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Are Medtech IPOs Failing? (slideshow)


Posted in Medical Device Business by Arundhati Parmar on May 20, 2014

In a big change from last year, public markets seemed to have opened up their arms to medical technology firms looking to go public. But are these IPOs failing?


Last year, when biotech companies were flocking to the public markets, medtech companies were relegated to the sidelines watching the show.

This year, however, medtech companies seem to be on an IPO tear. In a report earlier this month titled, "Medtech Convulsed By IPO Frenzy" from EP Vantage, the publishing arm of market intelligence firm Evaluate, author Elizabeth Cairns notes that "'so far this year there has been little short of a frenzy for device company IPOs, traditionally very rare in medtech." In April alone, seven firms went public, compared to 12 that went public on Western stock exchanges in all of 2013, she wrote.

At the IBF MedTech Investing Conference in Minneapolis on May 21, panelists were overall happy about the public markets opening up. Medtech startups now have an alternative to being acquired by a larger firm to access some liquidity.

But how did these newly minted public companies fare on opening day? Did the IPOs soar or did they bite the dust? An easy metric can be evaluated to answer the question. Did the stock price of the company going public close lower than the offer price on the first day of trading? If it did, the IPO failed. If it didn't, then job well done.

Here is a slideshow of the top five IPOs of the year in terms of proceeds raised that answers the question for each of them. The data is from IPO Investment firm Renaissance Capital and Yahoo Finance.

[Photo Credit: iStockphoto.com user AtnoYdur]

Begin Slideshow

-- By Arundhati Parmar, Senior Editor, MD+DI
arundhati.parmar@ubm.com

Attend the largest medtech event in the East Coast -MD&M East Conference & Expo, June 9-12, in New York City.

 


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