Shoulder Innovations Sets Terms for $100M+ IPO, Bolstering Orthopedic Implant Market

Shoulder Innovations, a Michigan-based orthopedic implant manufacturer, has announced plans for a substantial initial public offering (IPO) on the New York Stock Exchange. The company aims to raise approximately $100 million by offering 5 million shares priced between $19 and $21 each, with plans to list under the ticker symbol SI.

Innovative Implant Technology and AI-Powered Solutions

Founded in 2009, Shoulder Innovations has secured FDA clearance for its InSet implant systems, designed for both total shoulder joint replacements and reverse shoulder procedures. The company's technology addresses a critical need in shoulder arthroplasty, where implant loosening remains the leading cause of failure.

The InSet platform boasts a more secure bone connection and reduced mechanical stress during arm movement. This innovation is particularly significant given the approximately 250,000 shoulder arthroplasty procedures performed annually in the United States.

In addition to its implant technology, Shoulder Innovations offers ProVoyance, an FDA-cleared AI-powered surgical planning software. This cutting-edge tool transforms CT images into 3D bone models, enhancing preoperative planning and potentially improving surgical outcomes.

Financial Performance and Recent Funding

Shoulder Innovations has reported robust financial growth, with preliminary results indicating revenue of about $21 million for the first half of 2025, up from $15.4 million in the same period of 2024. However, the company's net loss is expected to increase to approximately $24 million, compared to $7.8 million in the previous year, primarily due to expansion efforts and changes in stock-related liabilities.

The company has also secured significant private funding, including:

• A $40 million convertible notes financing backed by Fidelity Management
• A $40 million Series E round led by U.S. Venture Partners, with participation from Gilde Healthcare Partners, Gilmartin Capital, Aperture Venture Partners, Arboretum Ventures, and Sectoral Asset Management

Market Context and Future Plans

Shoulder Innovations' IPO comes amid a wave of public offerings in the medical technology sector. Recent notable IPOs include Heartflow, an AI coronary artery disease diagnostic developer, and Carlsmed, a spine surgery device manufacturer.

Looking ahead, Shoulder Innovations plans to expand its product line to include:

• A revision solution for failed implants
• A fracture-specific system
• Implants designed for patients with metal sensitivities

These developments position the company to address a broader range of patient needs and potentially capture a larger share of the orthopedic implant market.