Inari Medical Announces Joint Venture in Greater China

Rhea-AI Summary

Inari Medical (NASDAQ: NARI) has announced a strategic joint venture with 6 Dimensions Capital, its successor fund 120 Capital, and VFLO Medical to expand access to its medical technologies in Greater China. The partnership will enable Inari to commercialize its devices through VFLO's established infrastructure and local relationships. VFLO will have rights to manufacture Inari's products for domestic sale in Greater China, leveraging their commercial expertise and Inari's global strengths in venous thrombectomy product development and manufacturing.

Positive

• Strategic entry into the large Greater China market
• Leveraging established local infrastructure through VFLO Medical
• Manufacturing rights secured for domestic sales in Greater China

Negative

• None.

Insights

Market Research Analyst

This strategic joint venture represents a significant expansion into the massive Chinese healthcare market. The partnership with 6 Dimensions Capital and VFLO Medical provides three key advantages:

• Access to established local infrastructure and relationships
• Manufacturing rights for the domestic Chinese market
• Entry into multiple segments of China's healthcare system

China's interventional medical device market is experiencing rapid growth, driven by an aging population and increasing healthcare spending. The deal structure, leveraging VFLO's local expertise while maintaining Inari's technological leadership, appears well-designed to navigate China's complex regulatory and commercial landscape. This could substantially accelerate Inari's market penetration compared to a solo entry strategy.

Medical Device Industry Expert

The joint venture's strategic value lies in its potential to establish Inari's mechanical thrombectomy devices as the standard of care in China's underserved venous disease market. By partnering with VFLO for local manufacturing, Inari can potentially achieve better pricing flexibility and faster market access while maintaining quality control. The deal structure follows successful models used by other Western medical device companies in China, where local manufacturing and distribution partnerships have proven important for market success.

IRVINE, Calif., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today announced it has entered into a joint venture with 6 Dimensions Capital (“6 Dimensions”) and its successor fund 120 Capital, and VFLO Medical (“VFLO”), a medical device platform incubated by 6 Dimensions and 120 Capital, to provide access to Inari’s innovative technology for patients with significant unmet needs in Greater China.

“This joint venture allows many different types of patients and hospitals to access and benefit from Inari’s technologies across multiple segments of China’s complex healthcare delivery system,” said Drew Hykes, Chief Executive Officer of Inari. “We are excited to partner with 6 Dimensions and 120 Capital to introduce our products through VFLO to the rapidly expanding interventional market in Greater China."

“Inari is the leader in mechanical thrombectomy and our strategic partnership is significant and game-changing for the current standard of care in China,” said Rebecca Zhu, Managing Partner of 6 Dimensions Capital, and also Director of VFLO Medical. “We share Inari’s unwavering commitment to developing innovative technologies for underserved patients and believe we can make a meaningful difference in the lives of those suffering from venous and other vascular diseases in China.”

The joint venture will allow Inari to commercialize its devices through VFLO’s established infrastructure, local relationships, and deep commercial expertise in Greater China. VFLO will also have the right to use Inari’s technology to manufacture products for domestic sale in Greater China. VFLO’s expertise and commitment to patients are complementary to Inari's global strengths in the development, manufacture, and sale of venous thrombectomy and other products.

About Inari Medical, Inc.
Patients first. No small plans. Take care of each other. These are the guiding principles that form the ethos of Inari Medical. We are committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underserved health needs. In addition to our purpose-built solutions, we leverage our capabilities in education, clinical research, and program development to improve patient outcomes. We are passionate about our mission to establish our treatments as the standard of care for venous thromboembolism and four other targeted disease states. We are just getting started. Learn more at www.inarimedical.com and connect with us on LinkedIn, X (Twitter), and Instagram.

About 6 Dimensions Capital and 120 Capital
120 Capital is a successor fund of 6 Dimensions Capital and is a US-domiciled leading global healthcare investment firm with offices in Boston, San Francisco, Hong Kong, and Shanghai. The firm is dedicated to supporting healthcare companies with operations in the US, Europe, China, Israel, and other regions. For more information, visit www.120capital.com.

About VFLO Medical
VFLO is a medical device company based in China that was established in 2021 by 6 Dimensions and 120 Capital, and a team of prominent and experienced industry professionals to create a leading medical device platform with a focus on making innovative vascular therapies available to Chinese patients.

Forward-Looking Statements
Statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors, including, among other things: the ability of the strategic venture to obtain regulatory approvals in China; the ability of VFLO to develop, manufacture, and commercialize venous thromboembolism and other products in China; the potential for and ability to receive any payments from VFLO; and the potential clinical benefits of Inari’s technologies in China.

These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2023, and in Inari’s other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.

Investor Contact:
Neil Bhalodkar
IR@inarimedical.com

FAQ

What is Inari Medical's (NARI) new joint venture in China?

Inari Medical has formed a joint venture with 6 Dimensions Capital, 120 Capital, and VFLO Medical to commercialize its medical devices in Greater China, allowing VFLO to manufacture and sell Inari's products domestically.

Who are Inari Medical's (NARI) partners in the China joint venture?

Inari Medical's partners in the China joint venture are 6 Dimensions Capital, its successor fund 120 Capital, and VFLO Medical, a medical device platform incubated by 6 Dimensions and 120 Capital.

What rights does VFLO Medical get in Inari Medical's (NARI) joint venture?

VFLO Medical gains the right to use Inari's technology to manufacture products for domestic sale in Greater China and will help commercialize Inari's devices through their established infrastructure.