Despite US turmoil, Hinge Health pushes ahead with IPO

Digital therapeutics (DTx) developer Hinge Health has published a new prospectus for an initial public offering (IPO) in the US, shrugging off the weakness in stock markets caused by President Trump's trade war, although it still hasn't set a target price.

The San Francisco-based company – which provides DTx for managing musculoskeletal (MSK) conditions like back and joint pain and post-surgical rehabilitation – updated its prospectus after reporting first-quarter revenues up 50% to almost $124 million. It also swung into the black, making $17.1 million in after-tax profit compared to a loss of $26.5 million in the first three months of 2024.

Hinge Health first announced its intention to seek a Nasdaq listing under the ticker symbol HNGE in March, before the disruption in the markets that followed Trump's 'Liberation Day' tariffs that have prompted some IPO hopefuls to delay their plans.

At the time, the offer was given a placeholder value of around $500 million, and, according to media reports, it was hoping to complete the listing in April or May.

With IPOs in digital health drying up even before Trump's move, getting this one over the line would be a major inflexion point for the sector. A flurry of companies that took the plunge after the pandemic saw their share prices decimated in 2024 as investors lost faith in the sector, as uncertain reimbursement pathways and high customer acquisition costs dented confidence.

Hinge Health's results suggest it has successfully bucked that trend. Its business model relies on contracts with large employers, which provide its digital MSK interventions through their health plans, and its offering includes modules for prevention and treatment of back and joint problems, including guided physical therapy and educational and behavioural support.

The company recently branched out into the device arena with an FDA-approved wearable – called Enso – that delivers electrical impulses as a non-addictive, non-invasive alternative for pain relief, and replaced the use of wearable sensors to monitor patients with a motion-tracking technology called TrueMotion.

Other developments highlighted in the prospectus include the launch of new research programmes in women's pelvic health and MSK issues associated with menopause, and continued expansion into international markets such as Canada and the UK, where its MSK programme has been backed for use by the NHS in England to treat lower back pain.

Hinge Health has raised around $825 million through a series of private rounds, most recently a Series E in 2021, which generated $600 million and drove its valuation above the $6 billion mark.