SANUWAVE Health (SNWV): A Disruptive Razor-Blade Medical Device Company Growing 50%

MicroCapClub

Sebastian Krog joins Adam Wilk to have a conversation with Morgan Frank, CEO of SANUWAVE Health (SNWV). This MicroCap Business Breakdowns discussion took place live on April 16th, 2025, on the MicroCapClub Community. https://microcapclub.com/join-now/

Sanuwave is a medical device company that markets UltraMIST, a low frequency, non-contact, non thermal deep ultrasound system used in the treatment of complex and non-healing wounds. UltraMIST is an FDA cleared product that has schedule 1 CMS reimbursement under CPT code 97610 (one of only two companies entitled to use this code). The company has a classic “razor/razorblade” model of selling a system (list price $35,000) and then a disposable applicator (list price $100) for each procedure and its products are sold into hospitals, physician’s offices, wound care centers, mobile wound care providers, and nursing homes and skilled nursing facilities.

Although system sales can be lumpy, the growing installed base has driven a steady increase in consumables sales which generally represent 55-65% of revenue. Full year 2024 revenues were $32.6 million, up 60% from full year 2023 revenues. The company initiated full year 2025 revenue guidance of $48-50 million for full year 2025 (an increase of 47-53% versus 2024).

The company underwent a significant capital restructuring in October 2024 consummating a note and warrant exchange, a $10.3 million PIPE transaction, debt paydown, and 375:1 reverse stock split. As a result, the cap table is now clean and the company has 8.5 million common shares outstanding. The balance sheet is relatively healthy, with about $11 million in net debt. The company has been profitable and cash generative and aims to continue paying down debt from operating cash flow going forward.

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