Saluda Medical (ASX:SLD) IPO Raises $230M, but Crashes 46% on its Trading Debut

Saluda Medical (ASX:SLD) listed on Friday after raising AU$230 million at AU$2.65 per share, marking a rare bright spot in an otherwise quiet year for ASX biotech debuts. Unlike most life sciences IPOs that arrive with little more than clinical-stage promise, Saluda Medical already generates US$70 million in annual revenue and is targeting US$82 million this financial year.

But here’s the reality investors need to weigh: despite meaningful commercial traction, the company lost US$128 million in FY25 and expects losses of US$145 million this year. In our view, the investment case comes down to one question: can Saluda’s closed-loop technology carve out market share against deep-pocketed giants like Medtronic, Abbott, and Boston Scientific?

IPO investors didn’t seem to think so with the stock crashing 46% on its ASX debut!

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Saluda’s Evoke System Brings Real-Time Pain Relief

Founded by John Parker, a former Cochlear researcher, Saluda has deep expertise in implantable devices. Its flagship Evoke System is the only closed-loop spinal cord stimulator that automatically adjusts with every pulse, keeping patients within their therapeutic window. Unlike traditional devices that require manual changes, Evoke adapts as patients move or breathe, offering more consistent pain relief and fewer clinic visits.

The FDA approved Evoke in 2022, and Saluda launched in the US in 2023 with 120 sales reps working alongside 250 physicians. Clinical trials published in The Lancet Neurology show Evoke delivers significantly better pain relief than older open-loop systems, giving Saluda a strong edge as it challenges established competitors.

Revenue Is Growing, But Losses Remain Substantial

Saluda Medical stands out from most biotech IPOs because it already has sales. The company made US$70 million in revenue in the year to June 2025 and expects about US$82 million this year, a 17% increase as its US rollout expands.

But profits are still far away. Saluda lost US$128 million last year and expects losses of US$145 million this year. Management has said losses will continue for the foreseeable future, meaning investors should expect more capital raises before the company breaks even.

On the positive side, Saluda has strong backing. Boston Scientific and Redmile Group invested US$75 million in 2019, showing confidence in its technology. After listing, new investors will own about 35% of the shares, while most of the rest will remain under escrow.

The Investor’s Takeaway for Saluda Medical

Saluda Medical is valued at about AU$670 million, which works out to roughly 5 times its forecast revenue of US$82 million. That’s fair for a fast‑growing medtech company, but it means the business has little room for mistakes.

The biggest challenge is competition. Medtronic leads the spinal cord stimulation market, with Boston Scientific and Abbott close behind. These companies have far more money and stronger distribution networks. Medtronic has also launched its own closed‑loop system in Europe, showing rivals are catching up.

The global spinal cord stimulation market is expected to top US$6 billion by 2030, growing quickly as patients look for alternatives to opioids. Saluda Medical has a chance to capture part of this market if it can expand its US sales team while keeping costs under control.

For investors, Saluda Medical offers real technology advantages and strong momentum. But it’s still early‑stage and loss‑making, so risk‑tolerant investors may see opportunity, while cautious investors might prefer to wait for proof that revenue growth can beat losses.