The company will significantly reduce operating expenses by reducing headcount, primarily impacting operations and sales in the European business. Episurf continues reorganising its sales organisation in Europe to handle sales through distributors. The cost reductions are expected to have full effect as of the third quarter of 2025.

Increased focus on the US market

The commercialization in the US of the Episealer Patellofemoral System will continue with full force, and the company looks forward to completing the 510(k) process for market clearance for the big toe implant Episealer MTP, it states. The Episealer Patellofemoral System represents a USD 300 million market opportunity in the US, and the company will increase its focus on further expanding the customer base and productivity. In Europe, the distribution co-operation with Joint Operations has started and Episurf is fully dedicated to educating Joint Operations’ sales force, it states.

International partnering opportunities

Based on the increased confidence in the US market in general, and in the company’s regulatory pipeline, Episurf will intensify its work regarding international partnering opportunities through dedicated external advisors, it states.

“A direct, dedicated sales force was crucial to introduce the new technology in the market. With clinical acceptance in Europe, we have become a highly attractive supplier to distributors within joint preservation. With this initiative, the European business model will be similar to the one we established in the US. We are also making changes in other areas and continue to adapt the organisation. I want to sincerely thank the colleagues who are leaving Episurf as part of this reorganisation,” says Pål Ryfors, CEO, Episurf Medical.

A rights issue of units of up to approximately SEK 29.4 million

The Board of Directors of Episurf Medical has also resolved, subject to approval at an extraordinary general meeting, to carry out a rights issue of units with preferential rights for existing shareholders of a maximum of approximately SEK 29.4 million.

The purpose of the Rights Issue is mainly to raise the capital required to complete the 510(k) process with the US Food and Drug Administration regarding Episealer MTP and to carry out preparatory activities for commercialization, as well as to support the sales of Episealer Patellofemoral System in the US as well as other products outside the US.

“The capital raise strengthens Episurf’s commercial capabilities in the US and key European markets for our existing portfolio, while creating good conditions to complete the FDA review during the year and successfully launch Episealer® MTP thereafter. The transition to a distributor-based business model is proceeding according to plan and we are seeing strong growth in the number of surgeons in the US using the Episealer® Patellofemoral System. Combined with the cost-saving program we communicated earlier today, we are taking major steps towards a financially stronger Episurf. We therefore look forward to the rest of the year, which will be important for Episurf.” says Pål Ryfors, CEO Episurf Medical.