A quick overview of of IPOs in medtech arena. Along with, perception difference amid various healthcare wings including Biopharma, Diagnostics and Medical Devices.
For every medical device start up it is a dream to host an IPO, but not all get this opportunity. For the few who make it, its is their privilege to be a part of Wall street.
Wall street has always been kind to Biopharma companies, where slight promising result can lead to pouring in of cash via IPO clouds.Medical device and diagnostic companies on the other hand even though backed by promising technologies, outstanding clinical outcomes and increased investor attention have been reluctant to board the IPO ship. Things got different in 2014, 2014 emerged as a remarkable year for medical device and diagnostics industry, with close to 20 major IPOs either filled or planned by medtech firms. This fact for sure will buoy next medtech contenders, and also paint an image which say; public offering gateway can be one of the very ideal channel for companies aspiring to generate cash flow.
Though medical device and diagnostics companies in past did not lead the game as their counterparts: Biotech, they are now trailing in right direction with a pace steady enough to put them ahead of other competitors.
Key difference between the two industries as quoted in fierce medical article is: For biopharma company an impressive clinical study can quadruple its market value on one hand; on the other ; one toxic flare can reduce it to a penny stock. However if you come to see medtech firms; they are always in the steady phase with medium risk appetite. Where they do not get to experience these extremities of situation, while they enjoy their journey on IPO path.
Since the medical device companies do not present the case involving situations which are either promising or terrifying, two very important elements that are necessary to get investors starry eye, they are not able to rope in buyers attention to a considerable amount. This is very important factor which makes biopharma company take all the limelight of the table which also as med tech booth on it.
Amid all this; diagnostics which stands in between medical and pharma in terms of its popularity in IPO arena always has seen constant boarding on IPO wagon.Below is snapshot on some of the noteworthy Medical device and Diagnostics IPOs
It is little weird that Biopharma companies can rope in amount as high as 100 million USD for company whose product hinges on recent clinical study on animals while medical device companies even with an FDA OK are able to rope in cash around 50 million USD( Average Value) through IPO gateways.
Here is a quick glance on IPOs of some major medical and diagnostics companies:
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