Stress Tested 3406

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). 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.

According to company president and COO John Hinson, Quinton's IPO succeeded largely because it differed from many that had preceded it. "Quinton came out with a very solid business proposition—an established distribution method, established brand recognition, an experienced management team, and a model that included 40% recurring revenues through service and consumables," says Hinson. "I think that was appealing to investors."