Into the Dalton Venture Family | Leveraging Two Technology Platforms — Low-Temperature Plasma and Radiofrequency Ablation — Favamed Charts a Platform Strategy

Inside a Dalton Venture Family Company

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The application of energy — electrical, thermal, mechanical — in surgical devices has pushed procedures toward greater precision and less invasiveness, opening up massive market opportunities. Energy-based surgical instruments and tumor ablation devices have been among the fastest-growing segments. In the top tier of both markets, one company stands out: Forerunner Medical. Recently, VBData published an in-depth feature on Forerunner Medical, a Dalton Venture Family company.

The energy-based surgical instrument and tumor ablation markets have been expanding rapidly. The former exceeded RMB 30 billion in 2021; the latter reached RMB 3.92 billion that same year.

In the top tier of both markets, one company stands out: Forerunner Medical. Built on two core technology platforms — low-temperature plasma ablation and radiofrequency ablation — the company has established broad reach in the minimally invasive medical device market, with operations spanning five fields: sports medicine, minimally invasive spine, otolaryngology, interventional oncology, and interventional pulmonology. To date, Forerunner Medical and its subsidiaries have obtained 19 NMPA registrations, with products deployed in over 1,200 hospitals across China and successful exports to Europe and Southeast Asia, serving more than 100,000 patients annually.

Multi-Department Presence, Leading Domestic Share in Sports Medicine Plasma Devices

As surgical procedures have shifted toward minimally invasive approaches, the energy device market has drawn considerable attention. Forerunner Medical and peers have closed multiple funding rounds exceeding RMB 100 million each, while giants like Mindray and Lepu Medical have moved in as well. Energy-based surgical instruments consist mainly of plasma devices, ultrasonic scalpels, and high-frequency electrosurgical units — together accounting for over 80% of the market — with plasma devices representing the fastest-growing category. According to Eggshell Research Institute, China's plasma device market reached approximately RMB 7.65 billion in 2021.

Plasma devices offer cutting, vaporization, shrinkage, and hemostasis capabilities with minimal tissue damage and high safety profiles. They are now widely used in sports medicine, ENT, and spine surgery, with sports medicine seeing the fastest adoption growth.

Plasma devices are essential tools in arthroscopic procedures within sports medicine. China now performs over 1 million arthroscopic surgeries annually, with growth rates around 20% per year. As technology advances, clinical education expands, and centralized procurement accelerates, arthroscopic procedures will reach more county-level hospitals, further expanding the plasma device market.

Plasma devices represent a high-barrier segment, involving core components such as energy generators and transducers, as well as underlying materials including alloy compositions and anti-adhesion coatings. Moreover, a complete plasma system comprises both a generator console and electrodes. The former presents significant R&D challenges, requiring precise energy delivery and intelligent monitoring supported by complex algorithms; the latter demands sophisticated manufacturing processes including laser cutting and welding, sterilization, and coating application.

Currently, some market participants can only develop plasma electrodes, forcing them to pair with other brands' generator consoles. However, clinical practice favors integrated systems from a single brand for physician convenience, procedural efficiency, and hospital procurement cost considerations. Future provincial or national volume-based procurement programs will also likely prioritize brands offering complete plasma treatment systems.

Founded by Chairman Jie Qin in 2009, Forerunner Medical was an early entrant in the energy device space and has since developed multiple plasma generator consoles and electrodes for sports medicine, minimally invasive spine, and ENT applications. In the sports medicine plasma device market, Forerunner Medical ranks second among all domestic and international brands, and first among domestic brands. In spine surgery and ENT plasma devices, the company ranks among the top domestic and international players.

Forerunner Medical's plasma generator consoles are designed for intelligence, safety, and efficiency. During procedures, if a plasma electrode contacts a metallic surgical instrument, the system sounds an alarm and ceases operation to protect both electrode and instrument, resuming normal function once contact is broken. The system also alarms and stops if an electrode short circuit occurs.

Forerunner Medical offers a comprehensive range of plasma electrodes for diverse anatomical applications. All electrodes feature bipolar integrated cable design for simplified operation and prevention of cross-contamination, and all incorporate suction capability to effectively remove bubbles and debris generated during surgery, maintaining clear visualization. The electrodes employ multi-point working electrode technology, dramatically improving ablation efficiency while significantly reducing operating temperatures. Their instant coagulation function performs well, enabling safe and effective use in shoulder and knee joints where tourniquets cannot be applied.

Across different clinical departments, Forerunner Medical develops specialized plasma electrodes tailored to specific treatment needs. For shoulder procedures, the company offers an oval electrode that resists tissue adhesion and efficiently performs ablation and coagulation. Dedicated electrodes are also designed for arthroscopic surgery of smaller joints including wrist, ankle, and elbow.

Forerunner Medical's core plasma device products have all received NMPA approval, covering over 1,000 hospitals nationwide including more than 400 tertiary hospitals. The company also participated in establishing China's industry standard for plasma surgical equipment, promoting standardized device development and application. In 2022, when the national centralized volume-based procurement for orthopedic spine consumables opened bids, radiofrequency blades for spine endoscopy were included — and Forerunner Medical's products won contracts.

China has actively promoted plasma device market development, achieving a solid domestic substitution rate. The Government Procurement Guidelines for Imported Products (2021 edition), jointly issued by the Ministry of Finance and the Ministry of Industry and Information Technology, explicitly mandates 100% domestic procurement for high-frequency electrosurgical systems.

In this high-growth, increasingly competitive赛道, companies are seeking second growth curves. From a clinical treatment perspective, complete product solutions have become a strategic priority. In sports medicine, beyond plasma devices, Forerunner Medical offers implant product lines including PEEK suture anchors, non-absorbable ligament fixation screws, non-absorbable suture anchors, and interference screws, continuously building out comprehensive sports medicine solutions.

Early Mover in Radiofrequency Ablation, Capturing Tumor Ablation Market with Liver and Thyroid Systems

Beyond plasma technology, radiofrequency ablation (RFA) represents another core platform for Forerunner Medical, operated through its subsidiary Maid Medical. Maid Medical was among China's earliest entrants into RFA, evolving from market "pioneer" to "leader."

Thanks to its minimally invasive, precise, and efficient advantages, ablation technology has become a primary tumor treatment modality. China performs over 300,000 tumor ablation procedures annually, with thermal ablation — led by radiofrequency and microwave ablation — accounting for over 80% of the total. As China's population ages, cancer incidence rises, and health screening awareness and detection methods improve, tumor ablation procedure volume is growing at 20-30% annually.

Within the ablation field, RFA is the most mature segment. In recent years it has been widely applied across various malignant tumors and is progressively expanding into benign nodule treatment. Forerunner Medical General Manager Qian Wang noted: "Among ablation technologies, microwave and radiofrequency ablation are complementary. Physicians can select the more appropriate modality based on tumor size and location. Microwave ablation can treat larger tumors with higher efficiency; radiofrequency ablation offers greater safety and precision, with controllable ablation zones, broader indications, and fewer postoperative complications."

RFA systems consist primarily of a generator console and RF electrodes. Companies like Forerunner Medical that possess complete system manufacturing capabilities hold significant competitive advantages. Compared to traditional open surgery, RFA treatment costs are lower, making high-value, cost-effective products more attractive to hospitals and patients alike and facilitating procedure下沉.

Forerunner Medical independently develops RFA generator consoles and electrodes, with broad deployment in liver and thyroid treatment and planned expansion into lung nodules, bone tumors, breast nodules, uterine fibroids, and hemorrhoids — "serving physicians and patients worldwide with excellent quality and more accessible pricing."

Forerunner Medical offers two RF generator models, the S-1500 and S-5L, both featuring high power output and wide power selection ranges suitable for different tumor types and sizes, with both power-control and temperature-control modes. Both consoles display real-time temperature, power, impedance, and cumulative duration data, enabling clinicians to effectively monitor ablation progress during procedures. They also incorporate intelligent recognition and protection mechanisms that automatically halt energy output in case of operational errors or equipment malfunction, ensuring surgical safety.

Additionally, the updated S-1500 enables multi-functionality from a single console, with intraoperative parameter adjustment flexibility. Notably, the S-5L is the first domestically manufactured generator approved by the NMPA specifically for thyroid ablation.

Forerunner Medical's RF electrode portfolio includes cooled-tip single needles, expandable prong needles, and conventional single/dual-pole needles, with single needle diameters as small as 19G for minimized trauma and enhanced precision. The sharp needle tips facilitate puncture. Moreover, RF electrodes produce more spherical ablation zones that conform to typical tumor shapes, enabling more complete ablation.

Currently, Forerunner Medical's RFA generator consoles and electrodes have obtained both NMPA and CE certifications, along with ISO 13485 quality management system certification from international authority Intertek SEMKO. Products have entered over 200 tertiary hospitals including Zhongshan Hospital affiliated with Fudan University, Renji Hospital, Xiangya Hospital of Central South University, Peking Union Medical College Hospital, and Beijing 301 Hospital, earning broad recognition from clinical specialists.

Meanwhile, Maid Medical, Forerunner Medical's wholly-owned subsidiary, participated in establishing the industry standard for Liver Radiofrequency Ablation Treatment Equipment and actively promotes clinical education.

In recent years, clinical guidelines and reimbursement standards for RFA have been progressively refined. For example, in 2021 Shanghai included tumor RFA technology in its medical insurance reimbursement scope, further driving RFA procedure adoption.

Currently, clinical concerns regarding ablation procedures center primarily on incomplete treatment and recurrence risk — risks that can be substantially mitigated through standardized clinical protocols and improved physician technical proficiency. The thyroid, for instance, is surrounded by numerous organs and blood vessels, requiring highly refined operative technique. Percutaneous thyroid lesion RFA is classified as a nationally restricted technology, and with China's constrained medical resources and uneven physician skill levels, procedure expansion has been somewhat limited.

Forerunner Medical actively supports clinical education initiatives, including collaboration with the National Health Commission's Capacity Building and Continuing Education Center to conduct national thyroid RFA technique training programs with domestic experts, and participation in tumor ablation technique training courses organized by the Chinese Medical Doctor Association — all aimed at improving standardized RFA operation among clinicians to ultimately benefit more patients.

General Manager Qian Wang noted: "The National Health Commission has been promoting standardization in thyroid nodule diagnosis and treatment and strengthening physician training, and Forerunner Medical has been actively involved. With the combined efforts of multiple stakeholders, I believe thyroid nodule care will become increasingly precise, safe, and efficient."

"R&D + M&A" Development Model, Pursuing Platform Strategy

Since its founding in 2009, Forerunner Medical's strategic vision has gradually clarified — pursuing a platform strategy through the combination of "independent R&D and mergers and acquisitions."

Stone from other hills may serve to polish the jade. Reviewing the development trajectories of international giants like Medtronic and Boston Scientific, the model of independent R&D built on core technology platforms combined with acquisitions represents the dominant trend. Companies need proprietary core technology platforms to develop advantaged individual products, then use acquisitions to complete product solutions and rapidly enter new fields. Meanwhile, with high-value consumables centralized procurement approaching and DRG payment systems gradually taking effect, a platform-based development model reduces enterprise risk and facilitates industry resource integration.

But the platform path is not easily traveled. From an internal capabilities perspective, sufficient R&D, manufacturing, and commercialization capacity is needed to establish complete industrial chains that support iterative development of proprietary and acquired products. From a strategic direction perspective, forward-looking market insight is required to identify products that meet clinical needs and offer market growth potential, while leveraging clinical experts, partner enterprises, and other resources to form complete product solutions.

Forerunner Medical maintains commitment to independent R&D and manufacturing, having established two core technology platforms: low-temperature plasma ablation and radiofrequency ablation. On this foundation, the company continuously expands its market presence while building complete supply chains and production lines. The group's total production footprint spans approximately 3,000 square meters (excluding R&D laboratories and quality testing facilities), enabling autonomous quality and production efficiency control. Based on insights into the minimally invasive medical device market, the company acquired Maid Medical in 2016 to enter the interventional oncology market, and Anzhen Medical in 2021 to enter the interventional pulmonology赛道.

Horizontally, Forerunner Medical has established presence across sports medicine, spine, ENT, interventional oncology, and other segments, with advantaged individual products in each. Vertically, the company provides complete solutions within focused areas — for example, simultaneously deploying plasma devices and implants in sports medicine to achieve definitive market leadership. Currently, Forerunner Medical and its subsidiaries have obtained 19 NMPA registrations and 133 national patents (including subsidiaries), with products entering Europe, Southeast Asia, Australia, and other markets. The company maintains annual revenue growth above 30%.

Furthermore, talent underpins enterprise development, and Forerunner Medical maintains a professional multidisciplinary team internally. Chairman Jie Qin, as a serial entrepreneur, brings years of device development and enterprise management experience, having previously served as chairman of Kinetic Medical, a domestic leader in minimally invasive spine devices. General Manager Qian Wang previously worked at Medtronic and other prominent domestic and international device companies, bringing extensive sales experience and international perspective. Senior R&D and sales management personnel largely come from international device giants including Johnson & Johnson and Medtronic, leading teams in providing professional marketing and sales services.

Leveraging its internationally experienced talent team and original technology products, Forerunner Medical has been continuously expanding overseas markets, with early focus on Europe, Southeast Asia, and Asia, striving to secure "a place" in the global minimally invasive surgical device market.

Source: VBData

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