Cryofocus Medtech (Shanghai) Co., Ltd. (“Cryofocus” or the “Company,” Stock Code: 6922. HK), an international innovator in minimally intrusive interventional cryotherapy, last friday revealed its unaudited interim outcomes for the 6 months ended June 30, 2025. The Company showed robust development momentum and considerable functional optimization throughout the reporting duration, with essential monetary metrics providing extraordinary efficiency. Significantly, its breathing intervention item portfolio sustained a considerable earnings rise, marking sped up commercialization development.
Breathing Intervention Products Emerge as Core Growth Engine, Highlighting Global Competitive Edge
The Company tape-recorded profits of RMB51.1 million for the very first half of 2025, a 162.4% boost from RMB19.5 million in the exact same duration of 2024, setting a brand-new historic high. This development was mainly attributable to the tactical concentrate on breathing intervention items getting in a harvest stage: The Malignant Stenosis Cryoablation System, authorized by China’s National Medical Products Administration (NMPA) in March 2025, and the formerly advertised Cryoadhesion System, experienced quick sales growth, ending up being the dominant income chauffeurs. Furthermore, the circulation collaboration with Boston Scientific’s China affiliate, BSC International Medical Trading (Shanghai) Co., Ltd. (“BSC”), contributed substantial incremental earnings from other breathing intervention items in mainland China.
Of specific significance, the Company’s Asthma Cryoablation System got “Breakthrough Medical Device” classification from the U.S. Food and Drug Administration (FDA)– the very first such global acknowledgment for a Chinese business in the breathing interventional cryotherapy field– laying a structure for international market growth.
Cryofocus has actually developed an extremely competitive breathing intervention portfolio resolving crucial signs, consisting of deadly stenosis, benign stenosis, asthma, persistent obstructive lung illness (COPD), peri-pulmonary blemishes, persistent cough, and air passage tuberculosis. Amongst these: The Malignant Stenosis Cryoablation System has actually been effectively advertised in China; systems for asthma and COPD remain in confirmatory scientific trials with anticipated approvals in 2026; items for cough, tuberculosis, and peri-pulmonary blemishes remain in different R&D phases; and the Cryoadhesion System (consisting of non reusable and re-sterilizable cryoprobes) is authorized and marketed. These developments primarily originate from Cryofocus’s 2 core innovation platforms: distinct liquid nitrogen-based cryoablation innovation (using liquid nitrogen as the cryogenic energy source) and advanced versatile catheter innovation. This integrated platform allows deep low-temperature treatment, accurate control, and minimally intrusive intervention, using exceptional restorative effectiveness and security while developing substantial technological barriers for rivals.
Platform Value Multiplies as Multi-Segment Strategy Accelerates Commercialization
Cryofocus’s core worth extends beyond its breathing pipeline, underpinned by its difference as an ingenious cryotherapy platform business. Leveraging its liquid nitrogen and versatile catheter innovations, the Company has actually effectively broadened into numerous high-potential restorative locations:
In the vascular intervention sector: The Atrial Fibrillation (AF) Cryoablation System (for atrial fibrillation treatment) was advertised in China in September 2024. The Cryofocus Renal Denervation (Cryo-RDN) System (for high blood pressure treatment), given FDA Breakthrough Device classification, remains in confirmatory scientific trials. The Pulmonary Hypertension Cryoablation System is presently in the phase of pre-clinical research study. The marketplace area for all these associated cardiovascular indicators is extremely big.
In the Natural Orifice Transluminal Endoscopic Surgery (NOTES) section: The breathing intervention portfolio, as detailed, is abundant and leading. The cancer intervention portfolio consists of the advertised Bladder Cryoablation System; the Gastric Cryoablation System and Esophageal Cryospray System remain in medical trials targeting stomach and esophageal cancer markets.
In non-cryotherapy items: Commercialized products such as the Pulmonary Nodule Localization Needle and Endoscopic Clip for Anastomosis, along with pipeline items like the Atrial Fibrillation Pulsed Field Ablation (PFA) System and Anti-Gastroesophageal Reflux System, develop complementary synergies.
This “one-platform, multi-therapy” design enhances Cryofocus with extraordinary flexibility for sign growth and pipeline sustainability. The Company presently boasts a robust portfolio of 23 items and prospects: 14 cryotherapy and 9 non-cryotherapy products, with 11 currently advertised. Such platform-based diversity is unusual amongst single-therapy medical gadget companies, highlighting considerable long-lasting development capacity and threat durability.
Strong Financial Performance and Sustained Growth Momentum
Beyond the earnings rise driven by breathing items, Cryofocus’s interim outcomes signal favorable continuous development. The Company’s technological benefits even more equated into monetary strength. Gross earnings reached RMB34.3 million for the very first half of 2025, up 124.5% year-on-year, with a strong gross earnings margin of 67.1%. Boosted R&D effectiveness resulted in substantially decreased losses. R&D expenditures enhanced to RMB17.9 million (down 51.9% year-on-year), while the duration loss narrowed 51.4% to RMB27.2 million, showing a clear pattern towards success. Money reserves increased 40.1% from year-end 2024 to RMB63.7 million, offering a strong structure for continual R&D and market growth.
Income diversity and quality enhanced as high-value self-developed items (e.g., Malignant Stenosis Cryoablation System) introduced and scaled, matched by deepening cooperation with BSC. The substantial decrease in R&D expenditures shows enhanced effectiveness and minimized consumable requirements as items advance, driven by enhanced workers expenses and management improvements. This develops a sound structure for stabilizing development strength with expense control.
The Company increased financial investment in sales network advancement, with selling and circulation expenditures increasing 174.4% year-on-year to RMB9.2 million, highlighting proactive resource allotment to develop marketing groups and promote freshly released items (e.g., Malignant Stenosis Cryoablation System), laying foundation for future sales scale growth.
Worldwide Peer Benchmark Highlights Valuation Potential
Cryofocus’s technological strength in breathing interventional cryotherapy, especially in FDA-designated locations like asthma treatment, positions it competitively versus worldwide leaders.
Benchmarked versus Inspire Medical Systems (INSP) (concentrating on OSA neurostimulation, varying in sign however comparable in breathing neuro-intervention): Inspire presently holds a market capitalization of US$ 2.279 billion and a trailing-twelve-month (TTM) P/E ratio of 44.28 x. Cryofocus’s Asthma Cryoablation System likewise targets lung vagal nerves by means of minimally intrusive ablation, with an ingenious path confirmed by FDA Breakthrough status. As a varied platform innovator with a broad pipeline and several commercialized items, Cryofocus’s present Hong Kong market evaluation (Inspire’s market cap is 12.8 x Cryofocus’s) substantially tracks Inspire’s.
This considerable appraisal space, while affected by aspects such as varying markets (United States vs. HK), phases of advancement (Inspire paying and developed in the United States market), and a single-product focus versus a platform design, however plainly highlights the substantial benefit capacity in Cryofocus Medtech’s existing market assessment relative to its technological abilities, the breadth of its item pipeline, and its capacity for globalization advancements. With the improvement of medical development for its breathing intervention items (especially the Asthma Cryoablation System COPD Cryospray System Peri-Pulmonary Nodule Cryoablation System), the explanation of abroad registration paths, and the continued high-speed development in its income scale, a market re-rating of its worth represents a high-probability occasion. The present appraisal level provides an appealing window of chance for financiers bullish on the long-lasting potential customers of the minimally-invasive interventional cryotherapy sector and the worth intrinsic in a platform business design.
Looking ahead, Cryofocus preserves a clear technique: quickly advance medical advancement and commercialization of pipeline items; deepen concentrate on minimally intrusive interventional cryotherapy while broadening the portfolio leveraging its core platforms; continually purchase underlying and supporting innovations; and selectively broaden international operations. The Company is gradually transitioning from R&D-driven to a dual-engine design incorporating R&D and commercialization, advancing resolutely towards its vision of ending up being a “global platform for minimally invasive interventional cryotherapy medical devices.”
Subject: Press release summary
