Dr Boreham’s Crucible: Evoke is sending the right signals to ease Saluda’s pain

Detailed summary

Saluda is focused on developing treatments for chronic neurological conditions via its closed-loop spinal cord stimulation platform Evoke. ... Read More The post Dr Boreham’s…

Evoke helps chronic pain sufferers get back to living their lives. Pic: Tim Boreham/supplied

Sector-wide clinical studies failing their primary endpoints are not the only issues to have spooked investors this year, resulting in cruel sell-offs.

On October 21 shares in Saluda Medical (ASX:SLD) plunged 20% after the back pain device company unveiled a “voluntary field action” for its Evoke spinal cord stimulators.

Saluda didn’t mention the ‘R’ word – as in ‘recall’ – and said the problem stemmed from a “low-incidence issue related to a third-party manufacturing process change”.

The complaints affected less than 1% of devices and the problem has been corrected (see below).

But the share price damage has been done, thus perpetuating a wretched period for the stock since Saluda listed on the ASX last December.

The voluntary field action aside, the company has exceeded the expectations outlined in last year’s initial public offer (IPO) prospectus.

Let’s not forget Saluda is a substantive, commercialised company, having generated more than US$90 million of revenue last financial year.

Defined as lasting for more than three months, chronic pain is increasing because of an ageing population, better survival from catastrophic injury and more pain-inducing surgery.

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