ICON Medical's renewed application for a Sci-Tech Innovation Board listing comes despite significant revenue growth, raising questions about the sustainability of its performance. The company's core product, the Lattice®血流导向密网支架, has seen its unit price halved by over 50% due to centralized procurement, casting doubt on future profitability. Meanwhile, the neurointervention sector has become increasingly competitive, with 24 products approved from 16 domestic manufacturers, potentially leading to price wars. Additionally, with current capacity utilization rates at only 80% for woven products and 32% for access products, the necessity and feasibility of the company's planned fundraising for capacity expansion are under scrutiny.
ICON Medical recently had its listing application accepted again. The company plans to issue no more than 14.3614 million shares, aiming to raise 1.1 billion yuan. The funds will be allocated as follows: 200 million yuan for a neurointervention medical device production project, 550 million yuan for neurointervention medical device R&D, 100 million yuan for marketing network construction, and 250 million yuan for working capital.
This is not ICON Medical's first IPO attempt. The company previously applied in April 2023 but withdrew its application a year later without public explanation. Industry speculation points to performance and regulatory requirements as potential factors.
Notably, during its first IPO attempt, the company had no revenue and opted for the fifth listing standard, which requires an estimated market valuation of at least 4 billion yuan. Key milestones include having core products approved for Phase II clinical trials. The company's valuation surged dramatically before the initial listing attempt. Between June 2020 and November 2021, its valuation jumped from 720 million yuan to 3.83 billion yuan, with per-share prices rising from 21.79 yuan to 90.90 yuan. The lead underwriter later estimated the company's value at over 7.27 billion yuan. For the current IPO, the planned fundraising of 1.038 billion yuan implies a market valuation of approximately 4.152 billion yuan, barely meeting the listing threshold. Regulators have questioned the rapid valuation increase and the basis for valuation calculations. The company attributes the rising valuation to progress in core product development and growing investor confidence.
According to its prospectus, ICON Medical focuses on innovative neurointervention technologies. It currently has ten Class III medical devices approved in China, including the Lattice®血流导向密网支架, Grism®远端闭合颅内取栓支架, and Attractor®颅内血栓抽吸导管, with some products also approved or under review in markets like the U.S. and Southeast Asia. The company's core products are the血流导向密网支架 and catheter-based devices. Commercialization began in Q4 2022. Revenue grew from 891,500 yuan to 199 million yuan, with the血流导向密网支架 contributing 61.33% to 95.59% of total revenue. The company turned profitable in 2024 and 2025, with net profits of 16.9695 million yuan and 36.3889 million yuan, respectively. It now meets the profitability-based listing standard, requiring a market valuation of at least 1 billion yuan and positive net profits.
However, the unit price of the血流导向密网支架 dropped sharply from 47,200 yuan per unit in 2022 to 21,600 yuan in the first three quarters of 2025, a decline of over 50%. Catheter product prices also fell nearly 50%, from 3,900 yuan to 2,000 yuan per unit. These declines are largely attributed to centralized procurement policies. Since 2019, national and regional bulk procurement programs have been implemented for high-value medical consumables, including neurointervention devices. Programs in Beijing, Henan, Anhui, Hebei, and Guangdong have led to significant price reductions for血流导向密网支架s. For example, average prices fell from approximately 110,000 yuan to 60,000 yuan, with reductions ranging from 42.82% to 89%. New procurement rounds continue to pressure prices.
ICON Medical faces several risks under centralized procurement. Failure to win bids in regional or national procurement programs could reduce market share and revenue in affected areas. Even if the company wins bids, sharp price cuts may not be offset by volume increases, potentially hurting profitability. The neurointervention sector is increasingly crowded, with 24血流导向密网支架 products approved from 16 manufacturers by February 2026. Rapid technological iterations and widespread bulk procurement have intensified competition, turning the market into a "red ocean" characterized by price wars and product homogenization.
The company's planned capacity expansion also raises questions. It currently has annual production capacities of 24,000 sets for woven stents, 12,000 sets for laser-engraved stents, and 60,000 sets for intracranial catheters. The Grism®取栓支架 received regulatory approval in August 2025 but has not yet entered full production. The fundraising project aims to add 48,000 sets of woven stent capacity and 24,000 sets of laser-engraved stent capacity. However, with current utilization rates at 80% for woven products and only 32% for access products, the necessity of further expansion is uncertain. In a highly competitive market, the company's ability to utilize this additional capacity remains in doubt.
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