DCP to invest in Chinese heart valve developer
DCP Capital Partners, a private equity firm set up by the former heads of KKR’s China business, has agreed to invest an undisclosed sum in domestic heart valve developer Venus Medtech.
The company will use the capital to upgrade its existing products and to support the development of mitral and tricuspid valve replacement devices that are intended to establish Venus as an international player. These devices are set to enter clinical trial stage testing next year.
Venus' debut transcatheter aortic valve replacement (TAVR) product was the first of its kind to be approved by the China Food & Drug Administration last year. Meanwhile, domestic registration research has been completed for what the company claims is the first-ever self-expanding pulmonary valve globally. Venus has more than 300 patents on valve technology worldwide.
Senile calcific aortic valve disease – where the valve opening narrows and blood flow is restricted – is set to become more common in China due to aging. Surgical procedures to replace the valve can be risky and recovery is slow. As a result, TAVR, where the damaged valve is not removed but a replacement is wedged into its place, is gaining in popularity.
According to a statement released by Venus, there are least 500,000 patients in China who have TAVR indication and most of them are not admitted to hospital for treatment. Similarly, there are thought to be more than 10 million people suffering from mitral and tricuspid valve diseases, but the rate of surgical treatment is less than 2%.
The company last outside investment was a $37 million commitment from Goldman Sachs in 2016. Earlier backers include Dinova Venture Capital, Sequoia Capital China and Qiming Venture Partners.
DCP was established in 2016 by David Liu and Julian Wolhardt, previously KKR's head of China and regional leader for China private equity, respectively. They are said to be raising a fund of at least $1.5 billion. In February, DCP agreed to acquire a controlling position in Singapore-based circuit board maker MFS Technology from Navis Capital Partners.
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