SpineGuard and XinRong Medical expand
their collaboration to deploy DSG® technology in China
Paris (France) and Boulder (CO, USA), May 16, 2023 – 8:30 am CEST – SpineGuard (FR0011464452 – ALSGD), an innovative company that deploys its DSG (Dynamic Surgical Guidance) sensing technology to secure and streamline the placement of bone implants, and XinRong Medical Group, a China leader in medical technology, announced today that they expanded their collaboration with the signature of three concomitant agreements:
• China exclusive distribution extension to the whole SpineGuard product portfolio
• Funding of the NMPA (National Medical Product Administration) registration process for SpineGuard
new products via a cash injection of €500K by XinRong Medical in SpineGuard capital
• Potential co-development of a Smart Screw system for the Chinese spinal surgery market
Press Release
Until today, XinRong Medical was only selling the SpineGuard’s Classic PediGuard products in China, this new distribution agreement will enable them to commercialize the Curved, the XS, the Canulated and the Threaded versions of SpineGuard’s DSG (Dynamic Surgical Guidance) spinal drilling probes.
The NMPA registration of these new devices for the Chinese market will be funded via a €500K equity injection by XinRong Medical. SpineGuard will issue 500,000 new shares priced at €1.00 per share representing 1.28% of current issued shares with a 18-month lock-up period. SpineGuard will own all product registrations that will be executed through a third-party regulatory agent jointly appointed by both companies.
XinRong Medical and SpineGuard also decided to envision the co-development of a DSG enabled single step pedicle screw system with three key milestones triggering payments:
1) evaluation of the registration process and market access path, 2) product design and submission of the registration dossier, and 3) product clearance.
China’s spine market is the world’s second-largest market after the USA driven by an aging population, increasing disease prevalence and treatment rates, along with access to care growing affordability.
Pierre Jérôme, Chairman, CEO and Co-founder of SpineGuard, said: “This three-pronged agreement is a significant step forward for SpineGuard and the deployment of our x-ray free real time sensing technology in China, the largest market for spinal surgical devices after the United States. With XinRong, we took the time to elaborate a common strategy and tailor our partnership based on our early collaborative experience introducing the original version of PediGuard in China. We now have a clear roadmap and dedicated funds to successfully market our smart drilling devices and secure spinal fusion procedures across Chinese provinces.”
Christine Zhang, CEO of XinRong Medical, added: “I am thrilled about the three-pronged agreement between
SpineGuard and XinRong. It is indeed a significant step forward for XinRong, and I commend the board, the company XinRong and SpineGuard team for taking the time to collaborate and develop a common strategy. The dedication to tailoring out partnership based on both sides’ early collaborative experience introducing the original version of PediGuard in China is a testament to SpineGuard commitment to providing innovative medical devices to the global medical community. The dedicated funds to market SpineGuard x-ray free real time guidance technology across Chinese provinces is a great opportunity to expand SpineGuard's presence in the Chinese market. I am confident that this innovative technology will provide more precise and safer spinal surgery for Chinese patients. Once again, I greet this milestone achievement, and I look forward to seeing the continued success of SpineGuard and XinRong.”