CMSC has released a research report, initiating coverage and granting ACOTEC-B (06669) a "Strongly Recommended" investment rating. The firm is optimistic about the company's product strength advantage stemming from its innovation capabilities, and also anticipates that the global platform of its controlling shareholder, Boston Scientific, will drive performance certainty through synergies in overseas expansion and new product development. The main viewpoints of CMSC are as follows:
ACOTEC is a leading domestic innovative medical device platform company focused on providing comprehensive pan-vascular interventional solutions. It was the first in China to launch DCB products for both above-the-knee and below-the-knee applications, establishing a leading position in the peripheral intervention field. In December 2025, the company signed a new three-year cooperation agreement with its controlling shareholder, Boston Scientific, to engage in a series of collaborations encompassing global product commercialization, manufacturing services, and research and development.
The company has been engaged in the R&D of PTA and DCB products since 2011, gradually establishing multiple technology platforms including drug-coated balloon technology, radiofrequency ablation technology, polymer material technology, and an aspiration platform technology. It has achieved leadership in the peripheral intervention sector and completed a comprehensive layout for pan-vascular interventions. As of H1 2025, the company boasts over 30 marketed products covering four major departments: Vascular Surgery, Cardiology, Nephrology, and Neurology.
Since the launch of its core product, the above-the-knee DCB, in China in 2016, the company has built a "pyramid"-shaped product portfolio, driving steady growth in its performance. 1) Mature products, including DCBs and PTA balloons, are the current primary source of the company's performance. The company holds the top domestic market share in the peripheral DCB segment, benefiting from first-mover advantages and securing its baseline business by winning multiple volume-based procurement tenders. 2) Growth-stage products, including new offerings like the peripheral aspiration system, radiofrequency ablation system, vertebral artery DCB, and coronary interventions, are in the early stages of volume ramp-up. Leveraging procurement advantages or first-mover status, these are expected to achieve rapid sales growth and represent a crucial source of future performance. 3) The R&D pipeline, including China-U.S. projects such as the lower-limb rapamycin DCB and IVL system, covers major departments like Vascular Surgery and Cardiology, serving as the core driver for medium-to-long term growth.
In February 2023, Boston Scientific, a global leader in minimally invasive interventional medical devices, became the controlling shareholder of ACOTEC with a 65% stake, and the first memorandum of cooperation was signed in June 2023. In December 2025, the company signed a new three-year cooperation agreement (2026-2028) with Boston Scientific: 1) Global Commercialization: Utilizing Boston Scientific's worldwide channel resources, the maximum transaction value for product sales to Boston Scientific is projected to be $30 million/$62 million/$78 million for 2026-2028 respectively. 2) Product Manufacturing: Providing OEM services based on ACOTEC's manufacturing capabilities, with estimated maximum transaction values for manufacturing services to Boston Scientific of $1 million/$1 million/$3 million for 2026-2028. 3) Product R&D: Mutual provision of R&D support and CSO services.
Risk warnings include policy risks, R&D risks, market competition risks, geopolitical risks, and market promotion risks.
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