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Medical Device IPOs: Year of the Comeback?

Originally Published MX September/October 2004

BUSINESS NEWS

After a complete absence from the public equity markets in 2003, the medtech industry is showing signs that the initial public offering (IPO) may be reemerging as a viable tool for capital formation. Renaissance Capital (Greenwich, CT) reports that six medtech companies issued IPOs during the first six months of this year (see Table I).

Company
Location
Ticker
Web Site
Products
2003 Revenues
($ millions)
Employees
(no.)
AngioDynamics Inc. Queensbury, NY NASDAQ:
ANGO
www.angiodynamics.com Medical devices used in minimally invasive, image-guided procedures to treat peripheral vascualr disease.
46.2
218
Animas Corp. West Chester, PA NASDAQ:
PUMP
www.animascorp.com External insulin pumps.
31.6
290
Cutera Inc. Brisbane, CA NASDAQ:
CUTR
www.cutera.com Laser-based products for aesthetic removal of hair, wrinkles, and leg and facial veins.
44.1
112
Digirad Corp. Poway, CA NASDAQ:
DRAD
www.digirad.com Solid-state medical imaging products for the detection of cardiovascular disease.
59.1
316
Kinetic Concepts Inc. San Antonio, TX NYSE:
KCI
www.kci1.com Advanced wound care and therapeutic surface products.
821.7
4096
NuVasive Inc. San Diego, CA NASDAQ:
NUVA
www.nuvasive.com Surgical products for the treatement of spine disorders.
25.8
83
Table I. Company information for medical device firms placing initial public offerings during the first six months of 2004. Data: Renaissance Capital and company reports.

Continuing the trend since the midpoint of the year, three additional medtech companies have launched their anticipated IPOs. NeuroMetrix Inc. (Waltham, MA) went public on July 22 (NASDAQ: NURO) with an opening price of $8.00, which had risen to $8.08 at the end of August. Syneron Medical Ltd. (Yoqneam, Israel), began trading on August 9 (NASDAQ: ELOS) with an opening price of $12, which fell back slightly to $11.90 at the end of August. Stereotaxis (St. Louis) began trading on August 12 (NASDAQ: STXS) with an opening price of $8, which had risen to $9.14 by the end of the month.