On November 25, 2024, Baheal Medical (301015.SZ) announced that it has entered into an exclusive commercialization partnership with ZAP Surgical Systems, Inc.,  (hereinafter referred to as "ZAP"), a global leader in radiosurgery robotics.This agreement grants Baheal Medical the rights to commercialize the ZAP-X® Gyroscopic Radiosurgery Platform and its related accessories in mainland China, Hong Kong, and Macau. This collaboration marks Baheal Medical's official entry into the precision radiotherapy market, promoting the clinical application of the world’s first self-shielding radiotherapy device.

The proposal concerning the distribution agreement and related routine transactions was approved with a significant majority at Baheal Medical's fourth extraordinary shareholders meeting of 2024.

Powerful Alliance Brings Advanced Head and Neck Radiosurgical System to China

According to statistics from the Qianzhan Industry Research Institute, the size of China's high-end medical device market reached 1.3 trillion yuan in 2022. This market is expected to continue growing rapidly, potentially reaching 2.8 trillion yuan by 2030. Attracted by this vast potential, numerous multinational medical device companies are increasingly establishing localized operations in China. Furthermore, the Chinese government has introduced policies to encourage foreign investment in setting up R&D centers and partnering with domestic firms on technological development and industrial application.

Baheal Medical's strategic partnership with ZAP is well-aligned with current industry trends. In addition to equity investments and commercialization efforts, a Baheal Medical subsidiary has entered into an agreement with ZAP for the large-scale production of the ZAP-X system. Baheal will supply the mass production of ZAP-X for both the Chinese and global markets. This collaboration builds on Baheal Pharma Group's existing investments in the medical linear accelerator field. The introduction of the groundbreaking ZAP-X radiosurgical system significantly enhances Baheal's international competitiveness in the radiotherapy field.

After inventing the globally renowned CyberKnife Robotic Radiosurgery System, John R. Adler, world-leading neurosurgeon, Founder and CEO of ZAP, has invented the ZAP-X. This cutting-edge radiosurgery system is specifically designed to enhance the treatment of brain tumors, lesions, and other conditions of the neck. It is suitable for addressing acoustic neuromas, meningiomas, pituitary adenomas, and all types of brain tumors, in addition to arteriovenous malformations and trigeminal neuralgia. Moreover, the ZAP-X distinguishes itself as the world's first cobalt-free radiosurgery system dedicated to brain and neck applications. It leverages a 3MV, 1500 MU/min linear accelerator, which eliminates the need for frequent radioactive source replacements, thereby significantly reducing operational costs. Additionally, the ZAP-X is the world's first radiotherapy device with complete self-shielding, removing the necessity for traditional shielding facilities. This innovation lowers construction costs and complexities, enhancing the accessibility of advanced radiosurgical technology to benefit more patients worldwide.

Additionally, the ZAP-X incorporates innovative features such as unique gyroscopic movement and an automated rotating collimator, enabling thousands of non-coplanar beam angles. These  innovative designs offers an optimal solution for the radiosurgical treatment of brain and neck tumors and lesions, significantly reducing radiation exposure to nearby healthy tissue and achieving sub-millimeter precision.

Furthermore, the ZAP-X is equipped with a real-time dose validation system. Should any dose deviation occur, the device immediately stops operation and alerts the doctor, ensuring maximum treatment safety.

Thanks to these numerous technological advancements and innovations, the ZAP-X has received market clearance in several countries and regions, including the United States, the European Union, Japan, and India. Moreover, in June 2023, it received innovative product registration approval from the National Medical Products Administration (NMPA) of China, thus officially entering the Chinese market.

Advancing Clinical Care and Radiosurgery Technology

As a pharmaceutical industrialization platform supporting upstream innovation, Baheal Medical leverages its parent company's innovation ecosystem to continuously acquire medical products with significant clinical application value and commercialization potential. The comprehensive collaboration between Baheal Medical and ZAP will not only accelerate the entire process of ZAP-X from technology development, large-scale production, to market promotion, ensuring quicker and broader adoption in the Chinese market. Additionally, ZAP can utilize Baheal’s extensive networks to support the global sales of large medical devices.

About the partnership, Baheal Medical Chairman Fu Gang stated, “Our mission of Baheal is to optimize the medical practices through technological innovation. We aim to bring products into practical use that genuinely enhance medical environments. We are excited to work with a company as innovative and technically strong as ZAP. Together, we hope to advance precision radiotherapy technology and offer more advanced and effective treatment options to patients worldwide.

John Adler remarked, "The founding vision of ZAP was clear: we are dedicated to overcoming the high costs and infrastructure barriers to make advanced radiosurgery services more accessible to patients. Working with Baheal aligns perfectly with our mission and provides robust support for introducing ZAP-X to the Chinese market, ultimately benefiting millions of patients."

Baheal Medical has introduced several innovative drugs and medical devices into clinical practice, building a diverse and comprehensive portfolio. Moving forward, Baheal Medical remains committed to advancing medical innovation, actively driving the implementation and application of breakthrough technologies. Our goal is to continuously provide the healthcare industry with more advanced, effective, and safer diagnostic and treatment products.