Article preview from Start-Up - June, 2009
Investors love to remind everyone that IPOs are financing events, not exiting events. using the mantra to put off Judgment Day for their investments. So how have device companies fared after the recent spate of IPOs. Read more...
Article preview from Start-Up - June, 2009
- Sixty-two medical device companies went public from 2004 to 2008. Forty-nine remain on the public market; 13 were acquired.
- Thirty-nine of the publicly traded companies are worth less today than they were at the time of the IPO.
- Cardiovascular and orthopedics companies showed the most resilience on the public markets, but strategic acquirers showed strong interest only in cardiovascular companies.
- Those successful companies that remained on the public markets now are becoming acquirers themselves and have started to nibble around the edges of orthopedics and cardiovascular deals.
Perhaps a day once existed when medical device investors could call an IPO purely an exiting event. But for years now device investors—and their cousins on the biopharmaceutical side—have recognized an IPO for what it often is—an opportunity to get a little breathing room by having someone else help to pay the bills.
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Companies mentioned in this article:
Alphatec Holdings Inc., AngioDynamics Inc., AtriCure Inc., BioMimetic Therapeutics Inc., BioTel Inc., CardioNet Inc., Covidien Ltd., Vnus Medical Technologies Inc., Dexcom Inc., EnteroMedics Inc., Hansen Medical Inc., Johnson & Johnson, Conor Medsystems LLC, Kinetic Concepts Inc., LifeCell Corp., MAKO Surgical Corp., MAP Pharmaceuticals Inc., Masimo Corp., Medtronic Inc., Mindray Medical International Ltd., NuVasive Inc., Cervitech Inc., Osiris Therapeutics Inc., Piramal Healthcare Ltd., Minrad International Inc., Solta Medical Inc., St. Jude Medical Inc., Stereotaxis Inc., Thermage Inc., Reliant Technologies Inc., TranS1 Inc., Volcano Corp., Zimmer Holdings Inc., Abbott Spine, Endius Inc., ORTHOsoft Inc., ev3 Inc., Chestnut Medical Technologies Inc., FoxHollow Technologies Inc., Kerberos Proximal Solutions Inc.
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