On November 25, 2024, Qingdao Baheal Medical Co., Ltd. (301015.SZ, hereinafter referred to as "Baheal Medical") announced that it has entered an exclusive commercialization partnership with ZAP Surgical Systems, Inc. (hereinafter referred to as "ZAP"), a global leader in radiosurgical robots. This agreement grants Baheal Medical the rights to commercialize ZAP-X® Gyroscopic Radiosurgery Platform and its related accessories in mainland China, Hong Kong, and Macau. This profound 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 Pharma's fourth extraordinary shareholders meeting of 2024.

Powerful Alliance introduces High-end Head and Neck Radiotherapy Device into 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 massive 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 development trends. In addition to equity investments and commercialization efforts, a subsidiary of Baheal Medical has entered into an agreement with ZAP for the large-scale production of ZAP-X. Baheal will in charge of the scale production of ZAP-X in both Chinese and global markets. This collaboration builds on Baheal Pharma Group's existing investments in the medical linear accelerator sector. The introduction of the groundbreaking ZAP-X radiosurgical device significantly enhances Baheal's international competitiveness in the radiotherapy field.

After inventing and pioneering the globally renowned CyberKnife, the world-leading neurosurgeon and ZAP Founder&CEO, John R. Adler, has developed ZAP-X. This state-of-the-art radiosurgery device is specifically designed to optimize the treatment of head and neck tumors, as well as other lesions. 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, ZAP-X distinguishes itself as the world's first cobalt-free radiosurgery system dedicated to cranial and cervical applications. It leverages a 3MV, 1500 MU/min linear accelerator, which eliminates the need for frequent source replacements, thereby significantly reducing operational costs. Additionally,  ZAP-X is the world's first radiotherapy device with complete self-shielding, removing the necessity for building traditional radiation-shielded bunkers. 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 a dual-axis gantry and an automated rotating collimator, enabling thousands of non-coplanar beam angles. This design offers an optimal solution for the radiosurgical treatment of head and neck tumors and lesions, significantly reducing radiation exposure to nearby healthy tissue and achieving sub-millimeter precision radiosurgery treatment. Furthermore, ZAP-X is equipped with a real-time dose verification system. Should any dose deviation occur, the device immediately stops operation and alerts the physician, 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.

ZAP-X GYROSCOPIC RADIOSURGERY™ PLATFORM

Advancing Clinical Care and Radiosurgery Technology to Benefit Patients Worldwild

As an innovation brands commercialization platform, 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, but also ensure the quicker and broader application in Chinese market. Additionally, ZAP can provide extensive channel support for Baheal’s global sales of large medical devices.

About this partnership, Baheal Medical Chairman Fu Gang stated, “Our corporate mission is to optimize medical scenarios through technological innovation. We aim to bring products into practical use that genuinely improve medical environments. We are excited to work with a company as innovative and technically strong as ZAP. We hope to promote the revolution of 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 Chinese market, ultimately benefiting millions of patients."

Baheal Medical has introduced several innovative medicines and medical devices into clinical practice, building a diverse and comprehensive matrix. 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.