Shares in Saluda Medical, Inc (ASX: SLD) have opened sharply lower than the initial public offer price on its first day of trade on the ASX.
The company's shares were trading at $1.59 mid-morning, well below the $2.65 price at which they were offered to new shareholders.
Saluda Chief Executive Barry Regan said in a statement issued to the ASX that the listing was a significant achievement for the company.
Today marks an important milestone for Saluda Medical and the patients whose lives we aim to transform through objective, personalised neuromodulation. We are pleased with the momentum in the first months of FY26, and we remain on track to meet our full-year guidance. 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 global market. We are grateful for the support of our new and existing securityholders, and proud to be joining the ASX.
Funds raised to drive growth
Saluda raised $230.8 million through the issue of new shares at $2.65 each, with the money to be used "to expand Saluda's sales team, marketing and commercial support and product development."
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 in a release issued earlier this week:
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.
The company said clinical study results demonstrated "clinically superior" pain relief when tested against other methods, and Saluda would seek 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 aims to increase the number of trained sales representatives in the US by more than 80% to 114 by the end of the current financial year.
