One measuring stick of economic recovery is the resurgence of IPO. In early August, 2010, Tim Gray of Fortune  examined some signals that IPOs are getting stronger, noting Tesla Motors, 3-D film manufacturer RealD, and one private equity company had recently seen activity.
 
But, according to Thomas Lee of MedCity News, the return for the device industry isn't nearly so encouraging.
 
Earlier this month, Electromed Inc. said it raised $6.8 million at $4 per share, far short of the $13.8 million goal it set in May. Last fall, AGA Medical Holdings Inc. raised $199.4 million at $14.50 a share, considerably less than the $275 million at $19 to $21 a share it initially targeted. SurgiVision recently said it plans to float a greater number of shares at a heavily reduced price per share. The company now plans to offer about 3.7 million shares at $5 a share. In June, SurgiVision said it would sell 2.5 million shares at between $13 and $15 a share. The result is that SurgiVision now expects net proceeds of $15.2 million from the offering — less than half the amount it anticipated a mere two months ago.
 
The reasons offered by MassDevice.com for such disappointing IPOs include general slowed economic recover, healthcare reform, increased (and as yet unclear) FDA oversight. These are all logical and rational explanations, but I have one more to float.
 
A few years ago, when the economy had just started to dive, I interviewed George Blank, The MedTech Group's CEO and a 30-year veteran in the device space. I remember his observation that the medical device industry is always slower to react to economic hardships, both going into them and coming out. He said that in his experience, industry would be last to see problems and be one of the last sectors to recover.
 
I may be an optimist, but its comforting to know that in the long view, the industry is in an entirely predictable (and recoverable) situation.