Stress Tested

Originally Published MX May/June 2003

COVER STORY

Since the March 2000 implosion of the dot-com bubble, conditions in the global public equity markets have gradually worsened for small companies seeking to make an initial public offering (IPO). Such trends have traditionally had less impact on medical device companies than on firms in other industries, because investors typically think of medtech stocks as good defensive holdings.

But this time is different. With little support in the public markets, only seven medtech companies dared to launch an IPO during 2002. One of those was already an established player in the field of cardiovascular monitoring, Quinton Cardiology Systems (Bothell, WA), whose May offering raised $32 million and netted $28 million.