Medical device company Saluda Medical Inc (ASX: SLD) is set to list on the ASX after raising $231 million in its initial public offer.
The company, founded in Sydney in 2010, describes itself as a "commercial stage" medical device company, "focused on developing treatments for chronic neurological conditions using its novel neuromodulation platform''.
The company explained further:
Saluda's product, the FDA-approved Evoke® System, is designed to treat chronic neuropathic pain by providing SCS (spinal cord stimulation) therapy that senses and measures neural activation to optimise therapy and reduce patient and clinician burden. Unlike standard SCS devices, which only provide fixed levels of stimulation, Saluda's system leverages evoked compound action potentials, or ECAPs, to measure the spinal cord's response to electrical stimulation and adjust the stimulation accordingly to achieve and continuously maintain a targeted level of neural activation. This ensures the therapy remains at the patient specific prescribed level of neural activation, providing consistent and effective outcomes.
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Better pain relief for patients
The company said clinical study results demonstrated "clinically superior" pain relief when tested against other methods, and Saluda would be seeking to gain a larger slice of the more than US$23 billion market for people suffering chronic pain in the US alone.
The company said in its prospectus that it had generated US$70.4 million in revenue in FY25, with that forecast to rise to US$81.9 million in the current financial year.
The company made a net loss of $123.5 million in FY25, which is expected to increase this year to $145.5 million.
To achieve its revenue growth targets, the company stated that it aims to increase the number of trained sales representatives in the US by more than 80% to 114 in the current financial year.
Saluda Chief Executive Barry Regan said the listing would be a catalyst for further growth for the company.
He said further:
Our IPO will mark an important milestone for Saluda Medical and the patients whose lives we aim to transform through objective, personalised neuromodulation. The strength of our clinical evidence, the scalability of our commercial model, and the dedication of our team positions the company well to continue to make a significant difference in our large, underpenetrated global market.
Saluda raised the new capital via the issue of Australian-listed chess depositary interests at $2.65 per share.
The company will be valued at approximately $775 million upon listing, which is scheduled for Friday, December 5. The raising was run by Bell Potter as joint lead manager, alongside Morgans, E&P, and CommSec.
