Overview
We are developing a new re-generation surgical stitch which are stronger, safer and more comfortable for patients. It offers three improvement over traditional surgical stitch: higher tensile strength, better biodegradability, and built-in anti-inflammatory properties.
Conventional stitch often fall short, they may be too weak, linger in the body too long, or cause inflammation. Our solution finds the balance, providing reliable support while being gentle on tissue and requiring no removal, which reduces the risk of infection and speeds up recovery (Chen at al., 2023).
By merging high-performance biomaterials with real-world usability, we’re making surgery recovery smarter, faster, and more human-centered.
Based on actual market research and clinical demand analysis, we have decided to focus the application direction of this innovative product on the field of cesarean section surgical suturing, providing a dedicated solution for postpartum recovery.
Product description
Problems analysis
The number of caesarean sections is gradually increasing around the world, but many of the sutures used for postoperative repair still have serious shortcomings that affect patient recovery. Four major issues stand out:
One major concern is the limited biocompatibility of traditional sutures. Non-absorbable materials, which are still widely used, tend to provoke long-term foreign body reactions. This can lead to ongoing inflammation and slower wound healing—something particularly problematic for new mothers who need to recover quickly.
Another issue is the lack of effective anti-inflammatory and antibacterial properties. Although absorbable sutures are now common, most don't actively prevent infection. This raises the risk of postoperative complications and can delay the healing process.
Strength and durability are also important, but many current sutures don’t hold up well under stress. In high-tension areas like the abdominal wall, especially after a caesarean, the wound is at risk of reopening if the sutures aren’t strong enough during the early healing phase.
Lastly, comfort and cosmetic outcomes matter too. Standard sutures can cause noticeable scarring and ongoing discomfort around the wound, which can slow down recovery and reduce patient satisfaction.
To solve these problems, we’ve developed a new type of surgical suture made from a dissolvable material that combines strong tensile support with anti-inflammatory features. These sutures not only help wounds heal faster and more cleanly but also avoid the hassle of needing removal. Designed specifically for caesarean section patients, this new approach aims to make recovery smoother, more comfortable, and more satisfying overall.
Potential Customers and Their Unmet Needs
To better understand the real market demand for surgical sutures, our team conducted a series of interviews with both
1. Patient Interviews
We first reached out to several patients from different age and health backgrounds to explore their personal experiences with wound healing.
In the
In the
In the
Finally, in the
Overall, through these conversations, we found that while all patients value comfort and healing safety,
2. Insights from Medical Experts
During these interviews, several patients pointed out an important insight:
Although they are the end users of surgical sutures,
Our team visited two of the top medical institutions in China —
Doctors confirmed that the
This feedback aligns with the market analysis: traditional sutures struggle to balance
3. Summary: Gap and Opportunity
Through combined patient and professional insights, we identified a clear gap in the current market:
Traditional sutures cannot simultaneously meet the
Our product, ReGenStitch, is designed precisely to fill this gap — delivering
By grounding our design in real-world interviews, we ensure that ReGenStitch not only solves a scientific problem but also responds to a genuine
Our products
Our team's latest research and development of surgical sutures adopts innovative synthetic biological technology to organically integrate the three functional modules, significantly improve the wound closure effect, and effectively solve many shortcomings of traditional sutures.
Structural support system: bacterial cellulose skeleton
We use the genetically modified E. coli Nissle 1917 as the production platform, which enables it to synthesize bacterial cellulose by introducing specific genes. This nanofiber network formed by glucose molecules through special bonding not only has excellent mechanical properties, but also shows good biocompatibility. Compared with traditional materials, it can better adapt to the needs of surgery and avoid problems such as excessive material or inconsistent degradation (Shi et al., 2014).
Antibacterial repair system: chitosan complex
Starting from shrimp shells and other wastes, through microbial fermentation and enzymatic treatment, we obtained a chitosan complex with dual effects. Among them, high molecular weight chitosan can form a protective barrier on the surface of the wound, quickly stop bleeding and inhibit bacterial growth; while low molecular weight chito oligosaccharide can penetrate deep into the tissue, not only enhancing the antibacterial effect, but also stimulating cell growth and vascular formation, greatly accelerating the healing speed (Mourya & Inamdar, 2008).
Inflammation Control System: Natural Active Ingredients
We use genetic engineering technology to efficiently synthesize curcumin in E. coli. This natural active ingredient can accurately regulate the inflammatory reaction, reduce postoperative redness and swelling, inhibit scar formation, and create a more favorable micro-environment for wound repair (Kotha & Luhria, 2019).
These three systems cooperate with each other to form a complete solution: the cellulose skeleton provides stable structural support, the chitosan complex is responsible for antibacterial and hemostasis, and curcumin finely regulates the inflammatory reaction. This synergy makes our sutures show significant advantages in clinical applications.
Possible, scalable and inventive
Possible——Market Measurement
With economic development, cesarean sections have become increasingly common among pregnant women, and expectations for the procedure continue to rise. From the initial use of non-absorbable sutures like nylon to today’s predominantly absorbable surgical sutures, the high-end market for cesarean sutures has gradually emerged. The immense market potential has attracted major companies to invest in R&D and enter this space.
The current global market for cesarean sutures is $1.87 billion, with China's market valued at $630 million – making it the world’s largest single market. The premium suture segment is dominated by international players:
Johnson & Johnson: 41% market share
Medtronic: 23% market share
BD (Becton Dickinson): 15% market share
Domestic Chinese brands hold only 25% market share, indicating significant growth potential. Our market penetration targets are:
Years 1-2: Achieve 0.3% market share
Years 3-4: Reach 1.2% market share
Year 5: Attain 3.5% market share
Scalable——Industrialization and Scale-up
Our team has successfully developed a
We strongly encourage you to
Our product has successfully demonstrated preliminary production in the laboratory, and we also possess the capability for industrialization and scale-up. This strength is mainly reflected in two aspects: cost control and standardization.
Inventive——Technology
Our project’s innovation lies in its
we have organically integrated three functional modules—
- Cellulose scaffold: Provides stable and long-lasting structural support, effectively solving the problems of easy breakage and uneven degradation in conventional sutures.
- Chitosan composite: Delivers dual hemostatic and antibacterial effects, acting at multiple levels from the wound surface to deep tissue, accelerating healing while reducing infection risk.
- Curcumin module: Efficiently synthesizes natural active compounds via synthetic biology, enabling precise regulation of inflammatory responses, reducing postoperative swelling and scar formation, and creating a more favorable healing environment.
This
most degradable sutures on the market remain generic and lack optimization for specific surgical scenarios. In contrast, our solution is specially enhanced for cesarean section procedures, emphasizing
At the same time, for hospitals and procurement departments, the product not only improves patient satisfaction and clinical outcomes but also offers advantages in cost control and standardized supply, making it an innovative solution that delivers value for both patients and healthcare institutions.
Product development plans
Legalization and Patent application
In our product development plan, we recognize that
Mr. Yang, who specializes in
In order to avoid possible legal disputes, we have made the following laws and regulations that need to be followed, as well as disclaimers.
Follow the law:
Comply with YY 1116-2020 "Absorbable Surgical Sutures" (Standards of the National Drug Administration)
Classification management: Surgical sutures belong to Class II or Class III medical devices (according to the degree of risk).
Registration/Filing:
- Imported and domestic stitches need to apply for registration or filing with the State Drug Administration (NMPA).
- You need to submit product standards, clinical trial data (some cases can be exempted), biocompatibility reports and other materials
Production license: Manufacturing enterprises need to obtain the Medical Device Production License.
Business license: Business enterprises need to obtain the Medical Device Business License (Class II filing, Class III license).
Conclusion
1、Stitching is a medical device and needs to meet the requirements of registration, production and operation supervision.
2、Patients have the right to know the suture information and can claim for quality problems.
3、In the event of a dispute, medical records and product qualifications are the key evidence.
Patent Landscape for Surgical Suture Project
Project leverages synthetic biology to design multifunctional surgical sutures integrating bacterial cellulose (BC),
chitosan/chitooligosaccharides (CS/COS), and curcumin. To protect innovation and build commercial barriers,
we propose a patent strategy in three categories: Product, Process, and Application.
- Product Patents
Composite Surgical Suture: A novel suture integrating BC, CS/COS, and curcumin with multifunctional properties.
Optimized Ratios and Functional Parameters: Specific formulations ensuring mechanical strength, biodegradability, and anti-inflammatory effects
- Process Patents
BC Synthesis: Using E. coli Nissle 1917 engineered with bcsA/bcsB genes to produce high-purity bacterial cellulose.
CS/COS Production: Shrimp shell waste biotransformation via Bacillus subtilis and Acetobacter, combined with E. coli BL21 surface-displayed CHI-1 enzyme for continuous fermentation.
Curcumin Biosynthesis: 4CL1, DCS, and CURS1 gene cascade expressed in engineered E. coli for efficient curcumin synthesis.
Composite Material Fabrication: Mixing BC, CS/COS, and curcumin under defined conditions (acid dissolution, stirring, plasticizer addition, drying).
- Application Patents
Infection Control and Hemostasis: Sutures that prevent infection while enabling rapid hemostasis.
Anti-inflammatory and Accelerated Healing: Combination of curcumin and COS to regulate inflammation and promote tissue regeneration.
Special Populations: It is mainly designed for pregnant women and can also be used in any surgery that requires surgical sutures
Waste Valorization: Transforming shrimp shell waste into valuable biomedical components, promoting green manufacturing
Patent application list
| Product Patent | Invention Patent | Composite surgical suture (BC + CS/COS + Curcumin) | Multifunctional integration, distinct from traditional single-material sutures | |
| Product Patent | Invention / Utility Model | Optimized ratios & parameters (strength / degradation / anti-inflammatory dosage) | Ensures stable performance for different surgical needs | |
| Process Patent | Invention Patent | Bacterial cellulose synthesis (EcN + bcsA/bcsB) | Genetic engineering for high-purity BC production | |
| Process Patent | Invention Patent | CS/COS production (shrimp shell biotransformation + CHI-1 enzymatic hydrolysis) | Waste valorization + continuous fermentation | |
| Process Patent | Invention Patent | Curcumin biosynthesis pathway (4CL1 + DCS + CURS1 gene cascade) | Microbial factory replacing plant extraction | |
| Process Patent | Invention / Utility Model | Composite material fabrication (dissolution, stirring, plasticizer, drying) | Strong industrial feasibility | |
| Application Patent | Invention Patent | Post-surgical infection control & hemostasis | High clinical value | |
| Application Patent | Invention Patent | Anti-inflammatory & accelerated wound healing | Targets inflammation control and tissue regeneration | |
| Application Patent | Invention Patent | Special populations (diabetes / elderly) | Precision medicine application | |
| Application Patent | Invention Patent | Waste valorization (shrimp shells → biomedical material) | Green & sustainable manufacturing value |
Competed company
Medical Device Industry Consultation — Weigao Corporation
To gain a deeper understanding of our competitive landscape, we consulted
Mr. Sha emphasized that in the medical device field, many
His insights have helped us refine our business positioning and build a more strategic and realistic path toward entering the medical device market.
We have three major competitors: Johnson & Johnson's Ethicon, Medtronic's Covidien, and Becton Dickinson. All three of these companies are highly authoritative in t he medical industry. Below are brief introductions, product comparisons, and market share analyses for these three companies.
Johnson & Johnson's Ethicon
Aesculap, a subsidiary of Johnson & Johnson Medical, is the global leader in surgical sutures with a history spanning over 60 years. Renowned for its innovation and high-quality products, Aesculap offers a range of sutures including absorbable and non-absorbable varieties, antibacterial sutures, and specialized sutures for minimally invasive surgeries.
Representative products:
- Vicryl®: An absorbable suture suitable for general soft tissue suturing.
- Prolene®: A non-absorbable polypropylene suture used in cardiovascular and plastic surgeries.
- Monocryl®: A single filament absorbable suture designed to reduce tissue reaction.
Pricing:
The price of a single suture ranges from approximately $10 to $50, with significant variations depending on the model and region.
Market share:
It holds approximately 35% to 40% of the global market share and has consistently been ranked first for an extended period.
Medtronic's Covidien
Medtronic bolstered its presence in the suture market through the acquisition of Covidien. The company's products are known for their cost-effectiveness and broad application, especially in the field of disposable suture devices.
Representative Products:
- Polysorb™: An absorbable suture with a coating that reduces tissue friction.o
- Sofsilk™: A silk-based non-absorbable suture used in ophthalmology and skin suturing.
- Caprosyn™: A rapidly absorbable suture that is absorbed in approximately 56 days.
Pricing:
Single sutures cost around $5 to $30, with some products priced lower than those of Johnson & Johnson.
Market Share:
Approximately 25% to 30%, with a high market penetration rate.
Becton Dickinson (BD)
BD is a global medical technology leader. Its surgical sutures are recognized for their precision and suitability for specific applications, such as orthopedics and dentistry. In recent years, BD has expanded its product line through acquisitions, including C.R. Bard.
Representative Products:
- Maxon™: A high-tension absorbable suture ideal for fascia suturing.
- Surgipro™: A non-absorbable polypropylene suture with strong tensile strength.
- Luxa™: An antibacterial-coated suture that reduces the risk of infection.
Pricing:
Single threads are priced from approximately $15 to $60, with some products being higher in cost.
Market Share:
Approximately 15% to 20%, with rapid growth.
Compared to the three aforementioned companies, our product excels in nearly every aspect of surgical suture performance, boasting lower costs and greater cost-effectiveness. Thus, our advantages are clear, and we believe an increasing number of patients will opt for our product.
Swot analysis
We used a
- Strengths: High material strength, low cost, sustainability, and environmental friendliness.
- Weaknesses: Limited clinical data, restricted initial production capacity, and physicians’ reliance on existing device usage habits.
- Opportunities: Growing market demand for safer and more durable sutures, supportive policies, and gaps in the high-end surgical consumables market.
- Threats: Strict regulatory barriers, competition from industry giants, and high clinical trial costs.
Through this SWOT analysis, we plan to leverage our advantages in
Cost Calculation
Cost Analysis — Consultation with Dr. Peng Changhong, CFO of SDIC CMC Capital
Cost estimation in the biomedical field is a complex process that requires a deep understanding of both
Fortunately, we had the privilege of consulting
Under his guidance, we were able to
We have made different prices below to achieve the sales volume required for break-even
3-5 Year Financial Report Forecast Chart
In this section, we will calculate the total cost (variable cost + fixed cost), including production site expenses, raw material costs, production equipment purchases, laboratory R&D expenses, patent application fees, regulatory approval fees, labor, utilities, and transportation. We will also determine the pricing of our surgical sutures and conduct a break-even analysis.
Cost component summary:
Fixed cost:
Rent: ¥3.5575M (annual)
Lab equipment: ¥2.5M – ¥0.5M subsidy = ¥2.0M (one-time)
Labor: ¥510k/month × 12 (R&D staff) + ¥2.526M (factory workers) = ¥8.646M (annual)
Utilities and miscellaneous: ¥92,400 (annual)
Variable Cost:
Raw materials: The cost of preparing bacterial cellulose, chitosan/chitooligosaccharides, and curcumin, such as E. coli Nissle 1917, shrimp shell waste, deproteinized substrates, etc.
Preparation method:
Chassis strain: E. coli Nissle 1917 (EcN)
Key genes: bcsA + bcsB (introduced into EcN)
| Glucose | 0.2 | Conventional carbon source in medium |
| Yeast extract | 0.5 | Promotes bacterial growth |
| Fermentation energy | 0.3 | Equipment operation (stirring, heating) |
| Purification | 0.4 | Washing, drying, sterilization |
| Before scale-up optimization |
Preparation method:
Raw material: Shrimp shells (waste)
Deproteinization: Bacillus subtilis fermentation (3 days)
Demineralization: Acetobacter fermentation (5 days)
Enzymatic hydrolysis (COS): E. coli BL21 (surface display CHI-1 enzyme)
| Shrimp pretreatment | 0.1 | Washing, crushing |
| Deproteinization | 0.3 | Bacillus subtilis culture |
| Demineralization | 0.2 | Organic acid dissolution by Acetobacter |
| Enzymatic hydrolysis | 0.5 | Enzyme expression by engineered E. coli |
| Purification | 0.4 | Filtration, drying |
| Chitosan + COS mixture |
Production details:
| Ferulic acid | 1.0 | Synthetic precursor, activated by 4CL1 |
| Engineered bacteria culture | 0.8 | E. coli (with DCS/CURS1 genes), fermentation + IPTG induction |
| Purification | 0.6 | Chromatography, desalting, drying |
| Microbial biosynthesis pathway |
| Dissolution & stirring | 0.10 | 8h stirring at room temperature |
| Mixing & plasticizing | 0.05 | Glycerol addition + 1h mixing |
| TPS dispersion | 0.08 | 8h stirring with varying concentrations |
| Drying & molding | 0.15 | Drying with equipment |
| Sterilization | 0.20 | EO gas or irradiation |
| Packaging | 0.30 | Medical-grade vacuum packaging |
| Bacterial cellulose (BC) | 0.5 g | 1.4 ¥/g | 0.70 | Produced by EcN |
| Chitosan (CS) | 0.3 g | 1.5 ¥/g | 0.45 | Extracted from shrimp shells |
| Curcumin | 0.05 g | 2.4 ¥/g | 0.12 | Microbial synthesis |
| Acetic acid (1% sol.) | 1 ml | 0.02 ¥/ml | 0.02 | Solvent |
| Glycerol (plasticizer) | 0.16 g | 0.05 ¥/g | 0.008 | 20% of dry CS+BC |
| Thermoplastic starch (TPS) | 0.04 g | 0.1 ¥/g | 0.004 | 4% CBT experiment |
| - | - | - |
Fixed Cost
Our R&D headquarters is located in Tianjin. The city provides strong support for biopharmaceutical development, such as accelerated regulatory approval and subsidies in synthetic biology.
Chosen site: Binhai New Area (TEDA Biotech Innovation Park).
TEDA Biotech Innovation Park G1 Building: 3444㎡ lab, annual rent approx. ¥3.5575 million (including tax, ¥86/㎡/month).
Airport Economic Zone R&D Building: 750㎡ min rental, ¥1/㎡/day (~¥30/㎡/month), includes cleanroom and dormitory facilities.
| Lab partition | 300–500 | 150k–250k | Panels/glass |
| Epoxy flooring | 150–200 | 75k–100k | Anti-corrosion, anti-static |
| Ventilation | 400–600 | 200k–300k | Biosafety cabinets, HVAC |
| Cleanroom setup | 800–1200 | 400k–600k | Class 10,000 standard |
| Utilities upgrade | 200–300 | 100k–150k | Dual circuits, pure water |
| Office renovation | 500–800 | 250k–400k | Office + meeting rooms |
| - | Basic renovation |
| Biosafety cabinet (Class II) | 50–80k | 2 | 100k–160k | Microbial handling |
| Laminar hood | 20–30k | 3 | 60k–90k | Sterile ops |
| Fermenter (50L) | 150–200k | 2 | 300k–400k | BC production |
| Freeze dryer | 250–350k | 1 | 250k–350k | Material dehydration |
| - | - | Core equipment |
| Fire approval | 30k–50k | Drawing review |
| Environmental review | 20k–40k | Wastewater treatment |
| Lab furniture | 100k–150k | Corrosion-resistant benches |
| 150k–240k | - |
| Renovation | 1.18–1.8M |
| Equipment | 710k–1.0M |
| Other Fees | 150k–240k |
Binhai New Area provides 30% renovation subsidy (up to ¥1M). Mid-value estimated subsidy: ¥500k.
Personnel Cost
R&D staff salaries (Tianjin market level):
PhD researchers: ¥20k–40k/month (13-month pay).
Master’s researchers: ¥10k–16k/month (120k–160k/year).
Technicians (Bachelor): ¥4k–6k/month.
| Rent (500㎡) | 60k–100k | Lab + office |
| PhD researchers | 200k–400k | 2–4 people |
| Master’s researchers | 100k–160k | 6–8 people |
| 360k–660k (mid-value ¥510k) | excl. equipment/raw materials |
| Raw material prep | 8–10 | 5,500 | 660,000 |
| Spinning/weaving | 4 | 6,000 | 288,000 |
| QA & sterilization | 6–8 | 6,500 | 546,000 |
| Packaging/storage | 5–7 | 5,000 | 360,000 |
| Equipment maint. | 2–3 | 8,000 | 240,000 |
| Admin/management | 3–4 | 9,000 | 432,000 |
| 36–47 | - |
Automation optimization: By purchasing mid-range multifunctional spinning equipment (¥1.5M–2.5M), labor can be reduced by 8 workers (saving ¥576k/year), capacity can double, and ROI is achieved in ~3.5 years.
Variable cost:
Raw materials: ¥1.30/unit
Processing: ¥0.88/unit
Total variable cost per unit: ¥2.18
Total variable cost per year:2.18*777k=¥1.7M(Calculated based on Break-even Point
sales volume)
Total cost (annual):
Total cost = ¥12.2958M+¥1.7M=¥13.9958M
Break-even Analysis
| Fixed cost (annual) | ¥12.29 million | Includes plant depreciation, management salaries, equipment maintenance |
| Variable cost (per unit) | ¥2.18 | Raw materials ¥1.30 + production & packaging ¥0.88 |
| Average price (per unit) | ¥18 (Year 1 pilot price) | To be gradually increased to ¥25–35 in subsequent years |
Break-even Analysis
To evaluate financial feasibility, we calculate the break-even point based on fixed and variable costs.
The formula is:
With an estimated fixed cost of
Using actual numbers: Break-even Units = 12,295,800 ÷ (18 - 2.18) ≈ 777,000 units/year
At this sales level, the corresponding revenue is approximately:
777,000×18≈¥14.0M
Therefore, the company needs to sell about
Beyond this point, the gross margin per unit will be approximately
We have made different prices below to achieve the sales volume required for break-even 3-5 Year Financial Report Forecast Chart
Timeline
Development Timeline Planning — Consultation with Mr. Wang Yi (Director, Zhiyu Medical Technology Co., Ltd.) and Mr. Lian Leyao (Director, NewPeak Technology Co., Ltd.)
To develop a clear and realistic roadmap for our product’s growth, we consulted
As board members, they provided us with
Their guidance enabled us to transform our abstract goals into a
Finger:Director of Beijing Zhiyu Medical Technology Co., Ltd.: Wang Yi & Director of Beijing Xinjian Technology Co., Ltd.: Liao Le Yao
Market Entry Strategy
Our market entry strategy is designed to balance
Phase I (Years 1–2): Pilot Launch in High-Value Niches
Provide
Collect
Collaborate with
Launch
Phase II (Years 3–4): Expansion into Tier-1 Public Hospitals
Apply for
Conduct
Deploy
Online: 3D animation training modules for doctors (¥200,000 budget).
Offline: Product demonstration workshops in the
Establish distribution partnerships with medical device suppliers to accelerate adoption.
Phase III (Year 5 onwards): Mass Adoption & Scale-Up
Secure inclusion in
Scale up GMP production (≥2,000㎡ facility) to meet demand of
Explore
Form strategic partnerships with industry leaders (e.g., Mindray, Weigao) for co-distribution or acquisition opportunities.
Key Differentiators in Market Entry
Financing plan
Resources
As a new medical device company, even with technological advantages, we still face the challenge of an insufficient
On the supply chain side, we also face difficulties in finding specialized suppliers for medical-grade biomaterials and precision components. Such suppliers are often reluctant to handle small-batch, high-quality orders, which limits our bargaining power and increases supply risks. The absence of this type of resource network often becomes a critical bottleneck in the survival and growth of startups.
Nevertheless, we also possess valuable resources that provide a foundation for product development and growth:
- Core technological resources: We have already completed preliminary validation at the laboratory stage and possess potential for industrial-scale expansion.
- Team resources: Our members have extensive research and practical experience in molecular biology, materials science, and engineering, coupled with strong motivation for sustained scientific engagement.
- Collaborative resources: We have established strong relationships with university laboratories, research institutes, and certain investment organizations, from which we have received support in technical guidance, funding, and early market insights.
- Facilities and equipment: The team already has access to essential laboratory infrastructure, including fermentation, purification, and testing platforms, providing robust support for continued R&D.
Risk analysis and method
Risk Analysis — Consultation with Beijing Food and Drug Safety Center
Our team is developing an innovative
Figure. At the Beijing Food and Drug Safety Center — our teammate in the middle is holding the bacterial cellulose suture model, which may appear slightly unclear due to the distance.
To gain professional insight into the
During the consultation, experts from the Safety Center provided us with detailed feedback and regulatory guidance. They emphasized that as a
From this meeting, we gained a deeper understanding of the
This consultation allowed us to transform potential risks into a structured, manageable plan, ensuring that our project progresses under
From the perspective of operations and capital, the project requires a substantial initial investment, including the construction of a
Exit strategy
We have four exit strategies. The first is strategic mergers and acquisitions. We will seek large healthcare groups or competitors like Broussonetia papyrifera to acquire our company. Alternatively, we could divest parts of our business by spinning off high-value business units for separate sales to quickly recoup capital.
Another option is selling our patents and intellectual property. We could license core patents to peers to collect royalties while retaining ownership. Alternatively, we could package and sell our IP, transferring patents, trademarks, and trade secrets in one transaction to technology acquirers—an approach particularly suitable for companies like ours that possess high-barrier technologies but lack commercialization capabilities.
A further choice involves collaborating with other companies through business trusteeship. We could sign agreements with competitors for them to take over product sales and customer service, while our company receives revenue shares or one-time fees, gradually exiting the market.
If none of these three methods resolve our issues, we may proceed with bankruptcy liquidation. Courts would appoint receivers to conduct comprehensive asset auctions and settle debts according to legal procedures. However, this would only occur if the aforementioned three approaches prove unfeasible.
Further explanation
Our exit strategy is designed to provide clear paths for investors and stakeholders to realize returns while ensuring sustainable development of the company. We will pursue three potential exit options, depending on the company’s growth trajectory and market conditions.
1、Acquisition by Major Medical Device Companies
We will actively position the company as an attractive acquisition target for global and domestic leaders in surgical sutures and biomaterials. Potential acquirers include
Target timeline:
Expected deal size:
2、IPO on the STAR Market or HKEX
As the company scales to nationwide adoption, we may pursue an independent public listing on the
Prerequisites: Proven revenue track record (≥¥200M annual revenue), GMP-certified production capacity, and global patent protection (PCT, FDA, CE approvals).
Target timeline:
3、Strategic Partnerships and Partial Exit
We will also consider forming
Example: Co-distribution agreement with Mindray or Weigao for domestic hospitals, combined with licensing deals for overseas markets.
This strategy provides flexibility and early liquidity options for investors before a full exit.
Risk Management in Exit
To ensure successful exit opportunities, we will:
Build a
Secure
Develop
Skills, capabilities, and the stakeholders
Skills
We define
The
We also collaborate with laboratories, leveraging well-equipped synthetic biology platforms to ensure that our ideas can be tested and optimized under real working conditions. Meanwhile, through the
Capabilities
We define
At present, our product has completed preliminary validation in the laboratory and has demonstrated strong potential in
- Cellulose synthesis relies on conventional glucose feedstock, supported by a mature and stable supply chain.
- Chitosan can be extracted from waste materials such as shrimp and crab shells, making it a low-cost and renewable resource.
- Curcumin is efficiently synthesized through fermentation engineering, avoiding the yield bottlenecks and batch-to-batch instability of traditional plant extraction.
- We selected Escherichia coli Nissle 1917 as the chassis strain, which has been widely applied in probiotics and bioproduct development, with a strong foundation of safety and industrialization.
- Through genetic engineering, we achieved stable synthesis of cellulose and curcumin, which can be combined with chitosan to form a complete functional system.
- The three functional modules can be scaled up via modular fermentation and integrated downstream processing, enabling standardized mass manufacturing.
- The final product, a biodegradable suture, directly targets the surgical consumables market and demonstrates strong market adaptability.
Stakeholders
Squirrel-Beijing plans for the sustainable development of our cesarean-focused surgical suture. To achieve this, we emphasize long-term, two-way relationships with key stakeholders:
This structure lets Squirrel-Beijing maintain stable, accountable relationships—aligning clinical value (patients & doctors), institutional decisions (procurement, regulators, insurers), industrial capacity (biotech partners), and social license (public)—so our solution can progress credibly from pilot to scale.
For more details, please refer to Human Practice.
Market Validation
Customer Communication and Clinical Feedback
To better understand the clinical demand and market potential for our bioactive surgical suture, we actively reached out to both
As shown in the
To ensure wide coverage, we conducted consultations with hospitals of
- In northern China, we visited Beijing; in the south, we spoke with professionals in Changsha (Hunan Province) and Ganzhou (Jiangxi Province).
- In terms of institutional hierarchy, our interviewees included top-tier national hospitals such as Peking University People’s Hospital and Xiangya Hospital of Central South University, as well as district-level hospitals like Wangcheng People’s Hospital in Changsha, and even community-level medical centers such as Beiwaitan Street Community Health Service Center.
- We also extended our scope to a veterinary surgery expert, acknowledging that pet surgery has become an emerging application area for high-quality sutures.
Across these institutions, we engaged with specialists from
The six doctors who provided feedback include:
- Yuan Xiaopei (袁晓培) — Chief Physician, Peking University People’s Hospital
- Zhang Bin (张斌) — Physician, Beiwaitan Street Community Health Service Center
- Liu Yang (刘杨) — General Surgeon, Xiangya Third Hospital, Central South University
- Gong Yuxing (龚宇星) — Exotic Animal Surgery Specialist, Veterinary Surgical Clinic
- Yang Xiaojiang (杨晓江) — Orthopedic Doctor, Wangcheng People’s Hospital, Changsha
- Zhou Xiaozhong (周晓忠) — Director, Trauma Center, First Affiliated Hospital of Gannan Medical University (Jiangxi)
All six experts
They highlighted that features such as
Importantly, our communication with these experts was
Investor Engagement
Interestingly, at our current stage, we had
As shown in the figure,
Representatives from
Beyond financial support, all three parties encouraged us to
Enterprise Visits and Further Investment Interest
Encouraged by the strong responses we received at the CCiC conference, we continued to stay in contact with the investors who had previously expressed interest in our project. In addition, we took the initiative to visit
During our visits, we presented our project progress and demonstrated some of our experimental outcomes. The company representatives spoke highly of our creativity and the practicality of our research results, particularly expressing amazement at the performance of our
All four companies showed strong interest in our future development, commending the level of innovation our team had achieved at the high school level. They also expressed
Figure. Team members visiting four biotechnology companies — Biofront, DP Technology, Zhishidao Laboratories, and SicaGene — in Beijing’s Haidian District to present project results and discuss potential investment collaboration.
Plan in Long term——positive/negative
We focus on a
Environmentally Friendly
- Medical-grade chitosan/COS is prepared from shrimp shell waste, reducing solid waste and by-products that pollute marine environments.
Structural Stability and Healing Efficiency
- BC provides high tensile and knot strength, avoiding the problems of “excess rigidity/imbalanced degradation” seen in traditional sutures.
- Offers stable support for early healing, with expected benefits including shorter hospital stays and nursing time, as well as reduced need for suture removal and follow-up visits.
Clinical Accessibility and System Value
- Lower infection rates, fewer dressing changes, and reduced hospitalization days can generate cost savings for healthcare systems and improve bed turnover efficiency.
Safety Risks and Negative Spillovers
- A very small number of patients may be allergic to shellfish-derived materials; pre-operative inquiry and clear warnings are required.
- Quality fluctuations of bio-based raw materials and production lines may affect consistency; mitigated through GMP/QMS compliance, supplier qualification, and stability testing with retained samples.
- Postoperative residues and packaging must be disposed of as medical waste to prevent secondary contamination.
We plan to establish a
Why Our Team Qualifies for the Best Entrepreneurship Award
1. Identification of Customers and Unmet Needs
We identified
2. Feasibility, Scalability, and Innovation
We successfully produced a
3. Product Development Plan and Milestones
Guided by medical experts and industry professionals, we developed a
- Year 1–2: Optimization and clinical-grade prototype preparation
- Year 3–4: Preclinical and regulatory testing
Year 5: Market entry and scale-up manufacturing
- These milestones were refined through consultation with directors from Beijing Zhiyu Medical Technology Co., Ltd. and Beijing Xinjian Technology Co., Ltd.
4. Skills, Capabilities, and Stakeholders
Our interdisciplinary team includes students with backgrounds in
5. Long-Term Impacts and Sustainability
We considered both
Reference
【1】MSN. (n.d.). 2023 China Health Statistics Yearbook. MSN. [in Chinese]
【2】NetEase. (n.d.). 23-province alliance centralized procurement: Surgical sutures officially included in the procurement program. NetEase Subscription. [in Chinese]
【3】Device House. (n.d.). Tariff war and centralized procurement as dual drivers: Domestic sutures break through challenges. [in Chinese]
【4】Tencent News. (n.d.). The life-and-death battle of centralized procurement for surgical sutures. [in Chinese]
【5】Shanghai Observer. (n.d.). NMPA releases ten measures to support the innovative development of high-end medical devices. [in Chinese]
【6】General Office of the State Council. (2019, December 3). Opinions on promoting the normalization and institutionalization of centralized drug procurement with target quantity. http://www.gov.cn/zhengce/zhengceku/2019-12/03/content_5457915.htm [in Chinese]
【7】Chen, L., Wang, Y., & Zhang, K. (2023). Advances in absorbable suture materials and their clinical applications. Journal of Biomedical Materials Research Part B: Applied Biomaterials, 111(5), 1120–1130. https://doi.org/10.1002/jbm.b.35369
【8】Kotha, R. R., & Luthria, D. L. (2019). Curcumin: Biological, pharmaceutical, nutraceutical, and analytical aspects. Molecules, 24(16), 2930. https://doi.org/10.3390/molecules24162930
【9】Mourya, V. K., & Inamdar, N. N. (2008). Chitosan-modifications and applications: Opportunities galore. Reactive and Functional Polymers, 68(6), 1013–1051. https://doi.org/10.1016/j.reactfunctpolym.2008.03.002
【10】Shi, Z., Zhang, Y., Phillips, G. O., & Yang, G. (2014). Utilization of bacterial cellulose in food. Food Hydrocolloids, 35, 539–545. https://doi.org/10.1016/j.foodhyd.2013.07.012