Shares of Shoulder Innovations, a medical company that develops implants for shoulder surgeries, became available July 31 on the Freedom client trading system. The securities are listed under the ticker SI. They will appear on the New York Stock Exchange in a few hours. 

Details

Shoulder Innovations raised $75 million in an IPO on the New York Stock Exchange, placing 5 million shares at $15 each. This is significantly lower than the announced price range - the company initially expected $19-21 per paper. At this listing price, the market valued it at less than $300 million;

The IPO was organized by Morgan Stanley, Goldman Sachs, Piper Sandler and Jefferies. 

The company plans to use the raised funds to scale its commercial operations as well as purchase additional surgical kits to increase the number of surgeries and geographic expansion, according to the prospectus. In addition, funding is needed for research and development of new surgical solutions.

Shoulder Innovations' largest shareholder is US Venture Partners, which will retain a 13.5% stake after the offering. Funds affiliated with Fidelity will receive a 12.5% stake after the conversion of the bonds. Dutch healthcare investor Glide Healthcare will control 11.4% and Lightstone Ventures will control 8.1%, notes Bloomberg. 

What the company 

Founded in 2009, Shoulder Innovations develops InSet implant systems for total shoulder replacement as well as for so-called "reverse" surgeries in cases of shoulder rotator muscle damage. It also offers artificial intelligence-enabled software for surgical planning, ProVoyance. It converts CT images into three-dimensional bone models, explains FierceBiotech.

The company estimates that its technology provides a stronger connection to the bone and reduces the risk of the implant loosening, which is one of the key reasons for failed shoulder replacement surgeries, the portal specifies. The company also plans to develop a line of implants for repeat surgeries, fractures and patients with metal allergies.

According to Shoulder Innovations' prospectus, the company's revenue for the first six months of 2025 was $21 million, compared with $15.4 million a year earlier. The expected net loss is $24 million, compared to $7.8 million last year. The increase in expenses is due to the expansion of the team and the revaluation of financial liabilities.

In the first quarter of 2025, the company recorded a loss of $4.6 million on revenue of $10.1 million.

According to estimates Shoulder Innovations, the U.S. shoulder replacement surgery market is worth about $1.7 billion that's about 250,000 surgical procedures per year. The company expects that number to grow 11% annually through 2029. It estimates the addressable market at more than $2.8 billion.

What analysts are saying about the company

Shoulder Innovations, like many fast-growing medtech companies, faces a number of serious risks - among them losses, accumulated negative financial results and high competition from major players in the orthopedic market, says IPO Prophet consultant Eric Friedman. 

Additional pressure is exerted by changes in the medical reimbursement system and price competition in the US. Nevertheless, the company demonstrates high revenue and margin growth rates, is actively preparing to scale its business and is considered as a potential participant of M&A deals - both as a buyer and as a target for large corporations, the analyst specifies;

Alem Bektemirov of Freedom Broker forecasts that Shoulder Innovations' revenue will grow from $32 million in 2024 to $409 million by 2034. He also draws attention to the high competition in the segment - including from giants such as Johnson & Johnson. 

According to Bektemirov, the target price for Shoulder Innovations shares is $27.1, suggesting a potential upside of more than 80% to the offering level.

Context

Shoulder Innovations' market entry adds to a string of major medtech IPOs in 2025, underlines FierceBotech. In June, Caris Life Sciences, which uses AI to study DNA and create customized cancer treatment plans, raised $494 million in a listing, placing the stock above its stated range. They are now trading about 40% above the listing price.

In July, Carlsmed, which provides AI-powered hardware and software for spine surgeries, raised $100.5 million in its initial public offering. On the July 31 premarket, its stock rose 3%, but relative to the IPO price, the securities did not appreciate.

In addition, Heartflow, a developer of AI diagnostics for cardiovascular disease, filed a listing application in mid-July.

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Freedom Broker clients will be able to trade in Shoulder Innovations shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on the ticker SI.

This article was AI-translated and verified by a human editor

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