Article preview from Start-Up - January 1, 2011
Overall in 2010, caution was the watchword for private investors, placing fewer dollars in fewer medtech deals compared to 2009. A total of $1.86 billion in private money was raised by medical device companies in 2010, a big drop from the $2.86 billion placed in the industry in 2009. Deal volume was down commensurately; there were 139 private medical device financings, compared to 207 in 2009. Investment dollars were apportioned, for the most part, in the usual fashion, with the largest proportion going into cardiovascular deals, followed by orthopedics. There were some surprises however, as a few categories, once avoided like the plaque, showed new investor interest.
Article preview from Start-Up - January 1, 2011
Overall in 2010, caution was the watchword for private investors, placing fewer dollars in fewer medtech deals compared to 2009. A total of $1.86 billion in private money was raised by medical device companies in 2010, a big drop from the $2.86 billion placed in the industry in 2009. Deal volume was down commensurately; there were 139 private medical device financings, compared to 207 in 2009.
Investment dollars were apportioned, for the most part, in the usual fashion, with the largest proportion going into 21 cardiovascular deals. ( See Exhibit 1.) In 2010 again, heart valve deals were hot, which wasn't surprising after Medtronic Inc.'s acquisition last year of transcatheter valve companies CoreValve (now Medtronic CoreValve LLC), with that device now entering US pivotal clinical trials, and Ventor Technologies. Heart valves will continue to remain at the top of investors' minds, given the acquisition of Sadra Medical Inc. by Boston Scientific Corp. for $386 million, and the impressive clinical trial results reported by transcatheter valve companies at the two largest cardiology meetings in 2010. Leading up to its acquisition, Sadra Medical raised $4 million in its Series D round, and four other heart valve companies (Symetis SA, Guided Delivery Systems Inc., JenaValve Technology GMBH and Valtech Cardio Ltd.) together raked in a total of $99.2 million in funding in 2010. Stents also stayed strong. Investors were particularly interested in companies working in some of the more difficult applications, bifurcated lesions, for example. Five stent companies raised $87.3 million, almost all of them at the Series C stage or later, many of them having made the list of the eight stent companies funded in 2009.
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