Venus Medtech: Promising Growth and Innovations Drive Success

Venus Medtech's Annual Results Reflect Growth and Innovation

Venus MedTech Inc. (Stock Code: 2500.HK, hereinafter referred to as "Venus Medtech" or the "Company"), a global leader in structural heart therapies, has revealed significant financial results indicating improved profitability and operational efficiency despite ongoing market challenges. These results for the year ended December 31 demonstrate the Company's commitment to innovation and expansion.

Key Financial Highlights

This past year has brought various financial achievements for Venus Medtech:

1. Revenue: RMB471 million, reflecting a robust overseas revenue growth of 13.53% year on year, reaching RMB82.5 million.
2. Adjusted Non-IFRS EBITDA Loss: Narrowed by 45.56% year on year to RMB254 million, showcasing effective cost control measures.
3. Commercial Profit: An impressive 112.60% increase from the previous year to RMB97.7 million, resulting in a commercial profit margin of 20.74%.
4. Gross Margin: The gross margin remained stable at 78.11%, highlighting consistent pricing strategies.

Focus on Cost Optimization and Profitability

Facing a dynamic market landscape, Venus Medtech has proven its leadership in the valvular therapy sector through rigorous operational efficiencies and a strong emphasis on profitability:

Cost Optimization Strategies

• Sales expenses saw an 18.44% decline year on year to RMB245 million, with a sales expense ratio decline from 61.15% to 52.05%.
• Research and Development (R&D) expenses decreased by 35% year on year, chalking up to RMB341 million as a result of prioritizing high-value projects.

Profitability Initiatives

• The "Profitability-First" strategy led to a notable commercial profit increase of 112.60% (RMB97.7 million), concurrently halving adjusted EBITDA losses.

Achievements in Global Expansion

In terms of domestic market strategies, Venus Medtech has made significant strides. By developing distributor networks and penetrating tier-2 and tier-3 hospitals, it established itself as China’s leading provider of transcatheter aortic valve replacements (TAVR).

• Their products are now utilized in over 650 hospitals throughout the country.
• Participation in over 90 third-party conferences and conducting over 100 proprietary events helped engage with 5,500 medical experts and reach more than 2 million online viewers.

On the international front, sales contributed to 17.52% of total revenue, a rise from 14.79% the previous year. Growth was observed across various regions, with Europe growing by 10.1%, Asia-Pacific by 16.6%, and Latin America by 38.6%. Venus Medtech successfully entered 13 new countries, expanding its global footprint to nearly 70 markets.

Innovation at the Core of Development

Venus Medtech is dedicated to maintaining its innovative edge, focusing on its "Four-Valve Strategy" aimed at providing premium solutions for structural heart diseases. Notable developments leading into 2024 include:

Aortic Valve Developments

• Venus-PowerX marked its first patient enrollment in a global confirmatory trial, with complete enrollment expected soon.
• VenusA-Deluxe successfully gained market approval in China.

Pulmonary Valve Progress

• Advancements in the U.S. IDE (PROTEUS) pivotal study, where the initial patient was successfully implanted.

Mitral and Tricuspid Valve Insights

The Cardiovalve trial focused on treating tricuspid regurgitation involved nearly 120 patients across various renowned cardiovascular centers.

To back its innovations, the Company holds an extensive intellectual property portfolio comprising 886 patents and applications, with 473 already granted.

Proving Efficacy with Clinical Evidence

Venus Medtech ensures a commitment to evidence-based medicine by conducting long-term follow-up studies on its clinical trials. The results steady its reputation and showcase the clinical benefits of its products:

Highlighted Studies

• The TARGET CE Pivotal Study indicated that 93.7% of the first 105 patients maintained mild tricuspid regurgitation.
• In a humanitarian use scenario, 90% of patients with severe tricuspid regurgitation saw improvement.

Company Vision for the Future

CEO Lim Hou-Sen emphasized the transformative nature of 2024 for Venus Medtech. By foregrounding profitability and operational excellence, the Company is strategically positioning itself for long-term growth. The roadmap includes continued innovation and optimized commercial strategies aimed at delivering lasting value to patients and stakeholders.

About Venus Medtech

Founded in 2009, Venus Medtech (2500.HK) is headquartered in Hangzhou, China. This innovative medical device company focuses on structural heart disease, offering a robust portfolio that addresses a variety of valve diseases. They boast global research and development facilities in China, the United States, and Israel, underpinning their dedication to advancing treatment options for critical heart conditions.

Frequently Asked Questions

What were the key financial achievements for Venus Medtech in 2024?

Their revenue increased to RMB471 million, with overseas revenue growing by 13.53% year on year.

How did Venus Medtech optimize their costs?

They reduced sales expenses by 18.44% and saw a 35% reduction in R&D expenses by prioritizing key projects.

What is Venus Medtech's position in the transcatheter aortic valve replacement market?

They have established themselves as the leading provider in China for TAVR.

In how many countries does Venus Medtech operate?

Venus Medtech has expanded into nearly 70 markets globally.

What innovations are being pursued by Venus Medtech?

They are advancing their "Four-Valve Strategy" with developments in various heart valve technologies.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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