Obesity Device Maker Tangji Medical Refiles for Hong Kong IPO

Hangzhou Tangji Medical Technology Co., a medical device firm focused on metabolic diseases, has refiled for an initial public offering on the main board of the Hong Kong Stock Exchange. The company is developing a portfolio of treatments for obesity, with its core product already approved for sale in China and several international markets.

Filing Details and Core Product

According to an exchange disclosure dated Aug. 28, the IPO is jointly sponsored by ICBC International and Caitong International. Tangji Medical is pioneering what it calls endoscopic bariatric and metabolic therapies (EBMT), aiming to provide a minimally invasive alternative to traditional weight-loss surgeries and a complement to pharmaceutical treatments.

Its core product is the Gastric Bypass Stent System (GBS), a flexible, sleeve-like device known as a Duodenal-Jejunal Bypass Liner (DJBL). It is inserted endoscopically to create a barrier in the small intestine, which reduces nutrient absorption and helps regulate hormones to promote weight loss.

The GBS system was approved by China's National Medical Products Administration (NMPA) in January 2024 as a Class III innovative medical device, making it the first device of its kind cleared for endoscopic obesity treatment in the country. As of its latest filing, the product has also received regulatory approval in 11 other markets, including Hong Kong, Singapore, Brazil, and Saudi Arabia.

Financial Performance

While Tangji Medical is not yet profitable, its prospectus reveals rapid revenue growth and high gross margins from the initial commercialization of its GBS device. The company's continued net losses reflect ongoing investment in research, development, and global expansion.

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Key financial figures from the filing include:

• Revenue: Grew from ¥12.7 million in 2022 to ¥32.2 million in 2023, with ¥23.7 million recorded in the first six months of 2024.
• Gross Margin: Remained strong, reported at 84.9% for the first half of 2024.
• Net Loss: Widened from ¥66.0 million in 2022 to ¥88.3 million in 2023. The company reported a net loss of ¥68.3 million for the first six months of 2024.

Market Outlook and Competition

Tangji Medical is entering a rapidly evolving market for obesity treatments. Market data from Frost & Sullivan, cited in the prospectus, projects significant long-term growth for EBMT devices, though it notes potential short-term headwinds from the widespread adoption of GLP-1 drugs like semaglutide.

The global market for DJBL devices is forecast to grow at a compound annual growth rate (CAGR) of 159.8% between 2025 and 2030, reaching an estimated $533.1 million. In China, the market is expected to expand at a 100.1% CAGR over the same period. The industry outlook suggests that devices like the GBS may eventually be used in combination with drug therapies for long-term weight management.