Core Viewpoint - The strategic cooperation agreement between Kaili Medical and Zhejiang Batai Medical Technology aims to address the growing demand for cardiovascular disease treatment in China by focusing on advanced interventional techniques and providing comprehensive treatment options for coronary heart disease patients [1] Group 1: Company Collaboration - Kaili Medical and Zhejiang Batai Medical have officially signed a strategic cooperation agreement in Hangzhou [1] - The partnership seeks to integrate resources from both companies to enhance the development and promotion of new interventional technologies [1] Group 2: Market Demand - The collaboration is a response to the increasing demand for cardiovascular disease diagnosis and treatment in the Chinese market [1] - The focus will be on "precise diagnosis and treatment" and "intervention without implantation" as key areas of development [1]

Investment Rating - The report maintains an "Outperform" rating for the biopharmaceutical industry [1]. Core Insights - The peripheral intervention industry is experiencing rapid growth, driven by a large patient base and the potential for domestic companies to replace imports [3][21]. - The penetration rate for peripheral vascular disease treatments in China is significantly lower than in the U.S., indicating substantial room for growth [12][21]. - Domestic companies are making significant progress in various product categories, particularly drug-coated balloons (DCB) and venous stents, which are expected to capture a larger market share [3][22]. Summary by Sections Industry Overview - The treatment rates for peripheral vascular diseases are low, but the industry is poised for rapid development alongside domestic replacement [5][38]. - In 2021, there were over 51 million patients with peripheral arterial disease and 120 million with varicose veins in China, highlighting strong treatment demand [3][11]. Arterial Diseases - Domestic companies are leveraging drug-coated balloons to break into the market, with multiple products expected to develop concurrently [3][19]. - The market for peripheral arterial intervention is projected to grow at a CAGR of 15.6% from 2021 to 2030, with significant advancements in DCB and other innovative products [21][22]. Venous Diseases - The treatment potential for venous diseases is substantial, with domestic companies gradually improving their product offerings [3][22]. - The market for peripheral venous intervention is expected to grow at a CAGR of 29.3% from 2021 to 2030, driven by increasing awareness and improved treatment accessibility [21][22]. Investment Recommendations - Focus on leading domestic companies with comprehensive product portfolios and advanced technologies in the peripheral intervention field, such as Xinmai Medical, Xianruida Medical, and Guichuang Tongqiao [3][22].

Core Viewpoint - The approval of AcoArt Verbena® marks a significant breakthrough in the treatment of vertebral artery stenosis, ushering in a new era of "intervention without implantation" [2][4]. Group 1: "Intervention Without Implantation" Concept - The "intervention without implantation" concept aims to restore the health of blood vessels while avoiding the long-term issues associated with permanent implants, such as in-stent restenosis and chronic inflammation [4]. - This approach addresses the limitations of traditional metal stents, which can lead to complications over time [4]. Group 2: AcoArt Verbena® Overview - AcoArt Verbena® is the world's first drug-coated balloon (DCB) specifically designed for vertebral artery origin stenosis (VAOS), suitable for patients with ≥70% stenosis and ineffective drug therapy [9][10]. - The product utilizes advanced drug coating technology with magnesium stearate as a carrier for paclitaxel, enhancing drug stability and delivery efficiency [10]. Group 3: Clinical Trial Results - AcoArt Verbena® demonstrated a significant reduction in target lesion restenosis rates, with the trial group showing a 12-month restenosis rate of 13.04% compared to 37.31% in the control group, a decrease of 67% [16][13]. - The product avoids serious adverse events related to devices, mitigating risks associated with long-term metal stent implantation [16]. Group 4: Market Landscape and Competitive Position - The global peripheral DCB market was valued at 4.91 billion yuan in 2023, with a projected compound annual growth rate (CAGR) of 14.1%, reaching 12.28 billion yuan by 2030 [15]. - Xianruida holds an 86.9% market share in China's peripheral DCB market, indicating a strong competitive position [15]. - The collaboration with Boston Scientific is expected to enhance market penetration and revenue growth, with potential sales exceeding 1.2 billion yuan in the next three years [18][19]. Group 5: Company Background - Xianruida, founded in 2008 and listed on the Hong Kong Stock Exchange in 2021, focuses on innovative medical technologies in vascular intervention [20][21]. - The company has developed a diverse product pipeline, including several DCB products and other interventional devices, addressing unmet clinical needs across various medical fields [21].