Venus Medtech’s FY2024 Results: A Strategic Shift Toward Profitability and Global Leadership

Venus Medtech (Hangzhou) Inc. (2500.HK) has emerged as a key player in the structural heart disease market, delivering a fiscal year 2024 report that underscores its transition from growth-at-all-costs to disciplined profitability. Despite a challenging macroeconomic environment, the company’s focus on cost optimization, clinical validation, and geographic expansion has positioned it for sustainable long-term success.

Financial Performance: Profitability Takes Center Stage

The company’s FY2024 results reflect a strategic pivot toward profitability. While total revenue reached RMB471 million, the adjusted non-IFRS EBITDA loss narrowed by 45.56% to RMB254 million, signaling improved operational efficiency. The most striking metric is the 112.6% surge in commercial profit to RMB97.7 million, with the margin jumping from 9.35% to 20.74%—a clear victory for its “profitability-first” strategy.

The gross margin held steady at 78.11%, demonstrating pricing discipline, while cost controls were evident in reduced sales and R&D expenses. Sales expenses fell 18.44% to RMB245 million, lowering the sales expense ratio to 52.05% from 61.15% in 2023. R&D spending dropped 35% to RMB341 million, though the company prioritized high-impact projects, such as its Four-Valve Strategy pipeline.

Global Expansion and Market Leadership

Venus Medtech’s geographic diversification is paying off. Overseas revenue grew 13.53% YoY to RMB82.5 million, accounting for 17.52% of total revenue, up from 14.79% in 2023. The company expanded into 13 new countries, pushing its global footprint to nearly 70 markets, with strong regional growth:
- Europe: +10.1%
- Asia-Pacific: +16.6%
- Latin America: +38.6%

Key products like the VenusP-Valve (now in 63 markets) and VenusA Series (approved in 15 countries, including Russia and Thailand) are driving international traction. Domestically, the company maintains dominance in China’s TAVR market, with products used in over 650 hospitals.

Innovation Pipeline: A Portfolio Built for the Future

The Four-Valve Strategy—targeting aortic, pulmonary, mitral, and tricuspid valve diseases—remains the cornerstone of Venus Medtech’s innovation engine. Notable milestones in 2024 include:
- Venus-PowerX: Enrolled its first global confirmatory trial patient, with full China enrollment expected in 2025.
- VenusA-Deluxe: Secured China market approval in November 2024.
- VenusP-Valve: Advanced its U.S. IDE trial (PROTEUS), with the first patient implanted in June 2024.
- Cardiovalve: Enrolled nearly 120 patients in Europe and Canada for tricuspid regurgitation trials, yielding promising 93.7% success rates in reducing regurgitation.

The company’s IP portfolio grew to 886 patents and applications (473 granted), reinforcing its technological edge.

Clinical Validation: Long-Term Efficacy Proven

Five-year follow-up data for the VenusP-Valve revealed no mortality or reinterventions, with 94% of patients in optimal NYHA Class I/II heart function—a testament to sustained quality-of-life benefits. Similarly, Cardiovalve’s TARGET study showed 90% of severe tricuspid regurgitation patients improved to ≤mild regurgitation at 30 days. This clinical rigor positions Venus Medtech’s products as reliable solutions for structural heart disease.

Conclusion: A Strong Foundation for Growth

Venus Medtech’s FY2024 results demonstrate a company maturing strategically: it has balanced cost discipline with innovation, expanded its global footprint, and validated its products through long-term clinical data. With a market cap of HK$1.21 billion and a “Strong Buy” technical sentiment, the stock appears poised for upside.

The company’s focus on profitability—evident in the 45.56% reduction in EBITDA loss and the 112.6% commercial profit surge—suggests it can weather future market volatility. Meanwhile, its pipeline advancements and geographic diversification (now spanning 70 markets) reduce reliance on any single region.

Investors should note the risks, including regulatory hurdles in major markets like the U.S. and competition in structural heart therapies. However, Venus Medtech’s robust gross margin (78.11%), patent-rich IP portfolio, and clinical validation provide a sturdy moat.

In a sector where long-term efficacy and geographic reach matter most, Venus Medtech is building the credentials to become a global leader. For investors seeking exposure to a company at the intersection of innovation and operational discipline, its FY2024 results are a compelling starting point.