The board’s decision follows a previously announced dual-track strategic review that considered a sale or spin-off of the medtech business alongside continued operation.

The board concluded that neither a sale nor a spin-off offered a sufficiently attractive combination of feasibility, time, capital requirements and expected shareholder value. Episurf will instead wind down its production and other operational medtech activities and seek to realize the value of its patent portfolio and other intangible assets. The decision was also shaped by FDA feedback in the ongoing 510(k) process for Episealer MTP, its implant for osteoarthritis in the big toe joint, which requires further validation data. The company expects the wind-down to have a positive effect on earnings from the second quarter of 2027.

“We continue to see value in the technology and the patent portfolio, but assess that the next phase of development is best driven by a larger industrial player,” says Jens Andersson, CEO of Episurf Medical.