What Went Wrong for Saluda Medical on Its Big ASX Debut?
Source: Kapitales Research
Highlights:
Saluda Medical, Inc. (ASX: SLD) plunged 42.6% at the time of writing on its first trading day despite a highly anticipated ASX debut.
The IPO priced shares at $2.65, valuing the medical-technology company at approximately $775 million.
Investor concerns over ongoing losses and profitability timelines overshadowed optimism about the company’s FDA-approved chronic-pain device, triggering a sharp sell-off.
Stumble Out of the Gate
At the time of writing, Saluda Medical, Inc. (ASX: SLD) — the biotech firm offering spinal-cord stimulation devices — saw its share price plunge sharply by about 42.6% shortly after its initial public offering. The company had earlier floated its shares at AUD 2.65 apiece, giving it an estimated market valuation of roughly AUD 775 million.
Why the Slide Despite Big Backing?
Saluda Medical raised around AUD 230 million through the IPO to support the US rollout of its flagship “Evoke System,” which is designed to treat chronic pain via closed-loop spinal cord stimulation.While the listing generated optimism — given the company already earns significant revenues — investors may have been rattled by the fact that, despite US$70 million in revenue last year, Saluda remains unprofitable.
Mixed Signals to the Market
On one hand, Saluda’s technology shows real-world promise, with FDA approval and global ambitions fueling hopes for growth. On the other hand, the stock market seems unconvinced; the steep fall suggests many investors are uneasy over the path to profitability and potential competitive pressures in the med-tech space.
What’s Next for Saluda?
All eyes will now be on upcoming quarterly reports — especially whether revenue growth picks up and whether the company can narrow or eliminate operating losses. If Saluda can convert its technological promise into consistent earnings, investor sentiment might stabilize. Until then, the sharp initial drop serves as a reminder that even promising IPOs can falter if expectations aren’t met.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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What Went Wrong for Saluda Medical on Its Big ASX Debut?
Highlights:
Stumble Out of the Gate
At the time of writing, Saluda Medical, Inc. (ASX: SLD) — the biotech firm offering spinal-cord stimulation devices — saw its share price plunge sharply by about 42.6% shortly after its initial public offering. The company had earlier floated its shares at AUD 2.65 apiece, giving it an estimated market valuation of roughly AUD 775 million.
Why the Slide Despite Big Backing?
Saluda Medical raised around AUD 230 million through the IPO to support the US rollout of its flagship “Evoke System,” which is designed to treat chronic pain via closed-loop spinal cord stimulation. While the listing generated optimism — given the company already earns significant revenues — investors may have been rattled by the fact that, despite US$70 million in revenue last year, Saluda remains unprofitable.
Mixed Signals to the Market
On one hand, Saluda’s technology shows real-world promise, with FDA approval and global ambitions fueling hopes for growth. On the other hand, the stock market seems unconvinced; the steep fall suggests many investors are uneasy over the path to profitability and potential competitive pressures in the med-tech space.
What’s Next for Saluda?
All eyes will now be on upcoming quarterly reports — especially whether revenue growth picks up and whether the company can narrow or eliminate operating losses. If Saluda can convert its technological promise into consistent earnings, investor sentiment might stabilize. Until then, the sharp initial drop serves as a reminder that even promising IPOs can falter if expectations aren’t met.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au