Prosthetics firm stock drops sharply after denying short-seller's Russia claims

• Grizzly Research alleges owner Hans Georg Näder extracted €600 million from the company despite it earning only €340 million between 2010-2022, and took a €1.1 billion payment-in-kind loan in 2024 that could balloon to €2.36 billion by 2030.
• The hedge fund estimates over 30% of Ottobock's net income comes from Russia, significantly higher than official figures showing 8.8% of revenue from Russia in H1 2025, and accuses the firm of 'effectively servicing the Russian military' despite company denials.
• Ottobock's stock fell 11% on Tuesday and has declined more than 20% since its Frankfurt IPO in October 2025, with majority owner Näder retaining 81% control of shares.

Summary: Ottobock Stock Plunges on Short-Seller Allegations

German prosthetics manufacturer Ottobock saw its shares fall over 10% on Tuesday after U.S. hedge fund Grizzly Research announced a short position and released allegations against the company and its majority owner.

Key Allegations:

Grizzly Research accused Ottobock's majority owner of extracting more capital than the company earned over 15 years, citing media reports showing €600 million in payments despite only €340 million in earnings from 2010-2022. The hedge fund also raised concerns about a €1.1 billion payment-in-kind (PIK) loan entered in March 2024, allegedly used to buy back 20% of the company from Swedish private equity firm EQT before its IPO. Grizzly estimates this loan could reach €2.36 billion by its 2030 maturity.

Russia Business Concerns:

Grizzly claims over 30% of Ottobock's net income comes from Russian business, significantly higher than official figures showing 8.8% of revenue in H1 2025 (up from 6.8% in 2024 and 5.0% in 2023). The firm cited reports of Ottobock prosthetics appearing in Russian military propaganda, though the company maintains it only services civilians.

Company Response:

Ottobock categorically rejected all claims and conclusions in the report, stating it would provide detailed responses after its annual general meeting.

Market Impact:

Ottobock went public on Frankfurt Stock Exchange in October 2025 at a €3.8 billion ($4.42 billion) valuation. The stock has fallen over 20% since its IPO, with the majority owner retaining 81% control.