With deep-pocketed VCs happy to keep funding those groups that prefer to remain private, it seems that only the companies that know they can raise big bucks bother braving the stock exchanges. And, even excluding Ortho-Clinical’s megadeal, the largest medtech IPO – Signify Health’s $649m offering on the NYSE – dwarfed biotech’s biggest.Īgain excluding Ortho-Clinical, the average amount raised by floating medtechs over the first half was $174m, versus biotech’s $158m. All but one of the medtech deals raised at least $100m. The overall message for device makers wishing to float appears to be: go big or go home. It is likely that the falling demand for Covid-19 testing in the US is at least partly to blame for Lucira’s disappointing showing – something that would also help explain Talis Biomedical’s 31% share price fall. Lucira launched an upsized offering in early February at $17, and soon hit a high of $37, but shed value rapidly after that, becoming the worst-performing market debutante of the first half. Last November Lucira became the first company to gain US authorisation for a home-based Covid-19 test that detects the virus’s RNA, an impressive achievement for a tiny private group. Overall, most of the newly public groups have performed well since: only three have seen their share prices decline since their debuts.īut what is intriguing is how poorly some of this year’s diagnostics flotations have done once on the stock market. Medtech venture capitalists will likely remember 2014 as the Year of Redemptionthe point at which funding finally freed itself from the dark recesses of the investment abyss. Their IPO offering comprised 14,710,000 shares of common stock at a public price of 17.00 per share. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. is a clinical-stage biopharmaceutical company at the forefront of redefining neuroscience drug development. We use cookies to improve your website experience. In the 12 months ended June 30, 2022, the number of deals signed in the sector fell to 252. Source: Evaluate Medtech & company websites. Start-Up compares step-up valuations in the recent spate of medical device IPOs to those of previous years. A decline in mergers and acquisitions in the medical device industry this year may continue into 2023 amid near-term storm clouds that include continued market uncertainties, according to a report by consulting firm EY. 5 biggest medtech IPOs of H1 2021Īll listings on Nasdaq, except Signify on the NYSE. The preponderance of in vitro diagnostics companies among the medtechs that have gone public so far this year is a continuation of a trend that has been clear for some time of the 19 medtechs to float last year, six were diagnostics groups. The only other group that had to do this was the orthopaedics firm Bioventus, which went out at a 13% haircut. Ortho-Clinical is unusual in that it had to price its offering at a steep discount to its preannounced range to get investors on board.
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