tumor types, with benefits to patients, doctors, and public healthcare costs. According to Frost & Sullivan, Baird Medical is the largest MWA medical device provider for thyroid nodules and breast lump treatment in China.
Baird Medical Investment Highlights
Leader in a Large, Underserved Market: The medical device market in China has a current estimated value of approximately $146 billion, and is predicted to grow by approximately 7.8% per annum between 2023 and 2026. Baird Medical's devices strategically and efficiently target specialty treatment areas, including thyroid nodules, breast lumps, and liver cancer. With its proprietary MWA medical devices, Baird Medical is ranked first among MWA medical device providers in thyroid nodule and breast lump treatment, with approximately 35% market share in China.
Extensive Sales and Distribution Network: Since being founded in 2012, Baird Medical has established nationwide coverage in China through partnerships with over 100 distributors. This extensive distribution network has enabled Baird Medical to penetrate over 430 hospitals, including over 250 Grade III hospitals. With more than 60% of its total 2022 revenue from direct sales to hospitals with higher margins, for fiscal year 2022, Baird Medical has been able to achieve a net income of $13 million and an attractive adjusted EBITDA margin of 55%.[3]
Strong R&D Capabilities: Baird Medical has built an experienced in-house R&D team led by industry experts. The Company actively collaborates with well-regarded institutions to drive innovation and develop cutting-edge medical solutions. Baird Medical has 38 registered patents and was the first company to obtain a Class III medical device registration certificate for MWA medical devices specifically indicated for thyroid nodules in China.
Delivering Value to all Stakeholders in the Value Chain: The Company believes that MWA offers patients a safe, minimally invasive treatment option with rapid recovery times. For hospitals, Baird Medical's MWA treatment offers shorter observation times and hospital stay periods, increasing operational efficiency. For medical practitioners, MWA treatment requires shorter operation times and involves relatively low risk as compared to open surgery. For insurers, MWA treatment decreases medical expenses for both private providers and the government.
Multiple Levers for Growth: Baird Medical has long planned to develop the Company into a global medical device company, and aims to expand into the U.S., EU, and Southeast Asia within the next three years. To capture global market share, Baird Medical is in the process of applying for additional Class III medical device registration certificates for proprietary MWA medical devices specifically indicated for pulmonary nodules and other conditions. Furthermore, the Company intends to apply for FDA registration in the U.S. and CE Marks registration in the EU.
Strong Financial Profile: Baird Medical recorded revenues of $35 million in 2022, representing a 28% increase from $27 million in 2021. The Company had net income of $12 million and $13 million in 2021 and 2022, respectively, and achieved an attractive adjusted EBITDA margin of 63% and 55% in 2021 and 2022, respectively.[4] As Baird Medical continues to expand its current footprint and execute its growth strategies, the Company is expected to grow revenue significantly in the coming years, with $18 million in projected net income, $45 million in projected revenue, and a projected adjusted EBITDA margin of 57% for 2023.
Highly-Experienced Management Team Supported by Well-Regarded Independent Board of Directors: Baird Medical is led by an experienced management team with deep industry knowledge and track records of driving scale and sustainable growth. Baird Medical's board of directors includes medical industry experts with prestigious accreditations and awards, publications, and research.
[1] According to the Global Market Study of Ablation Therapy Independent Market Research Report (the "Frost & Sullivan Report") commissioned by the Baird Medical and prepared by Frost & Sullivan, a third-party global research organization. |
[2] The name of the post-closing, combined public company will be "Baird Medical Holdings Investment Limited." All references herein to "Baird Medical" shall be deemed to refer (i) to Betters Medical Investment Holdings Limited ("Betters") for any time periods or historical events occurring prior to the closing of the transaction and (ii) to Baird Medical Holdings Investment Limited for any time periods occurring after the closing of the transaction. |
[3] Adjusted EBITDA margin is a non-GAAP measure. Please see the tables at the end of this press release for a reconciliation of Adjusted EBITDA to Net Income. |
[4] Adjusted EBITDA margin is a non-GAAP measure. Please see the tables at the end of this press release for a reconciliation of Adjusted EBITDA to Net Income. |
[5] Adjusted EBITDA margin is a non-GAAP measure. Please see the tables at the end of this press release for a reconciliation of Adjusted EBITDA to Net Income. |
Management and Board Commentary
Ms. Haimei Wu, Founder and CEO of Baird Medical
"The business combination with ExcelFin marks a significant milestone for Baird Medical. We believe ExcelFin's partnership and international connections will provide us with the necessary resources to further expand our presence in the global market, accelerate our growth trajectory, and continue delivering innovative medical solutions to patients worldwide. We are confident that this combination will unlock opportunities and drive our vision of transforming healthcare through advanced, minimally invasive treatments."
Joe Ragan, CEO, CFO, and Director of ExcelFin
"We are very excited to be joining forces with Ms. Haimei Wu and her excellent team at Baird Medical, given their strong track record in the medical device industry. We are confident that capitalizing on our experience and network globally will catalyze a successful new chapter of growth and innovation for Baird Medical as a public company."
Dr. Michael Mingzhao Xing, M.D., Ph.D., Independent Non-Executive Director
"As an independent non-executive director of Baird Medical, I extend my heartfelt congratulations on our business combination with ExcelFin Acquisition Corp. We are excited to expand our footprint to key markets in the U.S., Europe, and Southeast Asia in the next three years. This will allow us to provide minimally invasive oncology treatments to hospitals around the world and improve lives on a greater scale."
Transaction Terms
Baird Medical Investment Holdings Limited, a newly formed exempted company incorporated with limited liability in the Cayman Islands, will be the surviving public company following the consummation of the business combination.
The combined company will have an estimated post-transaction enterprise value of $370 million, assuming 50% redemptions by ExcelFin public shareholders. Proceeds from the transaction will be used to fund growth. The transaction includes a $15 million minimum closing cash condition. To facilitate the transaction, Grand Fortune Capital, sponsor affiliate of ExcelFin, has agreed to purchase approximately $8.8 million of Baird Medical's current debt from BOCI Investment Limited, one of Betters' current preferred shareholders.
ExcelFin's and Baird Medical's respective boards of directors have unanimously approved the transaction, which is expected to close in the fourth quarter of 2023, subject to regulatory and shareholder approvals. Betters shareholders will roll 100% of their existing Betters equity holdings into ordinary shares of Baird Medical and are expected to own approximately 81% of Baird Medical on a non-fully diluted basis immediately following the closing of the proposed business combination, assuming 50% redemptions by ExcelFin's public stockholders. Additional information about the proposed transaction, including a copy of the business combination agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by ExcelFin with the Securities and Exchange Commission ("SEC") and will be available at www.sec.gov. Baird Medical will file a registration statement (which will contain a proxy statement of ExcelFin and prospectus) with the SEC in connection with the transaction.
Advisors
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC ("Cohen"), acts as ExcelFin's lead financial and capital markets advisor. Exos Securities also serves as financial and capital markets advisors to ExcelFin. Shearman & Sterling LLP is acting as ExcelFin's legal counsel, Dechert is acting as Baird Medical's legal counsel, and Ropes & Gray LLP is acting as Cohen's legal counsel.
About Baird Medical
Established in 2012 and headquartered in Guangzhou, China, Baird Medical is a leading microwave ablation (MWA) medical device developer and provider in China. Baird Medical's proprietary MWA medical devices are used for treatment of benign and malignant tumors including thyroid nodules, liver cancer, lung cancer and breast lumps. Baird Medical is the first company to obtain Class III medical devices registration certificate for MWA medical devices specifically indicated for thyroid nodules in China.
About ExcelFin
ExcelFin is a blank check company formed as a Delaware corporation for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. ExcelFin's sponsors include Grand Fortune Capital, LLC ("GFC") and Fin Venture Capital ("Fin"). GFC is an affiliate of an investment group that completed a series of significant M&A transactions and investments in FinTech, TMT and Healthcare. Fin is a private equity firm focused on FinTech software.
在甲状腺结节和乳腺肿块治疗领域位居MWA医疗器械供应商之首，在中国市场份额约为35％
遍布全国21个省、直辖市和自治区的430多家医院的庞大分销网络
拟议交易代表Baird Medical的盘前股权价值为3亿美元，合并后的公司的隐含预估企业价值约为3.7亿美元
现有Betters股东将把其当前持有的100％股权存入合并后的公司的股权
旧金山和中国广州，2023年6月26日 /PRNewswire/ — 医疗技术公司贝尔德医疗投资控股有限公司（“贝尔德医疗” 或 “公司”）和上市特殊目的收购公司ExcelFin收购公司（“ExcelFin”）（纳斯达克股票代码：XFIN）已经签订了最终的业务合并协议，这将使贝尔德医疗成为一家上市公司。Betters和ExcelFin之间的拟议交易完成后，合并后的公司将以Baird Medical Investment Holdings Limited的名义运营，并在纳斯达克上市，股票代码为BDMD。
Baird Medical是中国领先的微波消融术（MWA）医疗器械开发商和供应商。MWA作为多种肿瘤类型的治疗方法在中国越来越受到认可，对患者、医生和公共医疗费用都有好处。根据Frost & Sullivan的数据，Baird Medical是中国最大的甲状腺结节和乳腺肿块治疗医疗器械供应商。
贝尔德医疗投资亮点
服务不足的大型市场的领导者： 中国的医疗器械市场目前估计价值约为1460亿美元，预计在2023年至2026年之间，每年将增长约7.8％。Baird Medical的设备战略性和高效地瞄准专业治疗领域，包括甲状腺结节、乳腺肿块和肝癌。凭借其专有的MWA医疗器械，Baird Medical在甲状腺结节和乳腺肿块治疗领域的MWA医疗器械供应商中名列第一，在中国占有约35％的市场份额。
广泛的销售和分销网络： 自2012年成立以来，Baird Medical通过与100多家分销商的合作，在中国建立了覆盖全国的覆盖范围。这种广泛的分销网络使Baird Medical能够渗透到430多家医院，包括250多家三级医院。Baird Medical在2022财年实现了1300万美元的净收入和55％的诱人调整后息税折旧摊销前利润率，其2022年总收入中有60％以上来自利润率较高的医院的直接销售。
强大的研发能力： Baird Medical建立了一支由行业专家领导的经验丰富的内部研发团队。公司积极与备受推崇的机构合作，推动创新并开发尖端的医疗解决方案。Baird Medical拥有38项注册专利，是中国第一家获得专门用于甲状腺结节的MWA医疗器械第三类医疗器械注册证书的公司。
为价值链中的所有利益相关者提供价值： 该公司认为，MWA为患者提供了一种安全的微创治疗选择，恢复时间短。对于医院而言，Baird Medical的MWA治疗可缩短观察时间和住院时间，从而提高运营效率。对于医生来说，与开放手术相比，MWA治疗需要更短的手术时间，风险相对较低。对于保险公司而言，MWA治疗可以减少私人提供者和政府的医疗费用。
多种增长杠杆： Baird Medical长期以来一直计划将公司发展成为一家全球医疗器械公司，并计划在未来三年内扩展到美国、欧盟和东南亚。为了占据全球市场份额，Baird Medical正在为专门用于肺结节和其他疾病的专有MWA医疗器械申请额外的III类医疗器械注册证书。此外，该公司打算在美国申请FDA注册，在欧盟申请CE标志注册。
强劲的财务状况： 贝尔德医疗在2022年的收入为3500万美元，比2021年的2700万美元增长了28％。该公司在2021年和2022年的净收入分别为1200万美元和1,300万美元，调整后的息税折旧摊销前利润率分别为63％和55％。[4] 随着Baird Medical继续扩大其目前的业务范围并执行其增长战略，预计未来几年的收入将大幅增长，预计净收入为1,800万美元，预计收入为4,500万美元，调整后的息税折旧摊销前利润预计为4,500万美元 2023年折旧及摊销前利润率为57％。
经验丰富的管理团队由备受推崇的独立董事会支持： Baird Medical由一支经验丰富的管理团队领导，他们拥有深厚的行业知识以及推动规模和可持续增长的往绩。Baird Medical的董事会包括医疗行业专家，他们拥有久负盛名的认证和奖项、出版物和研究。
[1] 根据 消融疗法的全球市场研究独立市场研究报告 （“弗罗斯特沙利文报告”）由贝尔德医疗委托，由第三方全球研究机构弗罗斯特沙利文编写。 |
[2] 收盘后的合并上市公司的名称将是 “贝尔德医疗控股投资有限公司”。此处提及 “Baird Medical” 的所有内容均应被视为指 (i) 交易完成前发生的任何时间段或历史事件的Betters Medical Investment Holdings Limited（“Betters”）；（ii）交易完成后发生的任何时间段内提及贝尔德医疗控股投资有限公司。 |
[3] 调整后的息税折旧摊销前利润率是非公认会计准则衡量标准。请参阅本新闻稿末尾的表格，了解调整后息税折旧摊销前利润与净收入的对账情况。 |
[4] 调整后的息税折旧摊销前利润率是非公认会计准则衡量标准。请参阅本新闻稿末尾的表格，了解调整后息税折旧摊销前利润与净收入的对账情况。 |
[5] 调整后的息税折旧摊销前利润率是非公认会计准则衡量标准。请参阅本新闻稿末尾的表格，了解调整后息税折旧摊销前利润与净收入的对账情况。 |
管理层和董事会评论
Baird Medical 创始人兼首席执行官吴海梅女士
“与ExcelFin的业务合并对贝尔德医疗来说是一个重要的里程碑。我们相信，ExcelFin的合作伙伴关系和国际联系将为我们提供必要的资源，以进一步扩大我们在全球市场的影响力，加快我们的增长轨迹，并继续为全球患者提供创新的医疗解决方案。我们相信，这种组合将释放机遇，推动我们通过先进的微创治疗实现医疗保健转变的愿景。”
ExcelFin 首席执行官、首席财务官兼董事 Joe Ragan
“鉴于他们在医疗器械行业的良好记录，我们很高兴能与吴海梅女士及其在Baird Medical的优秀团队合作。我们相信，利用我们在全球的经验和网络将催化Baird Medical作为上市公司的成功增长和创新的新篇章。”
Michael Minghao Xing 博士，医学博士，博士，独立非执行董事
“作为Baird Medical的独立非执行董事，我衷心祝贺我们与ExcelFin Acquisition Corp. 的业务合并。我们很高兴在未来三年内将业务范围扩大到美国、欧洲和东南亚的主要市场。这将使我们能够为世界各地的医院提供微创肿瘤治疗，并更大规模地改善生活。”
交易条款
Baird Medical Investment Holdings Limited是一家新成立的豁免公司，在开曼群岛注册成立的有限责任公司，在业务合并完成后将成为幸存的上市公司。
假设ExcelFin公众股东赎回了50％，合并后的公司的交易后企业价值估计为3.7亿美元。交易收益将用于为增长提供资金。该交易包括1500万美元的最低成交现金条件。为了促进交易，ExcelFin的赞助商子公司Grand Fortune Capital已同意从Betters目前的优先股股东之一中银国际投资有限公司手中购买贝尔德医疗的约880万美元流动债务。
ExcelFin和Baird Medical各自的董事会一致批准了该交易，该交易预计将于2023年第四季度完成，但须经监管部门和股东批准。假设ExcelFin的公众股东赎回了50％，Betters股东将在拟议业务合并结束后立即将其持有的Betters现有股权中的100％存入贝尔德医疗的普通股，预计将在拟议的业务合并结束后立即以非完全摊薄的方式拥有Baird Medical约81％的股份。有关拟议交易的更多信息，包括业务合并协议和投资者陈述的副本，将在ExcelFin向美国证券交易委员会（“SEC”）提交的8-K表最新报告中提供，并将在www.sec.gov上公布。Baird Medical将就该交易向美国证券交易委员会提交一份注册声明（其中将包含ExcelFin的委托书和招股说明书）。
顾问
J.V.B. Financial Group, LLC（“Cohen”）旗下的Cohen & Company Capital Markets是ExcelFin的首席金融和资本市场顾问。Exos Securities还担任ExcelFin的金融和资本市场顾问。Shearman & Sterling LLP担任ExcelFin的法律顾问，Dechert担任Baird Medical的法律顾问，Ropes & Gray LLP担任科恩的法律顾问。
关于贝尔德医疗
Baird Medical成立于2012年，总部位于中国广州，是中国领先的微波消融术 (MWA) 医疗器械开发商和供应商。Baird Medical的专有MWA医疗设备用于治疗良性和恶性肿瘤，包括甲状腺结节、肝癌、肺癌和乳腺肿块。Baird Medical是中国第一家获得专门用于甲状腺结节的MWA医疗器械第三类医疗器械注册证书的公司。
关于 ExcelFin
ExcelFin是一家空白支票公司，成立于特拉华州的一家公司，目的是与一家或多家企业进行合并、股票交换、资产收购、股票购买、重组或类似的业务合并。ExcelFin的赞助商包括Grand Fortune Capital, LLC（“GFC”）和金融风险投资（“Fin”）。GFC是一家投资集团的子公司，该集团在金融科技、TMT和医疗保健领域完成了一系列重大并购交易和投资。Fin是一家专注于金融科技软件的私募股权公司。
